November 23, 2024

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LX Pantos CEO Lee Yong-ho (fifth from left) and Sinotrans President Song Rong (sixth from left), along with other company officials, pose for a photo after a partnership signing event held in Beijing on Monday (LX Pantos)

South Korean logistics company LX Pantos said Thursday it has signed a memorandum of understanding with Sinotrans, the Chinese logistics giant, as part of efforts to facilitate maritime and aerial transportation for deliveries to the US and Europe, as well as between the two Asian countries.

The signing event was held Monday at Sinotrans’ headquarters in Beijing, with the attendance of LX Pantos CEO Lee Yong-ho, Sinotrans President Song Rong and other relevant officials.

Under the agreement, LX Pantos and Sinotrans will establish a joint venture specializing in global transportation services, where shipments from China will arrive at Korean ports before being forwarded to the US and Europe via flights departing from the Incheon International Airport.

The stake proportions between the two companies and the total investment volume were not disclosed immediately.

LX Pantos explained that this collaboration is also aimed at addressing the increasing volume of deliveries between the two countries, largely driven by the rising number of orders from Chinese e-commerce platforms among Korean consumers. According to the Incheon International Airport Corporation, last year saw approximately 98,560 tons of deliveries to South Korea from China, marking a 43 percent increase compared to the previous year.

The partnership involves sharing the global logistics networks and the infrastructure of both companies. LX Pantos boasts nearly 380 logistics hubs worldwide, offering various logistics services such as transportation, storage, and customs clearance in the US and European countries. Meanwhile, Sinotrans specializes in land transportation, including railway and trucking within the country and toward European countries.

LX Pantos CEO Lee Yong-ho expressed high expectations for the partnership, stating, “Sinotrans is one of the leading logistics companies in China and a reliable partner with whom we have a long history of global cooperation.”

“Through this partnership, we aim to strengthen the collaborative relationship between the two companies in the global logistics business, thereby creating strategic synergy.”

By Hwang Joo-young (flylikekite@heraldcorp.com)