MSC’s logistics arm expands cold chain network in China with five-facility joint venture

2026-03-20

MSC's logistics division is expanding its cold chain network in China through a joint venture that operates five cold storage facilities in Shanghai, Tianjin, and Ningbo. This marks the MSC Group's largest cold chain investment outside of the Americas, as the reefer infrastructure at major ports in China faces increasing pressure.

The joint venture was launched by MEDLOG, the logistics division of MSC Group, in collaboration with China Master Logistics Co. Ltd. (CMLOG), a listed company on the Shanghai Stock Exchange. This is their third and largest facility, with the anchor site inaugurated on March 11th in Shanghai's Lingang Free Trade Zone. This facility has the capacity to store approximately 80,000 tonnes of frozen meat, seafood, dairy, and produce.

The facility features automated warehouse management systems, customs support, and inland distribution, linking MSC's ocean freight network to temperature-controlled storage located near the ports. However, it remains uncertain whether MSC-owned reefer containers will be used domestically within this joint venture, or if the operation will be limited to warehousing and last-mile delivery. MEDLOG China already provides multimodal container logistics, including road, rail, and barge services that involve reefer handling. Incorporating cold storage into this network would allow MSC to gain comprehensive control over perishable supply chains entering China.

Reefer infrastructure at the three ports is currently under strain. A Kuehne+Nagel operational update from January 2026 highlighted that reefer plug availability is "tight" at Shanghai's Yangshan terminals, while Ningbo's MSICT terminal reported an 83% utilization rate for reefer containers in mid-February.

In the first half of 2025, demand for China's food-related cold chain logistics reached 192 million tonnes, up 4.35% year-on-year, generating service revenue of CNY 279.9 billion (approximately US$40.6 billion). Additionally, investment in cold storage projects rose by 7.67% to CNY 22.3 billion, according to the China Federation of Logistics and Purchasing.

CMLOG is a publicly traded company without a disclosed controlling shareholder or state-linked ownership, a notable feature for a Western carrier entering a logistics joint venture in China amid heightened scrutiny of foreign involvement in supply chain infrastructure. Since 2022, MEDLOG has invested over US$200 million in the U.S. alone and has indicated plans to invest more than US$1 billion in North America. While no specific capital expenditure figure has been provided for the China joint venture, the scope of five facilities across three cities represents MEDLOG's largest cold chain commitment outside of the Americas.