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Companies

New Shanghai logistics base gets off to good start

By Chen Qide (China Daily)
Updated: 2010-10-13 11:26
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SHANGHAI - Orient International Logistics officially opened its logistics center on Monday at Yangshan Deepwater Port, part of Shanghai's effort to develop an international shipping center.

The center witnessed smooth operations for the past four months, said Zhu Jianmin, deputy managing director of Orient International Logistics (Holding) Co Ltd.

It handled an average of 1,400 20-foot equivalent units (TEUs) from June to August, with August witnessing a peak of 1,800 TEUs, Zhu said.

"We had more cargo than expected, starting from a good beginning," he said.

The first phase of the center has a 16,000-square-meter warehouse, which can hold 2,400 TEUs. Investment in the center's first phase totaled 100 million yuan ($15 million), said Zhu.

The center is run by the joint venture Orient Golden Fortune International Logistics Co Ltd, in which State-owned enterprises have a 55 percent stake while Hong Kong Golden Fortune Investment (China) Ltd holds the remaining 45 percent.

Orient International Logistics now has four logistics centers in the city, which can handle around 400,000 TEUs annually.

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Zhu said the venture has set aside considerable space for its second phase, in which investment is expected to total 50 million yuan.

"We are seeking partners to jointly develop it," he said. Once the second phase is completed, the center is expected to have the capacity to handle 5,000 TEUs a month.

At the moment, it warehouses and packages cargo from domestic customers, mainly textiles, machinery parts and handicrafts, and ships them to Europe and the United States.

"It will act as a platform for logistics services, creating an opportunity for our venture to expand," Zhu said.

Efforts will be made to enlarge the venture's logistics network in the Yangtze Delta region by cooperating with giant shipping companies, he said.

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