An MoU with Alibaba’s logistics arm, Cainiao, to develop a cross-border shipment network, will cement Volga-Dnepr’s e-commerce business.

Cainiao Smart Logistics Network will form a partnership with the Russian air freight group to develop online commerce: the Volga-Dnepr Group will guarantee access to its network and a 41-aircraft-strong fleet, while Cainiao will make the group a “preferred carrier.”

The two companies will also develop an optimal scheduled route network in Asia, Europe, and Russia, which will include improving processes, such as ground handling and road feeder services.

It is likely that the majority of Cainiao business will feed Volga’s AirBridgeCargo subsidiary and could also find its way onto partner Cargologicair’s network.

James Zhao, general manager of Cainiao Network, said the agreement would help “beef up the 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.”

Volga-Dnepr, known for its ability to fly oversized cargo, has been increasingly interested in e-commerce.

It is hoping to launch CargologicGermany next year, which will field a fleet of 737s for intra-Europe e-commerce, and it already operates 737s domestically in Russia under its Atran brand.

Robert van de Weg, vice president of sales and marketing for the group, told The Loadstar recently that e-commerce was “a plus because it is multi-directional.”

He added, “This is a market niche we believe is interesting and growing, and that’s the long-term vision.” He noted the group was looking for more partnerships, particularly in e-commerce.

“We are still depending largely on multinational forwarders. However, it is our strategy to diversify our customer base more and, hence, we are looking to enhance relationships, for example with the WCA network, which is known to be strong in its local markets and has an increasing presence in areas such as e-commerce.”

Volga-Dnepr said it had seen a six-percent increase in cross-border shipments in the first 11 months of 2018.

“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.

“The key to success in this lucrative market lies in the ability to provide fast, fully-digitalized, and transparent services with the support of reliable partners, such as Cainiao Network.”