February 3, 2020

South Korean firm completes acquisition of Chicago 3PL

CJ Logistics to integrate DCS Logistics under corporate umbrella.

By DC Velocity Staff

South Korean integrated logistics provider CJ Logistics is consolidating its North American units into a single operating company and will rebrand them all under its common name starting in 2021, completing its integration with Chicago-based DSC Logistics.

The move is the latest step in the relationship between the two firms; CJ Logistics has owned a majority stake in DSC since 2018, and has owned the third-party logistics provider (3PL) outright since Feb. 1.

DSC Logistics, CJ Logistics USA, and CJ Logistics Canada have now joined together under one combined operating company called CJ Logistics America LLC. That company will be doing business as DSC Logistics in the U.S. through 2020, after which point it will rebrand as CJ Logistics starting in 2021, the firms said.

The combined company will also include a freight forwarding division, which CJ Logistics plans to expand into operations in Mexico as well. The company's combined North American platform will include over 70 locations, including warehouses, transportation, freight forwarding, and corporate offices, with a combined warehousing footprint of about 30 million square feet.

"Coming together as one company and brand aligns with our vision for a connected customer experience, integrated global solutions and accelerated innovation," Kevin Coleman, DSC's chief customer officer, said in a release. "We are excited to offer expanded solutions with CJ including cross-border operations, asset-based transportation, freight forwarding and a worldwide network. Of course the technology CJ brings is very exciting as well, and we are already piloting several applications of TES (technology, engineering, systems & solutions) across our U.S. network with some early successes. Our focus is on customer value creation and continuous improvement."

Having a footprint in North America is nothing new for CJ, which established its CJ Logistics USA unit in 1974. That unit now operates in 16 locations in the U.S. with total logistics services including transportation, warehousing, freight forwarding, and international parcel, with specialties in end-to-end supply chain solution in the tire, military and consumer packaged goods (CPG) industries.

CJ Logistics itself was formed in 2013 when CJ Korea Express, Korea's largest logistics firm, merged with CJ GLS. At that time, the company says it decided to accelerate its global expansion strategy to become a global top-five logistics company, launching "aggressive" mergers and acquisitions in China, Southeast Asia, India, and the Middle East. Last year, the company launched an international multimodal transport service between Europe and Asia and opened up a flagship logistics center equivalent to 14 soccer fields in Shenyang, a city in Northeast China.

Following the 2018 acquisition of a controlling stake in DSC, CJ Logistics CEO Keun-tae Park said, "Following our market expansion into China and Southeast Asia, we are pleased to join forces with DSC Logistics in the U.S. We look forward to combining our technical capabilities and networks to create synergies and to become a market leader, especially in the [warehousing and distribution] sector."

DCS was founded in 1960 as Dry Storage Corporation, and has since grown to build specialties in the food and CPG sectors, employing 3,420 people and recording 2017 revenue of $490 million. Overall, the company provides logistics solutions including warehousing, transportation, storage, and delivery services across the food, manufacturing, pharmaceutical, and retail sectors. The firm also operates its own information technology (IT) development and supply chain management consulting capabilities.

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