Ministry of Land, Infrastructure and Transport Finalizes 4th Comprehensive Plan for Logistics Facility Development
Expanding Living Logistics Facilities Using Idle Road Land
Promoting Revitalization of Aging Inland Logistics Bases
As demand for ordering daily necessities online surges, the government has set a plan to expand more than 200 "order-delivery facilities," which are logistics warehouses that store products in advance and deliver them immediately, by 2027.
On the 11th, ten days before the Lunar New Year holiday, workers are sorting delivery packages and loading them onto vehicles at the Seoul Complex Logistics Center in Songpa-gu, Seoul. Photo by Heo Younghan younghan@
On the 26th, the Ministry of Land, Infrastructure and Transport announced the establishment of the "4th Comprehensive Plan for Logistics Facility Development (2023-2027)." This comprehensive plan is formulated every five years in accordance with the Logistics Facilities Act. The ministry aims to achieve KRW 200 trillion in logistics industry sales, 900,000 jobs, and a 46% share of added value by 2027.
First, regulations will be eased to allow order-delivery facilities (MFCs) to be placed throughout urban areas for immediate delivery of daily necessities to residential areas. The installation of living logistics facilities will also be expanded by utilizing idle road and railway sites such as rest areas, vehicle depots, and under elevated roads.
Public projects supporting the installation of logistics facilities on publicly owned parking lots or community centers will also be expanded.
Work to refurbish aging existing logistics facilities will be carried out simultaneously. The functions of the Uiwang Inland Container Depot (ICD), which operates until 2026, and the Gunpo Integrated Freight Terminal (IFT), which operates until 2028, will be strengthened, and measures to revitalize their operations will be prepared.
The project structure will be reorganized and the burden on operators eased to revitalize the development of urban high-tech logistics complexes, improving outdated logistics facilities to harmonize with surrounding facilities. Aging general logistics terminals and passenger terminals will be utilized to upgrade urban logistics facilities and reorganize them into resident-friendly facilities.
The logistics service infrastructure to eliminate regional disparities will also be expanded. Joint logistics hubs in underserved areas will be increased so that companies can reduce costs and lower delivery fees. Public facilities such as senior centers, community centers, and terminals in island and mountainous areas will be utilized as joint logistics hubs.
The construction of shared logistics centers that small and medium-sized logistics companies, which find it difficult to secure logistics centers in urban areas, can jointly use will also be expanded. Plans to provide logistics infrastructure linked with new transportation modes such as autonomous driving, drones, and urban air mobility (UAM) will be reviewed.
Cargo handling facilities at airports and ports will be improved using advanced technologies such as artificial intelligence (AI), and a third logistics complex will be established to handle cargo volume at Incheon Airport. The ministry will also consider promoting complex development near international logistics hubs that can stimulate high value-added logistics and manufacturing activities by utilizing airport and port logistics infrastructure.
Lee Yoon-sang, Director of the Transportation and Logistics Office at the Ministry of Land, Infrastructure and Transport, said, "We will faithfully implement the 4th Comprehensive Plan for Logistics Facility Development over the next five years. We will expand future capabilities in response to the 4th Industrial Revolution, provide universal logistics services without regional disparities, and foster airports and ports as international logistics hubs."
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