Alibaba logistics arm Cainiao partners with China’s Hainan gov’t

Cainiao Smart Logistics Network (Cainiao), the logistics arm of Alibaba Group, entered a strategic partnership with China’s Hainan government to develop the island-province’s global smart supply chain zone.

This will establish duty-free Hainan, a key port in China’s belt and road initiative, as a trade center and pilot model for the digital economy using Cainiao’s global logistics capability and technology.

(From left) Hainan Provincial Bureau of International Economic Development’s Director Shengjian HAN, and Cainiao’s CEO Lin WAN at the Global Smart Logistics Summit 2021. / Photo credit: Cainiao

This public-private partnership involves establishing a comprehensive smart logistics infrastructure, launching a free trade port merchant smart service center, upgrading global freight networks, and developing a global supply chain center in Hainan.

The province aims to attract 1,000 duty-free merchants, making it an entry point to the Chinese market.

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According to Cainiao, the smart service center is also expected to improve the efficiency of merchant operations by 50%, where customers can complete item pick-ups in as little as 70 seconds. Cainiao will also work with Hainan’s air cargo terminal operations, eyeing over 800 international cargo flights by the end of 2021.

Last year, Chinese authorities released a master plan to transform Hainan, the country’s largest special economic zone, into a free trade port.