Page 23 - Demo

A land sale within the airport island may indicate the market’s confidence in Hong Kong’s air logistics industry. In 2018, Cainiao Network, the logistics arm of Alibaba Group, led a joint venture to win the bidding for a 5.3-hectare logistics site sitting south of the airport island. The joint venture will invest approximately HKD 12 billion to build a modern logistics centre, serving as one of the six e-hubs of Cainiao Network around the world, and bring in an additional 1.7 million tonnes of cargo to HKIA when the logistics centre is operating at full capacity. On completion, the facility with 4 million square feet of Gross Floor Area (GFA) will become the third largest multi-storey logistics centre in Hong Kong. It will include an air-cargo processing centre, a sortation centre and a fulfilment centre. The facility will also feature automated warehousing technology and automated temperature control. Why did Cainiao choose Hong Kong? One of the key reasons is that the modern logistics centre located within HKIA will help Cainiao fulfil its 72-hour global delivery promise thanks to HKIA’s strategic geographical position, excellent air connectivity, and efficient customs (Figure 9).Hong Kong is also the global and regional headquarters of many international trading and logistics companies. For instance, Li & Fung, a global supply chain manager, and Kerry Logistics, a 3PL company with business around the world, both chose Hong Kong as their global headquarter. DHL and FedEx, two giants of the international logistics community, also chose Hong Kong to set up their Asian headquarters.21