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ESG Investing / Asia Connect
AIIB okays US$400 million to Hubei air cargo hub
Financing to support development of sustainable, state-of-the-art bonded logistics park
Michael Marray   4 Dec 2024

The Asian Infrastructure Investment Bank ( AIIB ) has approved US$400 million in sovereign-backed financing to support the development of the Hubei Global Air Cargo Logistics Project.

The initiative aims to establish a state-of-the-art bonded logistics park adjacent to the Hubei Ezhou Huahu International Airport, Asia’s first dedicated freight airport.

This facility will include advanced infrastructure for customs operations, bonded warehousing, international cargo stations and trade services, complemented by state-of-the-art technology to streamline logistics operations.

Leveraging the air freight capacity of the operational Huahu Airport, the project aims to position Ezhou as a global air freight hub and a key gateway for opening up Hubei and central China. By 2030, the park is expected to attract over 600,000 tonnes of international air freight, supporting sustainable economic development and cross-border trade.

“The AIIB has brought significant value to the project by introducing leading practices in green and smart logistics operations,” says Konstantin Limitovskiy, the bank’s vice-president for investment clients region 2 and project and corporate finance, global. “By prioritizing sustainable design and operational efficiency, the Hubei Global Air Cargo Logistics Project is set to become a benchmark for green infrastructure in the region. With globally recognized green building certifications for all warehouses, this project exemplifies how innovation and sustainability can drive economic and environmental value.”

The project aligns with the AIIB’s mission of “Financing Infrastructure for Tomorrow” and is designed to meet the bank’s high environmental and social standards. Comprehensive environmental and social measures include the preparation of an environmental and social impact assessment, a resettlement plan and a stakeholder engagement plan.

As part of its sustainability focus, the project will integrate smart and green logistics practices, with a roadmap to achieve globally recognized green building certifications for the park’s warehouses. Collaboration with industry leaders like GLP has provided the client with practical frameworks for climate-resilient and low-carbon logistics operations.

“This project marks a significant step toward establishing Ezhou as an international air logistics hub, enhancing cross-border connectivity and trade for the Wuhan Metropolitan Area and beyond,” adds Xuezhi Wei, Ezhou Linkong Group’s assistant general manager. “By optimizing the logistics network of the Yangtze River Economic Belt, we aim to attract global aviation and logistics enterprises, foster regional integration, and drive collaborative innovation.

“With the AIIB’s support in comprehensive planning, green and low-carbon design, and climate resilience measures, we are setting a benchmark for sustainable logistics development and positioning Ezhou as a gateway for international trade development in Hubei Province.”

The Hubei Global Air Cargo Logistics Project reflects the AIIB’s strategic priorities – including green infrastructure, connectivity and regional cooperation, and technology-enabled infrastructure – further strengthening its commitment to environmentally sustainable and socially inclusive development.