Operated by Alibaba’s logistics unit, Cainiao Smart Logistics Network, the new project is expected to help facilitate delivery in under 24 hours within Malaysia, with the goal of eventually achieving 72-hour delivery worldwide.

In a joint statement, the groups said Lazada, Southeast Asia’s largest e-commerce firm, will be the first to use the logistics hub and that more are expected to follow.

Mohd Shukrie Salleh, CEO of Malaysia Airports Holdings Bhd, said he hopes the new facility will be able to double KLIA’s annual current cargo volume to 1.4 million tonnes by 2029, adding they are targeting several markets including the automotive industry, fashion, electronics and healthcare, among others.

“With the growth in cargo volume, we are looking at improved airline connectivity via KLIA with new routes and increase in flight frequency, belly space utilisation and freighter capacity.

“There is potential to hit at least US$10.1 billion GDP (gross domestic product) growth and create more than 100,000 jobs by the 10th year of the hub’s operations,” he said.

Eric Xu, general manager of Cainiao Smart Hub said: “As one of Cainiao’s key regional hubs, the Cainiao Aeropolis eWTP Hub, Malaysia, will play a strategic infrastructural role in facilitating cross-border trade for SMEs (small- and medium-sized enterprises) and improve overall consumer experience for imports and exports.”

He added that with the rise of the digital economy, smart logistics will continue to play a pivotal role in helping SMEs to access a wider global market and improve their market competitiveness.

The core functions of the hub will involve cargo terminal operation, warehousing and sorting. The facility will also have a dedicated customs inspection point to improve security and efficiency without reducing handling time.

Cainiao Aeropolis eWTP Hub, Malaysia, is one of the major projects developed under the electronic World Trade Platform (eWTP) partnership between the Malaysian government and the Alibaba Group in 2017.