
Korean logistics company LX Pantos announced Tuesday the establishment of a US-based joint venture with Japanese shipping company Ocean Network Express, aiming to expand inland transportation services across the American market.
The venture, named Boxlinks and owned 51 percent by LX Pantos and 49 percent by ONE, will enable the two entities to fully enter the intermodal transportation sector in the US, providing integrated logistics services that combine rail and truck transportation.
Since 2023, LX Pantos has been working with ONE, marking the first strategic partnership between a Korean logistics provider and Japan's largest container shipping company to penetrate the North American logistics market.
Boxlinks aims to optimize container utilization by managing ONE's containers at US inland locations for rail and truck transportation, generating new revenue streams, a company official explained.
To support its operations, Boxlinks has secured direct agreements with major US rail operators, including Union Pacific, Norfolk Southern and BNSF Railway to establish railway route services connecting key national hubs.
The business model takes advantage of the fact that the US, as the world’s largest consumer market, not only heavily relies on imports for containerized cargo movement but also sees a significant portion of containers transported inland from major ports return empty without export cargo.
The US intermodal market is currently experiencing robust growth. According to the Intermodal Association of North America, the market is presently valued at around 79 trillion won ($54.1 billion) and is projected to achieve a compound annual growth rate of 10.9 percent through 2030.
“This joint venture will serve as a strategic foothold for our penetration into the US, the world’s largest logistics market,” Lee Yong-ho, CEO of LX Pantos, said. “We are committed to advancing our end-to-end logistics services by integrating international shipping with inland rail services, further strengthening our market position.”
By No Kyung-min (minmin@heraldcorp.com)