JD.com boosts Northern Metropolis logistics hub, but hurdles loom: experts

JD.com may be a major logistics leader in mainland China, but as part of a joint venture that won the first land project in the Northern Metropolis, it must overcome labour and road traffic hurdles to become an economic driver in Hong Kong, experts have said. Jeffrey Lam Kin-fung, chairman of the Hung Shui Kiu Industry Park Company – the first government-owned entity established to accelerate development of the Northern Metropolis – said on Tuesday that JD.com’s participation in the project would strengthen investors’ confidence and help attract others to join in. “This is a vote of confidence in Hong Kong’s logistics development with such a big investment,” Lam said. E-commerce giant JD.com is part of a six-company consortium that on Monday won the first “large-scale land disposal” project in the Northern Metropolis for HK$1.03 billion (US$132 million), with total investment projected at HK$16.8 billion. The 10.5-hectare project in Hung Shui Kiu involves the winning bidder collectively developing sizeable land parcels with commercial value and sites earmarked for public facilities. Under the Northern Metropolis scheme, 30,000 hectares (74,132 acres) of land near the border with the mainland will be transformed into an engine for economic growth and a housing hub. The megaproject includes an innovation and technology zone, a commerce and industry zone, a high-end professional services and logistics hub, and an area featuring recreation and conservation elements. JD.com is the first enterprise to settle in the logistics zone. According to the government, the consortium will form a site earmarked for company and technology park developments and build a smart logistics centre, with JD.com taking part as a strategic enterprise. The enterprise will occupy at least 15,300 square metres, around 30 per cent of the facility’s gross floor area, within 55 months, well ahead of the 96-month minimum requirement. The consortium said in a statement on Monday that JD.com’s self-developed “Wolf Pack” series of robotic technologies, equipment and capabilities would be gradually deployed over the next few years. They include the “Smart Wolf” goods-to-person system, automatic sorting walls, the “Alien Wolf” robotic arm, the “Lone Wolf” autonomous vehicle, and a smart logistics park system integrated with artificial intelligence (AI) and digital management. “Together, they will build a modern logistics park in Hong Kong, significantly boosting logistics efficiency and residents’ service experiences,” it said. At the supply chain level, the consortium said that by leveraging Hung Shui Kiu’s proximity to Shenzhen Bay Port, its objective was to establish seamless cross-border pathways between the mainland and Hong Kong and consolidate the city’s position as an international supply chain hub. JD.com said its logistics operation had established service advantages in the city, including “Hong Kong’s fastest four-hour delivery”, “collection and delivery up to 10pm” and “next-day delivery within Hong Kong and Macau”. It added that JD.com had opened up two-way shipping channels between the mainland, Hong Kong and Macau, deeply supporting the integrated development of logistics across the Guangdong-Hong Kong-Macau Greater Bay Area. JD.com is a supply chain-based technology and services provider, with businesses across retail, technology, logistics, health, industrials, property development and international operations. The company listed on Nasdaq in 2014 and on the Hong Kong stock exchange in 2020. JD Logistics listed on the Hong Kong stock exchange in 2021. As of June 30, 2025, JD Logistics managed more than 3,600 warehouses, including third-party-operated cloud warehouses, with a total area exceeding 34 million square metres. In the second quarter this year, JD.com reported a 15 per cent year-on-year surge in net profit to 7.1 billion yuan, despite a slight dip in overall revenue, according to its financial report. Gary Lau Ho-yin, chairman of the Hong Kong Association of Freight Forwarding and Logistics, said JD.com had excellent advantages, such as high-end AI-backed logistics and storage facilities, which made its e-commerce delivery services very efficient. “The problem is, road traffic in Hung Shui Kiu is very busy. JD.com needs to deploy a lot of vehicles and hire a lot of staff to make efficient delivery possible from the city’s 18 districts to its destinations,” he said. “Will it be able to hire enough people who are willing to work in Hung Shui Kiu? That is the question.” He said the firm’s e-commerce success hinged on its use of smart systems and robotic technology to rein in manpower hiring. “The use of an AI-integrated system and robotics could deal with inventory management for its clients, such as matching, packaging and uploading of goods and receiving orders,” he said. “But for actual external delivery, it needs real labour to deliver the goods.” Ching Chi-wai, founder of the Elegant Logistics Group, said JD.com would serve as a driver for the development of the city’s logistics hub. “The site location is ideal, close to the airport and Shenzhen Bay, enjoying geographical advantages. JD.com can create an impact of logistics clusters in the region,” he said. But Ching agreed that JD.com would face the challenge of high labour cost in Hong Kong if it wanted to stay competitive.