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            june 25, 2019

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CILF 2019

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Alibaba's logistics arm turns to Volga-Dnepr's freighter fleet for air capacity


Russia's Volga-Dnepr Group has signed a memorandum of understanding (MoU) to provide Cainiao Smart Logistics Network, the logistics arm of Alibaba Group, guaranteed access to its network and fleet of 41 airplanes, while Cainiao will use VDG as its preferred carrier for airlift capacity and logistics services.
Furthermore, 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 reduce global transit times.
The partners said the deal would boost their share of the cross-border shipments market by developing a "global smart logistics network" to meet expanding demand, reported London's Air Cargo News.
"The future of air freight is in the e-commerce sector," said VDG vice-president strategic management Tatyana Arslanova. "The key to success of winning this lucrative market lies in the ability provide fast, fully digitalised and transparent services."
Cainiao Network general manager James Zhao added: "We are delighted that Volga-Dnepr Group becomes our strategic partner to beef up air freight 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 11 months of the year Volga-Dnepr achieved a six per cent increase in cross-border shipments, which is bolstered by its reinforced commercial and operational teams, realigned internal procedures and processes, and implementation of innovative IT-solutions.

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