01

INTRODUCTION
ALIBABA , CAINIAO, and EHUB STRATEGY
 Global BUY
Boost Import

*
* * *

Global SELL * *
*
Boost Export

Global PAY
Global Digital Financial Platform

Global DELIVERY Global FUN

Global Logistics Travel Design Ecosystem
Network Solution
Deliver Nationwide in Deliver Worldwide in
24 Hours 72 Hours
 Moscow
Luton Liège
London Frankfurt
Paris Prague
Madrid Osaka
Seoul Tokyo
Hong Kong Hangzhou
Dubai New Delhi Taoyuan
Hsinchu
Bangkok
eHub 72-hour Logistics Network
Kuala Lumpur

Djakarta
Surabaya

Traditionally Cross-border E-commerce Parcels Highly Fragmented Building a More Efficient Cross-border Logistics Network

Country of International Destination eHub eHub Home

Origin Freight Country

Parcels Bundled Efficiency Packages

Hong Kong Project Kuala Lumpur Project

Liege Project
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4
 K
24

l Located at Kuala Lumpur International Airport (KLIA2), within

24
duty-free trade zone, and with access to Tarmacs

l Serving as a hub for Alibaba business in SEA

MS

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l A joint venture with MAHB, with strongly supported by
Alibaba/Cainiao, Malaysia airport group and the Malaysia
government
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l Total area of operational facilities: 110,000 sqm

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D D
l Ready for operation: 3rd quarter of 2020
( 0 1 5 1 3 1 5

l B2B logistics services from 3 major sea ports and 2 major

5 5 airports in Malaysia to 174 ports of 55 countries and 189
)
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3 5515
airports of 48 countries

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l A world class innovative global ecommerce customs clearance
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system, reducing customs releasing time from 24-48 hours to
L 1
several seconds, starting operations on Nov 2017. Now
handling millions of parcels each month
 l Located at Hong Kong International
Airport
Runway
AirMail
l Positioning as a global hub for Alibaba
CPCT4) HACTL5) business, aiming to drive HK's air cargo
AAT3) growth and to serve the regional
fulfillment business
Hong
AFFC2) TradePort Kong
l GFA: 380,000 sqm; Total Floors: 12
HZMB1)
l Distance to the cargo terminals:
< 500 meters

l Ready for operation: 2023

Cingleot Premium Modern
Logistics Centre l Functions: Cargo terminal, Fulfillment
center, offices

1) HZMB = Hong Kong, Zhuhai, Macau, Bridge 2) AFFC = Air Freight Forwarding Center ; 3) AAT = Asia Airfreight Terminal
4) CPCT = Cathay Pacific Cargo Terminal 5) HACTL = Hong Kong Air Cargo Terminal
 l Located at Liege airport, Belgium, with
N
direct access to tarmacs. Liege is at the
center of the Golden Triangle in Western
For
Alibaba/ Mid-term
Europe
CaiNiao parking
bay
l Serving as a hub for Alibaba’s business in
Northern Facilities
Long-term parking bay
Europe, covering customers in Western
Short-term parking bay
Europe and some parts of Central Europe
and Southern Europe

l Area of operational facilities in Phase I:

~36,000 sqm
Northern Facilities

l Ready for operation: 2021

l Functions(in 3 phases): Cargo terminal,

Fulfillment center, Sorting center, offices
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+ A, 1 1 , ,.

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 02
WHY KLIA
KLIA, A GOOD CHOICE OF THE SOUTHEAST ASIA HUB
 CAINIAO KLIA eHub:
DFTZ • 110,000 sqm: offices, warehousing,
Help SMEs export globally. distribution and other related air
• Enable Global marketplaces to source from Malaysia. cargo operations.
• As regional fulfillment hub for global brands to reach
POS Aviation • Bonded warehouse in Digital Free
SEA buyers. Satellite Terminal
Cargo Zone with√access to apron
• Components: infrastructure, policy, strategic players
and taxiways.
• Position as RDC: Strategic Regional
MASkargo Distribution Center and
transshipment hub; Support One
Main Terminal Inventory – Omni Channel operation.

Runway 1

Runway 2

klia2 Terminal

• 3 handlers and 72 airlines operating in KLIA.

• 35km radius from major townships –labor supply availability
Services & and modern infrastructure facilities.
Resource • Only airport in SEA with 3-runway operations. Runway 3
• 24 hour operations – good for freighter operations.
• Cost savings: Lower labor costs; Lower warehouse cost
Image courtesy of Google Maps
 Rail: via Pan Asian Railway Network
Kunming Road: via Bangkok-Kunming Expressway By air
Air Connectivity
3740km
By road • High flight frequencies. > 1000 flights daily.
Asia Highway By rail • > 300 flights around SEA (4-hour flight time).
Singapore – Iran Hanoi • Worldwide direct freighter flight connections.
(via Kuala Lumpur) 2800km By sea
Yangon Vientiane
2380km 2117km

Phnom Penh Land Connectivity

2162km Manila • Roads and highways connected to China and
Bangkok
1500km Indochina countries.
Ho Chi Minh
• 3.5 hour drive time to Singapore (south).
2330km • Railway connection via Pan Asian Railway Network
(also known as Singapore – Kunming Railway)
Bandar Seri
Kuala Lumpur Begawan
Singapore
350km
Marine Connectivity
• 4 major marine ports located between 60km to
400km from KLIA.
• World class highways connected to these ports.
4-hour flight
radius Jakarta

Note: see next chapter for multimodal connectivity details

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E-payments to facilitate business-to-
/ : . - - A .- , A
business trade for SMEs
-: : - ; ;-/ -/
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,/; - -/ .; , .
- / / ;/
• RMCD: Royal Malaysia Customs Department
• MAHB: Malaysia Airports Holdings Berhad
• CAAM: Civil Aviation Authority of Malaysia
 Distribute with Us:
KLIA eHub is a good choice of regional distribution center and air freight operation center in South East Asia

Store with Us:

Customized storage & fulfillment flexibility at KLIA eHUB.

