Swissport International has signed an agreement with Shanghai Smargo Logistics Services to develop a smart cargo terminal at Shanghai Pudong International Airport, marking its strategic entry into China, reported Beijing's China Daily.

Swissport president and CEO Warwick Brady said the investment was a natural move given China's economic momentum, market opening and rapid e-commerce growth of up to 30 per cent annually. He described the deal as a landmark step for Swissport's operations in China.

Shanghai's Pudong and Hongqiao airports handled 4.2 million tons of cargo and mail in 2024, ranking second worldwide. The new terminal, with a designed capacity of about one million tons, will expand Swissport's global handling capacity by 20 per cent, making it the company's largest facility.

The terminal, covering 150,000 square metres, represents a 1.56 billion yuan (US$220.3 million) investment. Operations are scheduled to begin late 2025 or early 2026, with expected throughput of 600,000 to 1.2 million tons annually.

The facility will be operated by Smargo, a joint venture between Shanghai Airport Group and China Eastern. Officials said the project will provide a "Shanghai airport solution" to ensure efficient global supply chains and support national strategic objectives.

Lyu Yaodong of Shanghai Airport Group said the terminal will enhance Shanghai's aviation hub status, while Wang Jianmin of Eastern Air Logistics added that Swissport's expertise in international cargo networks and customer service will help build a globally connected supply chain hub.