Logistics giants enlarge footprint in Chengdu

Global logistics companies are expanding their presence in Chengdu, as the capital of Southwest China's Sichuan province actively integrates itself into global industrial and supply chains.

International express cargo carrier DHL has nearly completed construction of its regional express transit center in Chengdu's Shuangliu district. The new facility is expected to be officially put into operation between April and May, said Wu Jinkun, operations manager of DHL Express at Chengdu port.

Wu said DHL currently handles a daily cargo import and export volume of 30 metric tons in Chengdu, mainly focusing on electronic products. "High-value products, including mobile phones, computers, tablets and chip equipment, account for more than 40 percent of our daily shipment volume," he said.

To meet the growing business demand, DHL Express China signed a cooperation agreement with the Shuangliu district government in 2022, to upgrade its port facilities at the Chengdu Airport International Express Center into a regional transit center.

Wu said the total area of the regional transit center will exceed 4,000 square meters, and its maximum handling capacity will be around seven times the current volume of express deliveries.

The distance from the loading point of the transit center to the apron of Chengdu Shuangliu International Airport is less than 2 kilometers, and the transportation process can be completed in just over 10 minutes.

Guo Wenbin, general manager of DHL Express China's southwest region, said in a previous interview that the transit center — once operational — will become a key hub for DHL Express in the southwest region, facilitating import and export operations in the region, including Sichuan, Chongqing municipality and Guizhou province.

"As one of the earliest international express companies to establish a presence in Chengdu, we have always been optimistic about the future development prospects of the express industry in the city," Wu said.

"Chengdu's express volume exceeded 2.1 billion shipments in 2023, which has further boosted the confidence of international express enterprises like us," he added.

SF Express, another logistics services provider, opened new international cargo routes from Chengdu to two cities in India — Chennai and Mumbai — last year, bringing the number of international all-cargo flights it operates in Chengdu to four.

Wang Zhenghui, project director of SF Express in the western China region, said the company handled more than 15,000 tons of international cargo in Chengdu last year. The goods mainly include business documents, daily necessities, electronic products and machinery accessories.

SF Express' Western Air Cargo Hub project, with a total investment of 1 billion yuan ($139.1 million), is under construction in Shuangliu. The main construction is expected to be completed by June 2024, and it is scheduled to be put into operation in August 2025, he said.

"This project marks SF Express' fourth regional international air cargo transit center in China, following those in Beijing, Hangzhou in Zhejiang province and Shenzhen in Guangdong province," he said, adding that it will feature comprehensive functions and advanced technologies.

Wang said the project will provide fast transit to various locations in Sichuan while facilitating the transportation of goods from Sichuan to destinations worldwide.

You Pengwei, head of logistics and industry at JLL West China, said Chengdu's advantageous industrial foundation and its position as a regional central city with strong consumer power have given international logistics companies the confidence to increase their investments in the city.

"Due to its solid foundation in industries such as electronic information and high-end manufacturing, the city's total export value of industrial products has long accounted for about 70 percent of the total international air cargo exports," he said.

In addition, as Chengdu was approved as the country's fifth port city for the import of biological products in 2020, its international freight volume is expected to see sustained growth, he added.

Chengdu handled 772,000 tons of air cargo in 2023, ranking sixth among Chinese cities, according to the city's government work report for 2024.

International freight trains departing from Chengdu have connected it with 108 cities abroad, with more than 5,000 trips made throughout last year.

Zhang Chunqi contributed to this story.