Swiss ground handler partners with Smargo joint venture to manage Digital & Intelligent International Cargo Terminal, marking strategic entry into Chinese market
Swissport has entered the Chinese market with a deal to manage and jointly operate a new cargo terminal at Shanghai Pudong International Airport (PVG).
The handler will work in partnership with Smargo, a joint venture between AVINEX Logistics and China Eastern Airlines Logistics, to operate the new Digital & Intelligent International Cargo Terminal at PVG.
The new facility, located in the West Cargo Area of PVG, covers 222,000 sq m with a core operational area of approximately 150,000 sq m. The facility represents a total investment of 1.56 billion yuan (approximately $215m) and is designed to handle between 600,000 and 1.2m tons of international cargo annually when it becomes operational late this year.
Designed for the demands of modern e-commerce and global supply chains, the terminal features an AI-driven warehouse management system with 99.5% scheduling accuracy—60% higher than conventional operations, said Swissport.
Its fully automated processes, including 94 autonomous vehicles and specialised AGVs, eliminate manual handling, reduce errors, and cut dwell times, giving customers real-time visibility and predictable, efficient cargo flow, stated the handler.
The facility also has 15,000 sq m of temperature-controlled space—including a 200 sq m ultra-deep freeze chamber. With capacity to simultaneously store 1,500 tons of temperature-sensitive cargo, the facility supports next-generation pharmaceuticals, vaccines, and biomedical shipments with precise temperature stability.
This facility addresses a critical gap in Shanghai's air cargo capabilities while pursuing the industry's highest pharmaceutical handling credentials through GDP and CEIV Pharma certifications, stressed Swissport.
For cross-border e-commerce, the Shanghai facility's four high-speed automated sorting systems will process 3,500 parcels per hour—triple the throughput of conventional cargo terminals—enabling up to 40% faster delivery of Chinese exports to global markets.
Swissport already operates specialised e-commerce cargo hubs in key global locations including New York JFK, Liège, Brussels, Basel, and Milan.
The PVG agreement reinforces Swissport's commitment to strategic growth in the Asia Pacific region while supporting China's position as a global aviation hub.
Following the Shanghai operation, Swissport plans to evaluate additional Chinese cargo market opportunities to create a comprehensive network of specialised cargo operations across China's major commercial centers.
The signing ceremony for this agreement took place on 21 October, supported by Shanghai Airport Authority and China Eastern Airlines Corporation Limited.
"This milestone agreement marks Swissport's strategic entry into China with one of the world's most technologically advanced cargo facilities," said Warwick Brady, president and chief executive of Swissport International.
"By connecting Shanghai with our global network, we'll enable Chinese exporters to reach international markets up to two days faster through our specialized e-commerce handling.
"Working with our partners AVINEX Logistics and China Eastern Airlines Logistics, we're creating efficient trade pathways that will transform how Chinese businesses connect globally. Shanghai represents just the beginning of our long-term commitment to China's aviation future."
Brad Moore, chief executive APAC at Swissport International, said: “Our new facility at Shanghai Pudong is a cornerstone of Swissport’s cargo strategy in Asia and reflects our long-term commitment to this dynamic market.
"By bringing our global expertise in specialized cargo handling to one of Asia’s most important air freight hubs, we are creating new efficiencies that strengthen the regional supply chain.
"This flagship operation not only enhances our presence in China but also serves as a vital connection point for trade across the entire Asia-Pacific region. The partnership fully supports our strategy to build premium cargo operations at key Asia gateways, where we can deliver the greatest value to our airline partners and their customers.”
The new terminal comes at a strategic time as PVG continues to strengthen its position as a global air cargo hub, currently handling approximately 4m tons annually with projected growth of 8-10% per year.
Korean Air recently selected Swissport to operate its freight facility at New York JFK, with plans for investment in infrastructure and capacity expansion.
