Quick Take: Cainiao Flies With Emirates for Logistics Hub in Dubai

Cainiao Network Technology Co., the logistics arm of Alibaba Group, set up a partnership with Emirates SkyCargo, the freight division of Emirates, to jointly develop a logistics hub in Dubai, the companies said Wednesday.

The deal is part of Cainiao’s broader effort to provide 72-hour global delivery through an expanding network. The Hangzhou-based company recently unveiled plans to build five global hubs, including the one in Dubai. Others are planned for Hangzhou, Kuala Lumpur, Liege and Moscow, involving total investments of hundreds of billions of yuan.

No financial details were released for the Dubai facility. Under a memorandum of understanding signed Wednesday, the two companies will work together to manage e-commerce shipments in the Middle East and neighboring regions through Dubai. The parties will work closely to facilitate cross-boarder parcel delivery, speed up customs clearance and improve warehouse management and last-mile delivery to customers.

“As a key gateway that links Asia and Europe, Dubai is well positioned to help us achieve our goal of 72-hour global delivery," said Guan Xiaodong, general manager of Cainiao’s Global Business. "We have a strong commitment to Dubai and the neighboring markets. This fits well with our broader strategy," Guan said.

Cainiao has been stepping up investment and facilities construction in recent months to expand its capacity. Last week, the company led a group to invest $1.5 billion in a new logistics center at Hong Kong International Airport. The project will bring an additional 1.7 million tons of cargo a year to the Hong Kong airport when fully operational in 2023.

Emirates SkyCargo is the largest international cargo airline, offering cargo services to more than 155 global destinations, including 50 weekly flights to China. The agreement with Cainiao is “the first step” for a “deep relationship” between the two companies, said Nabil Sultan, Emirates divisional senior vice president, cargo.

Contact reporter Han Wei (weihan@caixin.com)