Cainiao to develop US$1.5bn smart hub at Hong Kong Airport

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Cainiao Network, the logistics arm of Alibaba Group, will lead a US$1.5bn joint venture to build a world-class digital logistics center at Hong Kong International Airport, China.

Cainiao will lead the project through its controlling joint venture with China National Aviation Corporation and YTO Express. The companies hold a 51%, 35% and 14% stake in the joint venture respectively.

With advanced environmental protection standards and state-of-the-art technologies, such as automated warehousing and temperature-control solutions, the center will be put into operation in 2023 with an estimated gross floor area of 380,000m² (4,000,000ft²). It will include a sorting center, air cargo processing center and order fulfilment center capable of handling tens of millions of parcels every.

The move forms part of Cainiao’s broader effort to expand and strengthen its global logistics network. Recently, Cainiao unveiled plans to open five hubs in five cities around the world – Dubai, UAE; Hangzhou, China; Kuala Lumpur, Malaysia; Liège, Belgium; and Moscow, Russia.

The new Hong Kong hub will mark another enhancement to this network. It is also part of Alibaba’s commitment to develop a smart logistics network that drives 24-hour delivery in China and 72-hour delivery to the rest of the world.

Wan Lin, president of Cainiao Network, said, “The Hong Kong hub will be yet another milestone on our way to achieving our goal of 72-hour global delivery, and will further empower SMEs locally and globally to more readily tap the benefits of more inclusive globalization through cross-border e-commerce.

“The Hong Kong International Airport has been the world’s busiest cargo airport for many years. As an important gateway for global goods to enter the mainland China market and vice versa, Hong Kong is of strategic importance to Cainiao and we have a strong commitment to help the city address the surging needs of the future.”

Cainiao already has three Global Fulfillment Centers in Hong Kong which are operated by its partners. It also opened an air freight route between Hong Kong and Belgium last month, marking its second international air freight route for e-commerce parcels following the opening of its Hangzhou-Moscow route earlier this year.

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Dan joined Postal and Parcel Technology International in 2014 having spent the early years of his career in the recruitment industry. As assistant editor, he now produces daily content for the website and supports the editors with the publication of each exciting new issue. When he’s not reporting on the latest logistics news, Dan can be found apprehensively planning his next DIY project for his new home.

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