A private Chinese commercial rocket developer, Beijing Sepoch Technology Co, is exploring the use of reusable rocket technology for expedited delivery services in a joint research project with Alibaba's Taobao e-commerce platform.

The first test of cargo recovery from a rocket is planned for this year. If successful, the initiative could enable e-commerce packages to travel intercontinental distances in less than an hour aboard a reusable Sepoch Hiker-1 orbital rocket, according to those involved in the project.

"The partnership provides an opportunity to further prove the feasibility of point-to-point transport", a Sepoch representative said on Tuesday, requesting anonymity.

The rocket features a 120 cubic meter payload bay designed to carry up to 10 metric tons, according to a post on Sepoch's WeChat account. Initial designs could eventually enable the transporting of vehicles and machinery as well as parcels.

Sepoch is also developing an escape system for the cargo bay to ensure package security during the stresses of rocket launch and reentry.

Wei Yi, the founder of Sepoch, said in the post that while cost factors currently limit rocket delivery to specialized scenarios like emergency response, advances in rocket reusability and other technical innovations could lead to a significant reduction in costs.

In 2022, US aerospace firm SpaceX began exploring the feasibility of transcontinental Starship cargo flights capable of delivering payloads anywhere in the world in less than an hour.

Founded in 2019, Sepoch is developing the Hiker series of medium-sized to large reusable stainless steel liquid rocket launch vehicles. Last year, it successfully completed static fire and offshore recovery tests of a full-scale Sepoch Hiker-1 prototype rocket, validating its reusability and recovery operations.

"While China's private aerospace sector has technical talent, a bottleneck is establishing sustainable commercial investment models beyond State funding," Wang Junyi, an aerospace expert, said in a news release issued by Taobao. "Consumer logistics demands such as e-commerce create viable pathways to recoup investment in further research and development."

Analysts said the project could not only revolutionize online shopping with unprecedented speed, but also has immense potential for emergency response capabilities, such as the delivery of medical supplies and disaster relief, when time is of the essence.

Denying the rocket package delivery plan is a publicity stunt, Taobao said on its WeChat account that "many great endeavors seem laughable at first".

China led the world in parcel delivery last year with 132 billion parcels.