Volga-Dnepr Group has signed a memorandum of understanding with Cainiao Smart Logistics Network, the logistics arm of Alibaba Group.

According to Volga-Dnepr, the aim of the MoU is to strengthen the two companies’ positions in the area of cross-border shipments and jointly build a global smart logistics network to meet growing demand.

The two companies will form a partnership for different joint projects in cross-border trade. Volga-Dnepr will offer Cainiao guaranteed access to its network and fleet of 41 airplanes together with complete logistics solutions, while Cainiao will appoint Volga-Dnepr as its preferred carrier for airlift capacity and logistics services.

“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,” said Tatyana Arslanova, vice president of strategic management at Volga-Dnepr Group. “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.”

Volga-Dnepr and Cainiao will also work together to develop an optimal scheduled route network in Asia, Europe and Russia by optimizing transportation processes, including ground handling and road feeder services, in order to cut transit time for global transportation.

“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,” said James Zhao, general manager of Cainiao Network.

Volga-Dnepr achieved a 6% increase of cross-border shipments in the first eleven months of 2018, bolstered by its reinforced commercial and operational teams, realigned internal procedures and processes and active implementation of innovative IT solutions.