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“Continuing to Expand Overseas Logistics Bases” Establishment of a Joint Public-Private Multimodal Logistics Center in Vietnam

  • Date

    2024.01.15.

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- “Continuing to Expand Overseas Logistics Bases” Establishment of a Joint Public-Private Multimodal Logistics Center in Vietnam -

 

 

 - Establishment of a public-private corporation to manage the operations of a multimodal logistics center, with phased rollout to begin December 2024

 - Priority for cargo of Korean small and medium enterprises at 10-15% discounts versus market prices

 

 On December 29th (Friday), 2023, the Ministry of Oceans and Fisheries (Minister Kang Do-Hyung) and the Ulsan Port Authority (President Kim Jae-gyun) announced the establishment of K-UPA, a public-private partnership that will be managing the operations of a multimodal logistics center in the Dong Nai Province of Vietnam, where many Korean exporters have a presence.

 

 Dong Nai is a Vietnamese Province located close to Ho Chi Minh City, the economic capital of the nation, and Cat Lai Port, the biggest port in Vietnam and a main manufacturing base for many Korean exporters. However, it remains a major challenge for Korean businesses to store their cargo since the region does not offer sufficient logistics facilities for storing at room and cold temperatures.

 

 In response, the Ministry of Oceans and Fisheries and the Ulsan Port Authority joined hands with KCTC, an integrated logistics operator in Korea, to improve the export-competitiveness of Korean companies operating in Southeast Asia and to adapt to the transforming global logistics supply chain, jointly investing KRW 18.8 billion since 2023 for the construction of a public-private partnership multimodal logistics center in Dong Nai Province, Vietnam. They recently completed the establishment of a corporation to oversee the center operations.

 

 The center will have a warehouse area of 12,000 ㎡ (land area of 21,000 ㎡) and will be able handle an annual volume capacity of 4,320,000 pallets (1,080,000 for room temperature, 3,240,000 for cold temperature) upon completion of construction. The center is scheduled to start operations in December 2024, starting with room-temperature cargo and expanding in phases to low-temperature cargo in July 2025. Priority will be given to cargo of Korean small and medium businesses at 10–15% lower than market prices.