(Yicai Global) Sept. 17 -- Construction of a cross-border logistics center between China and Russia got underway today as Heilongjiang Pilot Free Trade Zone, China's northernmost FTZ, was extended to include the city of Heihe, China News reported.

The CNY3 billion (USD424.3 million) cross-border logistics hub is the Heihe extension's signature project. When completed, the approximately 1 square kilometer facility will connect China's rail network with Russia's Trans-Siberian Railway and road network, while serving as a logistics backbone for bi-lateral trade.

The FTZ's new area faces the Advanced Special Economic Zone in Russia's Amur Oblast across the Heilongjiang river, also known as the Amur river. It will focus on the development of integrated processing and use of cross-border energy resources as well as green food, commerce and trade logistics, tourism, healthcare, finance in border areas and other sectors.