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Sun 21 Oct 2007 03:01 PM

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ProLogis to develop Logistics Park

ProLogis is planning to develop a new distribution park near Shanghai Hongqiao International Airport, one of the primary airfreight hubs in China.

ProLogis is planning to develop a new distribution park near Shanghai Hongqiao International Airport, one of the primary airfreight hubs in China.

The company, which owns, manages and develops a number of distribution facilities around the world, has acquired 48 acres of land on the premises, which includes an existing warehouse and two closed manufacturing facilities. This will be converted into various distribution centres, with total investment valued at approximately US$60 million.

The site can accommodate four additional two-storey buildings, ranging in size from roughly 18,600m2 to 41,800m2.

"We expect strong growth in demand for high-quality warehouse space in the area due to the dramatic increase in air cargo predicted for Hongqiao airport over the next several years," said Ming Mei, president of ProLogis' China operations.

"We look forward to building a development that can serve this demand effectively and help our customers build more efficient distribution systems in the region," he added.

Hongqiao has the fifth-largest airport in China by cargo volume, handling an estimated 360,000 tonnes per annum. Over the next few years, the airport will undergo a significant expansion programme that is expected to increase cargo volume to approximately 1 million tonnes by 2010.

"Given its prime location, the park property is ideal for logistics and shipping companies using the airport to move products in and out of Shanghai, as well as for companies with local distribution operations," said Mei.

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