JWD scales up in logistics with partner 

  
 
JWD holds a 49 per cent stake in the new company, CJL JWD Logistics Ltd, with CJ Logistics Thailand Co Ltd owning the rest, JWD’s chairman of the executive committee and chief executive officer, Charvanin Bunditkitsada, said yesterday. The joint venture has registered capital of Bt2 million.
Charvanin said the new company will provide logistics services to customers in the business-to-business (B2B) and booming e-commerce segments, as part of a move to grow its presence in the existing core segments while creating e-commerce as a new core segment.
This expansion widens the range of services for end-customers and strengthens the group’s businesses, he said
 Both parties will use their existing resources - JWD’s warehouses and vehicles and CJ Logistics’s nationwide truck network and advanced transport management and servicing technologies - to expand their businesses more efficiently.
JWD expects the investment to pave the way for an expansion of its B2C business to cover e-commerce, which has been growing dramatically in recent years. The combined market value of e-commerce in Thailand is forecast to surpass Bt3 trillion this year, compared with the Bt2.8 trillion reached last year, in line with the rising online purchase volumes. This will benefit the providers of logistics solutions to e-commerce operators, Charvanin said.
CJ Logistics Corp’s chief executive officer, Shon Kwan Soo, said that his company had decided to invest jointly with JWD in order to synergise the know-how and strengths of both companies and mutually enhance their capacity to offer solutions to B2B |and e-commerce customers in Thailand.
 Shon cited the surge in e-commerce in Thailand, adding that the growth would continue and likely increase the demand for logistics services.
CJ Logistics, already a major logistics provider in South Korea, has a significant overseas presence, including in Singapore, Indonesia, Malaysia, Philippines, Vietnam, and the US. In Thailand, it provides delivery services to e-marketplace operators and e-commerce customers, predominantly in the business-to-customer (B2C) segment. It now seeks to introduce B2B and contract logistics segments in partnership with JWD, which possesses experience and expertise in these two segments.
 “We seek to achieve our growth target by intensifying our investment campaigns in Thailand,” Shon said. “We aim to raise the number of delivery vehicles by more than 2,000 by 2020 and are working to build a new distribution centre (more than 30,000 square metres) in Bangna area by 2019 to improve the order fulfilment capacity to more than 400,000 pieces per day through employment of an automatic sorting system. CJ Logistics will become a global leader in logistics by 2020.”
Posting some US$6.1 billion in global sales in 2017, CJ Logistics provides a variety of logistics solutions in the areas of international cargo transport, domestic transport, distribution centres, depots as well as domestic and international express parcel and cargo deliveries.