On Wednesday, the Ministry of Oceans and Fisheries, led by Minister Hwang Jong-woo, announced the official launch of a massive logistics center in Elwood, near Chicago, Illinois. This facility is the result of a joint investment by Korean logistics companies and the Korea Ocean Business Corporation (KOBC).
The Elwood logistics center is a colossal facility, spanning 295,000 square meters (about 89,000 pyeong) with a total floor area of 103,000 square meters (roughly 31,000 pyeong) – equivalent to 14 soccer fields. It boasts state-of-the-art logistics capabilities, including 130 docks for large truck operations.
Beyond its cutting-edge infrastructure, the center’s location is strategically advantageous. Situated approximately 72 km (about 44.7 miles) southwest of downtown Chicago, it’s within 5.5 km (about 3.4 miles) of America’s largest logistics hub, the Centerpoint Intermodal Center. This prime position allows for nationwide delivery within two days via extensive rail and road networks.
Since 2011, the Ministry has been fostering overseas market expansion for logistics firms. Each year, it selects 5 to 10 companies, offering up to 200 million KRW (about 146,600 USD) for feasibility studies to smooth their entry into global markets. This Elwood center is a direct result of such support provided in 2022.
To bolster supply chain resilience, the KOBC is establishing a 1 trillion KRW (about 733 million USD) global logistics supply chain investment fund. This initiative aims to help Korean logistics companies acquire overseas assets, with a target of securing 40 public-private partnership logistics centers by 2030. These centers, co-funded by public institutions, will be designated as overseas joint logistics hubs through the Korea Trade-Investment Promotion Agency (KOTRA), offering affordable access to small and medium-sized Korean enterprises.
Kim Hye-jung, Director of the Shipping and Logistics Bureau, expressed optimism about the project’s impact: This venture will not only boost our logistics companies’ competitiveness but also provide stable services to Korean businesses expanding overseas. She added that beyond joint investments, it’s committed to expanding our support through various policy initiatives, including market intelligence and assistance for international expansion.
The Ministry and KOBC are currently operating or developing seven overseas logistics centers in key global hubs: Rotterdam, Barcelona, Java, Los Angeles, Chicago (Elwood), Katowice, and Dong Nai. These facilities offer significant benefits to smaller Korean exporters, including 10-15% discounts on usage fees and priority in cargo allocation, addressing the challenges these companies face in securing overseas infrastructure.
