SK Energy Partners with CJ Logistics to Launch MFC Business (Comprehensive)

SK Energy Converts Gas Station Sites into Urban Logistics Facilities (MFC)
CJ Logistics Builds 'MFC' in the Seoul Metropolitan Area
Delivery Trucks Switch to Eco-Friendly Vehicles... MFC Equipped with Electric Vehicle Infrastructure

[Asia Economy Reporter Hwang Yoon-joo] SK Energy has partnered with CJ Logistics to utilize urban gas stations as logistics facilities (MFCs). MFCs represent a trend in the logistics industry that has evolved with the COVID-19 pandemic and the intensifying quick commerce (instant delivery) competition, involving the establishment of logistics hubs throughout urban areas instead of on city outskirts. The two companies plan to equip gas stations with electric vehicle charging platforms to prepare for an eco-friendly logistics era.

SK Energy and CJ Logistics signed a business agreement for "urban logistics service development and eco-friendly vehicle transition cooperation" at SK Seorin Building in Jongno-gu, Seoul. They plan to build MFCs at gas stations and jointly operate new logistics services.

Through this agreement, the two companies will collaborate on ▲developing urban logistics facilities and delivery services ▲transitioning their commercial vehicles to eco-friendly vehicles (electric and hydrogen vehicles) ▲enhancing welfare for CJ Logistics truck drivers through SK Energy’s truck membership services and rest areas ▲and recycling used batteries as part of ESG initiatives.

The collaboration on MFC construction between SK Energy and CJ Logistics stems from aligned interests. As internal combustion engine vehicles become more fuel-efficient and demand for electric vehicles rises, about 100 gas stations close annually. This is why the petroleum industry is actively pursuing new business ventures at gas stations. Meanwhile, the logistics industry faces challenges delivering directly to consumers due to the surge in online deliveries caused by COVID-19 and changes in the delivery market such as dawn delivery services. This has increased the need to establish dense logistics networks in actual residential areas rather than suburban locations.

Petroleum companies are motivated by their desire to enter new businesses based on gas stations, while the logistics industry demands sites for MFC construction, leading to this cooperation. An MFC requires approximately 3,305㎡ (1,000 pyeong) of space. Since one gas station covers about 992㎡ (300 pyeong), they plan to build 4-5 story buildings to use as MFCs. MFCs located throughout urban areas will enable short-distance deliveries, increasing product inventory turnover and providing customers with faster delivery services.

Furthermore, CJ Logistics’ delivery vehicles will be transitioned to electric and hydrogen vehicles. SK Energy plans to establish electric and hydrogen vehicle charging infrastructure and operate charging memberships at multiple hubs, including MFCs and CJ Logistics’ logistics terminals. They will also jointly develop eco-friendly projects such as recycling used batteries generated from CJ Logistics’ delivery vehicles.

This content was produced with the assistance of AI translation services.