CJ Logistics Signs MOU with Saudi Logistics Company to Accelerate Middle East Market Expansion

CJ Logistics announced on the 16th that it has signed a 'Logistics Project Collaboration Memorandum of Understanding (MOU)' with the local logistics company 'Beez Logistics' to target the Saudi Arabian logistics market.

Beez Logistics is a logistics company based in Riyadh, the capital of Saudi Arabia, and began full-scale operations in 2017. It provides comprehensive logistics services including contract logistics, cold chain logistics, and last-mile delivery across various industries such as food and beverage, pharmaceuticals, and health & beauty (H&B).

Kang Byung-gu, Head of Global Division at CJ Logistics (right), and Musaad Almalohi, CEO of Biz Logistics, are signing the 'Logistics Project Collaboration MOU' and taking a commemorative photo. Photo by CJ Logistics

This agreement centers on both companies sharing their logistics experience, technology, networks, and know-how to maximize synergy and jointly expand logistics business in Saudi Arabia.

Both companies are reviewing various collaboration plans to provide delivery services linked to the operation of iHerb’s Middle East regional logistics center, the 'Saudi GDC (Global Distribution Center)', which is scheduled to open in 2024. The GDC is a system where global e-commerce companies store products in logistics centers located in neighboring countries where consumers reside, enabling rapid delivery upon order.

First, CJ Logistics expects to provide delivery services suited to Saudi Arabia’s climatic characteristics by utilizing Beez Logistics’ logistics capabilities. Except for some regions, Saudi Arabia generally has a typical desert climate with high temperatures and minimal rainfall. By leveraging Beez Logistics’ cold chain system and last-mile delivery network, products can be safely delivered across Saudi Arabia while maintaining appropriate temperatures.

Additionally, close collaboration with Beez Logistics, which has local sales networks and recognition, is expected to actively promote localization strategies. By strengthening sales networks and connections, CJ Logistics plans to secure a foothold for full-scale entry into the Saudi logistics market by expanding opportunities to win logistics projects from both the Saudi government and local companies.

Earlier in March, Beez Logistics CEO Musad Almalohi and executives visited Korea to discuss logistics cooperation plans with CJ Logistics. To directly experience the state of Korea’s logistics industry, they toured major CJ Logistics facilities including the Dongtan TES Innovation Center, Incheon GDC, and Mega Hub Gonjiam.

CEO Almalohi showed great interest in e-commerce logistics related to the Korean health & beauty market, noting the popularity of K-Beauty centered in Saudi Arabia and the Middle East. He was also reportedly deeply impressed by advanced logistics technologies introduced throughout logistics sites, such as the Mega Hub Gonjiam where nationwide parcels are sorted and the smart packaging system.

Kang Byung-gu, head of CJ Logistics’ Global Division, said, “The Saudi government is showing great interest and investment in logistics business as part of its economic diversification policy, Saudi Vision 2030. We will provide logistics services that can serve as a bridgehead for Korean and global companies entering Saudi Arabia and the Middle East region.”

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