Cainiao to support Growing Demand in China’s Free Trade Zone
Cainiao Smart Logistics Network, the logistics arm of Alibaba Group Holding Limited, today announced its strategic plan to implement global smart supply chain technologies in Hainan to meet the explosive growth in consumer demand.
This will allow Cainiao to provide a strong logistics infrastructure to support the needs of Hainan’s Free Trade zone, and serve consumers and merchants across the globe with its digitalized full-chain logistics solutions. As one of Cainiao’s core logistics hubs, Hainan will connect to its eHubs in Hong Kong, Kuala Lumpur and Liege, and playing a pivotal role in driving globe trade and e-commerce across Asia and Europe.
This will see the establishment of a full-suite of digitalized logistics services tailored for Hainan:
- A strategic partnership with Global Premium Duty-Free Plaza, a local duty-free shop owned by Hainan Development Holdings Co, which will allow Cainiao to provide full-chain logistics services for one of the duty-free license holders in Hainan, including warehousing and pickup point management and shipping services between warehouse and airports.
- Expansion of international cargo routes connecting Hainan and key countries such as Japan, South Korea, Australia, New Zealand and Europe, with the goal to launch over 800 international cargo flights in Hainan by the end of 2021.
- Development of Hainan’s largest smart warehouse designated for cross-border and bulk goods as well as future inbound duty-free goods. This digitalized warehouse will be equipped with over 100 AGV robots, and automated logistics arms and forklifts, and will bring about an 80% uplift in operational efficiency by reducing staff’s walking time and manual sorting of goods in warehouse. The warehouse system is also integrated with the digitalized customs clearance system for a more seamless and efficient logistics flow.
- To increase warehousing space in Hainan’s bonded zone to 150,000 square meters in the next three years.
- To launch Cainiao’s first digitalized logistics system to expedite logistics processes by 50%. Through Cainiao’s full-chain tracking and real-time review function, the entire process can be completed within 70 seconds compared to the previous processing time of 3 minutes, with an accuracy rate of 100%.
“This strategic plan to create a comprehensive full-chain logistics service tailored for the unique needs of Hainan demonstrates our commitment to actively participate in the development of the Hainan Free Trade Zone. Leveraging Cainiao’s global smart supply chain capabilities, we aim to provide a stable and highly efficient logistics network across the Greater Bay Area (GBA), Hainan and Southeast Asia,” said James Zhao, Cainiao’s General Manager of Global Supply Chain. “Smart logistics and supply chain will continue to play an instrumental and fundamental role in facilitating global trade and e-commerce, and the work we are doing in Hainan will evidently help us to pioneer more comprehensive services and solutions to benefit tens of millions of consumers and merchants globally.”
In April, Cainiao announced its plans to launch seven weekly chartered flights designated for shipping international goods from Singapore to duty-free shops in Hainan’s Free Trade Zone via its traveling hotspots in Sanya and Haikou. Both routes will provide cross-border logistics services for global beauty and luxury brands to enter Hainan, and also help to export domestic goods such as fish fries, tropical fruits and e-commerce goods to Singapore, enhancing trilateral trade between of Singapore, Hainan and the Greater Bay Area (GBA).