In 2018, Alibaba Group's logistics arm Cainiao Network began the construction of the Grand Passage for International Logistics, using physical logistics infrastructure as the hardware connection and digital and intelligent technology as the software connection. At present, Cainiao Network's global end-to-end logistics network covers more than 200 countries and regions across the globe. Overseas consumers can receive packages for online shopping from China within 10 days with, shipping rate only as cheap as the price of a cup of coffee.

Building logistics infrastructure to facilitate global cargo flows

With an aim to strengthen our end-to-end logistics capabilities, we continued to set up digital eHubs in China and overseas, as well as developing international distribution centers and overseas fulfillment facilities in Western Europe, South America, Southeast Asia and other locations. We have established a comprehensive international linehaul network that covers sea, land and air freight. When it comes to air cargo, we charter more than 240 cargo flights every month. We have set up last-mile facilities in overseas countries including Poland, Spain and France. We are able to carry out smart customs clearance in more than 50 ports around the world. All these logistics facilities help China's manufacturers to sell their products overseas effectively and promote integrated market development. Using our eHub in Liege, Belgium as an example, our digital infrastructure has helped to increase the volume of packages processed by a factor of more than 1.800, turning Liege into one of Europe's busiest airports for cargo transportation. Cainiao Global Network handles more than 4.5 million cross-border parcels per day, making it one of the world's four major cross-border logistics networks.

Using digital and intelligent technology to enhance global logistics efficiency

Across our facilities, including cross-order consolidation warehouses, eHub air cargo terminals and international distribution centers, we have adopted a variety of technologies. These include LEMO PDA, RFID, a smart security system supported by Al image identification, AGV, smart order consolidation and digital customs clearance that can be completed in seconds. With these technologies, we have been able to greatly enhance end-to-end logistics efficiency in key countries from 60 days to just 10.

Embracing open collaboration to improve logistics in developing countries

Through collaborating with e-commerce platforms and delivery and logistics companies, and deploying more than 600 technological personnel, we helped 11 Southeast Asian and South Asian countries upgrade their logistics systems. These countries increased package processing capacity by a factor of 10, securing the ability to transport more than 100 million packages, on average, every day. We have helped Flash Express in Thailand to build the largest automated warehouse in Southeast Asia, as well as helping to build digital package distribution centers in Pakistan.