HANGZHOU -- Shanghai courier YTO Express signed an investment agreement with Jiaxing city in East China to build the company's new aviation logistics hub.

According to the agreement, the hub will be located at the Jiaxing Airport. The first phase of the project covers 96 hectares and costs 7.3 billion yuan ($1.08 billion). Total investment is 12.2 billion yuan (about $18 billion).

Construction is expected to start this year and the hub will be operational by 2021. It will be YTO's global operations base, research and development center and settlement center.

YTO Express will also use rail, road and water transport infrastructure in Jiaxing to boost its logistical capacity in the Yangtze River Delta area, said Yu Weijiao, board chairman of YTO.

According to company plan, by 2030, YTO plans to have 50 cargo planes at the Jiaxing Airport, with an annual air cargo capacity of 1.1 million tonnes. By 2050, aviation cargo and mail capacity is expected to reach 2.4 million tonnes.