MAHB, Alibaba units to set up e-commerce hub in KLIA Aeropolis

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has teamed up with Cainiao Smart Logistics Network (Hong Kong) Ltd (Cainiao HK) to develop a regional e-commerce and logistics hub in KLIA Aeropolis.
In a filing with Bursa Malaysia, MAHB said its wholly-owned subsidiary MA eLogistics Sdn Bhd had entered into a shareholders' agreement on Thursday (Nov 2) with Cainiao HK to incorporate a joint venture (JV) company.
The JV company will implement and carry out the development of the regional e-commerce and logistics hub, comprising the development of cargo terminals, sorting centres, warehouses and fulfillment centres, and other facilities for the e-commerce industry.
Cainiao HK will hold a 70% stake while MA eLogistics will hold the remaining 30% in the JV company, which will be named Cainiao KLIA Aeropolis Sdn Bhd. Its issued and paid up capital is RM206.67 million.
Cainiao HK is a wholly-owned subsidiary of Cainiao Smart Logistics Network (BVI) Ltd, which is in turn a wholly-owned subsidiary of Cainiao Smart Logistics Network Limited (Cainiao Cayman). Cainiao Cayman and its subsidiaries are the affiliates of Alibaba Group Holding Ltd.
The project will be built on 60 acres of land in KLIA Aeropolis, as part of the Digital Free Trade Zone (DFTZ) initiative which went "live" today. It is also in line with MAHB's Runway to Success 2020 business direction, which will spur growth and enhance the value proposition of the air cargo and logistics cluster.
"The strategic collaboration with Alibaba Group distinguishes the KLIA Aeropolis DFTZ Park to be the first electronic world trade platform (eWTP) hub outside of China," said MAHB.
The airport operator said it will ensure a successful collaboration with Cainiao HK to revolutionise the e-commerce and logistics sector in Malaysia, to become a regional fulfillment centre for the consolidation and distribution of e-commerce B2C and B2B merchandise within Asean and Oceania.
MAHB's share price rose 0.72% or 6 sen to close at RM8.37 on Friday with a total of 1.59 million shares traded, giving it a market capitalisation of RM13.90 billion.