CJ Logistics Corp. is riding a wave of strong demand for outsourced storage and delivery services, with new contract logistics orders projected to hit 730 billion won ($563 million) this year, up 40% from 2023.
The South Korean logistics provider reported that operating profit in its contract logistics division climbed 16.8% to 135.1 billion won through the third quarter, while revenue rose 4% to 2.2 trillion won. The warehouse and distribution unit saw the strongest growth, with orders nearly doubling to 320 billion won.
The company’s expansion includes new storage facilities totaling 577,000 square meters – equivalent to 81 soccer fields – scheduled to open by 2025. A major contract win came from Jeju Province Development Company for storing its SamDaSoo mineral water brand, where CJ Logistics proposed indoor storage solutions to boost efficiency.
The growth reflects a broader industry shift as more businesses move from managing their own logistics to third-party providers, according to company executives. CJ Logistics is positioning itself to capitalize on this trend through its logistics technology research center and consulting services.
The company expects further momentum from its partnership with retail giant Shinsegae Group, though specific financial terms weren’t disclosed.
