[photopress:logistics_ProLogis.jpg,full,alignright]ProLogis, the world’s largest developer and owner of warehouses and distribution centers, will spend US$30 million on a logistics park in Northeast China’s Shenyang. This is its latest move to expand into China’s inland cities.
ProLogis and its local partner Dalian Port Group will invest a total of $50 million to develop a 313,587 sq meter logistics park. The park will be in Shenyang’s Economic and Technology Development Zone and will part open in 2008 and will be completely built by 2010.
Our illustration shows ProLogis Park Lingang, located outside Shanghai near the Yangshan deepwater port complex which at full buildout will be able to handle 25 million TEU annually, making it the largest port in the world.
Jeffery Schwartz, chairman and chief executive officer of ProLogis, said, ‘We are extremely bullish about our business here. China is now our fastest-growing region globally on a percentage basis.’
By the end of June the company had invested $500 million and plans to invest up to $500 million a year for the next few years. Since 2003, ProLogis has expanded into 19 cities in China with more than 40 logistics parks.
The company is looking at opportunities in major inland cities to provide end-to-end logistics working with existing logistics parks in Shanghai, Beijing and Guangzhou.
Jones Lang LaSalle, a real estate consultancy, is of the opinion that the China’s logistics market, which includes freight, warehousing and distribution facilities, will grow by almost 30% annually in the next three to four years.
Logistics costs in China are roughly double those of, say, the United States. Ming Mei, president of ProLogis’ China operation said, ‘Being the world’s manufacturing base, China’s logistics costs are still very high compared with developed countries, which means great growth potential for us.’
Source: China Daily
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