Malaysia Airports and Alibaba Launch Cainiao Aeropolis eWTP Hub

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Malaysia Airports’ Aeropolis and Alibaba Group have announced the commencement of operations of the new e-fulfilment hub, Cainiao Aeropolis eWTP Hub, Malaysia (formerly known as KLIA Aeropolis DFTZ Park).

The hub is a joint venture (JV) between Malaysia Airports and Alibaba Group, and a major project under the electronic World Trade Platform (eWTP) partnership entered between the Malaysian government and Alibaba Group in 2017. The commencement of operations is expected to help facilitate 24-hour delivery within Malaysia for e-commerce operators, with the ultimate goal of enabling 72-hour delivery to the rest of the world.

According to group chief executive officer (CEO) of Malaysia Airports, Dato’ Mohd Shukrie Mohd Salleh, the airport operator is constantly looking at initiatives that can leverage KLIA’s vast 10 x 10 km landbank, “The Cainiao Aeropolis eWTP Hub, Malaysia occupies 60 acres (2.6 million sqft) with 1.1 million sqft of warehouse space. We are confident that the new facility will be able to increase cargo volume by 700,000 metric tonnes, thus doubling KUL’s current volume to 1.4 million per year by 2029. We are targeting vertical markets from the automotive, sporting goods, fast moving fashion and lifestyle, retail electronics and medical equipment sectors, among others.”

He continued: “With the growth in cargo volume, we are looking at improved airline connectivity via KUL with new routes and increase in flight frequency, belly space utilization and freighter capacity. We hope to double the current number of freighter flights in the next 10 years. Existing airline partners at KUL will enjoy new business yield while we create a synergistic partnership with local industry players e.g. Pos Aviation, MABKargo and GTR to integrate existing facility within the Cainiao Aeropolis eHub, Malaysia while the final mile delivery for the fulfilment of the goods will be operated by GDex, Pos Laju, J&T Express and others. Constant improvements through automation, robotics and artificial intelligence and big data will continue to be made to the supply chain and value-added services. There is potential to hit at least USD10.1 billion GDP growth and create more than 100,000 jobs by the 10th year of the hub’s operations.”

Eric Xu, General Manager of Cainiao Smart Hub said, “As one of Cainiao’s key regional hubs, the Cainiao Aeropolis eWTP Hub, Malaysia will play a strategic infrastructural role in facilitating cross-border trade for SMEs and improving overall consumer experience for imports and exports. With the rise of a global digital economy, we believe that smart logistics will continue to play a pivotal role in helping SMEs to access a wider global market and improving their market competitiveness.”

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