Alibaba's Cainiao JV to invest $1.53 bln in Hong Kong logistics hub

YTO International Express and Supply Chain Technology

06/06/2018 08:20

SHANGHAI, June 6 (Reuters) - Alibaba Group Holding Ltd's
 BABA.N  logistics affiliate said on Wednesday that it would
lead a joint venture to invest $1.53 billion in a new logistics
centre at Hong Kong's airport as part of its efforts to expand
its global delivery network. 
    Cainiao Smart Logistics Network will take a 51 percent stake
in the joint venture, while Chinese state investment firm China
National Aviation Corp (Group) and courier YTO Express
 600233.SS   6123.HK  will each hold 35 percent and 14 percent,
respectively, Cainiao said in a statement. 
    It said that the centre, which will cover an estimated gross
floor area of 380,000 square meters, is expected to be able to
handle 1.7 million tonnes of cargo per annum at full capacity
after it opens in 2023.  
    "The Hong Kong hub will be yet another milestone on our way
to achieving our goal of 72-hour global delivery," Cainiao
President Wan Lin said. 
    Chinese e-commerce giant Alibaba took control of Cainiao
last September and pledged to spend 100 billion yuan ($15
billion) over five years to build out a global logistics
network.  urn:newsml:reuters.com:*:nL4N1M71WW
    Cainiao already has three fulfilment centres in Hong Kong
and last week said that it planned to open logistic hubs in
Dubai, Hangzhou, Kuala Lumpur, Liège in Belgium and Moscow.

 (Reporting by Brenda Goh; Editing by Amrutha Gayathri)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 6104 1763; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))