Alibaba Group will set up a €75 million European logistics hub at Liege Airport under a wide-ranging Electronic World Trade Platform (“eWTP”) deal signed yesterday with the Belgian government.
Cainiao Smart Logistics Network, the logistics arm of Alibaba Group, will invest €75 million in a leased 220,000 sqm facility at Liege Airport that is scheduled to start operations in early 2021. The Liege ‘smart logistics’ hub will support cross-border trade, especially between Europe and China, and help SMEs better manage their exports especially with the surge in global e-commerce, according to the Chinese group.
Cainiao’s strategy is to meet Alibaba Group’s logistics vision of fulfilling consumer orders within 24 hours in China and within 72 hours anywhere else in the world by working with different logistics partners to create a single fulfilment network.
Luc Partoune, CEO of Liege Airport, explained: “The arrival of Cainiao Network reinforces the competitiveness of our airport. Several Chinese companies are already here. Other companies will be attracted by the presence of Cainiao and the opportunity for e-commerce growth between Europe and China.”
The airport, lying in the heart of the so-called Amsterdam-Paris-Frankfurt ‘golden triangle’ with 400 million consumers, focuses strongly on the air cargo business and specialises in express transport, e-commerce, pharmaceutical products and perishable goods, as well as live animals.
The deal, which had been expected following various media reports in recent months, confirms that Liege will become one of Cainiao’s international hubs along with Kuala Lumpur, Dubai, Moscow and Hangzhou. In addition, the Alibaba subsidiary has a 51% stake in a consortium that will invest US$1.5 billion in a new logistics hub at Hong Kong International Airport (HKIA).
The Liege logistics hub will also be the cornerstone of the wider eWTP collaboration with Belgium. Among other measures, both parties will work closely together to introduce new technologies that will promote digitisation of customs procedures and more efficient clearance of goods. Alibaba and Belgian trade and investment agencies will also collaborate to increase the sales opportunity of quality Belgian products on e-commerce platforms within Alibaba’s ecosystem. This will include product promotions, marketing and direct imports by Alibaba’s platforms.
Belgian Prime Minister Charles Michel said: “I am excited to welcome eWTP to Belgium and the commitment of Alibaba to improve the competitiveness of Belgian and European firms on the global stage in this partnership. This will be a huge opportunity to boost exports and bring wide reaching economic benefits to society, including employment opportunities to Liege. Participation in eWTP underlines our country’s vision to help local small and medium-sized companies to be more competitive in the global marketplace in the digital age. This is an opportunity for not just the small businesses and young people in Belgium but across Europe”.
Alibaba Group Chief Executive Officer Daniel Zhang commented: “I am delighted that the Government of Belgium is confident toward the eWTP vision and share our commitment. With over 98% of European companies being small to medium businesses, this partnership signifies our initial and expanded effort to enhance inclusive trade opportunities for these businesses in Belgium and across Europe. We strongly believe that under the eWTP, we will open up the huge potential for European businesses to reap the benefits of global cross-border trade, especially into the China market where the demand for European goods is high.”
Pierre-Yves Jeholet, Belgium’s Regional Minister for Economy, Trade & Investment, added: “Alibaba’s eWTP project reinforces the attractiveness of our country and its regions. Chinese companies, in particular, those from the tech sector are investing in Belgium. As world trade continues to expand, Wallonia is an ideal logistics hub for global companies given our leading edge in cargo expertise and connectivity for block trains and seaports. This agreement will improve the infrastructure to meet the increasing exports of Belgian products to China.”
The Memorandum of Understanding (MOU) for the eWTP was signed yesterday by Belgium’s Deputy Prime Minister and Minister of Employment, Economy and Consumer Affairs Kris Peeters and Senior Director of Alibaba Group James Song. It was witnessed by Prime Minister of Belgium Charles Michel and Alibaba Group President of Global Business Angel Zhao.
Belgian Prime Minister Charles Michel and Alibaba Group Chairman Jack Ma met in July this year to discuss the eWTP initiative, with the Prime Minister expressing interest for Belgium to become an eWTP partner and promoting its vision. Belgian Deputy Prime Minister Kris Peeters reconfirmed this interest during a meeting with Alibaba Group CEO Daniel Zhang at the recent China International Import Expo (CIIE) in Shanghai.
The partnership with the government of Belgium will be Alibaba’s initial effort to promote inclusive global trade in Europe, building on the success of similar eWTP partnerships in Asia (Malaysia) and Africa (Rwanda) over the past two years.
Alibaba’s Electronic World Trade Platform (eWTP) is a private sector-led, multi-stakeholder initiative that facilitates public-private dialogue to share best practices, incubate new trade rules, and foster a more integrated and inclusive policy and business environment to promote the development of e-commerce, trade and the digital economy in the internet age. It has a strong focus on helping SMEs to trade internationally.
