Samsung buys a minority share of CommerceGuard

Korea-based Samsung Corporation, the construction and trading arm of the Samsung Group, has decided to get into the cargo security business. The company announced last week that it had paid $15 million for a minority stake in CommerceGuard AB, an equity venture owned by GE Security, Mitsubishi Corporation, and Siemens Building Technologies. The deal includes exclusive marketing rights for the cargo tracking system in twelve Asian nations, including South Korea, Taiwan, Singapore, Thailand, and Malaysia. Earlier this year we reported that Starbucks was the first to purchase the CommerceGuard regime, and we are sure it will not be the last.

CommerceGuard operates in much the same way as other container security devices (CSDs). The RFID-enabled device attaches magnetically to the interior hinge. When it senses that the container door has been opened, it sends a signal to relevant authorities alerting them, while fixed and handheld readers at critical points along a supply chain report the container’s status to a CommerceGuard data center. This provides both a security and a commercial benefit. Not only are thefts quickly identified and, hopefully, deterred, but the tracking ability makes it much easier to predict product delivery and make alternate plans in the case of delay.

The global freight security market is estimated at $3 billion, with the Asian sector pegged at a not unsubstantial $600 million. With that expected to grow 10 percent annually, Samsung expects $10 billion in operating profit starting in 2010.

-read more in this Yonhap News report