Cainiao will lead the project through its controlling joint venture with China National Aviation Corporation (Group) Limited and YTO Express. The companies hold a 51 per cent, 35 per cent and 14 per cent stake in the joint venture respectively.
The logistics centre is expected to start operations in 2023 and will have a gross floor area of 380,000 square metres. The facility will come with automated warehousing and temperature-controlled solutions and will also incoporate an air cargo processing centre, sorting centre and order fulfilment centre.
The company said the centre will be able to handle tens of millions of parcels every year to meet the surging cross-border e-commerce needs of global SMEs, bringing an incremental cargo volume of about 1.7 million tonnes per annum to HKIA when it operates in full capacity.
The move forms part of Cainiao's broader effort to expand and strengthen its global logistics network. Last week, the company unveiled plans to open five hubs in five cities around the world - Dubai, Hangzhou, Kuala Lumpur, Liege (Belgium) and Moscow.
The new Hong Kong hub will mark another enhancement to this network. It is also part of Alibaba's commitment to invest more than CNY100 billion (US$15.5 billion) in an efficient smart logistics network that drives 24-hour delivery in China and 72-hour delivery to the rest of the world.
President of Cainiao Network, Wan Lin, said: 'The Hong Kong hub will be yet another milestone on our way to achieving our goal of 72-hour global delivery, and will further empower SMEs locally and globally to more readily tap the benefits of more inclusive globalization through cross-border e-commerce.
'The Hong Kong International Airport has been the world's busiest cargo airport for many years. As an important gateway for global goods to enter the mainland China market and vice versa, Hong Kong is of strategic importance to Cainiao and we have a strong commitment to help the city address the surging needs of the future.'
Cainiao already has three global fulfillment centers in Hong Kong which are operated by its partners. In addition, Cainiao launched an airfreight route between Hong Kong and Belgium last month. It's the second such international airfreight route specially for e-commerce parcels following the opening of its Hangzhou-Moscow route earlier this year.