Save with Us:

KLIA eHub has cost advantages against other regional distribution locations in South East Asia.

Grow together
:Let’s strengthen the whole ecosystem and grow.

CAINIAO KLIA IS READY FOR YOU!

For inquiries, kindly contact:

Kenneth Chan
Cainiao KLIA Aeropolis Sdn. Bhd.

+603 2770 6000

k.chan@cainiao.com

Suite 23-2, Level 23, UOA Corporate Tower Avenue 10

The Vertical, Bangsar South City,
No.8, Jalan Kerinchi, 59200 Kuala Lumpur.
 03
MULTIMODAL CONNECTIVITIES
SOUTHEAST ASIA NETWORK
 Hangzhou – Kuala Lumpur connection KLIA Flight Frequency Highlights
increases trade and commerce between
Guangzhou cities in China and Southeast Asia. Average Departures from KLIA
Destinations
(per day)

Hanoi Hong Kong Jakarta 57

Shenzhen
Medan 19

Vientiane Surabaya 17
Yangon Bangkok 19
Chiang Mai 3
Singapore 82
Phnom Penh Manila 17
Manila
Ho Chi Minh City 24
Hanoi 11
Ho Chi Minh
Phnom Penh 12
Yangon 8
China 110
Bandar Seri
Kuala Lumpur Begawan Europe 12
Singapore Others 703
Source: Research & Planning MAHB, 2018

• Excellent Regional Distribution Center (RDC), transshipment and fulfillment hub.

• Over 1000 flights each day serving KLIA. More than 300 flights within Southeast Asia region
4-hour flight
(4-hour flight time).
radius Jakarta
• Direct freighter flight connections – Southeast Asia, Europe, Northeast Asia and Australasia.
• KLIA is the fastest growing airport in Southeast Asia at 11.2%
 Via Bangkok-Kunming Expressway
Kunming
3740km
• Multiple roads and highways:
Asia Highway o To the North – Indo-China (Yangon, Bangkok, Chiang Mai, Ho Chi Minh City, Hanoi, etc.);
Singapore – Iran
(via Kuala Lumpur)
Hanoi o Road connections from Kuala Lumpur to Kunming.
2800km
Yangon Vientiane o To the South all the way to Singapore, (see diagram on the left).
2380km 2117km
• Railway:
o Pan-Asia Railway Network
Highway connections from KLIA: Bangkok
Phnom Penh currently being planned or under
2162km
E6: KLIA to Klang Valley 1500km construction to connect
E20: KLIA to Klang Valley
E2: KLIA connected via E2; Ho Chi Minh Southeast Asia and China,
2330km
north to Thailand (Singapore – Kunming Railway).
south to Singapore.
o See diagram on the right.
Kuala Lumpur

Singapore
350km

By road
 By sea
(shipping lanes) Major ports visited by ships
Port Klang Vessel Movements by Day departing Malaysia:
• Hong Kong
180
• Shanghai
159
160 • Kaoshiung
• Busan
Number of Vessel Traffic

140
125 • Osaka
120 110
105 102 • Tokyo
99 94
100
80
60
40 Penang Port (Penang)

20
Northport (Klang, Selangor)
0
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7

Source: Cainiao Research

Supported by 5 major seaports within driving distance Johor Port

Cainiao KLIA eHub: (Pasir Gudang, Johor)

• Northport, Klang (60 km)

• Westports, Klang (60 km)
• Tanjung Pelepas Port, Johor (330 km)
• Pasir Gudang Port, Johor (340 km)
Westports (Klang, Selangor)
• Penang Port, Penang (390 km)
Tanjung Pelepas Port (Johor)
 04
APPENDICES
 10, , 5374 227 1 5-8-27- 5396
B
B
2 A 5

Source: Alibaba Group

Total Transactions 11.11 2018 Fun Facts:

2016 2020* • Over US$ 30 billion total sales
US$ 479 billion US$ 871 billion • 350,000 transactions per second
*forecasted • Over 10 billions delivery orders within one day
Source: Alibaba Group Source: Alibaba Group
 Cainiao Launch
May 2013

Source: CNBC, Alibaba Group

• Alibaba’s strong growth in China and globally.

• Demand for end-to-end logistic solutions and capacity to
support the fast growth .
 Northern Region Middle Region

36km Kuala Lumpur

City Center
Port Klang

45km

50km

Cainiao KLIA

Functions: Businesses Make Things Easier

• One-stop, online cross-border trading services platform.
Do business globally
• Customs clearance functionalities.
• Warehousing and regional fulfillment center. B–C Manage costs efficiently

• E-payments to facilitate business-to-business trade for SMEs. B–B Better inventory control

• Training programs for start-ups and works to support SME’s B–B–C Better service to consumers

logistics digitization. Customs clearance enhancements

 KLIA Aeropolis

Businesses

SME
• -
• - B–C
- B–B
B–B–C

Government Ministries & Agencies

National Programs & Policies

• National IoT Framework

• National e-Commerce Roadmap
Direct support • National Industry 4WD Policy
• National BDA Framework
Indirect support • Malaysia Industry 4.0
Express Logistics Cross-border Network

Warehouse Network

Rural Logistics Services

“Cainiao Post”

Source: Cainiao website