CJ Logistics opens Riyadh distribution center in global expansion drive

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CJ Logistics opens Riyadh distribution center in global expansion drive

Emun Zabihi, CEO of iHerb, fourth from left, Jonathan Song, head of global business at CJ Logistics, fifth from left, along with representatives from the Saudi General Authority of Civil Aviation and the Riyadh Integrated Logistics Zone, participate in a ribbon-cutting ceremony to commemorate the grand opening of the Saudi Global Distribution Center on Feb. 12. [CJ LOGISTICS]

Emun Zabihi, CEO of iHerb, fourth from left, Jonathan Song, head of global business at CJ Logistics, fifth from left, along with representatives from the Saudi General Authority of Civil Aviation and the Riyadh Integrated Logistics Zone, participate in a ribbon-cutting ceremony to commemorate the grand opening of the Saudi Global Distribution Center on Feb. 12. [CJ LOGISTICS]

 
CJ Logistics is accelerating its global expansion by launching full-scale operations at its Saudi Global Distribution Center (GDC) in Riyadh, Saudi Arabia.
 
The company held a grand opening ceremony for the Saudi GDC on Feb. 12 as it began official operations. Jonathan Song, head of CJ Logistics’ global business division, Jang Young-ho, head of Global Division 1 and Emun Zabihi, CEO of iHerb, attended the event along with officials from Saudi Arabia’s General Authority of Civil Aviation and the Riyadh Integrated Logistics Zone.
 

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CJ Logistics signed a business agreement with the Saudi aviation authority in 2023. The company invested about 60 billion won ($41 million) to build the facility and completed construction last year. The center underwent trial operations before entering full service.
 
The Saudi GDC is located in the integrated logistics zone at King Khalid International Airport in Riyadh. The facility covers about 20,000 square meters (215,287 square feet) and can process up to 20,000 boxes per day.
 
The center provides end-to-end fulfillment services, including storage, inventory management, packing and customs clearance. It is designed to serve as a regional hub supplying Saudi Arabia and neighboring countries such as the United Arab Emirates, Kuwait and Qatar.
 
The Saudi GDC reflects CJ Logistics’ effort to transfer logistics technologies and operational expertise developed in Korea to overseas markets. CJ Logistics introduced its first GDC model in Incheon in 2019 in partnership with iHerb. The Saudi facility is based on that model.
 
CJ Logistics' Global Distribution Center in Riyadh, Saudi Arabia, can be seen in this undated file photo. [YONHAP]

CJ Logistics' Global Distribution Center in Riyadh, Saudi Arabia, can be seen in this undated file photo. [YONHAP]

 
The center features a multi-shuttle system in which automated guided vehicles move along 10-meter-high (32.8-foot-high) racks to store and retrieve goods. A goods-to-person system minimizes worker movement and is optimized for high-mix, low-volume e-commerce orders.
 
An order-to-person picking system has also been installed. Under the system, order boxes move along conveyors to storage zones where items are added before proceeding automatically to the next stage. The dual system is intended to improve processing speed and accuracy.
 
CJ Logistics’ partnership with iHerb and operational experience at the Incheon GDC supported the Saudi expansion, the company said. CJ Logistics plans to use the Saudi hub as a strategic base for the broader Middle East region.
 
“By successfully operating the Saudi GDC as a strategic hub connecting the Middle East region, we will simultaneously elevate expectations and satisfaction levels for cross-border logistics services among both customers and consumers,” said Song. “We will continue to expand our top-tier global operational and technological capabilities across international markets and lead the globalization of K-logistics.”
 
 

BY LIM JEONG-WON [[email protected]]
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