ProLogis , the world’s largest owner, manager and developer of distribution facilities, announced today that it will develop a new distribution park near Shanghai Hongqiao International Airport, one of China’s primary aircargohubs.

The park, to be called ProLogis Park Hongqiao West, will total over 1.8 million square feet (170,000 square meters) at full buildout on a 48-acre parcel. Total investment at the site will be approximately US$60 million.“We expect strong growth in demandfor high-quality warehouse spacein the area due to the dramatic increasein air cargo predicted for HongqiaoAirport over the next several years,”said Ming Mei, ProLogis’ president ofChina operations.

Hongqiao Airport is China’s fi fthlargest by cargo volume, handling an estimated 326,000 tonnes per annum. Over the next few years, the airport will undergo a signifi cant expansion program that is expected to increase cargo volume to approximately 1 milliontonnes by 2010.

The new park site is located approximately 7 kilometers from the airport and 20 kilometers from downtown Shanghai, near the junction of two major expressways. The area around the site will be served by a series of new rail and subway lines and has also been designated for large-scale offi ce,hotel and retail development.

“Given its prime location, the park property is ideal for logistics and shipping companies using the airport to move product in and out of Shanghai, as well as for companies with local distribution operations,” Mei said.

Major customers of ProLogis in China include Adidas, Best Buy, DHL, L’Oreal, Menlo Worldwide, Nokia, NYK, Samsung, UPS and Yum! Brands.