The collaboration entails a smart logistics hub in Kwo Lo Wan at the Hong Kong International Airport. Occupying a site of about 5.3 hectares, with an estimated gross floor area of 380,000 square metres, the hub is scheduled to commence operation in 2023. The hub will be future-proofed with high design specifications for large-scale, cutting-edge robotics and automation as well as temperature-controlled features.
In June 2018, a joint venture led by Cainiao Network, the logistics arm of Alibaba Group, was awarded through an open tender exercise the right to develop and manage the hub, with a view to developing it into a world-class digital logistics centre in Asia, serving the fast growing global cross border e-commerce trade and strengthening Hong Kong’s international competitiveness.
One of the most busiest cargo airport in the world, Hong Kong International Airport said the collaboration aims to align with the cargo development strategy of the airport "to capture opportunities arising from increased cross-border e-commerce and related businesses, as well as the growth in the logistics business related to temperature-controlled products such as pharmaceuticals."