Alibaba logistics subsidiary signs MoU with Russian group to ‘beef up’ the air freight capability of its ‘global smart logistics network’.
Volga-Dnepr Group has signed a memorandum of understanding (MoU) with Cainiao Smart Logistics Network Ltd, the logistics arm of Alibaba Group, “with the aim to strengthen its positions in the area of cross-border shipments in the market and jointly build a global smart logistics network to meet upgrading demands”.
With the booming surge of e-commerce worldwide, the two companies said they would form a partnership for different joint projects in cross-border trade. “While Volga-Dnepr Group guarantees access to its network and fleet of 41 airplanes with the most effective logistics solutions, Cainiao Network will deploy the group as its preferred carrier for airlift capacity and logistics services,” the Russia-headquartered global air cargo group said.
“On top of this, the Group and Cainiao will 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 time for global transportation.”
Volga-Dnepr declined to give any further information about what the agreement is expected to mean in volume terms, and whether it is likely to significantly drive routing and capacity deployment in the near or medium term. The company also declined to say whether this partnership came as a result of or drove the decision by the airline group to make Liège Airport in Belgium − the planned European air hub for Cainiao Network − a main European hub for the group’s scheduled cargo airline subsidiary AirBridge Cargo Airlines (ABC).
James Zhao, general manager of Cainiao Network said: “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.”
Tatyana Arslanova, vice-president for strategic management at Volga-Dnepr Group, commented: “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 digitalized and transparent services with the support of reliable partners, such as Cainiao Network.”
For the first eleven months of 2018 Volga-Dnepr said it achieved a 6% increase of cross-border shipments, “bolstered by its reinforced commercial and operational teams, realigned internal procedures and processes, and active implementation of innovative IT-solutions”.
Cainiao has identified several other preferred logistics partners and carriers across different modes of transport. For example, in August, Singapore Airlines (SIA) and Alibaba Group today announced a comprehensive strategic collaboration encompassing several players in Alibaba Group’s ecosystem including Fliggy, Alibaba Cloud, Alipay and Cainiao Network. The partnership extends across several, including logistics, with SIA expecting to “work closely with Cainiao Network, joining Cainiao Network’s broader efforts in building a global smart logistics network that delivers across China within 24 hours and globally within 72 hours”.
Source: Lloyd’s
