Volga-Dnepr to become preferred carrier for Alibaba’s logistics arm

The Volga-Dnepr Group (VDG) has become the latest firm to sign an memorandum of understanding (MoU) with Cainiao Smart Logistics Network, the logistics arm of Alibaba Group.
The MoU will see Volga-Dnepr Group guarantee access to its network and fleet of 41 airplanes, while Cainiao Network will use the carrier as its preferred carrier for airlift capacity and logistics services.
On top of this, VDG and Cainiao will develop a scheduled route network in Asia, Europe and Russia by optimising transportation processes, including ground handling and road feeder services, to cut transit time for global transportation.
The partners said the deal would strengthen their positions in the area of cross-border shipments in the market by building a "global smart logistics network" to meet growing demand.
VDG vice-president strategic management Tatyana Arslanova said: “The future of air freight is in the e-commerce sector with customers becoming more tech-savvy, internet-driven and demanding in terms of delivery services.
"The key to success of winning this lucrative market lies in the ability provide fast, fully digitalised and transparent services with the support of reliable partners, such as Cainiao Network."
James Zhao, general manager of Cainiao Network, added: “We are delighted that Volga-Dnepr Group becomes our strategic partner to beef up airfreight capability of our global smart logistics network, enabling merchants and brands – especially small and medium enterprises – to access more efficient cross-border logistics services.”
For the first eleven months of 2018 Volga-Dnepr achieved a 6% increase of cross-border shipments, which is bolstered by its reinforced commercial and operational teams, realigned internal procedures and processes and active implementation of innovative IT-solutions.
It is not the only air cargo group to have signed an MoU with Cainiao over recent months. Singapore Airlines and Liege Airport have both signed deals.
As have Hong Kong, YTO, Emirates and Bollore.

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