News from East Asia - October 2009

Preferred Freezer Services Building
its Largest Coldstore in China

Preferred Freezer Services (PFS), headquartered in Newark, New Jersey, USA, has broken ground for its first expansion into the People’s Republic of China (PRC) with a state-of-the-art facility at Lingang Logistics Park in Shanghai.

When it opens, the approximately 280,000-square-foot refrigerated warehouse will be the largest and most advanced single-story cold storage facility in China, according to the Shanghai Institute of Mechanical & Electrical Engineering Co., Ltd.

“Once completed, the facility will also be the largest in our global network,” stated John Galiher, chief executive officer of PFS. “This project will be the first of many leading-edge facilities that we have planned for China.”

“This represents one of the largest build-to-suit transactions in the Shanghai region and marks a notable trading partnership between the United States and China,” added John Carver, executive vice president of Jones Lang LaSalle, which played a key role in setting up the project. “The facility is strategically situated just minutes away from the 17-mile East Sea Bridge connecting the Lingang New Area in Shanghai to the recently opened Yangshan Deepwater Port.”

China has the world’s fastest-growing consumer market for perishable food and pharmaceutical products, but its per capita refrigerated warehouse space is less than one-tenth of most developed countries. The demand for cold chain facilities with improved quality is enormous in the People’s Republic, and with the growth of foreign capital in recent years this presents investors with massive opportunities. Preferred Freezer Services has worked with the Dalian-based Yida Group to jointly invest in the development of the cold storage market in China.

“To assist PFS in the setup of its first refrigerated warehouse with modern design and innovative high technology in China, our industrial experts fully leveraged their local knowledge, resources and experience to support our port, airport and global infrastructure experts based in our Los Angeles office,” said Stuart Ross, head of the China Industrial unit of Jones Lang LaSalle. “Together, we delivered a customized solution for PFS’ unique needs.”

Vietnam Facility Coming on Line

Meanwhile, PFS is scheduled to open a fully-racked, 220,000-cubic meter public refrigerated warehouse in Ho Chi Minh City, Vietnam, this autumn. Its managing director is Winston A. Barrie.

Situated adjacent to the bustling outlying districts of Nha Be and Can Gio, it lies just 1,000 meters from the newly constructed Phu My bridge and is adjacent to the Mekong River delta province of Long An.
The 1,623-square-meter cold storage facility has 25,000 pallet positions and 220,000 cubic meters of freezer capacity.

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