Malaysia Airports’ e-fulfilment hub will be a game changer for Malaysia as the hub for Regional Distribution Centre
Over the last few years, the aviation industry has played an important role in developing the economy by stimulating industries such as tourism and hospitality. Hence, as the custodian of the nation’s airports, Malaysia Airports has partnered with Alibaba Group to establish a global e-fulfilment hub, Cainiao Aeropolis electronic World Trade Platform (eWTP) Hub.
Operating since November 2020 with the establishment of a joint venture initiative between Malaysia Airports and Alibaba Group, the hub will set Malaysia up to be Asia Pacific’s preferred air cargo hub and is expected to generate a cumulative gross domestic product (GDP) of RM4.2 billion in the next ten years and support over 35,000 jobs.
“The advent of e-commerce in recent years has proven to be a boon to air cargo growth as it is the single largest catalytic driver with huge benefits such as its strategic location within the Free Commercial Zone with airside access where value-added activities such as break bulking and light assembly are also permitted,” said Minister of Transport of Malaysia, Datuk Seri Ir. Dr. Wee Ka Siong during the launch of the hub in November, recently.
According to Malaysia Airports chairman, Dato’ Seri DiRaja Zambry Abd Kadir, the company’s aim is to gain leadership in e-commerce logistics and establish KLIA as a preferred regional distribution hub within Asia Pacific.
“Air cargo has shown great resilience in the past two years, which is a silver lining for us in the aviation industry in mitigating the impact of the pandemic. Therefore, the establishment of the eWTP Hub was indeed timely and we believe that it will also align the aspirations of the 12th Malaysia Plan by enhancing the competitiveness of our transport and logistics sectors through its efficiency, connectivity, and smart supply chain and logistics technology. All these efficiencies will allow cargo volume at KLIA to double to 1.3 million metric tonnes within the next ten years,” he said.
Since the commencement of the hub last year, Cainiao has onboarded freighter airlines such as Kargo Express to operate directly from the hub. This has culminated in the launch of more international and domestic routes for charter and scheduled flight operations, thereby enhancing air connectivity and air freight stability to support the growing demand for air cargo transportation.
The hub targets vertical markets including automotive, sporting goods, fast-moving fashion and lifestyle, retail electronics and medical equipment sectors, among others. Enabling 24-hour and 72-hour deliveries within Malaysia and to the rest of the world respectively, Malaysia Airports seeks to support the country’s economy recovery and increasing trade flows in the broader region.