Cainiao Network has launched an automatic distribution center and overseas warehouse in Israel, which is the first for the Alibaba logistics unit in the Middle East, and its tenth globally.

The facility is located 30 minutes away from Israel’s main airport Ben Gurion near Tel Aviv. It will be equipped with intelligent sorting equipment, and Cainiao’s proprietary overseas digital intelligent sorting system to manage the entire value chain: from first-mile pickup, last mile deliveries and other logistics scenarios.

In line with this, Cainiao also partnered with U-Speed, an eCommerce logistics supply chain service platform, to operate its first overseas warehouse in Israel, as part of its logistics infrastructure development in the region and to support e-commerce.

The overseas warehouse is equipped with smart logistics equipment, and offers integrated warehouse and distribution services to facilitate parcel deliveries within three working days. 

Cainiao is banking on the growth potential of the Israeli e-commerce market with analysts predicting revenues to reach USD 7.84 billion in 2022.