Hyundai Logistics Corp(HLC), a total logistics enterprise as a member of the Hyundai Group, will purchase and operate the Asia's largest high-tech logistics center. The company recently announced an agreement to run a 'Osan logistics center' currently being built in Osan city, Kyeonggido for the next 7 years.
HLC was also given a purchase priority for the center as of 2019 at the time the agreement is expired. Osan logistics center is scheduled to be completed in July. The center is 28 times as big as football stadium with total floor area of 200,291㎡ (plottage of 54,919㎡), which is the biggest in Asia as a single logistics center.
561 cargo vehicles can be parked simultaneously and the ramps like road are installed so that container lorry can have direct access to the each floor inside the center. It is a new concept futuristic logistics center equipped with advanced automation devices that facilitate easy loading and unloading. The center is located just 3 minutes away from Osan IC, about half an hour away from Yangjae IC, Seoul and 40 minutes away from the port of Pyeongtaek, where cargo traffic growth marks the highest rate among the domestic ports.
HLC is going to rent some parts of the center to the private logistics companies while running the rest of it by themselves. The annual sales revenue is expected to be about 100 billion Won. Particularly because the Osan center serves hub functions for 30 logistics centers in metropolitan area being operated by HLC, the company expects cost saving rate in operation of total logistics centers to reach more than 60%.
Further, HLC has decided to explore overseas market by using Osan center as a base to reinforce 3PL(Third Party Logistics) services. 3PL means by logistics service combining two or more functions among delivery, warehousing and distribution/processing.
Other than Osan center, HLC is now building another logistics centers in Jangjidong, Seoul named 'south eastern regional logistics complex' and 'Gunpo 2nd-phase logistics center' in Gunpo city, Gyeonggido. Upon completion of these complexes, HLC will have built up the top class logistics infrastructure in Korea.
Mr. Noh Young Don, a CEO of HLC, said "Being inspired by purchase and operation of Osan logistics center, we will try to discover new lucrative logistics-related business models to achieve stable sales and profits."
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Osan logistics center is 28 times as big as football stadium with total floor area of 200,291㎡, which is the biggest in Asia as a single logistics center.
