The logistics arm of Alibaba Group Cainiao Network today the launch of its first distribution centre and trucking line haul route in South Korea, which the company says will enhance cross-border delivery services for its e-commerce platform, AliExpress.

Spurred on by the pandemic, e-commerce in the region has boomed, creating high demand for capacity on trade lanes out of manufacturing epicentre, China to the rest of South East Asia. Cainiao says that customers in South Korea could receive parcels from Mainland China as fast a three working days following the launch of the new infrastructure.

In the near term, Cainiao plans to further expand its last mile delivery network by adding on more local courier partners and establish a comprehensive nation-wide logistics network, beyond the capital city of Seoul.

Located within an hour’s drive from Seoul, the capital and largest metropolis in South Korea, the 1500 sq m distribution centre is also located near the local customs clearance checkpoint.

The centre is equipped with smart technologies, such as automatic assembly lines, and smart distribution set-up which can support high volume small parcel sortation, amongst other smart logistics facilities.

These will reduce operating costs by 10% and save more than 12 hours in processing and handling time for cross-border deliveries, says Cainiao.

To accelerate delivery time, Cainiao has also established a trucking line haul route with daily capacity of 1 tonne that is connected to the distribution centre. Once packages are sorted and packed, they can be brought directly to the nearest courier station to be dispatched via last mile delivery.