LX Pantos Co., South Korea’s largest logistics company under LX International Corp., has advanced into the US intermodal logistics market jointly with Ocean Network Express (ONE), Japan’s largest container shipper.
The Korean logistics firm announced on Tuesday that it and ONE have established a 51-49 joint venture called Boxlinks, marking the first JV between a Korean logistics firm and a major global shipping company in North America.
ONE is Japan’s largest container shipping company founded in 2017 through the consolidation of the country’s top three ocean carriers’ container businesses.
It is also the world’s sixth-largest container shipper with a fleet size of more than 1.9 million twenty-foot equivalent units (TEUs) and a fleet of over 240 vessels.
The two partners did not disclose the financial terms of the JV.
With Boxlinks, LX Pantos and ONE will enter the intermodal logistics market in the US, poised for rapid growth.
Intermodal freight refers to goods transported in a container by different transportation modes, including container ships, trucks and trains.
Because intermodal logistics service uses the same container for freight when it is transferred between modes of transportation, it significantly reduces cargo handling and costs.
Thanks to such cost and environmental advantages, the US intermodal logistics market is forecast to grow at a compound annual growth rate of 10.9% through 2030 from the current market value of $59 billion, according to the Intermodal Association of North America (IANA).
LX Pantos’ logistics center in Busan, South Korea’s biggest port city (File photo by LX Pantos) “This joint venture will serve as a strategic foothold for our penetration into the US, the world’s largest logistics market,” Lee Yong-ho, chief executive officer of LX Pantos, said in a statement.
“We are committed to advancing our end-to-end logistics services by integrating international shipping with inland rail services, further strengthening our market position.”
As the world’s largest consumer market, the US heavily relies on imports, mainly shipped by container cargo.
But many containers transported inland from major ports in Los Angeles, Savannah and New York return empty to the ports due to limited export cargo.
LX Panto and ONE will use those empty containers to unlock new opportunities in intermodal logistics services through the JV by combining rail and truck transportation.
Boxlinks will hold rights to manage ONE’s inland-to-coastal domestic transport needs through a Domestic Reposition Program (DRP), said LX Pantos.
The LX Pantos-ONE JV has already agreed with major US rail operators, including Union Pacific Railroad (UP), Norfolk Southern (NS) and BNSF Railway, to support seamless operation of its intermodal cargo services in the country.
Under the agreements, the JV is expected to build an extensive rail network connecting key logistics hubs in the US and secure competitive freight rates.
LX Pantos offers comprehensive logistics services, operating through 380 networks across the globe. Korea's No. 1 logistic company is one of the world's top seven sea freight forwarders, according to the company.
