Alibaba Group and its partners today officially initiated the China Smart Logistic Network, or CSN, a logistics program aiming to support 30 billion yuan ($4.9 billion) worth of daily transactions in five to eight years. That’s 10.9 trillion yuan annually. In 2012, annual sales on Taobao and Tmall was over 1 trillion yuan.

A joint venture, called Cainiao, has been established together with top five logistics companies, Yintai (a department store chain who also runs an online store), Fosun(an investment firm) and Forchn(whose businesses include port logistics). Jack Ma, executive chairman and former CEO of Alibaba Group, is the chairman of the company and Shen Guojun, President of Yintai, is the CEO.

Alibaba is the biggest share holder, holding 43% of it with 2.15 billion yuan in investment, and Yintai takes 32%, as reported. Fosun and Forchn each take 10%; the five delivery companies each take 1%.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com