Hefei Logistics Hub vs Nanjing Logistics Hub: Best for Supply Chain

Last updated: July 2026

Introduction: Two Rising Logistics Powerhouses in the Yangtze River Delta

As supply chain strategies increasingly shift toward multi-hub models that balance cost, speed, and resilience, the Yangtze River Delta (YRD) region offers an array of logistics hub choices. Among them, Hefei (合肥) — capital of Anhui Province — and Nanjing (南京) — capital of Jiangsu Province — have emerged as two of the most compelling alternatives to the traditional Shanghai-centric logistics model. Both cities have invested heavily in logistics infrastructure, benefit from strong government support, and offer distinct advantages for different types of supply chain operations.

This in-depth comparison evaluates Hefei and Nanjing across twelve critical dimensions — transportation connectivity, warehousing costs, labor availability, government incentives, proximity to manufacturing bases, and more — to help foreign firms determine which logistics hub best suits their supply chain needs. Whether you are establishing a regional distribution center, a cross-border e-commerce fulfillment hub, or a raw materials consolidation point, this analysis provides the data and insights needed for a strategic decision.

Profile of Each Hub

Hefei Logistics Hub

Hefei has transformed from a provincial capital with modest logistics capabilities into a nationally recognized logistics hub in less than a decade. The city’s logistics strategy is built on three pillars: its position as a manufacturing powerhouse for NEVs, home appliances, and electronics; its designation as a national comprehensive transportation hub (全国性综合交通枢纽); and its role as the core of the Anhui Pilot Free Trade Zone. Key logistics assets include:

• Hefei Xinqiao International Airport (HFE): A 4E-class airport with cargo terminal capacity of 200,000 tons annually, expanding to 400,000 tons. Cargo routes include dedicated freighters to Osaka, Seoul, Bangkok, and Frankfurt.
• Hefei Comprehensive Bonded Zone: 642,000 sqm of bonded warehouse space, with 15-minute clearance for trusted enterprises.
• Hefei Rail Container Center: The departure point for Hefei’s China-Europe Railway Express, with over 1,000 trains per year to 20+ European cities.
• Hefei Port (Nantouhe Terminal): An inland river port with 500,000 TEU annual capacity, connected to the Yangtze via the Yuxi-Hefei Canal.
• Hefei National Logistics Hub: Designated as one of China’s 2023 National Logistics Hub nodes, with dedicated funding for multimodal transport infrastructure.

Nanjing Logistics Hub

Nanjing, as the historical capital of the Yangtze River Delta region and the capital of Jiangsu Province, has long been a transportation and logistics center. Its advantages are rooted in its strategic location at the intersection of the Yangtze River shipping lane and major north-south rail and highway corridors. Key logistics assets include:

• Nanjing Lukou International Airport (NKG): A 4F-class airport with cargo capacity of 600,000 tons annually, dedicated cargo routes to major global hubs, and a newly expanded cargo terminal with cold-chain facilities.
• Nanjing Longtan Comprehensive Bonded Zone: One of China’s largest bonded zones at 2.2 million sqm, with advanced e-commerce fulfillment infrastructure.
• Nanjing Port (Longtan Container Terminal): The largest inland river port in China by container throughput, handling over 3.5 million TEUs annually with 10,000-DWT vessel capabilities.
• Nanjing Railway Hub: A major node on the Beijing-Shanghai high-speed railway and conventional rail network, with container rail connections to Central Asia and Europe.
• Nanjing Cross-Border E-Commerce Comprehensive Pilot Zone: One of China’s leading cross-border e-commerce logistics centers with dedicated clearance channels.

Comparative Analysis by Key Factors

1. Geographic Location and Market Access

Analysis: Nanjing’s location offers a clear advantage in terms of proximity to both Shanghai Port and the most affluent YRD consumer markets (Nanjing is 300 km closer to Shanghai than Hefei, and within the immediate YRD core). However, Hefei’s location serves as the gateway to Central and Western China — it is positioned at the intersection of the Yangtze River Economic Belt and the “Belt and Road” corridor, making it strategically valuable for supply chains serving inland Chinese markets.

2. Transportation Infrastructure

Air Cargo: Nanjing Lukou Airport (600,000 tons capacity, 4F category) significantly exceeds Hefei Xinqiao Airport (200,000 tons, 4E category) in both current capacity and future expansion plans. Lukou has dedicated freighter routes to Chicago, Los Angeles, Frankfurt, Amsterdam, Moscow, and major Asian hubs, while Hefei’s air cargo network is still developing primarily on Asian and select European routes.

Water Transport: Nanjing’s Longtan Port handles 3.5+ million TEUs annually with direct deep-water access — cargo can be loaded onto 10,000-DWT vessels for direct ocean transit or transshipment at Shanghai. Hefei’s river port handles 500,000 TEUs and requires barge transport to downstream deep-water ports. This is a fundamental capacity and capability gap that currently favors Nanjing decisively for water-borne cargo.

