Monday, January 9, 2012

Freight Forwarding Group Develops Another Logistics Hub in China

Centrally Situated Industrial Park Attracts Kerry Investment
Shipping News Feature

CHINA – Kerry Logistics, already with a strong presence in the country, has announced plans to build a dedicated logistics centre in Zhengzhou in Henan Province, a city which has seen a recent influx of other European freight forwarding groups such as Kuehne + Nagel. The new hub will be built on 47,000 sq. m of land sited at the Singapore International Logistics Industrial Park in Zhengzhou, adjacent to the national highway to the east and to the Longhai Railway in the north and is 20km to the southeast of the city centre.

Construction is due to commence in the second quarter of 2012 with a scheduled completion date in the first quarter of 2013 and Kerry intend to target the electronics and technology, automobile, industrial and material science sectors and the new facility is intended to meet demand from customers for new warehousing space and a broad range of logistics services.

Zhengzhou is the capital city of Henan and is the point where the Longhai intersects with another major rail route the Jingguang Railway meaning good connections with Beijing to the north, Shanghai to the west and southward to port areas such as Guangzhou. Recently many manufacturing companies have transferred production to more central areas like Zhengzhou as labour and property cost rise on the coastal belt, particularly around the major ports.

Growth in the area can be staggering Foxconn, the largest contractor of nanotechnology and electronic equipment in the world, employed a hundred thousand staff in the area last year and last week plans were announced in press reports to double iPhone and iPad production there to 400,000 units per day meaning staff levels would also double.