MAERSK is to build its first “green and smart” flagship logistics centre in China in Lin-gang, Shanghai.

The company signed the land grant contract with the administrative committee of Lin-gang new area of the Shanghai Free Trade Zone late last month.

This marks the official landing of Maersk’s first green and smart flagship logistics centre in China. The company said the facility would achieve net-zero emissions after construction is completed.

The total investment for the project is US$174 million. It is expected to start operation in the third quarter of 2024.

The Lin-gang flagship logistics centre is to cover an area of about 113,000 square metres.

It is designed to have a warehousing storage of 150,000 square metres, comprising four ramped three-storey high standard warehouses and one 24-metre-high warehouse with automated storage and retrieval system.

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 Greater China managing director Caroline Wu said the company is continuously enhancing its logistics capabilities to offer integrated end-to-end services to customers worldwide.

“Shanghai plays a critical role for Maersk global network. With Lin-gang’s proximity to Yangshan port and its favourable free trade policies, our flagship logistics centre will provide agile and sustainable solutions, connecting and simplifying our customers’ supply chains,” she said.

“We will continue to invest in China, contributing to Shanghai’s position as a global leading shipping and logistics centre, and the resilience of global supply chains.”

The facility will apply for the highest platinum level certification of LEED (Leadership in Energy and Environmental Design).

It will use advanced environmental-friendly materials in construction and be equipped with a rainwater management system and solar panels to optimise efficiency on water and energy consumption.

Upon completion, to further improve the environmental footprint, the new facility will be equipped with LED lighting, nature ventilation, non-fossil energy heating systems and electric vehicle and equipment charging piles.