How a Singapore Logistics Firm Chose Anhui FTZ for Asia Distribution Hub: Case Study
1. Company Background
In early 2024, Singapore-based “LogiHub Asia” (35 distribution centers across SE Asia, Japan, Korea, Australia) planned its largest China facility: a 50,000 m² multi-client hub handling bonded import warehousing and domestic distribution with value-added services under one roof.
2. Evaluating FTZ Options
Shanghai Waigaoqiao: Best customs (95% in 2h) but RMB 55-70/m²/month rent. Ningbo: RMB 28-38/m² but limited large space. Suzhou: Mature ecosystem but 6-month waitlist at RMB 40-50/m². Zhengzhou: Cheapest at RMB 15-22/m² but 800 km from Shanghai ports = RMB 1,800-2,200/container trucking surcharge.
| Factor | Shanghai | Ningbo | Suzhou | Zhengzhou | Anhui FTZ |
|---|---|---|---|---|---|
| Rent (RMB/m²/mo) | 55-70 | 28-38 | 40-50 | 15-22 | 18-28 |
| Port distance | 45 km | 150 km* | 100 km | 800 km | 450 km |
| Labor cost index | 100 | 82 | 85 | 62 | 75 |
3. Why Anhui FTZ Won
LogiHub chose the Hefei sub-zone for: a 52,000 m² ready-built warehouse with dual bonded/non-bonded capability; annual rent of RMB 14.4M vs RMB 24M (Suzhou) or RMB 36M (Shanghai); and a package including 3-year rent subsidy (35%), RMB 2M IT grant, and 5-year reduced CIT (12% effective).
4. FTZ Benefits in Practice
Deferred duty/VAT: 35% of goods re-exported without entering domestic commerce — RMB 4.2M saved in 6 months. Value-added under bond: RMB 1.8M in client savings. One declaration, multiple releases: 40% less paperwork.
| Benefit | Annual Savings |
|---|---|
| Deferred duty on re-exports | RMB 4.44M |
| VAT deferral cash flow | RMB 1.4M |
| Value-added under bond | RMB 1.9M |
| Consolidated declarations | RMB 780K |
| Total | RMB 8.52M |
5. Operations and Expansion
The hub launched March 2025 (10 months). WMS integrated with customs EDI gateway. Cross-border e-commerce (9610 model) attracts Korean/Japanese clients. In 9 months: 8,400 TEU, 12 clients, customs clearance averaging 4.2h. LogiHub announced 25,000 m² expansion in Wuhu sub-zone for Q1 2027.
FAQs
Q: WFOE allowed?
A: Yes, logistics is not on the negative list. Registration took 22 working days.
Q: Minimum investment?
A: No statutory minimum. LogiHub’s ~RMB 65M was typical; smaller operations enter at RMB 5-10M.
Q: Anhui FTZ vs Suzhou?
A: Suzhou has mature ecosystem; Anhui offers 40% lower rent, 20% lower labor, break-even at 45% utilization.
Conclusion
LogiHub’s hub demonstrates Anhui FTZ’s value for logistics investments. Contact Anhui FTZ at ftz@anhui.gov.cn.