Swissport enters Chinese market in JV

Swissport announced its entry into the Chinese market through a strategic partnership with Smargo, the joint venture between AVINEX Logistics (Shanghai Airport Authority Logistics Development company) and China Eastern Airlines Logistics. The venture will manage and jointly operate the highly innovative Digital & Intelligent International Cargo Terminal at Shanghai Pudong International Airport (PVG), the world’s second-largest air cargo hub. The signing ceremony for this agreement took place on October 21, supported by Shanghai Airport Authority and China Eastern Airlines Corporation Limited. With operations at nearly 300 airports across 45 countries and handling 5 million tons of cargo annually across 117 cargo stations worldwide, Swissport brings unparalleled global connectivity and operational experience to this important air cargo gateway. “This milestone agreement marks Swissport’s strategic entry into China with one of the world’s most technologically advanced cargo facilities,” says Warwick Brady, President & CEO of Swissport International. “By connecting Shanghai with our global network, we’ll enable Chinese exporters to reach international markets up to two days faster through our specialised e-commerce handling. Working with our partners AVINEX Logistics and China Eastern Airlines Logistics, we’re creating efficient trade pathways that will transform how Chinese businesses connect globally. Shanghai represents just the beginning of our long-term commitment to China’s aviation future.” Brad Moore, CEO APAC at Swissport International, said: “Our new facility at Shanghai Pudong is a cornerstone of Swissport’s cargo strategy in Asia and reflects our long-term commitment to this dynamic market. By bringing our global expertise in specialized cargo handling to one of Asia’s most important air freight hubs, we are creating new efficiencies that strengthen the regional supply chain. This flagship operation not only enhances our presence in China but also serves as a vital connection point for trade across the entire Asia-Pacific region. The partnership fully supports our strategy to build premium cargo operations at key Asia gateways, where we can deliver the greatest value to our airline partners and their customers.” The new terminal comes at a strategic time as Shanghai Pudong Airport continues to strengthen its position as a global air cargo hub, currently handling approximately 4 million tons annually with projected growth of 8-10% per year. This partnership will create seamless connections between China and key international markets, opening new opportunities for Chinese businesses to reach global customers faster and more reliably. Simultaneously, the facility will serve as a vital gateway bringing international goods into the vast Chinese market, creating a true bidirectional trade corridor that connects China with key world hubs and the world with China. This agreement complements Swissport’s recent cargo operations launch at New York’s JFK International Airport. Together, these initiatives form a strategic network linking key cargo centers across Asia, North America, and Europe, positioning Shanghai Pudong as a critical nexus in global supply chains flowing both to and from Chinese markets. The new state-of-the-art facility, located in the West Cargo Area of Pudong Airport, sets a new benchmark for technology-driven logistics. Covering 222,000 square meters with a core operational area of approximately 150,000 square meters the facility represents a total investment of 1.56 billion yuan (approximately USD 215 million) and is designed to handle between 600,000 and 1.2 million tons of international cargo annually when it becomes operational in late 2025. Designed for the demands of modern e-commerce and global supply chains, the terminal features an AI-driven warehouse management system with 99.5% scheduling accuracy—60% higher than conventional operations. Its fully automated processes, including 94 autonomous vehicles and specialized AGVs, eliminate manual handling, reduce errors, and cut dwell times, giving customers real-time visibility and predictable, efficient cargo flow. The facility also sets new standards in specialized cargo handling. Its 15,000 square meters of temperature-controlled space—including a 200 sqm ultra-deep freeze chamber. With capacity to simultaneously store 1,500 tons of temperature-sensitive cargo, the facility supports next-generation pharmaceuticals, vaccines, and biomedical shipments with precise temperature stability, addressing a critical gap in Shanghai’s air cargo capabilities while pursuing the industry’s highest pharmaceutical handling credentials through GDP and CEIV Pharma certifications. Swissport’s unique competitive advantage lies in its established global e-commerce handling network. The company already operates specialized e-commerce cargo hubs in key global locations including New York JFK, Liège, Brussels, Basel, and Milan. This interconnected network enables Chinese exporters to benefit from seamless end-to-end handling when shipping to major global markets, a capability no local handler can match. For cross-border e-commerce, the Shanghai facility’s four high-speed automated sorting systems will process 3,500 parcels per hour—triple the throughput of conventional cargo terminals—enabling up to 40% faster delivery of Chinese exports to global markets. This addresses one of the most significant challenges facing Chinese e-commerce merchants: international delivery speed and reliability. Market trends show cross-border e-commerce from China is expected to reach USD 230 billion by 2026, growing at over 25% annually and creating demand for precisely the specialized handling capabilities Swissport has developed. The Shanghai operation will directly connect into Swissport’s global network, creating a seamless pipeline for Chinese goods reaching international markets. This landmark agreement reinforces Swissport’s commitment to strategic growth in the Asia Pacific region while supporting China’s position as a global aviation hub. Following the Shanghai operation, Swissport plans to evaluate additional Chinese cargo market opportunities to create a comprehensive network of specialized cargo operations across China’s major commercial centers. The Digital & Intelligent International Cargo Terminal at Pudong Airport represents one of Swissport’s most significant operational achievements and further strengthens the company’s position as the partner of choice for premium air cargo handling services worldwide. As the project progresses toward its 2025 completion, Swissport will work closely with AVINEX and China Eastern to ensure operational readiness for what promises to be one of the most advanced air cargo facilities in the global aviation industry. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]