Kerry Logistics has begun second-phase construction of its Chongqing logistics centre, with work due to be completed in the first quarter of 2013. Some 62,700 sq metres of space for warehousing will be built in the second phase, bringing the total to 83,200sq metres.

The Hong Kong-based company is targeting the auto spare parts, electronics and hi-tech and telecoms sectors to provide integrated logistics services such as vendor managed inventory, pick-and-pack, labelling, packing and re-packing.

In a separate development, DHL is to expand by one-third its China warehousing facilities. The express delivery giant, which recently sold its loss-making domestic express business in China, plans to add an additional 200,000 sq metres of facilities in the country over the next two years.

“Rapid urbanisation, strong domestic demand and the boom in online shopping are continuing to expand the market potential, particularly in sectors of automotive, consumer, healthcare, retail and technology,” said Victor Mok, the chief executive of DHL Supply Chain North Asia.