CJ Korex pursues joint venture in PhilippinesCJ Korea Express, the country’s largest logistics company, is establishing a joint corporation in the Philippines with a local partner in a bid to expand its presence in Southeast Asia.
The Korean company signed a joint venture agreement with the Philippines’ Transnational Diversified Group on Friday in Manila to start a logistics business catering to the local market, CJ Korea Express said Monday.
Although the company has been operating in the Philippines since 2001, it has focused mainly on bringing overseas cargo to the country via sea and air and providing a small bit of inland delivery.
Through the new corporation, to be called CJ Transnational Philippines, CJ Korea Express will use its self-developed cargo tracking service called Hello to connect corporate customers with local freight car drivers, deploy its own cargo trucks to enhance inland delivery and work toward establishing a logistics network over the whole country by 2018.
The Transnational Diversified Group, founded in 1976, has over 30 affiliates encompassing various business areas including logistics, vessel management, tourism and information technology.
With Transnational’s existing sales network and local staff, the joint corporation “will be able to soft-land in the country in a short amount of time,” CJ Korea Express said in a statement Monday.
The joint venture is part of the Korean logistics company’s bid to expand business in the Southeast Asian market, where consumer power is growing and multinational companies from the United States, Europe and Japan have set up large manufacturing facilities.
Earlier in September, the Korean company acquired Century Logistics, Malaysia’s second-largest logistics company, to exploit its local network. The combination of CJ’s existing logistics operations in Malaysia and the acquisition has made it the top player by revenue in Malaysia.
That same month, the company signed a partnership with Lazada Group, the largest e-commerce platform operator in Southeast Asia, to deliver goods from Korea to six countries in Southeast Asia where Lazada does business: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
“With aims to become one of the world’s top five logistics companies, we are expanding our delivery networks not only in China but also in Southeast Asia through diverse means including mergers and acquisitions and establishing joint corporations,” a spokesperson from CJ Korea Express said.
BY KIM JEE-HEE [firstname.lastname@example.org]