Cainiao expands Airfreight Network at Cainiao Aeropolis eWTP Hub

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Cainiao Aeropolis eWTP Hub

Cainiao has announced the expansion of its direct flight network at the Cainiao Aeropolis eWTP Hub, situated at the Kuala Lumpur International Airport (KLIA) in Malaysia. The first phase will see the launch of the new thrice-weekly direct flight to connect Kuala Lumpur, Malaysia, to London, United Kingdom, with a cargo capacity of up to 300 kilograms per trip, and five times weekly direct flight from Kuala Lumpur, Malaysia to Hangzhou, China, with a cargo capacity of 23,000 kilograms per trip, to better support the export needs of merchants in the region.

The Cainiao Aeropolis eWTP Hub is a joint venture between Malaysia Airports and Cainiao under the electronic World Trade Platform (eWTP) partnership between the Malaysian government and Alibaba Group. It is a central part of Malaysia Airports’ efforts to elevate KLIA’s status as one of the leading distribution gateways in the region through the Aeropolis initiative under the Air Cargo and Logistics cluster since 2016.

Cainiao has plans to expand this network of direct flights from Malaysia to markets such as Singapore, Brunei, Australia (Sydney), New Zealand (Auckland), and other key ASEAN and European markets.

“The expansion of the hub’s direct air freight network will play a pivotal role in supporting the increase in trade flow from Malaysia to key global markets. By tapping on our global logistics network to reinforce air freight stability, we aim to provide a more stable, efficient and cost-effective cross-border logistics solution to help SMEs to reach a wider overseas market and increase their resilience,” said Au Yeong Shong Kwong, General Manager for Cainiao eHub Malaysia. “KLIA’s position as one of the leading distribution gateways in ASEAN, coupled with the hub’s smart logistics capabilities, will facilitate cross-border trade and serve as a regional centre for SMEs to scale globally.”

The launch of the direct flights for export goods from Malaysia to the United Kingdom will reduce air freight time by approximately 30 percent, from 19.5 hours to 13.5 hours, and reduce logistics costs by 10 percent. In addition, flights from this global e-fulfilment hub in KLIA will service both B2B and B2C businesses on eBay. In the same thread, direct flights from Malaysia to Mainland China will increase air freight stability, decrease overall logistics costs by 6 to 10 percent, and help B2B export merchants outside the Alibaba ecosystem gain access to the Chinese market.

Export merchants outside Malaysia can also ship their goods to the hub for transit before exporting them overseas, reducing clearance time by up to 97 percent, from 24-48 hours to 1.5 hours, using digital customs clearance systems.

According to data from the Department of Statistics Malaysia, the total export volumes in Malaysia saw a 29.2 percent year-on-year (YoY) increase in December 2021, driven by domestic and re-exports. The hub’s connectivity will help instil greater air freight stability and support businesses in Malaysia and the broader Southeast Asian region to tap into a wider overseas market to instil greater resilience. With the upcoming air freight network expansion, companies can also look forward to gaining access to more markets globally.

The hub contains warehouse space that spans 1.1 million square feet and facilities for cargo terminal operation (CTO), warehousing, sorting, and a dedicated digital customs clearance. In addition, it serves as a regional e-fulfilment hub to support Malaysia as a growing regional e-commerce logistics hub, with the aim of completing international deliveries within 72 hours. Last November, the hub was officially launched with a ceremony graced by the Ministry of Transport and the Malaysia Airports.

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Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.