Promotion of Vietnam Complex Logistics Center
project with Ulsan Port Authority
Hyundai Glovis signed a “Memorandum of Understanding (MOU) for business cooperation for building a Complex Logistics Center in Vietnam” with the Ulsan Port Authority (UPA). By signing this MOU, the two companies plan to build a complex logistics center on a 30,000 square meter site in the port hinterland in Ho Chi Minh City, Vietnam's largest economic hub, and carry out the operating project.
The two companies will start operation of the complex logistics center as early as next year. After the completion of the complex logistics center, the two companies plan to operate local cold chains, auto parts, and general cargo logistics in Vietnam through the complex logistics center, and in particular, the cold chain (cold storage distribution) market is drawing attention. Hyundai Glovis plans to handle the entire export process, including transport by sea, customs clearance, warehouse storage, and inland transportation in Vietnam, in a seamless way, using the cold chain system applied in China since last year. In addition, Hyundai Glovis plans to use the complex logistics center as a logistics base for auto parts supplying the parts to Southeast Asian markets, while also providing logistics service for non-automotive industries.
And when the operation returns to normal, Hyundai Glovis plans to develop various new businesses based on this. The company plans to build a small-scale urban style fulfillment center (packaging warehouse) in the center of Ho Chi Minh City to provide e-commerce logistics services that transports Korean agricultural and fishery foods, K-pop products, and premium consumer goods. In addition, it will carry out cross-border transportation between Vietnam and Cambodia. Hyundai Glovis will ensure successful implementation of the business so that it can be expanded to a business model that works throughout Asia, beyond Vietnam.
The two companies will start operation of the complex logistics center as early as next year. After the completion of the complex logistics center, the two companies plan to operate local cold chains, auto parts, and general cargo logistics in Vietnam through the complex logistics center, and in particular, the cold chain (cold storage distribution) market is drawing attention. Hyundai Glovis plans to handle the entire export process, including transport by sea, customs clearance, warehouse storage, and inland transportation in Vietnam, in a seamless way, using the cold chain system applied in China since last year. In addition, Hyundai Glovis plans to use the complex logistics center as a logistics base for auto parts supplying the parts to Southeast Asian markets, while also providing logistics service for non-automotive industries.
And when the operation returns to normal, Hyundai Glovis plans to develop various new businesses based on this. The company plans to build a small-scale urban style fulfillment center (packaging warehouse) in the center of Ho Chi Minh City to provide e-commerce logistics services that transports Korean agricultural and fishery foods, K-pop products, and premium consumer goods. In addition, it will carry out cross-border transportation between Vietnam and Cambodia. Hyundai Glovis will ensure successful implementation of the business so that it can be expanded to a business model that works throughout Asia, beyond Vietnam.
Strengthening global aviation logistics
and establishing a strategic hub in Frankfurt, Germany
Hyundai Glovis plans to set up a direct management office at Frankfurt Airport, Germany, to carry out air freight forwarding services, and expand its air freight business. Moreover, Glovis plans to expand its aviation business to the Americas and Asia-Pacific region within this year to solidify its position in the global logistics market by providing comprehensive solutions in all areas of the logistics ecosystem including land, sea and air.
Hyundai Glovis plans to prove its sales power targeting global companies that intend to increase market dominance in East Asia, starting with Europe, and to compete with multinational companies in all sectors such as high value-added cargo including high-tech parts and medical devices, including auto parts, consumer goods, cold chain (cold storage/frozen logistics), and global e-commerce.
Hyundai Glovis’ expansion of aviation logistics business is a preemptive response to the post-COVID-19 era. Based on its strengths in land and sea transportation, Hyundai Glovis plans to rapidly grow its aviation logistics capabilities to provide comprehensive logistics solutions, and to enhance customer satisfaction.
Hyundai Glovis plans to prove its sales power targeting global companies that intend to increase market dominance in East Asia, starting with Europe, and to compete with multinational companies in all sectors such as high value-added cargo including high-tech parts and medical devices, including auto parts, consumer goods, cold chain (cold storage/frozen logistics), and global e-commerce.
Hyundai Glovis’ expansion of aviation logistics business is a preemptive response to the post-COVID-19 era. Based on its strengths in land and sea transportation, Hyundai Glovis plans to rapidly grow its aviation logistics capabilities to provide comprehensive logistics solutions, and to enhance customer satisfaction.
Sales Share of Non-affiliated Companies in CBU
Marine Transport reached 55%, the Highest-Ever Level
Hyundai Glovis achieved a record high of 55% of non-affiliated sales, excluding Hyundai and Kia Motors, in the pure car and truck carrier (PCTC) business last year.
Hyundai Glovis has shown an annual increase in non-affiliated sales in the PCTC business. It accounted for 40% in 2016, followed by 42% in 2017, and 44% in 2018, respectively, and increased to 52% in 2019 when the proportion of non-affiliated sales exceeded that of affiliates for the first time. Compared to 12% of non-affiliated sales in 2010, when Glovis started its shipping business in earnest, it has increased more than four-fold in 10 years.
In particular, last year, due to the impact of the COVID-19 pandemic, the global CBU sales and sea freight volume decreased by 14% and 20%, respectively, year on year. Nevertheless, it is more meaningful that Glovis achieved such results by targeting major shippers, such as global automakers and heavy equipment manufacturers ─ based on its strengths such as increased transportation efficiency through aggressive sales activities and continuous investment in vessels. Hyundai Glovis plans to actively engage in global automaker sales based on continuous investments such as securing new ro-ro ships.
In particular, last year, due to the impact of the COVID-19 pandemic, the global CBU sales and sea freight volume decreased by 14% and 20%, respectively, year on year. Nevertheless, it is more meaningful that Glovis achieved such results by targeting major shippers, such as global automakers and heavy equipment manufacturers ─ based on its strengths such as increased transportation efficiency through aggressive sales activities and continuous investment in vessels. Hyundai Glovis plans to actively engage in global automaker sales based on continuous investments such as securing new ro-ro ships.
2021.02.01