DHL Global Forwarding, a subsidiary of logistics company Deutsche Post DHL, says it has signed a memorandum of understanding (MoU) to collaborate with the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.

Under the terms of the agreement, the logistics firm will be allowed to "firmly" establish its presence in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone that is about one hour by truck from Hong Kong.

The special economic zone that will be developed over the next eight years on reclaimed land in western Shenzhen is earmarked to become a thriving commercial centre and one of the world's biggest logistic hubs owing to preferential policies granted by the central government.

The policies, which assist financial, IT and logistic service operators, are designed to transform Qianhai into a "pioneering zone" for the mainland and will effectively allow the logistics providers to offer improved and more flexible services across mainland China and globally, a company statement said.

"As more and more international and Chinese enterprises move into the area, this strategic location offers our customers further opportunities to utilise this world-class logistics facility and expand their business domestically and overseas," said DHL Global Forwarding regional chief Edward Hui.