GEODIS is looking to bolster its contract logistics services in China as the French transport and logistics operator signed a 10-year lease agreement with PRD Group for a 20,000-sqm multi-user facility in Minhang district, Shanghai.

The facility which will offer improved storage and inventory processing is slated to open in July. The new facility will include a state-of-the-art storage system, consisting of mezzanine flooring, very-narrow-aisle pallet racks, and autonomous guided vehicles (AGV).

“The facility will provide the space needed to support large merchandise inventory as well as inbound and outbound procedures. At peak capacity, the site will be able to manage an inventory of close to 20,000 SKU. This will include having the space to process up to 300,000 lines per day for GEODIS’ B2C customers, in addition to approximately 15,000 lines per day for its B2B clientele,” the company explained, adding that it will also offer value-added services such as packaging and re-packaging, re-labelling, quality control as well as the handling of return shipments and reclamations.

Aligning with GEODIS’ commitment to sustainable supply chain growth, the lease will also provide the company access to concrete processes that manage carbon emissions, including the use of sustainable construction materials for the warehouse façade, LED lights and motion sensors, automatic energy consumption monitoring systems, as well as energy-efficient air conditioners. The forwarder’s delivery fleet within the district will also consist of electric vans for urban delivery.