Logistics park to be built in Shenzhen
Leading US logistics facility provider Prologis has inked out an agreement on a logistics park project with Shenzhen Yantian Port Group to tap the South China market, according to an announcement released yesterday in Shenzhen.
Each company will own half of the new joint venture with an investment of over 2 billion yuan (US$241 million). The project, on land parcel number 19 of Yantian Port Logistic Zone and with an overall construction area of 300,000 squares metres, is expected to begin early next year and should be completed in five years.
"As a major part of Yantian Port Logistic Zone, the project, once fully launched, will greatly improve the logistics capacity, service quality and tax revenue in Yantian port," said Zheng Jingsheng, board director with Shenzhen Yantian Port Group.
Zheng attributed the reasons for the co-operation with the US-based giant to Prologis' strong client network and branding power.
Having matured a market in Shanghai and the Yangtze River Delta, Prologis has planned to take a slice of the southern economic engine, the Pearl River Delta, as the second stage of its three-episode strategy in China.
"Since logistics business is tightly connected with the manufacturing industry, Peal River Delta, known as the world manufacturing base, is a very crucial market for us," said Jeff Schwartz, president of Prologis at the signing ceremony.
Shenzhen, a city close to Hong Kong and Guangzhou, capital of South China's Guangdong Province, boasted the fourth largest container volume in the world last year.
Yantian Port, the largest port in Shenzhen, comprises half of the city's container volume, presenting a huge business opportunity for a logistics facility provider like Prologis.
"We are delighted to see Shenzhen government's vision and commitment to make the city a modern logistics hub in South China," said Schwartz.
"The logistics industry is now regarded as one of the three local pillars of industry. We believe that the port facility demand and the logistics distribution facilities will continue to escalate," added Schwartz.
Prologis is a joint partner in the logistics portion of Suzhou Industrial Park and Shanghai Northwest Logistics Park with exclusive development rights for future logistics facilities at these parks.
Angela Zhao, Business Development Manager China of Prologis, said Prologis started its China operation in the second quarter of 2003. To date, Prologis has invested over US$150 million in China and will add another US$2 billion over the next five years.
"Our next step will be northern China's Beijing and Tianjin," Zhao said.
Prologis is one of the world's top providers of distribution facilities and services.