KUALA LUMPUR (Nov 3): Malaysia Airports Holdings Bhd (MAHB) and Alibaba Group have commenced operations at the Cainiao Aeropolis eWTP Hub, a new e-fulfilment hub jointly owned by the two parties.

The hub, formerly known as the KLIA Aeropolis DFTZ Park, is a major project under the Electronic World Trade Platform (eWTP) partnership between the Malaysian government and Alibaba in 2017.

The hub is expected to facilitate 24-hour delivery within Malaysia for e-commerce operators, with the ultimate goal of enabling 72-hour delivery to the rest of the world.

Lazada is the first to leverage this hub, which allows the application of smart supply chain technology and knowledge transfer capability in logistics, with other companies to join in soon.

MAHB group chief executive officer (CEO) Datuk Mohd Shukrie Mohd Salleh said the airport operator is constantly looking at initiatives to make use of the Kuala Lumpur International Airport's (KLIA) vast 10km by 10km land bank.

“The Cainiao Aeropolis eWTP Hub occupies 60 acres (2.6 million sq ft), with 1.1 million sq ft of warehouse space. We are confident that the new facility will be able to increase cargo volume by 700,000 metric tonnes, thus doubling KUL’s (KLIA) current volume to 1.4 million per year by 2029.

“We are targeting vertical markets from the automotive, sporting goods, fast-moving fashion and lifestyle, retail electronics and medical equipment sectors, among others,” he said in a statement.

Given the increased cargo volume, MAHB is looking at improved airline connectivity with new routes and a higher flight frequency, belly space utilisation and freighter capacity, he added, with the operator creating a synergistic partnership with local players such as Pos Aviation, MAB Kargo Sdn Bhd (MASKargo) and GTR to integrate their existing facilities within the hub.

Meanwhile, the final-mile delivery will be operated by players including GDEX, PosLaju and J&T Express, said Mohd Shukrie.

Cainiao Smart Hub general manager Eric Xu said the hub will play a strategic role in facilitating cross-border trade for small and medium enterprises (SMEs) and improving overall consumer experience for imports and exports.

“With the rise of the digital economy, we believe that smart logistics will continue to play a pivotal role in helping SMEs to access a wider global market and improving their market competitiveness,” said Xu.

MAHB closed unchanged at RM4.15 today, giving it a market capitalisation of RM6.89 billion.