Hanjin to participate in operation of logistics center in Thailand

South Korea's Hanjin Transportation, a logistics unit of Hanjin Group, announced on Friday that it will open a 9,000-square-meter container freight station (CFS) logistics center near Laem Chabang Port in Thailand and make a full-scale entry into the local logistics market.

Hanjin plans to participate in CFS operations by investing $830,000 (1.1 billion won) to acquire a 14% stake in KSP Depot, a prominent logistics company in Thailand.

The CFS logistics center will serve as a facility for storing, distributing and handling containerized cargo.

As a result, Hanjin said that the Southeast Asia logistics circle, connecting Vietnam, Myanmar, Cambodia, Indonesia and Singapore, has been completed.

A Hanjin official stated that through the Laem Chabang CFS, his company will not only secure stable profits but also explore various business opportunities such as one-stop logistics services that connect to inland transportation in Thailand.

Laem Chabang Port is considered a trading hub with the highest cargo handling volume in Thailand.

Hanjin is strengthening its global business with 12 overseas subsidiaries in the United States, China, Europe and Southeast Asia.

In Southeast Asia, the company has established subsidiaries in four countries, including Vietnam, Myanmar, Cambodia and Indonesia, and operates representative offices in Thailand and Singapore.

Following its participation in CFS operations, Hanjin plans to upgrade its representative office in Thailand into a local corporation.

Write to Hun-Hyoung Ha at hhh@hankyung.com