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CJ Logistics, Rolls Out Plastic Pallets in Indonesia Fulfillment Centers to Spearhead the Global ESG Initiative


CJ Logistics, Rolls Out Plastic Pallets in Indonesia Fulfillment Centers to Spearhead the Global ESG Initiative

▶ CJ Logistics’ Fulfillment Center in Indonesia is using zero-carbon pallets made from uncycled plastic.

CJ Logistics is applying its ESG management practices in the global market by deploying environment-friendly pallets made from recycled plastic in its fulfillment centers in Indonesia.

CJ Logistics announced on the 30th that it has adopted 400 zero-carbon pallets made from discarded plastic in a fulfillment center in Jakarta, Indonesia. CJ Logistics plans to introduce ESG practices that seek to reduce carbon emissions and improve operational efficiency by replacing the fragile wood pallets commonly used in Indonesia with greener pallets.

Plastic Waste Generated From Lock&Lock Production Lines… Demonstrated Durability and Performance During Initial Use in Korean Fulfillment Centers

Pallets are large frames that are used for storing and carrying goods in the logistics industry. Plastic pallets are primarily used in most countries, but some countries including Indonesia sometimes use wooden pallets because of the initial cost, which can be quite high. Today, however, demand for plastic pallets is increasing in these regions due to their durability and massive deforestation. In areas with tropical climates where there are high temperatures and humidity, wood pallets are often used only briefly and are then discarded because they decay quickly and attract pests. Thus, CJ Logistics intends to use durable plastic pallets and significantly improve the operational efficiency of logistics in Indonesia.

400 Plastic Pallets Placed in the Jakarta Fulfillment Center… They Can Be Used for Much Longer Than Wood Pallets for Strong Durability

Zero-carbon pallets are made by combining scrap plastic from Lock&Lock, a CJ Logistics customer, and the latest green technology from Sangjin ARP, a pallet manufacturer. Lock&Lock provided 12 tons of plastic waste generated from its production process to CJ Logistics for free, which CJ Logistics transformed into 400 eco-friendly pallets in collaboration with Sangjin ARP. CJ Logistics joined forces with the Korea Trade-Investment Promotion Agency (KOTRA) when delivering the zero-carbon pallets to Indonesia. KOTRA will support Sangjin ARP in entering the global market with their zero-carbon pallets and enhance the level of cooperation with CJ Logistics.

One Plastic Pallet Lowers 67.3kg of Carbon Emissions, Meaning They Reduced 26,880kg of Carbon with 400 Pallets, Which Has the Same Effect as Planting 8,960 Pine Trees

A single zero-carbon pallet cuts down 67.3kg of carbon emissions, so if you make 400 pallets from scrap plastic, you can expect to reduce approximately 26,880kg of carbon emissions. This is equivalent to the amount of carbon absorbed by 8,960 pine trees in a year.

Zero-carbon pallets can also see the level of carbon emissions dwindle while in use. Sangjin ARP’s modular pallet technology has been applied to these pallets, which have international patents, so that when a part of the pallet is damaged, you can replace just the affected module. Plus, the broken module can be recycled to create a new one. Compared to the existing pallets that had to be thrown away completely when a part of the pallet was broken, you can expect to save costs and reduce additional carbon emissions.

Last year, CJ Logistics used zero-carbon pallets in fulfillment centers in Korea for a year and discovered that they boasted the same performance and durability as the existing pallets that can load up to 1 ton of products even though they are made of scrap plastic. The production cost is also similar to that of ordinary pallets so that CJ Logistics have decided to accelerate the speed of deploying zero-carbon pallets on site.

Jin-mok Kim, the President of the CJ Logistics Indonesia, said, “We were able to lower carbon emissions and improve operational efficiency by commercializing zero-carbon pallets in Indonesia, which used to rely just on wood pallets. We will continue to develop our ESG practices not only in Korea, but also our locations worldwide as the top logistics company in the world.”