Delivery of Parcels to Common Areas and Residents and Youth Delivering to Each Household

Smart Logistics System Construction and Support Project

Overview of the Joint Delivery Center

A joint delivery center, where logistics companies such as courier services deliver up to the center and local residents and youth deliver to each household, will be introduced in Seoul.

The Ministry of Land, Infrastructure and Transport announced on the 3rd that it has selected four logistics service demonstration projects and two logistics pilot city development projects this year as part of the 'Digital Logistics Demonstration Complex Creation Project' to establish and support a smart logistics system.

This demonstration project aims to enhance public convenience and improve living conditions by discovering and supporting leading projects that solve urban logistics problems using smart logistics technology. Depending on the target and content, the projects are divided into 'logistics service demonstration projects' and 'logistics pilot city development projects.'

First, the 'logistics service demonstration projects' are initiatives that demonstrate new logistics services incorporating various technologies to address traffic congestion and environmental improvement issues faced by existing cities. The 'logistics pilot city development support' project involves establishing logistics plans, including logistics facilities, networks, and specialized projects, targeting newly developed cities.

The selected local governments will receive up to 2 billion KRW in national funding per project, considering the project scale, to demonstrate new services in their regions and establish logistics plans. Additionally, the Korea Research Institute for Human Settlements, selected as the project management institution, will support the stable implementation of the selected projects and promote dissemination activities such as discovering leading cases.

The logistics service demonstration project recipients include Seoul, Incheon, Gimhae in Gyeongnam, and Iksan in Jeonbuk.

Seoul plans to enhance logistics efficiency by establishing small-scale joint delivery centers in shared community spaces.

Logistics companies such as courier services will deliver goods to the joint delivery centers, and youth and residents hired by Seoul will deliver the goods to households in a single trip.

This is expected to reduce duplicate courier vehicle trips, thereby decreasing traffic congestion and carbon emissions.

Seoul will also introduce 'micro-fulfillment centers,' small-scale logistics warehouses, in traditional markets such as Noryangjin and Majang-dong to demonstrate a service that delivers fresh products like agricultural, livestock, and marine products immediately.

Incheon will demonstrate a service in Songdo International City that uses real-time communication technology to transfer and deliver goods between cargo vehicles by utilizing parking lots and other spaces without a logistics warehouse.

Gimhae will introduce a smart shared logistics center to establish a cold chain logistics network for pharmaceuticals, a specialized industry item, and build a platform linked with pharmaceutical companies and medical institutions.

Iksan will implement a 'mobile collection service' targeting rural villages to resolve the difficulty of having to bring parcels directly to the dispatch point. Residents can entrust their parcels to the village hall for shipment.

Changwon and Seoul have been selected as digital logistics pilot city developers.

Changwon will build an underground logistics system centered on Masan Marine New City, and Seoul will prepare a plan to implement a digital logistics system in connection with the redevelopment of Yongsan Electronics Market.

The selected projects will officially commence from mid-March after consultations with local governments, participating institutions, and others regarding detailed implementation schedules.

Gu Heonsang, Director of Logistics Policy at the Ministry of Land, Infrastructure and Transport, said, "We plan to systematically promote this by combining the efforts of local governments, logistics companies, and the public and private sectors," adding, "We will continue to strive to establish a smart logistics system so that the public can enjoy a convenient and safe life."

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