CJ Korea Express Co., South Korea’s largest logistics company, said on Monday it has signed a joint venture agreement with the Philippines’ Transnational Diversified Group (TDG) to expand its presence in Southeast Asia.

The joint venture called CJ Transnational Philippines will use advanced logistics management technology and provide comprehensive logistics services in the Philippines by connecting corporate customers with local freight car drivers, deploying its own cargo facilities to enhance inland delivery, operating logistics centers and offering a door-to-door delivery service. The joint venture aims to complete its logistics network across the country by 2018.

CJ Korea Express also expects synergy from coordinated operations between its established sea and air cargo systems in the country and the joint venture’s inland delivery and other logistics services.

The Transnational Diversified Group, founded in 1976, has 18,000 employees and more than 30 affiliates encompassing various business areas including logistics, vessel management, tourism, and information technology.

Demand for logistics services will increase in the Southeast Asian country, where consumers’ purchasing power is growing and multinational companies from the U.S., Europe and Japan are operating manufacturing sites, CJ Korea Express said.

The latest deal is part of CJ Korea Express’ growth initiative to expand its delivery networks not only in China but also in Southeast Asia through business acquisitions and establishing joint ventures.

In September, the Korean company acquired Century Logistics, Malaysia’s second-largest logistics company, and signed a partnership with Lazada Group, the largest e-commerce platform operator in Southeast Asia.

At 1:50 p.m. Tuesday, shares of Kospi-listed CJ Korea Express remained unchanged at 179,000 won ($150.24).

By Choi Seung-jin

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