KUALA LUMPUR: Malaysia Airports Holdings Bhd and Alibaba Group have begun operations of their new e-fulfilment hub, Cainiao Aeropolis eWTP hub in Sepang, Selangor.
Formerly known as KLIA Aeropolis DFTZ Park, the hub is part of their joint efforts to strengthen Malaysia's economic recovery of Malaysia and support the increase in trade flow in the broader region.
Lazada, Southeast Asia's largest e-commerce firm, is the first to leverage on the hub while more companies are expected to move in soon to establish their regional distribution centres.
Operated by Alibaba's logistics unit,Cainiao Smart Logistics Network, the hub is expected to facilitate 24-hour delivery within Malaysia for e-commerce operators, with the goal of enabling 72-hour global delivery.
The airport operator said this would in turn boost the country's trade flow in the broader region.
The hub is a major project under the electronic World Trade Platform (eWTP) partnership entered between the Malaysian government and Alibaba Group in 2017.
Group chief executive officer Datuk Mohd Shukrie Mohd Salleh said MAHB would constantly on the lookout at initiatives that can leverage the Kuala Lumpur International Airport's (KLIA) vast 10km x 10km landbank.
"The Cainiao Aeropolis occupies 60 acres (2.6 million sq ft) with 1.1 million sq ft of warehouse space. We are confident that the new facility will be able to increase cargo volume by 700,000 tonnes, thus doubling KLIA's current volume to 1.4 million per year by 2029," he said in a statement today.
Mohd Shukrie said MAHB was targeting cargo volume of vertical markets from the automotive, sporting goods, fast moving fashion and lifestyle, retail electronics and medical equipment sectors, among others.
"With the growth in cargo volume, we are looking at improved airline connectivity via KLIA with new routes and increase in flight frequency, belly space utilisation and freighter capacity," he said.
Mohd Shukrie said MAHB was hopeful to double the current freighter flights in the next 10 years, adding that existing airline partners at KLIA would enjoy new business yield from synergistic partnership with local industry players.
This includes Pos Aviation, MABKargo and GTR to integrate existing facility within the Cainiao Aeropolis, while the final mile delivery for the fulfilment of the goods will be operated by GDex, Pos Laju and J&T Express.
"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 US$10.1 billion gross domestic product (GDP) growth and create more than 100,000 jobs by the 10th year of the hub's operations," he added.
Cainiao Smart Hub general manager Eric Xu said the hub would play a strategic infrastructural role in facilitating cross-border trade for small medium enterprises (SMEs) and improving overall consumer experience for imports and exports.
With the rise of a global digital economy, Xu believes that smart logistics would continue to play a pivotal role in helping SMEs to access a wider global market and improving their market competitiveness.
MAHB said Cainiao Aeropolis aims to help elevate KLIA's air cargo network status as one of the leading distribution gateways within the Asean region.
The e-fulfilment hub will reinforce the country's cargo and logistics ecosystem spanning air, sea and land connectivity.
On top of this, industry participants can look forward to the application of smart supply chain technology and knowledge transfer capability in logistics.
The core businesses of the e-hub include cargo terminal operation (CTO), warehousing and sorting centres within the Free Commercial Zone (FCZ).
The facility promises seamless cargo entry and exit movement as it will have an internal customs inspection point set up within its grounds to increase security and efficiency while reducing cargo handling time.
https://www.nst.com.my/business/2020/11/637782/lazada-first-company-leverage-mahb-alibabas-cainiao-aeropolis
