CJ Logistics announced that a pilot operation is now “up and running” at its Central Distribution Centre (CDC) in Bangna, Bangkok which can sort up to 400,000 parcels per day.
South Korea's largest integrated transportation and logistics company announced the investment in the development of a 71,900 sqm facility in September last year as it targeted Thailand’s rapidly-growing parcel market, driven by e-commerce.
CJ Logistics said the CDC is currently the largest in Thailand – representing 13% of the country's processing capacity which handles three million shipments daily – and is equipped with the same wheel sorters used at its logistics centres throughout South Korea.
Thailand's parcel market is considered the business opportunity with the greatest potential due to the spread of mobile devices and the rapid expansion of the e-commerce market. E-commerce transactions in Thailand amounted to $23 billion as of 2017, and it is expected that 50% of total retail sales will take place online by 2020, the company noted.
In particular, the Thai government plans to develop the country as a hub of the ASEAN market by promoting high-tech industries and supporting the introduction of e-payment systems in conjunction with the 'Thailand 4.0' policy, which is expected to expand the consumer goods logistics market including the parcel industry, it added.
Hong Kong-based firm Kerry Express, Thailand's largest public company Thai Post and DHL are the key players in Thailand's parcel market.
“As the e-commerce market in Thailand grows at more than double-digit rates every year, and the country’s younger generation actively embraces the mobile environment, we are confident about the growth of the parcel business in the country,” CJ Logistics underlined.
“We aim to become Thailand’s No.1 parcel company by transferring know-how and cutting-edge technologies from Korea, developing major infrastructure and expanding service points across Thailand.”
In addition to the parcel business, CJ Logistics has been providing one-stop logistics services to local and multinational companies including contract logistics (CL), forwarding for import and export, and transportation projects since starting business in Thailand in 1998.
Besides Thailand, CJ Logistics is also focusing on business growth in markets such as Malaysia, Vietnam and The Philippines.
In June last year, it expanded its international business with the takeover of US firm DSC Logistics.
