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Paving The Way for eCommerce Boom

What's Converging
Writer
Shah Shamshiri
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E-commerce players can look forward to more efficient logistics and faster delivery with Cainiao Aeropolis eWTP Hub, Malaysia.

Despite the current situation faced by the whole world, innovation continues to expand in the commercial sector. The aviation industry is no exception. Enter Cainiao Aeropolis eWTP Hub, Malaysia (formerly known as KLIA Aeropolis DFTZ Park) - the all-new e-fulfilment hub dedicated to supporting Malaysia as a growing regional e-commerce logistics hub.

The hub has just commenced operations recently, expecting to facilitate 24-hour local delivery for e-commerce operators, with an eye towards enabling 72-hour delivery worldwide in the near future. The result of a cooperation between Malaysia Airports and Alibaba Group, the hub is one of the major projects under the electronic World Trade Platform (eWTP) partnership between the Malaysian government and Alibaba Group in 2017.

Leveraging on the expertise of Alibaba’s logistics unit, Cainiao Smart Logistics Network (Cainiao), the Cainiao Aeropolis eWTP Hub, Malaysia is set to make KL International Airport (IATA code: KUL) one of the leading distribution gateways for air cargo within the ASEAN region. This will also boost the country’s cargo and logistics ecosystem as well as connectivity over air, sea and land routes, thus strengthening Malaysia’s economic position and supporting the increase in trade flow in the region.

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eWTP Hub
Innovation in Logistics

With Cainiao’s involvement, many parties along the logistics chain will stand to benefit from the application of smart supply chain technology and knowledge transfer capabilities. In fact, Southeast Asia’s largest e-commerce firm Lazada is already establishing their operations here with more companies expected to follow suit in establishing their regional distribution centres at Cainiao Aeropolis eWTP Hub, Malaysia.

According to Group Chief Executive Officer (GCEO) of Malaysia Airports, Dato’ Mohd Shukrie Mohd Salleh, as the e-hub occupies 60 acres (2.6 million sqft) with 1.1 million sqft of warehouse space, he is confident that cargo volume can be increased by 700,000 metric tonnes, which will double KUL’s current volume to 1.4 million per year by 2029. With the capacity and facilities offered, the hub is perfect for vertical markets operating in the automotive, sporting goods, fast-moving fashion and lifestyle, retail electronics and medical equipment sectors, among others.

Meanwhile, this spells opportunities for existing airline partners at KUL, who stand to enjoy potential new businesses as the hub creates a symbiotic partnership with local industry players. According to Dato Mohd Shukrie, there is potential to hit at least USD10.1 billion GDP growth and create more than 100,000 jobs by the 10th year of the hub’s operations. He also mentioned how Malaysia Airports is also looking at improved airline connectivity via KUL with new routes and increase in flight frequency, belly space utilisation and freighter capacity, with hopes of doubling the current number of freighter flights in the next 10 years.

Eric Xu, General Manager of Cainiao Smart Hub said that the Cainiao Aeropolis eWTP Hub, Malaysia will play a strategic infrastructural role in facilitating cross-border trade for Small and Medium Enterprises (SMEs) and improving overall consumer experience for import and export. Businesses that will operate at the e-hub can look forward to seamless cargo entry and exit movement by utilising its cargo terminal operation (CTO), warehousing and sorting centres, and an internal customs inspection point set up within the grounds of the hub itself in the Free Commercial Zone (FCZ). Thus, businesses can also benefit from the FCZ provision for value added services including light manufacturing, assembly, sorting, picking, re-labelling and packing. This will help ensure increased security and efficiency with a more streamlined process, and helps reduce cargo handling time.

With commencement of operations at the Cainiao Aeropolis eWTP Hub, Malaysia, KUL is all set to become the leader in transport and connectivity, not just for cargo and passengers, but also in the logistics sector as it facilitates a broader network that covers air, sea and land.

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