Cainiao Network, (Cainiao), the logistics arm of Alibaba Group, has announced the launch of its first sorting center in the Americas citing surging business growth in the region.
It said the sorting center will be located in the Municipality of Tultepec, State of Mexico.
"This is Cainiao's first sorting facility in the Americas, and the 9th in the world. Located 30 kilometers away from the Mexico City Benito Juárez International Airport, the sorting center will serve consumers across 32 states in Mexico, enabling the delivery of parcels from China to Mexico in as fast as 12 working days," Cainiao said in a statement.
The Chinese logistics company said the sorting center is equipped with multiple automated sorting technologies and pipelines as well as a management system that enhances the parcel processing efficiency by up to 10%.
Once sorted, the parcels will be then delivered by Cainiao's local logistics partners to consumers across Mexico.
Cainiao noted that based on data it gathered, daily necessities, apparels, consumer electronics devices are the most popular online shopping categories purchased via its e-commerce platforms.
Citing an analysis from the Mexican Association of Online Sales (AMVO), Cainiao said the Mexican e-commerce market was valued at US$20 billion in 2021, a 27% growth compared to 2020.
Emerging e-commerce market
"We see LatAm as a huge emerging market for cross-border e-commerce, and our business in Mexico surged up to 50% from January to March 2022 compared to the same period last year. Cainiao is committed to serving consumers in LatAm by providing more efficient and convenient logistics services," said Davis Zhao, head of global solutions for Cainiao's Export Logistics.
Cainiao noted that it has experienced a triple-digit growth rate in its Latin American business over the past year and has driven a focused air cargo network expansion in recent months to safeguard supply chain performance.
Today, Cainiao operates eight chartered flights weekly from China to the LatAm, linking Hong Kong SAR, Sao Paulo, and Santiago in response to the growth of cross-border trade between China and Latin America.
