Kerry Logistics will build a new 42,000 sq m logistics centre in Xiamen, Fujian Province, Mainland China, preparing the way for a significant increase in trade between the coastal city and Taiwan, the China Daily reported.

The new facility is situation in the Haicang Export Processing Zone and ties in with the government strategy to increase trade across the Strait.

"The new logistics centre will provide Kerry Logistics' customers with a state-of-the-art facility in a strategically important location. Demand for warehousing and value-added services for cross-strait trade is growing quickly and this development is a key component in our strategy to maximise opportunities within the Haixi Economic Zone," said Edwardo Erni, managing director, Mainland China, Kerry Logistics.

Taiwan is the largest trader and the eight largest export market for Xiamen. The trade volume between Fujian and Taiwan in 2008 reached US$7.5 billion, up 56 percent year-on-year. Of that, Xiamen's trade volume was $3.83 billion, up 25 percent.