Gemadept and CJ Logistics optimise strategic partnership for development

The move aims to optimise resources, sharpen focus on each party’s core competitive strengths, and continue cooperation for mutual and growth.

As reported by newswire The Korea Times, CJ Logistics would acquire the remaining stake in its Vietnam-based affiliate, CJ Gemadept Logistics Holding, as part of a broader restructuring agreement with its longtime partner, Gemadept. The deal will give CJ Logistics 100 per cent ownership of the unit, while transferring its stake in a separate shipping business back to Gemadept, effectively splitting the two operations and allowing each company to focus on its core strengths.

CJ Logistics and Gemadept had jointly operated two ventures since 2018. CJ Gemadept Logistics Holding, responsible for logistics operations, and CJ Gemadept Shipping Holding, focuses on maritime transport. Before the restructuring, CJ Logistics owned 50.9 per cent of the logistics business and 49 per cent of the shipping business.

Under the new agreement, the partners will swap stakes. CJ Logistics will acquire the remaining 49.1 per cent of the logistics unit, while transferring its 49 per cent stake in the shipping unit to Gemadept, leaving each with full ownership and independent control. At the same time, Gemadept will directly invest in and hold a 49 per cent equity stake in Mekong Logistics Joint Stock Company (MKL).

Leveraging its strength in applying IT to 3PL services, CJ Logistics will accelerate its strategy of expanding and connecting distribution centres, meeting diverse demands and increasingly high operational standards for end users in Vietnam.

For Gemadept, this strategy aims to maximise and enrich the port-logistics ecosystem. the group adopts a container-centric business model and integrates ports and logistics service chains to enhance synergies and improve operational efficiency.

With its solid infrastructure foundation and strong network of customers and partners, Gemadept expects to realise the following benefits from this strategy.

• Value enhancement through cargo volume scale across Gemadept’s port system: Surpassing 5 million TEUs in 2025 and targeting capacity growth in key economic regions nationwide.
• Strengthening shipping operations: Focusing on ownership and operation of the fleet to enhance ecosystem connectivity, improve competitiveness, and contribute to reducing national logistics costs.
• Expanding the cold supply chain: Increasing ownership and management of Mekong Logistics’ cold storage system will serve as a strategic platform to further develop the cold supply chain in the Mekong Delta and other potential regions in the future.

CJ Logistics is a logistics corporation headquartered in Seoul, South Korea, with an extensive network across more than 40 countries. The group provides comprehensive supply chain solutions, from distribution centres to last-mile delivery services, powered by advanced technology platforms.

Meanwhile, Gemadept is a Vietnamese corporation in port operations and logistics, owning and operating an integrated ecosystem at strategic locations nationwide. With 36 years of experience, the group has continuously strived to grow, affirm its pioneering position, optimise cargo flows, and connect Vietnam with the global supply chain.

Gemadept is going regional with CJ Vietnam’s leading port and logistics firm Gemadept Corporation recently elaborated on its partnership with CJ Logistics and revealed its plans to go regional.

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