Hyundai Glovis Co., the logistics unit of the world’s third-largest carmaker Hyundai Motor Group, plans to establish a logistics complex in Busan, South Korea’s biggest port city, to expand its business on non-automotive items and products of non-affiliated customers.
Hyundai Glovis said on Wednesday that it has signed a deal to buy land of 94,938 square meters (1 million square feet) in the hinterland behind Busan New Port. The value was known to be more than 100 billion won, according to industry sources in Seoul, although the company has yet to disclose financial details.
The company plans to build container yards and a comprehensive logistics center on the land by 2027.
“We aim to improve maritime forwarding competitiveness through the comprehensive infrastructure in the country’s largest Busan New Port,” said a Hyundai Glovis official. “We can also expand the business of the new facility into the nearby Jinhae New Port under development.”
TO EXPAND BUSINESS
The new complex is set to allow Hyundai Glovis to store as many containers as it wants in the yards and streamline all services for import containers including inspections and storage. The company can also tailor the structure and function of the facility to meet the needs of individual customers.
Hyundai Glovis plans to expand its services to include not only auto parts and electric vehicle batteries but also refrigerated cargo and other items of non-affiliated companies by setting up its own logistics centers at major harbors and airports.
The company is building a 44,420-square-meter logistics center at Incheon International Airport, South Korea’s main gateway to complete its construction next year.
The center is to be equipped with a sorting system and a customs clearance facility to handle global e-commerce cargo.
By Jae-Fu Kim
hu@hankyung.com
Jongwoo Cheon edited this article.
