Alibaba's plan to build a Chinese distribution centre in Liège is starting to take more shape. The deal between Belgium and Alibaba is said to be at an 'advanced stage'.
According to Belgian newspaper De Tijd, Belgian Prime Minister Charles Michel and top executive Jack Ma are currently holding talks. Only upon a possible agreement do they want to comment on the plans.
Alibaba plans to build a large distribution centre near Liège Airport, which will serve as a hub for the rest of Europe. Logistics subsidiary Cainiao Network has long been handling e-commerce shipments via Liège Airport. Placing a European hub here is expected to significantly increase the number of flights between Asia and Liège Airport.
Shorter delivery time
Alibaba's delivery time will be significantly reduced with the arrival of the DC. Alibaba lures online shoppers worldwide by offering products at very low prices. In return, customers have to wait a bit longer for their packages. In some cases, the delivery time goes up to a month.
Alibaba wants to ship goods not only from China to Europe through the DC, but also vice versa. Chinese consumers can get products from the West through Alibaba.
Impulse Belgian e-commerce sector
That Liege will eventually play a role in this is a boost for the Belgian e-commerce sector. Last year, it was revealed that our southern neighbours are missing out on distribution centres and jobs because companies are placing their e-commerce DCs just outside the Belgian border. This way they avoid Belgian regulations on night work and labour costs, which tend to be more lenient in neighbouring countries. According to calculations by trade federation Comeos, Belgium is losing up to 15,130 jobs as a result.
