On June 21, Prologis China and Orange3 reached a strategic cooperation agreement in Shanghai to build high-standard cold chain facilities across China. Laurence Liao, Vice President Strategic Initiatives of Prologis China, Dallas Zhang, Vice President, Regional Director of East China at Prologis China; Pan Wei, Founder of Orange3, Wang Shiying, Head of Project Construction Center, Qiao Minhua, Director of Business Development,  attended the signing ceremony as representatives of both parties.

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The focus of the accord is on combining strengths to achieve success. At present, Prologis and Orange3 have agreed to kick start the first phase projects in Shanghai, Dongguan, Hangzhou and Suzhou. Later, the partnership will be extended across the whole country. The two companies are exploring various ways to build cold chain infrastructure facilities in the four strategic regions of China, namely East China, South China, West China and North China.

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“Prologis is bullish about the prospects of the high-growth cold chain market. The ongoing development of China’s cold chain industry calls for improvements in cold chain infrastructure and the distribution of warehousing,” stated Laurence Liao, Vice President Strategic Initiatives of Prologis China, speaking proudly of the partnership. “Prologis is willing to make the most of its infrastructure and warehouses, as well as its global expertise and experience gained in the logistics industry through the years, to transform China’s cold chain industry together with Orange3 and other cold chain enterprises. In the field of cold chain management, Prologis is very honored to be a strategic partner with Orange3, a leading company in the industry. Our partnership is based on our shared vision for high-standard facilities. We will work together to develop the cold chain logistics system that is critical for enhancing the integrity of urban supply chains and food safety.”

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“A once-in-a-lifetime opportunity has emerged for China’s cold chain logistics industry,” said Pan Wei, Founder of Orange3. “Since China’s ‘14th Five-Year’ cold chain logistics development plan was promulgated, various favorable policies have been introduced. During the Covid-19 pandemic, the cold chain has played an important role in guaranteeing people’s livelihood. China is grappling with a shortage of quality cold chain facilities. Today’s consumers put a premium on food safety. All of this will allow the Chinese cold chain industry to grow.”

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The strategic partnership will see the two parties work together to build high-standard cold chain distribution centers. With its industry-leading, high-standard industrial infrastructure, especially the zero-carbon infrastructure built in accordance with ESG-level standards, Prologis is well-positioned to help upgrade the cold chain infrastructure. The two parties will also search for new ways to build a cold chain logistics infrastructure to high international standards. At the same time, Prologis will further increase the presence of its warehouses in China. As of today, Prologis China has managed assets in 23 cities across four strategic regions. It has built an efficient stereoscopic infrastructure network covering strategic locations, such as major transportation hubs, industrial parks and distribution centers in these regions. Looking to the future, Prologis China will collaborate with Orange3 and other players in the industry to include the Yangtze River Delta, Beijing-Tianjin-Hebei, the Greater Bay Area, and the Chengdu-Chongqing economic circles into its strategic blueprint while strengthening its infrastructure in the four strategic regions. This will allow the company to deeply engage in industrial upgrading.

It is worth mentioning that Prologis not only brings its global experience in constructing high-standard infrastructure to China, but it also introduces standards to the Chinese cold chain industry. As one of the standard committees for China’s warehousing facilities, Prologis has been committed to developing an internationally leading standard system for China. For example, it has participated in the formulation of the national standard General warehouse and warehouse area design parameter (revised on the basis of GB/T 28581-2012), which stipulates the requirements for warehouse layout, warehouse design, related facilities and equipment, storage area signs and markings, application of information technologies, and green warehousing in the planning and design of general warehouses and storage areas. 

Prologis Foshan Datang Logistics Center

This cooperation is one of Prologis targeted moves to tap the food cold chain market. Going forward, Prologis will continue to deepen cooperation with central kitchen logistics providers, food processing plants and food retail traders to optimize the service system of the industrial ecosystem, create opportunities for enterprises to cooperate in the supply chain as well as in technological innovation, such as low-carbon and new energy technology, and other fields. Prologis remains dedicated to forging partnerships that empower industrial upgrading. 

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