CJ Logistics Launches Middle East Logistics Hub...Expands E-Commerce Logistics

Applying the successful Incheon GDC model to Saudi Arabia

CJ Logistics has established a logistics hub for the Middle East in Saudi Arabia and is accelerating its push into the e-commerce logistics market.

CJ Logistics announced on February 19 that it held a grand opening ceremony for the Saudi GDC (Global Distribution Center) in Saudi Arabia on February 12 (local time) and will begin full-scale operations. The ceremony was attended by Song Jonathan, Head of Global Business at CJ Logistics, Jang Youngho, Head of Global Division 1, as well as key stakeholders including the Saudi General Authority of Civil Aviation, the Riyadh Integrated Logistics Zone operator, and customer iHerb.

Song Jonathan, President of the Global Business Division at CJ Logistics (third from the right), is participating in a ribbon-cutting ceremony on the 12th (local time) in Saudi Arabia with key stakeholders including the Saudi General Authority of Civil Aviation, the operator of the Riyadh Integrated Logistics Zone, and iHerb to commemorate the grand opening of the Saudi Global Distribution Center. Photo by CJ Logistics

In 2023, CJ Logistics signed a business agreement with the Saudi General Authority of Civil Aviation and invested about 60 billion won to complete the Saudi GDC. Located in the integrated logistics zone at King Khalid International Airport in Riyadh, Saudi Arabia, the Saudi GDC is a regional fulfillment center with a total floor area of 20,000 square meters that can process more than 20,000 boxes per day. It provides professional services across the entire e-commerce process, from product storage and inventory management to packaging and customs clearance. Using Saudi Arabia as a base, products will be supplied to major Middle Eastern countries such as the United Arab Emirates (UAE), Kuwait, and Qatar.

In particular, this is described as a representative case of transferring the technological capabilities and operational expertise that CJ Logistics has accumulated in Korea to overseas markets, and as a hub that symbolizes the globalization of K-logistics. CJ Logistics introduced the GDC model for the first time in Korea in 2019, establishing its first hub in Incheon and building an operating model that dramatically reduced delivery lead times and costs.

The Saudi GDC is also equipped with a multi-shuttle system. Between large racks measuring 10 meters in height and 60 meters in length, automated guided vehicles (AGVs) travel along fixed routes to automatically store and retrieve products. This technology is optimized for the characteristics of e-commerce, which involves many small-quantity orders across a wide range of items.

An Order-to-Person (OTP) picking system, designed so that order boxes move to the workers' locations, has also been introduced. Boxes travel along conveyors to each product storage zone, and when workers in that zone place the required items into the boxes, the boxes automatically move on to the next zone. By reducing worker movement and increasing the speed and accuracy of order processing, the system enables rapid handling of large volumes.

View of CJ Logistics' Saudi Global Distribution Center. CJ Logistics

Song Jonathan said, "We will successfully operate the Saudi GDC, a strategic hub connecting the Middle East region, to simultaneously raise expectations and satisfaction for cross-border logistics services among our clients and consumers," adding, "We will continue to expand our top-tier global operational and technological capabilities in the global market and lead the globalization of K-logistics."

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