Calling its collaborative project — a smart cargo terminal at Shanghai Pudong International Airport — its strategic entry into China, Swissport International AG said it is looking to tap into the country's economic growth and support Shanghai's continued rise as a global cargo hub, according to a top executive of the Switzerland-based aviation service provider.

"The Shanghai investment is the first step. This was a natural move for us to enter China, given the scale of the cargo market and the partnership with Shanghai Airport (Group) and China Eastern. It marks a landmark agreement for Swissport to begin operations in China," said Warwick Brady, president and CEO of Swissport International AG, in an exclusive interview with China Daily.

Swissport and Shanghai Smargo Logistics Services Co Ltd signed an agreement on Oct 21 to jointly develop the cargo terminal at Shanghai Pudong International Airport into a benchmark smart logistics facility.

Brady said the decision to ink the landmark agreement was a natural step, given China's economic momentum, the continued opening-up of its market and the rapid growth of its e-commerce sector, which is expanding by as much as 30 percent annually.

"Swissport wants to be part of that," said Brady. "China is one of the economic engines of the world and I think it will continue to grow as it is a highly organized and entrepreneurial society. I'm confident in the Chinese economy, and we firmly believe it will keep growing."

Shanghai's two major airports — Pudong and Hongqiao — handled 4.2 million metric tons of cargo and mail in 2024, ranking second worldwide for the first time. The new smart cargo terminal will further strengthen Shanghai's competitiveness and influence as an international air cargo hub, support the nation's high-standard opening-up and provide a "Shanghai airport solution" to help ensure the stability, efficiency and smooth flow of global supply chains.

According to Brady, Swissport handles more than 5 million tons of cargo annually worldwide. The smart cargo terminal, with a designed capacity of about 1 million tons, will expand the company's global capacity by roughly 20 percent through this single project. "It'll be the largest facility we have in the business," he said.

The smart cargo terminal is scheduled to begin operations by the end of this year. It will be operated by Smargo, a joint venture between the logistics arms of Shanghai Airport (Group) Co Ltd and China Eastern Air Holding Co Ltd.

With a core operational area of about 150,000 square meters, the project represents a total investment of 1.56 billion yuan ($220.3 million). Once operational in late 2025 or early 2026, it is expected to handle between 600,000 and 1.2 million tons of international cargo annually.

"As China's economic, trade and shipping center, Shanghai is striving to build an internationally influential aviation hub. This collaboration represents a timely opportunity to seize the moment and contribute to national strategic objectives," said Lyu Yaodong, vice-president of Shanghai Airport (Group) and chairman of the group's logistics arm.

"This project is not just about building an efficient cargo terminal, but creating a globally connected supply chain hub capable of rapid response. Swissport's expertise in international cargo networks, cross-border logistics operations and high-end customer service will provide valuable support in achieving this vision," said Wang Jianmin, general manager of Eastern Air Logistics Co, the freight unit under China Eastern.