The logistics company was formed in December after Singapore sovereign wealth fund unit GIC Real Estate acquired U.S. warehouse developer ProLogis’ (PLD) Asian operations.
Break bulk reports that Mei Zhiming told reporters, ‘We will continue to focus on mainland China’s first- and second-tier cities.
He said that prior to the acquisition by the property investment arm of Government of Singapore Investment Corporation, ProLogis invested $300 million-$500 million annually in China.
ProLogis entered the Chinese market in 2003, one year before Beijing deregulated the logistics sector under the terms of its World Trade Organization membership.
The company provided warehousing or distribution services across 18 Chinese cities for multinational companies, many of which export to and from ChinOcean cargo/global logistic.
Modern Logistics Management reported that analysts said, ‘Both the Bohai Rim and the Pearl River Delta/Southeast coastal region could see a significant overcapacity challenge in 2010 as the excess capacity projected is three times more than the actual growth seen in the 2000-2008 period. With growth slowing considerably for 2009, it is unlikely that demand would grow sufficiently to absorb the excess capacity within the next two years.’
Meanwhile, Shanghai is expected to overtake Singapore and Shenzhen to overtake Hong Kong to become the No.1 and No.3 largest container ports this year.