Korea Express Looks to Secure New Growth Engines

Accelerates its bid to build more logistics infrastructure to become a global leader

Korea Express has shifted its efforts to secure new growth engines into high gear by building or obtaining logistics terminals for modal shift to railroad from port and container piers and home delivery hub terminals.
Korea Express has been designated as the operator of the seventh wharf of the Gunsan Port. A consortium comprising Korea Express, Sebang and Dongbang placed the winning bid by getting higher scores in the cost and wharf invigoration evaluation categories. As a result, Korea Express will be allowed to operate the seventh wharf of the port for five years beginning next January. The seventh wharf is most favored by shipping companies since it is located at the entrance of the port with a considerable depth. It is composed of two timber piers capable of handing 50,000-ton class ships and one miscellaneous goods pier capable of handing 30,000-ton class ships.
The location of the Gunjang Industrial Complex in the backwater area of the wharf is expected to allow Korea Express to secure a stable supply of logistics customers and to add vigor to the dynamics of the port.
As recently as this past April, Korea Express was awarded a contract to operate the A wharf in a bid for the Incheon New Port Phase 1-1 in Songdo. When the planned terminal facilities are inaugurated in 2012, Korea Express will be allowed to operate the Incheon New Port Phase 1-1 A Terminal, which has a length of 800 meters and a plot area of 480,000 square meters, for 30 years. The Incheon New Port is drawing keen attention as a trade center of the West Sea connecting the Seoul metropolitan area and China. It is highlighted by its strengths, including a port entry for large-sized ships.
In particular, Korea Express has accumulated experience and expertise in container transportation via railroad while operating the existing eastern railway logistics terminal of the Gwangyang Port. The railway logistics terminal, designed for modal shift to railway, is expected to handle more railway logistics when the Gwangyang Port Phase 2 and 3 projects are completed in the years to come.
Korea Express is accelerating its bid to expand its facilities in the home delivery sector. Since last year, it has been building a home delivery terminal scheduled for completion in the second half of this year. If and when completed as planned, it will be the nation’s biggest home delivery terminal capable of handling about 50,000 boxes daily by installing state-of-the-art sorting equipment. The projected terminal will have three ground floors and one basement floor on a plot area of 69,000 square meters.
Korea Express is also striving to shore up its presence in the heavy-load maritime transportation sector. The company took over two 12,000-ton class barges last year and placed an order for two 15,000-ton class self-propelling barges on June 11. The self-propelling barge, 152.5 meters long and 40 meters wide, is capable of navigating on its own with such heavy-weight freight as plants, ships and construction equipment and materials.
Korea Express has a competitive edge in the multi-module trailer and heavy-weight shipping areas by securing specialty equipment and expert manpower. The company has a wide range of business portfolios offering comprehensive transportation businesses ranging from land transportation to maritime transportation. With the addition of the two barges to its fleet, which are to be delivered in the second half of next year, Korea Express is expected to strengthen its presence in the maritime transportation business.
These moves are interpreted as Korea Express President Lee Won-tae’s efforts to flesh out the actions plans of the vision “New Korea Express.”
A Korea Express official said, “We’re going all out to continue to secure new growth engines in order to evolve into a world-class logistics leader by expanding infrastructure across the nation and expanding the heavy-weight transportation sector to our business portfolio.” nw

Korea Express was awarded a contract to operate the projected A Wharf (seen in this artist’s conception) in a bid for the Incheon New Port Phase 1-1 in Songdo this past April.

The Korea Express headquarters in downtown Seoul.

Korea Express is also striving to shore up its presence in the heavy-load maritime transportation sector.