With $46 billion in assets under management and 62 million square meters of properties worldwide, Prologis stands as a titan in the logistics real estate sector. Now, the industry leader is charting a bold new course for its future. Jeffrey Schwartz, co-founder and CEO of Prologis, shares his vision for transforming the company from a traditional asset manager into an open platform that empowers the entire logistics ecosystem.
From "Big Company" to "Platform Powerhouse": Prologis' Strategic Transformation
While Prologis remains a dominant force in global logistics real estate, Schwartz envisions a more ambitious future. "If we simply remain a landlord, we're no different from our competitors," he explains. The company's new mission: to evolve into a comprehensive modern logistics solutions provider.
1. Infrastructure: Building a Nationwide Network
After more than a decade in China, Prologis has established an extensive logistics and industrial infrastructure network. As of February 2018, the company and its subsidiary VXP operated 258 logistics parks, industrial parks, and innovation parks across 38 strategic regional markets in China, totaling 33 million square meters. This network forms the foundation of Prologis' platform strategy.
2. Capital Expansion: Creating a Logistics Ecosystem
Beyond physical assets, Prologis has strategically invested across the logistics sector through funds and partnerships. The company's portfolio includes prominent firms like Yimidida, Fuyoukache, Yousu Express, Fengchao, and Juma, covering areas from full-truckload shipping to last-mile delivery.
Notable financial moves include the 2011 establishment of a Japan development fund with Canada Pension Plan Investment Board, the acquisition of a ¥16 billion Japanese portfolio with China Investment Corporation, and the 2013 launch of China Logistics Fund I - the world's largest China-focused logistics infrastructure fund with over $3 billion from six leading global institutional investors.
3. Strategic Partnerships: Connecting the Supply Chain
Following its delisting, Prologis formed strategic alliances with China Life, Ping An Real Estate, and HNA Group. These partnerships provide not only financial support but also valuable connections across the supply chain, enabling Prologis to integrate financial, data, and technological resources for comprehensive client solutions.
4. Data-Driven Operations: Enhancing Efficiency
In the digital era, Prologis leverages data analytics to optimize facility operations and share insights with clients to reduce costs. Through data-driven logistics process improvements, the company helps clients achieve greater supply chain efficiency.
Talent-Driven Growth: Building an Exceptional Team
Schwartz considers human capital Prologis' most valuable asset. "People come first in our business philosophy," he emphasizes. The company cultivates its workforce through:
1. Shared Values: The Foundation of Team Cohesion
Prologis attracts global talent through its unifying vision of becoming a modern logistics solutions provider. "Only a company without a 'headquarters' can be truly global," Schwartz notes.
2. Competitive Yet Humble Culture
The Prologis team combines ambition with humility. "We're driven to build the best, largest facilities, yet we maintain a startup mentality," Schwartz describes. This unique cultural blend attracts top professionals.
3. Open Platform for Talent Development
Mirroring its business strategy, Prologis maintains an open approach to talent management. "My greatest aspiration isn't personal wealth, but the roles I've played in successful companies," Schwartz shares, highlighting the company's commitment to employee growth.
CEO Perspectives: Prologis' Future Vision
"I want Prologis to be a modern logistics solutions provider. If we're just landlords, we're no different. We must continually ask: How can we better serve clients and their suppliers? How can we optimize facility usage? How can data enhance efficiency and cost-sharing?"
"Our future is as an open platform where partners can build their own businesses. We'll provide backend support, strategy, and capital while they operate independently. This model enables scalable growth."
"What makes Prologis unique is our people. We attract those who strive for excellence yet remain grounded. This culture is our DNA."
Conclusion: A Platform-Driven Future
Under Schwartz's leadership, Prologis is transforming into a platform-centric, talent-powered logistics solutions provider. This strategic evolution positions the company to continue leading global logistics real estate innovation while delivering enhanced value to clients worldwide.