RIYADH: Saudi Arabia’s logistics sector is set to undergo positive transformations thanks to a new agreement between the Kingdom’s Nesma Co. and Korean firm CJ Logistics.
The companies have formally signed a memorandum of understanding at CJ Logistics' headquarters in Seoul, affirming their shared commitment to explore joint business ventures and prioritize collaborative projects in Saudi Arabia, according to a press release.
The partnership aims to bring transformative changes to the logistics industry in the Middle East region.
Nesma Group’s delegation visited CJ Logistics’ advanced logistics technology centers in Incheon GDC and Gunpo Smart Fulfillment Center earlier this week.
Established in 1979, Nesma Group is a diversified conglomerate with 51 subsidiaries across various industries, including construction, finance, and logistics. The group has a presence in four countries, including Saudi Arabia, Egypt, the UAE and Turkey.
Kang Byung-koo, the head of CJ Logistics’ Global Business Division, expressed optimism, stating that they aim to enhance their influence in the Middle Eastern logistics market by taking their partnership with Saudi firm Nesma Group to the next level.
In May, CJ Logistics inked a business agreement with the Saudi Civil Aviation Authority to establish a global distribution center for managing international shipments of the global online health and lifestyle retailer iHerb in the Middle East.
Expected to be operational next year, the facility will cover a total area of 18,000 sq. meters with a daily processing capacity of 15,000 boxes. CJ Logistics’ Middle Eastern subsidiary, CJ ICM, is set to oversee local logistics operations.
CJ Logistics provides an integrated, one-stop supply chain management service platform. It offers air and sea international freight forwarding, warehousing, and transportation contract logistics services.
The company also facilitates asset-based transportation, parcel and express delivery, and supply chain consulting. Currently, it operates technology-driven logistics businesses at 249 bases in 36 countries worldwide.
