GLP strikes strategic partnership with Sinotrans in China

Will co-develop network of logistics facilities.

Global Logistic Properties Limited (GLP) has signed a strategic partnership agreement with Sinotrans Logistics Investment Holding Co., Ltd. (Sinotrans), to develop a national network of logistics facilities across China.

Mr. Ming Z. Mei, Co-Founder and Chief Executive Officer of GLP said, “We are excited to announce this strategic partnership with Sinotrans. There is much room to reduce costs and improve efficiency in China’s logistics industry, even as strong growth in domestic consumption continues to drive demand. This partnership will enhance our access to strategic land holdings, strengthening our platform and solidifying our position as the top logistics solution provider in China.”

Sustained growth in domestic consumption and increasing outsourcing is driving demand for third-party logistics (3PL) services. 3PL firms can help reduce logistics cost significantly given their economies of scale and operational expertise. The partnership will tap GLP’s expertise in developing and managing logistics parks and Sinotrans’ capabilities in logistics operations and land-sourcing, to meet fast-growing demand for modern logistics facilities across China. GLP and Sinotrans will initially work together to develop logistics facilities in Shanghai and Guangdong Province.

Sinotrans is China’s largest state-owned logistics company. The company has signed leases for 67,000 sqm (722,000 sq ft) with GLP across seven cities in China, with a wide range of businesses, including freight forwarding, supply chain logistics, express delivery, warehousing and trucking transportation.