MALAYSIA: E-Fulfilment Hub Opens at Kuala Lumpur Airport

Malaysia Airports Aeropolis and the Alibaba Group, the Hangzhou-headquartered e-commerce giant, have jointly launched a new logistics hub at Kuala Lumpur International Airport (KLIA). Branded as the Cainiao Aeropolis eWTP Hub (Cainiao Smart Hub), it is one of the most high-profile projects to have emerged from the Electronic World Trade Platform (eWTP) partnership previously agreed between the Malaysian government and the mainland firm.

The hub will be operated by the Cainiao Smart Logistics Network, Alibaba’s dedicated logistics unit, and is intended to enhance Malaysia’s air, sea and land cargo and logistics ecosystem, while also boosting KLIA’s status as one of the ASEAN bloc’s leading cargo hubs. In line with that, it will ensure e-commerce deliveries within Malaysia can be completed in 24 hours or less, with global orders fulfilled within 72 hours.

In addition to cargo terminal operations, it also offers warehousing and sorting services, as well as a dedicated customs inspection point. Overall, the facility is expected to double KLIA’s yearly cargo throughput to 1.4 million tonnes by 2029, with that growth in cargo volume likely to lead to the introduction of both additional routes and more frequent flights.

The facility is expected to serve a range of different sectors, including fashion, lifestyle, medical equipment, automotive, sporting goods and retail electronics. Given its location within the Free Commercial Zone (FCZ), the facility has access to a range of value-added services, including light manufacturing, assembly, sorting, picking, re-labelling and packing. Among the first companies set to make use of the facility is Lazada, one of the largest e-commerce players serving Southeast Asia.