Kerry Logistics has broken ground on the expansion of its Chongqing Logistics Centre just months after the completion of the first phase of the building to meet the rapid growth in demand.

Phase 2 construction, which is scheduled for completion in the first quarter of 2013, will comprise 62,700 sq.m of space for warehousing and value-added services. The facility will be housed in two towers both four storeys high.

The total area of the logistics center will be 83,200 sq.m when the second phase is completed.

'Chongqing is one of the fastest growing cities in Western China and we have seen a rapid increase in demand for warehousing and logistics services. We have completed the first phase of the logistics centre, with an area of 20,500 sq.m, in the first quarter of this year,' said Edwardo Erni, Managing Director, Mainland China.

Kerry Logistics is targeting the auto spare parts, electronics & hi-tech and telecommunications sectors to provide integrated logistics services such as VMI, pick-and-pack, labelling, packing and re-packing.

Economic growth in Chongqing during the first quarter of 2011 was 16.3 percent.

Chongqing has an estimated population of 28,846,200. It has jurisdiction over 19 districts, 17 "County (People's Republic of China)" counties, and four autonomous counties. With an area of 82,300'km' (31,800'mi'), it is the largest direct-controlled municipality in China.