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LX Pantos / Strengthening the Global Logistics Business

2024/06

Strengthening Global Logistics Business

Entered the Korea-China intermodal transportation and Indonesian resource logistics markets

Following the opening of a large rail terminal near its battery production base in Hungary in April, LX Pantos is actively expanding its overseas business by establishing a JV specializing in intermodal transportation between Korea and China and entering the Indonesian resource logistics market.

LX Pantos signed an MOU with Chinese logistics company Sinotrans to establish a joint venture (JV) for Korea-China intermodal transportation business and establish a strategic partnership. Accordingly, the two companies will establish a JV that specializes in Korea-China intermodal transportation. Korea-China intermodal transportation is a method of transporting cargo originating in China by sea to Korean ports and then by air to the Americas and Europe through Incheon Airport.

Demand for Korea-China intermodal transportation has been surging in recent years as e-commerce volumes from China have increased. According to Incheon International Airport Corporation, Korea-China intermodal cargo volume reached 98,560 tons last year, a 43% year-on-year increase.

The two companies will also leverage their respective global logistics network and infrastructure strengths to expand their collaboration. LX Pantos can leverage its global network of 380 locations, the largest in Korea, to provide comprehensive logistics services including transportation, storage, and customs clearance in the Americas, Europe, and beyond. Sinotrans is strong in transportation services utilizing rail and trucks in China's inland and China-to-Europe logistics.

“Through the MOU with Sinotrans, we will strengthen our partnership and create strategic synergies in the global logistics business,” said Yongho Lee, CEO of LX Pantos.

“LX Pantos is a leading Korean logistics company with an extensive global network as well as a long-standing top ranking in air cargo export volume,” said Mr. Song Rong, General Manager of Sinotrans. ”Based on the strengths of both companies, we will pursue strategic cooperation in the global logistics market.”

LX Pantos also signed an agreement with KSA, an Indonesian company, to establish and operate a resource logistics JV. KSA is Indonesia's largest bulk carrier specializing in resource transportation, carrying approximately 80 million tons of coal, nickel, and other commodities annually.

Through this agreement, LX Pantos and KSA will establish a JV specializing in coal and other resource logistics business. The new JV will initially build its business base by transporting coal produced from Indonesian mines. To this end, it will introduce three barges this year and continue to expand its fleet and transshipment facilities.

Through the JV, LX Pantos plans to expand its resource logistics business to include not only coal, but also various minerals such as nickel and lithium, and expand its customer base.

Indonesia is a resource-rich country with diverse and abundant mineral resources and is gaining attention as a global supply chain hub. In addition to being the world's largest coal exporter, it ranks first and second in the world in the supply of nickel and cobalt, which are key materials for electric vehicle batteries.

“Indonesia is recognized for its abundance of key raw materials and growth potential,” said Yongho Lee, CEO of LX Pantos. ”With the establishment of this joint venture, LX Pantos will enter the Indonesian resource logistics market in earnest.”