South Korea’s Hanjin Transportation, a logistics unit of Hanjin Group, announced on Monday that it will expand its European bases, including establishing a new base in Hungary this year, to boost brand power in the European logistics market.
Hanjin set a goal to increase its overseas bases from 37 locations in 18 countries to 42 locations in 22 countries this year.
Hanjin established its European subsidiary in Prague and the Czech Republic in August 2013, and under this subsidiary, it operates branches in Vienna, Austria; Frankfurt, Germany; Wroclaw, Poland; and Oslo, Norway, primarily conducting air freight and ground transportation businesses.
In April, President and CEO Noh Sam-sug and President and Chief Marketing Officer Cho Hyun-min went on a business trip to three European countries—Germany, the Czech Republic, and Norway—to assess the growth potential of the local logistics market and establish plans to revitalize logistics operations in the European region.
Hanjin plans to expand its European bases to 12 by 2027. This year, it is pushing to establish new bases in Budapest, Hungary, and Morocco, a region adjacent to Europe.
In 2010, Hanjin established a subsidiary in Uzbekistan to enhance its logistics competitiveness by creating synergies with its European bases.
As the global e-commerce market continues to grow, Hanjin is also promoting the expansion of its e-commerce logistics business in European countries.
In conjunction with local logistics infrastructure and the Hanjin Incheon Airport Global Logistics Center, which opened in 2010, Hanjin plans to attract new e-commerce volumes from Europe to South Korea, including alcoholic beverages and clothing.
It aims to expand its e-commerce logistics operations, which are currently centered in Germany, to France, Poland, and the United Kingdom.
Hanjin will also strengthen its Road Feeder Service (RFS) operations, which transport cargo between airports by truck, targeting non-European airlines.
The company will attract new volumes from domestic companies operating in Europe and the local global companies.
Hanjin plans to diversify its business by securing warehouses within local bases to provide storage services.
By Jae-Kwang Ahn
ahnjk@hankyung.com
