HKIA airport and Alibaba express commitment to developing smart logistics hub

posted on 12th December 2018 by Justin Burns

Chiefs from the Airport Authority Hong Kong (AA) and Chinese e-commerce giant Alibaba Group have expressed their commitment to working closely to jointly build a “global smart logistics network to foster more inclusive trade”.

AA chairman, Jack So Chak-kwong, and chief executive officer, Fred Lam, met Alibaba executive chairman, Jack Ma, and president, Angel Zhao to discuss the development.

The collaboration entails a Smart Logistics Hub in Kwo Lo Wan at Hong Kong International Airport (HKIA).

In June this year, a joint venture led by Cainiao Network, the logistics arm of Alibaba Group, was awarded through an open tender exercise the right to develop and manage the Hub, with a view to developing it into a world-class digital logistics centre in Asia, serving the fast growing global cross border e-commerce trade and strengthening Hong Kong’s international competitiveness.

The Hub occupies a site of about 5.3 hectares, with an estimated gross floor area of 380,000 square metres. Scheduled to commence operation in 2023, the Hub will be future-proofed, with high design specifications for large-scale, cutting-edge robotics and automation as well as temperature-controlled features.

HKIA has been the world’s busiest cargo airport for eight consecutive years. The development of the Hub aligns 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.