Cainiao Network to develop premium logistics centre in Hong Kong

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A joint venture led by Alibaba Group’s logistics arm, Cainiao Network has been awarded the tender to develop and manage a premium logistics centre at Hong Kong International Airport.

The centre at Kwo Lo Wan in the South Cargo Precinct of the airport will be the third largest warehouse in Hong Kong, occupying a site of about 5.3 hectares with an estimated gross floor area of 380,000 square metres.

Scheduled to commence operations in 2023, the centre will become the smart hub in Asia serving the fast growing global e-commerce business, aligning with the cargo development strategy of HKIA to capture opportunities arising from increased cross-border e-commerce and related businesses, as well as the growth in the logistics business related to temperature controlled products such as pharmaceuticals.

The centre is being designed to be future proof, with high specifications to attract fast growing air cargo segments including cross-border e-commerce and temperature-controlled airfreight handling.

It will feature ramp access to all floors and allow the use of large scale robotics and automation, as well as environmental certification of high international standards being adopted including BEAM Plus Gold and LEED Gold.

Cainiao Network are leading the venture with shareholders including China National Aviation Corporation and YTO Express.

The award follows an open tender exercise held by the Airport Authority Hong Kong, which received strong bids from local and international players.

Chinese express delivery firm ZTO Express has made an investment of $168 million for a 15 per cent stake in Cainiao Post, Cainiao Network’s network of last mile delivery stations.

ZTO’s investment in Cainiao Post was done in conjunction with four other delivery companies in China including YTO Express, STO Express, Yunda Express and Best Inc.

ZTO founder, chairman and chief executive officer, Meisong Lai says: “We have always had a deep relationship with Cainiao, which is empowering express delivery companies and growing alongside such companies.

“This investment by ZTO in conjunction with other major express delivery companies in Cainiao Post will allow us to offer better services to customers by enhancing resource allocation and strengthening cooperation across our collective last-mile delivery networks.”