◈ Delegation from the Kyushu Association of Refrigerated Explores Cold Chain Investment Opportunities in BJFEZ

◈ Japanese Logistics Leaders Focus on BJFEZ’s Excellent Logistics Infrastructure

The Busan-Jinhae Free Economic Zone Authority (Commissioner Kim Ki-young, hereafter referred to as ‘the BJFEZ Authority’) welcomed a delegation from the Kyushu Association of Refrigerated Warehouses (Kyushu Delegation). The purpose of their visit was to inspect the investment environment within the BJFEZ for the cold chain business.

The Kyushu Delegation, consisting of Kawai Kokichi (President of Kawai Ice), CEOs and leaders from the cold chain industries in Kyushu, Japan, conducted an inspection visit to BJFEZ on the September 25. The purpose of their visit was to observe the current status of the BJFEZ and gain insights into the investment environment. Subsequent to their visit, the delegation proceeded to the Busan New Port Promotion Hall, where they engaged in a briefing session hosted by the Busan Port Authority, focusing on the competitiveness of Busan Port.

Furthermore, the Kyushu Delegation extended their visit to Dongwon LOEX Cold Storage and BL International, both esteemed tenant companies of BJFEZ located in Jinhae, Gyeongnam Province. During their inspection, the delegation noted that the geographical advantages and global connectivity of Busan New Port is well-tailored for the requirements of cold chain businesses.

As of 2002, the Japanese frozen and refrigerated food market has experienced a remarkable surge, with production and consumption both registering an impressive increase of over 100% compared to the previous year. This significant growth is attributed to the widespread impact of COVID-19. Recognizing the future demands and commercial potential of cold chain markets, Japan has undertaken concerted national efforts, leveraging collaboration between the public and private sectors along with active government support.

In 2015, the Japanese government took a notable step by leading the establishment of international standards for cold chain logistics services, marking a global first. Subsequently, the standard for cold chain logistics services in business-to-business (B2B) and small volume refrigerated delivery services in business-to-consumer (B2C) was officially published in 2020. These standards not only set benchmarks for the industry but also laid a robust foundation to facilitate the distribution and expansion of Japanese cold chain logistics services, particularly in the Asian market.

Consequently, Japan's logistics industries have turned their focus to BJFEZ, which is strategically situated as a global logistics hub, covering air, railways, and roads, with a notable presence of Busan New Port—the world’s second-largest transshipment port. Notably, the delegation from the Hakata Port Promotion Association, consisting of presidents of logistics companies and their client firms, had previously visited BJFEZ as well.

Kim Ki-young, Commissioner of BJFEZ Authority, emphasized, “BJFEZ, equipped with port infrastructure at a global level, has responded to rapidly changing global logistics trends covering cold chains and complex logistics. In particular, BJFEZ Authority's efforts to attract cold chain logistics companies are one of the important strategies to enhance national competitiveness for the export of domestic produce, livestock, and marine products.”

The Busan Port’s Hinterland particularly the soon-to-be-available West Distripark (sites for lease) and Ungdong Distripark (sites for sale), has captured the interest of both domestic and foreign investors. Anticipating significant investments from the global logistics industry, the promising future of BJFEZ is evident, positioning it as a vibrant global export base and opening up new business opportunities for logistics companies.