ZTO Express-W's (02057) New GBA Hub in Huizhou Begins Operations, Processing 600M Items Daily

Stock News08-07 20:12

ZTO Express-W (02057) has officially launched its Greater Bay Area (GBA) logistics hub in Huizhou's Zhongkai High-tech Zone, a facility capable of sorting 250,000 parcels per hour and handling 6 million items daily. The center, located in Lilin Town, represents an investment of 880 million yuan (approx. AU$184 million) and spans 133 mu (about 8.9 hectares). Since commencing operations in June, it has been redefining logistics efficiency for eastern GBA with a processing speed of 4,000 items per minute.

The hub is a key project for ZTO in southern China, integrating intelligent sorting, warehousing, and cold chain logistics. It now oversees 44 first-tier service outlets across five cities: 20 in Huizhou, 9 in Dongguan, 7 in Heyuan, and 8 in Shanwei, ensuring full coverage of all districts. Previously, parcels from these cities had to be routed through Dongguan, causing delays and higher costs. Now, with the "straightened" routing, items are dispatched directly from Huizhou nationwide, improving average delivery times by 5 to 8 hours across the country. For example, a parcel from Huizhou to the Chaoshan region, once requiring a Dongguan detour, can now arrive by the next morning.

For local manufacturers and e-commerce businesses in Huizhou, the hub reduces transport distances from 30-50 km to less than 20 km, cutting logistics costs significantly. The facility also offers cloud warehouse services, allowing clients to store goods on-site for "store-and-ship" fulfillment, enabling dispatch within two hours of an order.

The center boasts 20 automated sorting lines, including 12 for large items and 4 for small ones, plus 3 tilting tray sorters and 1 narrow-belt sorter. "Six-sided scanning" cameras capture package labels, feeding data to servers that direct diverters to route items without manual intervention. Sorting accuracy exceeds 99%. Currently, human involvement is limited to unloading, loading, and bagging, while the intermediate sorting process is nearly unmanned.

With over 130 dispatch bays, the hub manages 130 trucks departing daily to major cities, plus 500 nine-meter trucks and 200-plus trailers moving in and out, totaling more than 800 vehicle movements per day. Daily throughput is about 6 million items, peaking at 7-8 million during high seasons. At full capacity, annual revenue is projected to exceed 2 billion yuan. In Guangdong province, its automated capacity ranks second only to Guangzhou.

The project's rapid construction, from groundbreaking in December 2024 to completion in March 2025 and full operation in June 2026, was supported by Zhongkai's efficient government services and strong industrial base. "We chose Lilin for its transport hub location, and the local business environment is excellent," said Ren Xiaolei, the hub's manager. "Any issues raised are promptly addressed with dedicated follow-up." The center has created 1,500 jobs, including 800 local hires, and plans for a second phase include a smart equipment manufacturing center to further automation and expand into e-commerce warehousing and cold chain services.

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