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Alibaba's Cainiao starts construction on logistics center in Jimo

(chinadaily.com.cn) | 2020-02-20

Cainiao, the logistics arm of e-commerce giant Alibaba Group Holding Ltd, started construction on a large logistics center in Jimo district, Qingdao, Shandong province on Feb 18.

The project, receiving a total of $285 million in investment, will be built in three phases. It is expected to become a hub for China's intelligent logistics network and a one-stop logistics solution platform for Cainiao in North China.

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Cainiao starts construction on a large logistics center in Jimo district, Qingdao, Shandong province on Feb 18. [Photo/qingdaonews.com]

The first phase will cost $72 million and consist of the construction of modern storage facilities covering an area of 100,000 square meters. It will begin operating in the first half of 2021, and is expected to generate 8 billion yuan ($1.14 billion) in annual in e-commerce revenue.

"Faced with the adverse impacts of the novel coronavirus pneumonia outbreak, the Jimo district government helped supply us with construction personnel to ensure the project was able to proceed smoothly," said Xie Yuanwei, a senior manager from Cainiao.

"We will strive to be efficient and complete the project early."

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A rendering of Cainiao's logistics center in Jimo district, Qingdao, Shandong province. [Photo/qingdaonews.com]

"During the outbreak, we are using video conferences and taking other creative measures to promote cooperation and maintain economic growth," said Zhang Jun, Jimo district Party secretary.

Zhang added that new projects will inject vitality into local development and that the local government will continue to promote business and investment while fighting the epidemic.

Founded by Alibaba and a consortium of logistics companies, Cainiao is different from other similar companies because rather than expanding its own network it operates a proprietary logistics information platform that connects a network of providers, warehouses, and distribution centers, increasing efficiency and cutting costs. 

The company has pledged to significantly lower China's logistics costs by offering data-enabled smart solutions to handle a rapidly increasing volume of parcels driven by the country's booming online shopping industry.