The construction of the Shengze Jietong Logistics Base Project, which is being developed by China Zheng Tong Auto Services Holdings, began in the Wuhan Economic and Technological Development Zone (WHDZ) with a commencement ceremony Nov 22, according to local media reports.
The project, with an investment of 1.7 billion yuan ($242 million), is expected to facilitate Wuhan’s development into a national-level logistics center upon its completion in 2021.
Zhang Dehua, an official from WHDZ, attended the commencement ceremony.
China Zheng Tong Auto Services Holdings is one of the top five luxury automobile brand dealers in China. The company is committed to creating a multimodal logistics intermodal system for water and land transport, forming a logistics industry chain.
The project will develop the only logistics distribution center in Central China, and is being co-built by Zheng Tong Auto and China FAW Group.
After the project is fully completed and put into production, the annual output value will reach 1.254 billion yuan, and create nearly 300 jobs for the local area.
Among them, the commodity vehicle logistics and transport business, including road and waterway transport and Wuhan distribution, is expected to have an annual operating income of 952 million yuan. The spare parts logistics business, including spare parts storage and distribution, will have an estimated annual operating income of 219 million yuan. The warehousing and logistics business and the port and terminal are expected to have an annual operating income of 53.5 million yuan and 29.25 million yuan.
