YTO Express has announced it has partnered Alibaba's Cainiao Smart Logistics Network and the Chinese state investment firm, China National Aviation Corporation (CNAC), in establishing a new logistics hub at Hong Kong International Airport.

A filing to the Shanghai bourse on June 6 said Cainiao would control 51%, CNAC 35%, and YTO Express 14% of the project which is valued at HKD12 billion Hong Kong dollars (USD1.53 billion).

Having won a tender to build the hub, the consortium said the facility will span 380,000 square meters and is expected to be able to handle 1.7 million tonnes of cargo per annum at full capacity once it opens in 2023.

"The consortium participants will invest in establishing a joint venture company. The joint venture will then build and operate a high-end modern logistics centre through self-raised funds and in accordance with the requirements of the Hong Kong Airport Authority's bidding," it said.

The three companies will join forces to exploit their respective strengths in the fields of air cargo transport, e-commerce, and express delivery networks.

Chinese e-commerce giant Alibaba took control of Cainiao last September and pledged to spend CNY100 billion yuan (USD15 billion) over five years in expanding its global logistics network. Cainiao has three existing fulfilment centres in Hong Kong and, according to Reuters, last week said that it planned to open logistic hubs in Dubai, Hangzhou, Kuala Lumpur International, Liège, and Moscow.