Cainiao Network (Alibaba) turns to Russian air cargo group as a preferred carrier

Volga-Dnepr expands its e-commerce interests by inking MoU with Alibaba Group (VDG)

Volga-Dnepr Group (VDG), the Russia-headquartered collection of specialist airfreight carriers, has signed a memorandum of understanding (MOU) with Cainiao Smart Logistics Network (Cainiao Network), the logistics arm of China’s Alibaba Group, with the aim of jointly building a global logistics network to meet increasing demands in that market.

With the booming worldwide surge in e-commerce, the two companies will form a “partnership for different joint projects in cross-border trade”, a statement says. With VDG guaranteeing access to its network and its fleet of 41 aircraft, Cainiao Network will deploy the group as its preferred carrier for airlift capacity and logistics services.

On top of this, VDG and Cainiao will jointly make efforts to develop an optimal scheduled route network in Asia, Europe and Russia, by optimising transportation processes, including ground handling and road feeder services, to cut transit times for global transportation.

“The key to success of winning in this lucrative market [the e-commerce sector] lies in the ability to provide fast, fully digitalised and transparent services with the support of reliable partners, such as Cainiao Network,” insists Tatyana Arslanova, vice-president, strategic management, at Volga-Dnepr Group.

James Zhao, general manager of Cainiao Network adds: “We are delighted that Volga-Dnepr Group has become our strategic partner to beef up the 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.”

In the first eleven months of 2018, Volga-Dnepr achieved a six per cent increase in cross-border shipments, a development bolstered by its reinforced commercial and operational teams, realigned internal procedures and processes, plus active implementation of innovative IT solutions.

Volga-Dnepr Group, which comprises Volga-Dnepr Airlines, AirBridgeCargo and Atran, is owned by Russian entrepreneur Alexey Isaikin. Another all-cargo airline belonging to the businessman, but not formally part of VDG, is UK-registered sister company CargoLogicAir.