Cainiao expands air freight network at Kuala Lumpur hub

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Cainiao, the logistics arm of Alibaba Group, has expanded its direct flight network at its Aeropolis eWTP Hub, situated at Kuala Lumpur International Airport (KLIA) in Malaysia.

The first phase will see the launch of the new three times a week direct flight to connect Kuala Lumpur, Malaysia, to London, UK, with a cargo capacity up to 300kg per trip, and five times per week direct flight from Kuala Lumpur, Malaysia, to Hangzhou, China, with a cargo capacity of 23,000kg per trip.

There are subsequent plans to expand this network of direct flights from Malaysia to markets such as Singapore, Brunei, Australia, New Zealand, and other key ASEAN and European markets.

The launch of the direct flights for export goods from Malaysia to the UK will reduce air freight time by approximately 30%, from 19.5 hours to 13.5 hours, and reduce logistics cost by 10%. Flights from the e-fulfilment hub in KLIA will service both B2B and B2C businesses on eBay.

The direct flights from Malaysia to Mainland China will increase air freight stability and decrease overall logistics cost by 6-10%, and help B2B export merchants outside the Alibaba ecosystem to gain access to the Chinese market.

Export merchants outside of Malaysia can also ship their goods to the hub for transit before exporting them overseas, reducing clearance time by up to 97%, from 24-48 hours to 1.5 hours, using digital customs clearance systems.

Au Yeong Shong Kwong, general manager for Cainiao eHub Malaysia, said, “The expansion of the hub’s direct air freight network will play a pivotal role in supporting the increase in trade flow from Malaysia to key global markets. By tapping on our global logistics network to reinforce air freight stability, we aim to provide a more stable, efficient and cost-effective cross-border logistics solution to help SMEs to reach a wider overseas market and increase their resilience. KLIA’s position as one of the leading distribution gateways in ASEAN, coupled with the hub’s smart logistics capabilities, will be instrumental in facilitating cross-border trade and serve as a regional center for SMEs to scale globally.”

Spanning 1,100,000ft2  of warehouse space, the hub contains facilities for cargo terminal operation (CTO), warehousing, sorting, and a dedicated digital customs clearance.

The Cainiao Aeropolis eWTP Hub is a joint venture between Malaysia Airports and Cainiao, under the electronic World Trade Platform (eWTP) partnership between the Malaysian government and Alibaba Group.

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Dan originally joined Parcel and Postal Technology International in 2014 having spent the early years of his career in the recruitment industry. As online editor, he now produces daily content for the website and supports the editor with the publication of each exciting new issue. When he’s not reporting on the latest technological developments, Dan can be found on the golf course or apprehensively planning his next DIY project.

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