Shanghai YTO Dragon Investment Development (Group) Co Ltd, the parent company of YTO Express, will be building an international aviation logistics hub with a total investment of 6.61 billion yuan in Jiaxing, Zhejiang province, according to an investment agreement inked between the Shanghai-based company and the municipal government of Jiaxing on Tuesday.

The aviation logistics hubis expected to raise the company's freight handling capacity to 2.4 million tons by 2050.

Yu Weijiao, chairman of YTO Dragon Investment Development, said that the project is aimed at contributing to the integration of the Yangtze River Delta region and enhancing China's capabilities in air cargo.

To facilitate the hub's operation, YTOExpress will also build a transport center, a logistics technology research and development center, and a commercial hub in the region.

"The unique location, economic structure, infrastructure facilities, consumer market and local government's support have made Jiaxing an ideal choice for YTO to develop an air logistics hub," said SuXiufeng, vice-chairman of YTO Dragon Investment Development.

"With regard to China's limited capacity in international express services and rising concerns about the safety of the global supply chain, this investment in a global aviation logistics hub is timely," added Su.