Q&A

The benefits of the Shanghai FTZ for the logistics industry have the potential to affect all businesses that rely on moving goods to or from China. In terms of numbers, prior to their incorporation as the Shanghai FTZ, the city’s four designated bonded areas were home to over 11,000 trade and logistics-related enterprises, based on CBRE figures. While the FTZ is often touted as a centerpiece in the transformation of Shanghai into a regional financial center, its promotion of the city as a logistic hub is equally if not more significant. With its amalgamation of four bonded zones—the Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone—the FTZ has been shaking the traditional concentration of logistics operations in the city’s Hongkou District, where more than 3,500 companies in related industries contribute roughly 28 percent of the district’s GDP.