Rail Freight: Both cities are major rail hubs. Hefei has a slight edge in China-Europe Railway Express frequency — approximately 1,000 trains per year (ranked 5th nationally) versus Nanjing’s approximately 700 trains per year. However, Nanjing’s rail connections to the YRD manufacturing belt and to northern China are more extensive, given its position on the Beijing-Shanghai mainline.

Road Network: Both cities are well-served by China’s expressway network. Hefei is at the intersection of G3 (Beijing-Taipei) and G40 (Shanghai-Xi’an) expressways, while Nanjing is served by the G25, G36, G40, and G42 corridors. Nanjing’s road network carries higher traffic volumes and offers more direct connections to the full YRD industrial cluster.

3. Warehousing and Industrial Real Estate

Analysis: Hefei offers a 35–45% cost advantage on warehousing and industrial real estate compared to Nanjing. For supply chains with significant warehousing requirements — regional distribution centers, inventory buffers, or consolidation operations — this cost differential can translate into RMB 5–15 million in annual savings for a medium-sized logistics operation. However, Nanjing offers a more mature warehousing market with higher-quality Grade A facilities, better property management standards, and a more established logistics services ecosystem.

4. Labor Costs and Availability

Hefei: Average monthly wage for warehouse workers: RMB 4,000–6,000; logistics supervisors: RMB 7,000–10,000; supply chain managers: RMB 12,000–18,000. Hefei benefits from a large labor pool drawn from Anhui’s rural population and its strong university system (over 50 higher education institutions producing 300,000+ graduates annually). Labor turnover rates are moderate (15–20% annually) — higher than inland cities but lower than Shanghai.

Nanjing: Average monthly wage for warehouse workers: RMB 5,000–7,500; logistics supervisors: RMB 8,000–12,000; supply chain managers: RMB 15,000–25,000. Nanjing’s labor costs are 20–30% higher than Hefei’s for equivalent positions. The city’s labor pool is smaller (Nanjing’s population is 9.5 million versus Hefei’s 10.2 million), but it has a higher concentration of logistics and supply chain talent due to the presence of major corporate headquarters and logistics service providers.

Verdict: Hefei wins on cost and availability. Nanjing wins on the concentration of specialized logistics talent and experienced supply chain management professionals.

5. Government Incentives and Policy Support

Hefei: As part of Anhui Province’s aggressive economic development strategy, Hefei offers substantial incentives for logistics and supply chain investments:

• Subsidies of up to RMB 5 million for establishing regional distribution centers or bonded logistics facilities;
• Corporate income tax (CIT) reductions — 15% for encouraged industries within the AH-FTZ;
• Export rebate priority processing (5-day target) within the comprehensive bonded zone;
• R&D subsidies for logistics technology innovation (up to 20% of qualifying R&D expenditure);
• Land and utility subsidies for anchor logistics tenants in designated logistics parks;
• Fast-track customs certification for “trusted logistics operator” status.

Nanjing: Jiangsu Province and Nanjing municipal government offer substantial incentives, but the competition for investment is stiffer and the threshold for qualifying is higher:

• Headquarters economy subsidies — up to RMB 10 million for establishing a regional or China headquarters in Nanjing;
• Cross-border e-commerce hub subsidies — up to RMB 3 million for setting up bonded e-commerce fulfillment operations;
• Green logistics subsidies for electric vehicle fleets and low-carbon warehouse operations;
• Access to Jiangsu Province’s logistics development fund (江苏物流发展专项基金);
• Streamlined administrative procedures for logistics zone development projects.

Verdict: Hefei offers more accessible and generous incentives, particularly for manufacturing-integrated logistics operations. Nanjing offers larger headline subsidies but with higher qualification bars and more competition for the same incentive pools.

6. Multimodal Connectivity

Nanjing has a more mature multimodal transport system with proven interfaces between road, rail, water, and air cargo modes. The Longtan Comprehensive Bonded Zone, for example, has direct rail-water intermodal facilities, allowing containers to be transferred seamlessly between rail and barge operations. Hefei’s multimodal infrastructure is still developing — while the air-rail-road connections are good, the water connectivity is limited by the canal draft restrictions. For supply chains that rely on integrated multimodal transport — particularly water-borne cargo — Nanjing has a significant advantage.

7. Logistics Services Ecosystem

Nanjing hosts the regional headquarters of major third-party logistics (3PL) providers including SF Express, JD Logistics, COSCO Shipping Logistics, DHL, and Sinotrans. The city also has a dense network of freight forwarders, customs brokers, quality inspection agencies, and logistics IT providers. Hefei’s logistics services ecosystem is growing rapidly but is still less developed. While all major 3PLs have operations in Hefei, they are typically branch offices rather than regional headquarters, meaning decision-making authority and service breadth are more limited. For specialized services — cold-chain logistics, hazardous materials handling, project cargo logistics — Nanjing’s ecosystem is significantly more developed.

