Aramex has sealed another deal to expand in Asia through a partnership with the expanding SouthKorean express and logistics group CJ GLS which will target Korean exporters to Asia and the rest
of the world.The Dubai-listed company announced today that it has formalised entry into the South Koreaneconomy with the signing of a service partnership agreement with the Seoul-based group.
The partnership follows Aramex’s recent venture into the Chinese market with the launch of thejoint venture company with SinoAir, and its significant expansion across Africa in 2011 with theacquisition of OneWorld Courier and In-Time Couriers in Kenya, and Berco Express in South Africa.
“We are extremely enthusiastic about our expansion into South Korea, one of Asia’s economicpower centres and the world’s sixth largest exporter. The opportunities for our partnership in theSouth Korean high-tech, industrialised and export-driven economy are remarkable, and we firmlybelieve that our partnership with CJ GLS will position us as one of the leading providers oftransportations and logistics providers in Asia,” said Othman Al Jeda, Aramex’s CEO for Asia.
“With the introduction of our services and innovative multi-product offering, supported by ourreputation for operational reliability and customer service excellence, Aramex will have astrategic position serving the South East Asian economies, and connecting the emerging economicpowers of Asia with the emerging African economies through the Middle East”.
Al Jeda added: “In the first phase of our partnership, we will be introducing our internationalexpress, and freight services and serving our customers in South Korea through our global network,spread across four continents and in 59 countries.”
Mr. Wook Heo, Managing Director and Head of the CJ GLS Global Headquarters, stated that: “CJGLS has combined its outstanding service capabilities acquired through its domestic door-to-doordeliver businesses with the global network provided by Aramex, which allows CJ GLS to providecustomers services with even greater speed and accuracy.” He anticipated that “thispartnership with Aramex will serve as a bridgehead for expanding the international door-to-doordelivery operations and launching new services in the Asian and African regions.”
Economic relations between South Korea and the Middle East and North Africa have been growingover the past decade with the Gulf Cooperation Council emerging as South Korea’s second biggesttrading partner after China. According to figures released by the Korea International TradeAssociation, the volume of trade between the Gulf Cooperation Council (GCC) countries and SouthKorea reached US$ 113 billion in 2011 with exports from Korea to the GCC growing by a 38.2% toreach US$ 17.3 billion.
Established in 1998, CJ GLS started as the first provider of third party logistics in SouthKorea and has grown into a leading global logistics provider with an extensive network in Koreawith 74 distribution centers, and strong global outreach with 25 offices in 12 countries acrossAsia, Europe and North America. Last year it expanded services in China, Taiwan, Japan, India andsouth-east Asia. The company, part of the CJ conglomerate, aims to be “the top global logisticscompany of Asia by 2013” and to become of the world’s 20 largest logistics companies by 2020.
Last June parent company CJ Group made a winning $1.8 billion bid for a controlling 37.6% stakein Korea Express, the country’s leading parcels and logistics operator. In November, the bid wasreduced to $1.7 billion for a 40% stake.
In January 2012, Korea Express was re-branded to ‘CJ Korea Express’ but it remains separate fromCJ GLS, even though the two companies compete in domestic express and there had been speculation ofa merger to create a new market leader. CJ Korea Express has revenues of some $1.9 billion while CJGLS has revenues of $1.3 billion.
