A groundbreaking ceremony of Maersk's one-billion-yuan ($150 million) integrated logistics flagship warehouse project takes place in Shanghai on February 14, 2023 Photo: Courtesy of Maersk

Shipping and logistics company Maersk held a groundbreaking ceremony on Tuesday for its 1-billion-yuan ($150 million) integrated logistics warehouse project in Shanghai, as the company puts more emphasis on the booming Chinese market.

The flagship logistics center is due to be completed in the third quarter of 2024 and is situated in the Lin-gang New Area of the Shanghai Free Trade Zone. Covering an area of approximately 113,000 square meters, the center is designed to have warehousing storage of 150,000 square meters.

After completion, it will provide customers with a wide range of integrated logistics services, including international export consolidation, regional and global order fulfillment and distribution, cross border e-commerce and other value-added logistics services.

"Maersk is continuously enhancing its logistics capabilities to offer integrated end-to-end solutions to customers worldwide. Shanghai plays a critical role for the Maersk global network," said Caroline Wu, managing director of Maersk Greater China.

With Lin-gang's proximity to Shanghai's Yangshan port - one of the world's busiest container ports - and its favorable free trade policies, Maersk's new logistics center will be able to provide agile and sustainable solutions while connecting and simplifying customers' supply chains, Wu said.

Maersk signed the Land Grant Contract with the administrative committee of Lin-gang New Area in December 2022, marking the official landing of the company's first green and smart flagship logistics center in China.

"We will continue to invest in China, contributing to Shanghai's position as a leading global shipping and logistics centre," Wu said.

The flagship facility will use advanced environmentally friendly materials in construction and will be equipped with a rainwater management system and solar panels to optimize efficiency in terms of water and energy consumption, according to the company.

The new center will also be equipped with low-carbon systems including natural ventilation and non-fossil energy heating systems in a bid to further diminish the environmental footprint.

The new facility is just part of Maersk's expansion in China, as the country is becoming an increasingly important player in the global shipping industry, driven by its resilient economic and trade development.

Customs statistics show that in 2022, the total value of China's goods trade amounted to 42.07 trillion yuan, a record high, and the country maintained its position as the world's largest trader of goods for a sixth consecutive year. 

China also has a share of around 30 percent of global seaborne trade, so international industry players are focusing more on China's booming market.

Other key port cities such as Shenzhen in South China's Guangdong Province are gaining more attention from companies such as Maersk. As part of the commitment to expand its investment in China, the company plans to invest in the construction of an intelligent and green integrated logistics center covering the Asia-Pacific region in Yantian Comprehensive Bonded Zone to tap more market potential, according to media reports.