November 21, 2024

• 

Rendering of Ungdong Distripark Phase 2 at Busan New Port (Busan Port Authority)

Automotive logistics provider Hyundai Glovis is set to build a large-scale logistics complex at Busan New Port, one of the busiest container ports globally. The facility, targeted for completion by 2027, will support South Korea’s growing trade demand, the company said.

Hyundai Glovis said Wednesday it had signed a land purchase agreement for nearly 95,000 square meters -- about 13 soccer fields -- in the Ungdong Distripark Phase 2, a newly developed area within Busan New Port specifically designated for logistics operations. This facility, located in a port that manages over 76 percent of Korea’s containerized cargo, will feature a massive container yard and a high-tech logistics center, enabling Hyundai Glovis to process, store and transport goods more efficiently.

Busan New Port is a crucial hub, moving around 20 million containers each year. Hyundai Glovis’ new container yard, located close to the port’s terminal, will allow the company to store a significant volume of containers on-site, reducing delays and streamlining the import and export process.

By having its own dedicated space at the port, the company will also be better prepared to handle sudden increases in demand or unexpected logistical challenges, which have become more common in recent years due to global supply chain disruptions.

The planned logistics center will provide end-to-end services for imported goods, including unloading, inspection and secure storage -- known in the industry as “devanning.” By managing these steps in one place, Hyundai Glovis can offer faster, more convenient services to its customers, tailoring storage and handling options for different types of cargo, including temperature-sensitive items.

“This new hub at Busan New Port will help us enhance our maritime logistics services at Korea’s busiest trade gateway,” a Hyundai Glovis official said. “With the upcoming Jinhae New Port nearby, this location also offers great potential for future expansion.”

Rendering of Hyundai Glovis' Global Distribution Center to be built at Incheon International Airport by 2025 (Hyundai Glovis)

The company is also building a five-story logistics center at Incheon Airport, slated to open in 2025. Spanning 44,420 square meters, the Incheon center will feature an automated sorting system and its own customs clearance facilities to support Hyundai Glovis’ growing e-commerce logistics business.

The Incheon center is located within a free trade zone, allowing Hyundai Glovis to offer specialized logistics services for high-tech industries like semiconductors and medical devices.

Hyundai Glovis, which has traditionally focused on shipping auto parts for its parent company Hyundai Motor Group, is actively expanding into new sectors. It plans to handle a wider variety of goods, including electric vehicle batteries and refrigerated products, which require special storage conditions.

The company also aims to increase revenue from nonaffiliated clients — from 20 percent today to over 60 percent by 2030. To support this shift, Hyundai Glovis is exploring opportunities to establish logistics bases in major markets like North America and Europe, where demand for global supply chain services is high.

By Moon Joon-hyun (mjh@heraldcorp.com)