SEOUL – LX Pantos, a leading South Korean logistics company, announced on February 4th the establishment of a joint venture (JV) with Ocean Network Express (ONE), the world's sixth-largest shipping line from Japan. The JV, named Boxlinks, will be based in the United States and focus on intermodal transportation services.
LX Pantos will hold a 51% stake in Boxlinks, while ONE will own the remaining 49%. The two companies have been working together for the past two years to develop a strategy for the North American logistics market.
This is the first time that a Korean logistics company has formed a JV with ONE in the US. ONE was established in 2017 through the merger of the container shipping businesses of three major Japanese shipping companies: NYK, MOL, and K-Line. The company is headquartered in Singapore and is a member of the newly formed shipping alliance, "THE Alliance," which is set to launch this month.
Boxlinks will primarily focus on providing intermodal transportation services in the US, which combine rail and truck transportation. The JV will leverage ONE's container volume arriving at US ports and utilize empty containers for rail and truck transportation to generate new revenue streams.
According to LX Pantos, the US is the world's largest consumer market, with a containerized cargo market heavily focused on imports. However, a significant challenge is the imbalance of container flow, with approximately half of the containers shipped to the US West and East Coast ports returning empty after delivery to inland destinations.
To address this issue, Boxlinks has signed direct contracts with major US railroad companies, including Union Pacific, Norfolk Southern, and BNSF. This will enable the JV to establish a comprehensive rail network connecting key hubs across the US and secure competitive freight rates.
The US intermodal market is experiencing rapid growth. According to the Intermodal Association of North America (IANA), the North American intermodal market is estimated to be worth approximately 79 trillion won (US$60 billion) and is projected to grow at an average annual rate of 10.9% until 2030.
Yong-ho Lee, CEO of LX Pantos, said, "The establishment of this joint venture marks a significant milestone for LX Pantos, providing us with a strong foothold in the US intermodal market. By combining our expertise in international transportation with inland rail capabilities, we will enhance our end-to-end service offerings and solidify our position in the US market."
This strategic move by LX Pantos and ONE is expected to bring greater efficiency and cost-effectiveness to the US intermodal market, while also creating new opportunities for both companies.
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