10 Certified as Integrated
Logistics Cos

Gov. introduces the certification system to prod logistics outsourcing

The government has announced a list of 10 companies or groups, which have been granted with integrated logistics certificates as part of its efforts to facilitate logistics outsourcing and foster firms specializing in logistics.
The integrated logistics companies certified for the first time by the Ministry of Construction and Transportation and the Ministry of Marine Affairs and Fisheries are four independently selected companies - Dongbang, Sun-kwang, Hanjin Transportation Co. and Hyundai Logistics Co. and six other groups which have forged strategic alliances - the Korea Express, Union Star Logistics, Chunil Cargo Transport Co. and KCTC and LOEX.
The certification system for integrated logistics firms grants a certification mark to a company which offers logistics services above the certain requirements after screening logistics companies under a strategy designed to integrate logistics services and facilitate globalization of the domestic logistics industry, said Park Moo-ik, director of Logistics Policy Division, Logistics Innovation Office, at the Ministry of Construction and Transportation. He added that the system is designed to encourage manufacturers affiliated with conglomerates to outsource logistics services from their logistics party companies instead of leaving them to their affiliates.
The certified integrated logistics companies refer to those companies which offer a wide range of services, including freight transportation, storage and port stevedore.
A certification inspection corps, comprising experts form the industry, academy and research circles, conducted an on-site inspection against integrated logistics company applicants, based on the papers submitted by them. A 9-member certification committee determines the final list of certified integrated logistics companies after examining them in the diversity category - network at home and abroad and service coverage, corporate size - sales and potential development category - corporate soundness, specialization and the percentage of third party logistics.
The outcomes of the fist certification showed that out of a total of 16 applicants, only 10 companies or groups have been certified. Companies who offer a wide range of logistic services ranging from stevedoring, storage, transportation, company logistics and home delivery turned out to get higher marks, while firms which are engaged in a limited range of services, have formed strategic alliances with others companies to get certification, MOCT officials said. nw

Lee Seong-kwon, assistant minister of the Headquarters for Logistics Innovation at the MOCT