Internet business giant Alibaba Group has revealed that it has commenced work on a ‘smart’ logistics network, in a five to eight year project, that is expected to cost as much as $48 billion.

Alibaba Group which delivered eBay clone Taobao, will deliver the new logistics network alongside joint venture partners Intime Group and multiple delivery companies.

The delivery of thee logistics network project is designed to increase the speed of e-commerce transactions and goods delivery, allowing for the coverage of all 2,000 of China’s major cities within 24 hours.

The new logistics program comes at a time when China is seeing unparalleled growth within e-commerce markets over recent years, with logistical services competing to match supply to the increasing demand.

Within 10 years 200 million parcels will be delivered a day within China according to predictions from Chinese news agency Xinhau.

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