Construction of the Quanzhou Shihu Port Bonded Logistics Center (type B) started on July 30, and will be the first of its kind in Quanzhou, a city in East China's Fujian province.

Located in the Shihu Port area in Shishi, a county-level city in Quanzhou, the bonded logistics center will cover an area of more than 17 hectares, with a total investment of 727 million yuan ($104.24 million) and a planned construction period of 416 days.

Once completed, the facility will include a bonded logistics warehouse, a cross-border e-commerce logistics warehouse, a cultural industry warehouse and a bonded cold warehouse.

It's estimated that after the project is completed in the second half of 2021, the storage area of the bonded logistics center will exceed 75,000 square meters and that annual cargo turnover could reach 2 million metric tons.

Upon beginning operations, the facility will provide international business service support for the structural adjustment, transformation and upgrading of various industrial clusters related to clothing and textiles, footwear, building materials and home furnishings, food and beverages and arts and crafts.

It will also promote the integrated development of traditional enterprises and cross-border e-commerce in Quanzhou and high-quality development of foreign trade in the city.

A bonded logistics center (type B) refers to a bonded supervision site approved by customs and operated by a corporate legal entity in China, with multiple companies engaging in bonded warehousing and logistics services.

It enables local production companies to achieve optimization of capital flow in terms of bonded imports and export tax rebates. The center will also effectively reduce logistics costs and promote professionalization and internationalization of the local logistics service system.