DHL Worldwide Express Inc. announced Monday plans to invest $175 million on a new North Asia cargo hub at Shanghai's Pudong International Airport.

Plans for the hub were formally set out at a signing ceremony with the Shanghai Airport Authority -- part of a plan launched by the city in 2003 to become China's biggest cargo handler.

The airport at Pudong is due to begin operations at expanded facilities early next year, a major step toward nearly doubling its cargo handling capacity from 2.2 million tons last year to 4.2 million tons a year by 2010, city officials say.

Hong Kong is now greater China's biggest cargo hub, with 3.6 million tons moved in 2006. Shanghai ranks sixth in the world, up from 17th in 2003.

The cargo hub raises DHL's total investment in the Asia-Pacific region to $2.2 billion over the past few years.

"China remains the most important player in the global logistics chain in North Asia," said Dan McHugh, CEO of DHL Express for Asia-Pacific.

DHL is owned by Germany's Deutsche Post.