Alibaba affiliate Cainiao forms JV to build US$1.5 billion logistics centre at Hong Kong Airport
The investment forms part of Alibaba’s commitment to invest over 100 billion yuan in a global logistics network
Alibaba affiliate Cainiao Network on Wednesday said it will form a joint venture to build a logistics centre at Hong Kong International Airport (HKIA), one of six international logistics hubs as it continues to expand its global network.
The announcement comes as part of Alibaba’s commitment to invest over 100 billion yuan in a logistics network that will aim to complete deliveries in China within 24 hours, and within 72 hours globally. Last week, Cainiao said that it planned to open five logistics hubs in the cities of Dubai, Hangzhou, Kuala Lumpur, Liège and Moscow. Logistics provide the backbone of e-commerce.
Cainiao will take a controlling stake of 51 per cent in the JV, with China National Aviation Corporation and Shanghai-based delivery company YTO Express, taking stakes of 35 and 14 per cent respectively. A total of US$1.5 billion will be invested in the logistics centre at HKIA, the world’s busiest cargo airport, which handled over five million tonnes of cargo and airmail in 2017.
“The Hong Kong hub will be yet another milestone on our way to achieving our goal of 72-hour global deliveries, and will further empower SMEs locally and globally to more readily tap the benefits of more inclusive globalisation through cross-border e-commerce,” said Wan Lin, president of Cainiao Network in a statement.
“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,” added Wan Lin in the statement.