ProLogis (NYSE: PLD) has announced that it will develop a new, state-of-the-art industrial park at the Port of Dalian in northeastern China.
Through a joint venture, ProLogis has secured land at the port that can support more than 290,000 m² of distribution space. The company has also acquired two existing warehouse facilities totaling approximately 21,800 m², which are currently 95% leased to multinational and local shippers and logistics providers.
The new park, to be called ProLogis Park Dalian Port, will serve demand for modern warehouse facilities tied to rising import and export activity at Dalian, China's eighth-largest port by container volume. Dalian is on pace to process approximately 3.2 million containers in 2006, a 20% increase over the prior year, and container throughput is expected to triple by the year 2010. Distribution demand is also expected to grow due to the port's status as one of three central government-sponsored free trade zones, and because of its proximity to markets in Korea and Japan.
"Port markets are a lynchpin of our overall strategy in China," said Ming Mei, ProLogis managing director and head of China operations for the company. "Container volume at virtually every major port in the country is growing at remarkable rates and can be expected to do so for the foreseeable future. Over the past two years, ProLogis has established land positions at Chinese ports that can support more than 2.3 million m² of total warehouse development, all of it in prime locations to serve existing and future customer demand.
"Dalian is a natural extension of this strategy. We believe ProLogis Park Dalian Port will become the premier distribution site for this area of northeastern China, and significantly enhance our overall platform and presence in the market."
The new ProLogis park site is located immediately adjacent to the existing Dalian container yard and to land that will be used to accommodate a planned, two-phase expansion of the port taking place through 2010. It offers easy access to two nearby expressways, as well as Dalian's airport and central business district.