A drone owned by JD.com carries goods between distribution centres in Tiantong'an village of Suqian city, east China's Jiangsu Province, June 8, 2016. [Photo: Xinhua]

China's e-commerce giant JD.com has signed an agreement with northwest China's Shaanxi provincial government to set up the world's first low altitude UAV, or unmanned aerial vehicles logistics network covering the whole province.

The drones to be used in Shaanxi are to be ten times bigger than those used in the Beijing-based company's first UAV debut last June.

Being able to travel up to 300 kilometres per flight, the drones can be loaded with several tonnes of goods.

UAV logistics networks are designed to cut the costs of shipping in remote and mountainous areas, said Liu Qiangdong, CEO of JD.com. Parcels will first be taken to distribution centres at town and township levels via traditional transport means. Drones will then take parcels to each village where they will be distributed to the customers.

The company currently uses UAVs in Liu Qiangdong's hometown Suqian city in Jiangsu Province; in Xi'an city, the capital of Shaanxi; and in Beijing.

JD.com and the Shaanxi provincial government will also cooperate in setting up a comprehensive UAV logistics platform, a UAV engineering centre, an intelligent logistics data base, a national low altitude management platform, the Shaanxi agricultural product supply chain and an intelligent logistics town.