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Alibaba Subsidiary Cainiao Pushes Into Southeast Asia with New Air Delivery Routes

By Ding Yi / Mar 29, 2021 04:49 PM / Business & Tech

Alibaba’s logistics arm Cainiao said on Monday that it has entered into a partnership with Hong Hong Air Cargo to provide regular air freight services between Hong Kong and three Southeast Asian cities in a renewed effort to expand overseas.

Initially, Cainiao and Hong Kong Air Cargo, a subsidiary of Hong Kong Airlines, plan to operate three, six and seven cargo flights each week from Hong Kong to Kuala Lumpur, Bangkok, and Manila respectively, the two companies said in a joint statement.

Depending on its eHub which is located near Hong Kong’s airport and designed to accelerate parcel processing, the services will shorten the cross-border delivery time, allowing consumers in the three Southeast Asian countries to receive their parcels within three days of placing orders online, Cainiao said.

James Zhao, general manager of Cainiao Global Supply Chain, said that the company aims to expand its air freight network to more countries and regions to achieve the goal of delivering packages within 72 hours globally.

Cainiao already has a presence in Malaysia. In September 2020, it worked with domestic peer Best to launch a delivery service between China and Malaysia, enabling Malaysian consumers to get their parcels as early as the day after clearing customs in the country.

Last year, Cainiao unveiled a three-year plan, under which the firm would invest at least 1 billion yuan ($152 million) in expanding its logistics network, increasing chartered flights, building warehouse facilities and deepening ties with customs authorities around the world.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Alibaba Logistics Arm Chills with Ethiopian Airlines to Transport Covid-19 Vaccines


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