Alibaba's Cainiao starts construction on logistics center in Jimo

Cainiao, the logistics arm of e-commerce giant Alibaba Group Holding Ltd, started construction on a large logistics center in Jimo district, Qingdao, Shandong province on Feb 18.

The project, receiving a total of $285 million in investment, will be built in three phases. It is expected to become a hub for China's intelligent logistics network and a one-stop logistics solution platform for Cainiao in North China.

The first phase will cost $72 million and consist of the construction of modern storage facilities covering an area of 100,000 square meters. It will begin operating in the first half of 2021, and is expected to generate 8 billion yuan ($1.14 billion) in annual in e-commerce revenue.

"Faced with the adverse impacts of the novel coronavirus pneumonia outbreak, the Jimo district government helped supply us with construction personnel to ensure the project was able to proceed smoothly," said Xie Yuanwei, a senior manager from Cainiao.

"We will strive to be efficient and complete the project early."