The Airport Authority Hong Kong (AA) and Alibaba group have agreed to build a global smart logistics facility at Hong Kong International Airport (HKIA), to be operational in 2023.
Jack So Chak-kwong and Fred Lam, chairman and CEO, respectively, of AA, met December 12 with Jack Ma, executive chairman of Alibaba, and Angel Zhao, Alibaba president of global business in Hong Kong, and expressed their commitment to collaborate in building a digital logistics center in Kwo Lo Wan at HKIA to foster more inclusive trade.
In June this year, a joint venture led by Cainiao Network, the logistics arm of Alibaba, 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 center in Asia, serving the fast-growing global cross-border e-commerce trade and strengthening Hong Kong’s international competitiveness.
Cainiao announced in June that it would lead a joint venture in investing US$1.5 billion to build a high-caliber digital logistics center at HKIA.
The hub will occupy a site of about 5.3 hectares, with an estimated gross floor area of 380,000 square meters, said AA in a release. 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.
Once operational, the center is said to be able to handle an incremental cargo volume of 1.7 million tonnes per year to the HKIA. It is part of Alibaba’s commitment of a $15.6 billion investment in an efficient smart logistics network that connects to all parts of China in 24 hours, and the rest of the world in 72.
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.
Photo courtesy of HKIA
