SIMIC

The network comprising Cainiao Hubs, also known as cHubs, will cover a total land area close to 2.5 million square metres. They will be equipped with cutting-edge technologies and will play an instrumental role in the transformation of the logistics industry in Southeast Asia, the company said.

The cHubs will also support local B2B and B2C businesses in their local distribution, supply chain and export needs.

Eric Xu, general manager of Cainiao Smart Hub, commented: "It has always been Alibaba's core mission to make it easy to do business anywhere. The Southeast Asia smart warehouse network was launched to accomplish exactly that.

"We believe this can further bolster cross-border trade and eCommerce growth for this region. Furthermore, strong export markets will be able to benefit from Cainiao's supply chain management services which will drive export demand, with a peace-of-mind."

The cHubs are strategically located near key transportation nodes and manufacturing hubs in the region and are well-positioned to support its recovery, while tapping on the regional ecosystem's connectivity to global markets to build a resilient supply chain, the company said.

According to McKinsey's Global Manufacturing and Supply Chain Pulse Survey, 45 per cent of survey respondents were confident that the sector in Southeast Asia would recover in two to three months' time, while 53 per cent were confident that recovery would come within a year.

E-commerce in Southeast Asia has expanded almost six times between 2016 and 2020 and is set to grow at a rate of 22 per cent annually, to US$309 billion by 2025.