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Alibaba Group launches China Smart Logistics Network
马云换“马甲”复出 千亿打造智能物流网
We now turn to the new China Smart Logistics Network. The internet based Alibaba Group has officially launched the network, or CSN program. It promises to support 30 billion yuan worth of online sales daily. The company, called "Cainiao", or Rookie Logistics in English, is jointly established by Alibaba Group, Intime Group and some of the country’s major delivery companies. Jin Yingqiao has more.
For years it’s been an ambition to build a massive logistics network in China. At the end of May, they finally took the first step.
Jack Ma, the former CEO of Alibaba, will be the board chairman of Rookie Logistics. He explained why they decided to build the company.
Jack Ma, Former CEO of Alibaba Group, said, "Currently there are about 25 million parcels delivered every day in China, and that figure is expected to hit 200 million in ten years time. The existing logistics network won’t be able to cope with the extra capacity, so we’ve decided to set up logistics facilities nationwide to enable parcels in some 2,000 Chinese cities to be delivered within 24 hours of online purchasing."
Dubbed an "idealist program", Ma introduced the initial company plan.
"In the first phase, the company will invest 100 billion yuan to set up the logistics network. We hope this investment will stimulate the growth of current logistic infrastructures, such as highways, railways and airports." Jack Ma said.
Ma has also expressed his hope that the network will support a 10 million-strong workforce of delivery personnel throughout China.
In 2012, China’s on-line sales reached 1.3 trillion yuan, or around 200 billion U.S. dollars. Since China’s e-commerce market is rapidly expanding, a bigger and more complete logistics network is needed to cope with the growth in the coming years.
