CJ Logistics is continuing its business expansion under its ‘Pan Asia No.1’ strategy with the official launch of the ‘CJ Logistics Smart Hub Bangna’, the latest parcel central distribution center in Thailand.
The 71,900-square-meter hub is fully equipped with advanced technologies and platforms, and offers parcel and logistics services with a maximum daily capacity of 408,000 units responding to market trends and demands as well as to the rapid expansion of e-commerce in the country. The company says this is in line with their plan to become one of the top tier global logistics companies through infrastructure investment and network development especially in strategic Southeast Asian markets like Thailand and Malaysia. The latest smart hub also supports government policy in driving the country forward to be at the very center of ASEAN as part of “Thailand 4.0”, which is expected to significantly expand the consumer goods logistics market including the parcel industry.
“Thailand is one of our strategic markets in Southeast Asia and our aim is to become one of the leading parcel service and logistics solution providers here, which is in line with our business goal to reach the global top tier logistics companies. In order to achieve these goals both locally and globally, one of our key strategies is to lay down a strong foundation by building logistics networks through M&A investment and infrastructure development. CJ Logistics plans to invest a total of 43 million USD (1.3 billion baht)* in the CJ Logistics Smart Hub Bangna by 2021, which is in line with our ‘Pan Asia No.1’ strategy of building a logistics network across the Asian region. CJ Logistics Smart Hub Bangna is the first smart hub to be fully equipped with cutting-edge technologies and a proven advanced system from South Korea featuring an automatic wheel sorter system and ITS (Intelligent Scanner). With the additional infrastructures by 2021, these will enhance efficiency by expanding capacity and allow for the sorting of up to maximum 408,000 parcel goods per day”, said Mr. Tae-Young Chung, Senior Executive Vice President – Head of Parcel Business Unit, CJ Logistics.
Mr. Myeong-Guk Park, General Director of Parcel Business, CJ Logistics Thailand, addressed the company’s medium and long-term plans, saying: ‘Thailand’s e-commerce market is growing at a double-digit rate every year as the emerging of middle class with a strong purchasing power and the young generation actively embrace the mobile environment. CJ Logistics Thailand foresees the growth of the parcel business in the country and is therefore continuously expanding points of service, increasing driver numbers and our daily capacity to cover all regions. We will have gone from 24 regional distribution centers, 320 drivers and a daily capacity of 10,000 parcels in 2016 to 120 regional distribution centers, an additional 2,200 drivers and a maximum daily capacity of 240,000 parcels by next year.
CJ Logistics Smart Hub Bangna is the first stage in transferring Korea’s Number-One technology to Southeast Asia through a customized hub in Thailand. To elevate the local parcel business to the international level, CJ Logistics is transferring skills and competence based on TES (Technology, Engineering, System & Solution). The hub is in an excellent location – Bangphli (Bangna), Samutprakarn– offering easy access to the capital city of Bangkok and upcountry areas. It is fully equipped with cutting-edge K-logistics technologies including a distribution automation system that can efficiently handle various types and sizes of goods, from small to medium boxes. The automation consists of a wheel-sorter, which automatically moves boxes to destination docks based on own area codes and an Intelligent Scanner (ITS), which automates the sorting process by scanning barcodes, waybill numbers, sorting automated equipment and internal cameras as well as giving an estimation of the shipping costs by measuring the volume of each material.
CJ Logistics says they are committed to offering excellent logistics services including contract logistics to local and multinational companies, while maximizing clients’ values through constant improvement and innovation. The launch of CJ Logistics Smart Hub Bangna is another milestone in growing logistics business while continuing to create share value, transferring know-how and K-logistics technologies, and driving the country’s economy and parcel industry to an international level by developing major infrastructure and expanding service points across the strategic Thai market.