Chinese logistics giant YTO Express signed a strategic partnership agreement Wednesday with the Shuangxi Low-Altitude Economic Operation Base in Shanghai's Minhang District, launching a phased initiative to deploy autonomous drone delivery and build a multi-modal transit network across the Yangtze River Delta.

The agreement was signed during the 2026 International Low-Altitude Economy Expo in Shanghai. Under the contract, the partners will leverage 14.2 square kilometers of dedicated airspace managed by the Shuangxi base alongside YTO Express's national freight network.

The project will proceed in stages, beginning with local low-altitude logistics drone flight routes in Minhang District. The initial phase includes constructing standardized landing and transfer facilities to establish a closed-loop testing environment for local autonomous drone flight operations. Financial terms of the deal were not released.

Longer-term plans involve opening a cross-provincial low-altitude freight route connecting the Shuangxi base in Shanghai to the Jiaxing Oriental Hub in neighboring Zhejiang province. The initiative aims to integrate autonomous drone transport with rail freight and maritime shipping networks to build a multi-modal transport chain for domestic and international goods.

Beyond route deployment, YTO Express and the Shuangxi base plan to jointly draft operational standards for logistics drones and automated terminal delivery lockers. The parties will also establish a training facility to develop certified drone operators and logistics technicians.

The low-altitude economy has emerged as a key strategic sector in China, with drone logistics seen as a critical component for expanding regional supply chain efficiency. Autonomous aerial transport offers flexible, low-congestion routing to complement traditional ground delivery networks.

Located in Shanghai's Minhang District, the 200-acre Shuangxi base operates as part of the regional low-altitude testing area. Through its general aviation subsidiary, Shanghai Yihang General Aviation, the facility holds commercial aviation operating certifications alongside pilot training credentials certified by both the Civil Aviation Administration of China and the U.S. Federal Aviation Administration.