8. Proximity to Manufacturing Bases

Hefei: Located in the heart of Anhui’s manufacturing belt. Major industrial zones within 50 km include the Hefei Economic and Technological Development Zone (autos, electronics, NEV batteries), the Hefei High-Tech Zone (semiconductors, AI, bio-tech), and other industrial parks producing home appliances, machinery, and new materials. For supply chains that source primarily from Anhui manufacturers, Hefei offers the clear advantage of co-location.

Nanjing: Situated within the larger YRD manufacturing ecosystem. Major industrial zones include the Nanjing Jiangning Development Zone (autos, smart grid, electronics) and the Nanjing Chemical Industry Park. However, many of the YRD’s manufacturing clusters — Suzhou, Wuxi, Changzhou, Kunshan — are 100–200 km from Nanjing, requiring a 2–3 hour truck journey. For supply chains sourcing from across the full YRD region, Nanjing’s central location within the YRD corridor is advantageous, but Hefei’s co-location with Anhui’s manufacturing base is more direct for Anhui-sourced goods.

9. Cross-Border E-Commerce Capabilities

Nanjing has a clear edge in cross-border e-commerce logistics. As one of China’s Cross-Border E-Commerce Comprehensive Pilot Zones (跨境电子商务综合试验区), Nanjing has dedicated e-commerce customs clearance facilities, integrated express carrier hubs (Lukou Airport has dedicated cargo capacity for e-commerce parcels), and a mature ecosystem of e-commerce fulfillment providers. Hefei is developing its cross-border e-commerce capabilities — it received pilot zone status in 2022 — but currently handles lower volumes and has fewer integrated express carrier connections. For B2C e-commerce fulfillment, Nanjing is the stronger choice.

10. China-Europe Railway Express

Hefei holds a meaningful advantage in rail freight to Europe. The Hefei China-Europe Railway Express runs more frequent services (approximately 1,000 trains per year) to more European destinations (over 20 cities) than Nanjing’s service. Hefei’s trains to Hamburg, Duisburg, Warsaw, and Malaszewicze are well-established and offer competitive rates. For supply chains serving European markets, Hefei is the superior rail gateway.

11. Business Environment and Quality of Life

For foreign firms establishing logistics operations, quality of life for expatriate staff is a consideration. Nanjing offers a more internationalized business environment with a longer history of foreign investment, more international schools, a larger expatriate community, and stronger English-language business services. Hefei’s international business environment is developing — the expatriate community is smaller, but the city has invested heavily in English-language services at the airport, in major hotels, and at government service centers. Both cities are safe, clean, and well-served by high-speed rail connections to Shanghai (less than 2 hours from Nanjing, under 2.5 hours from Hefei).

12. Sustainability and Green Logistics

Nanjing has more mature green logistics initiatives, including a municipal electric vehicle (EV) truck mandate for last-mile delivery, solar-powered warehouses in the Longtan zone, and low-emission zones in the city center. Hefei — as a major NEV production hub — is rapidly developing its green logistics capabilities, including EV truck charging infrastructure and green warehousing certification programs. For supply chains with aggressive sustainability targets, Nanjing currently offers more mature green logistics infrastructure, but Hefei’s trajectory is steep and aligns naturally with its position in the NEV supply chain.

Decision Matrix: Which Hub Is Right for Your Supply Chain?

Case Study: A Hybrid Approach in Practice

A European automotive parts manufacturer with operations in both Anhui (Hefei) and Jiangsu (Changzhou) illustrates the hybrid approach effectively. The company established a consolidation center in Hefei for components sourced from Anhui suppliers, taking advantage of lower warehousing costs and the proximity to its Hefei injection molding facility. Bulk shipments to Europe are routed through the Hefei China-Europe Railway Express. Meanwhile, the company maintains a distribution center in Nanjing’s Longtan Bonded Zone for time-sensitive parts distribution to YRD-based customers and for air freight exports of high-value electronic components through Nanjing Lukou Airport. This dual-hub strategy reduced total logistics costs by approximately 18% compared to the previous single-hub (Shanghai) approach.

Conclusion

The choice between Hefei and Nanjing as a logistics hub depends fundamentally on your supply chain’s priorities and cargo profile. Hefei is the cost-optimization choice — lower warehousing and labor costs, generous incentives, strong rail connectivity to Europe, and proximity to Anhui’s manufacturing base. Nanjing is the connectivity and service choice — deep-water port access, a mature logistics ecosystem, superior air cargo capabilities, and a stronger cross-border e-commerce infrastructure. For many supply chains serving the YRD region and export markets, the optimal strategy is a dual-hub approach that leverages Hefei for cost-efficient consolidation and rail freight to Europe, while using Nanjing for time-sensitive and specialized logistics requirements. As both cities continue to invest in their logistics infrastructure, their complementary strengths make them ideal partners in a diversified YRD supply chain strategy.

Disclaimer: This comparison is based on publicly available data and typical market conditions as of mid-2026. Actual costs, service levels, and infrastructure capabilities may vary. Companies should conduct due diligence specific to their logistics requirements before making location decisions.