Alibaba considering building hub in NZ

MULTIBILLIONDOLLAR Chinese ecommerce company Alibaba is talking to the Government about setting up a regional logistics hub in New Zealand.

Regional Economic Development Minister Shane Jones met top Alibaba officials in Hong Kong last month where the plan was discussed.

The logistics centre would be part of the Electronic World Trade Platform (eWTP) — and would help facilitate logistics and the movement of goods.

Alibaba, which is worth close to $US500 billion ($NZ750 billion), has been setting up hubs such as these all around the world over the past few years.

Mr Jones said if the project gets approval, it would likely be a partnership between Alibaba and NZ Post in a more regional centre, such as Palmerston North.

Senior Alibaba officials have been invited to New Zealand to further explore the opportunity and Mr Jones said they would arrive in the country soon.

In a letter to Mr Jones, sent not long after the meeting in Hong Kong, Alibaba senior vicepresident, and head of corporate finance, Michael Yao said he was keen to explore the idea of establishing an eWTP in New Zealand.

‘‘From our side eWTP, as a global initiative spearheaded by our executive chairman Jack Ma, would present the strongest immediate opportunity for cooperation.’’ Mr Yao said Alibaba representatives from Australia and New Zealand were keen to develop more of a partnership with the Government.

He said meeting Mr Jones was ‘‘a wonderful opportunity to have a frank and open discussion regarding the broader cooperation between New Zealand and Alibaba.’’ Mr Jones said Alibaba was trying to expand and tap the logistical dollar associated with the growing number of tourists that are originating from China coming through to Australasia.

‘‘They’re all buying stuff, they’re keen to see if a more sophisticated platform can be developed with NZ Post to expand the trade of goods and services.’’ He said it would be a good partnership, as NZ Post was going through its own commercial challenges.

‘‘If there is scope for growing the logistics . . . and fast moving items business [and] if there is anything we can do to effect a better arrangement between NZ Post, that’s incredibly important to me,’’ he said.

New Zealand Post chief international business officer Sohail Choudhry said Alibaba was working closely with NZ Trade and Enterprise and NZ Post on different initiatives.

eWTP hubs have already been set up in some other countries around the world. Mr Ma first discussed the idea of an eWTP at the G20 in 2016. He planned on creating a global network of eWTPs and said it would be a modern, electric version of the Silk Road.

Mr Jones said Alibaba officials were tossing up whether to build the hub in Australia or New Zealand.

‘‘If there is some scope for doing something thing in New Zealand in a provincial city such as Palmerston North with NZ Post — I don’t think that’s a bad outcome at all.’’

❛ . . . a wonderful opportunity to have a

frank and open discussion regarding

the broader cooperation between New

Zealand and Alibaba