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Singapore shipping firm Pacific International Lines (PIL) plans to invest an initial one billion yuan (S$206 million) to construct an integrated logistics park in Nanning, China, reported the New Paper.
Situated in southern Guangxi, the facility spanning 3.0 sq km represents the company’s first major investment in China. Phase one is expected to be completed in three years, and part of it will be in a special trade zone where goods will receive a more favourable tax treatment.
According to PIL managing director Teo Siong Seng, the entire logistics park is targeted to be ready in a decade. This also marks its first of other possible projects in China’s Southern Transport Corridor, which includes Nanning, as the mega project will need a chain of distribution centres.
“With this, we hope to attract businesses to do some of the processing and packaging here. I am quite sure Singapore companies in the logistics field will be very eager to work with the Chinese provincial officials all along the route to create that network effect.”
Singapore Minister in the Prime Minister’s Office Chan Chun Sing, who attended the facility’s launch ceremony on Friday (1 September), revealed that when the Southern Transport Corridor is completed, it will become a more affordable way for ASEAN firms to transport their goods into western China via Guangxi’s Qinzhou port.
In fact, many products and raw materials currently enter Guangxi from Vietnam, and many of these imported items are transported to Guangzhou for processing, Teo noted.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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