Russia's Volga-Dnepr Group has announced the signing of a Memorandum of Understanding (MOU) with Cainiao Network, the logistics arm of Alibaba Group.

According to a statement, the partnership will allow the Russian logistics specialist to strengthen its position in the cross-border shipments market while at the same time, build a global smart logistics network to meet increased demand.

Volga-Dnepr Group's cargo carriers include Volga-Dnepr Airlines (VI, Ulyanovsk Vostochny), AirBridgeCargo (RU, Ulyanovsk Vostochny), and Atran (V8, Moscow Vnukovo) in Russia as well as CargoLogicAir (P3, London Stansted) in the United Kingdom.

Under the terms of the deal, Volga-Dnepr Group will guarantee the Chinese e-commerce giant access to its network and fleet of 41 freighters. In return, Cainiao Network will use the Group as its preferred carrier for airlift capacity and logistics services.

The two sides will also endeavour to develop an optimal scheduled route network in Asia, Europe and Russia by optimizing transportation processes, including ground handling and road feeder services, to cut transit time for global transportation.

“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," Tatyana Arslanova, Vice-President Strategic Management of Volga-Dnepr Group, said. "The key to success in 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."

Earlier this year, Cainiao unveiled plans to develop a network of six global hubs in six cities around the globe as part of plans to deliver anywhere in China within 24 hours, and across the globe within 72 hours.

Aside from this partnership with Volga-Dnepr to use Moscow Sheremetyevo and Liège as hubs, Cainiao has agreements with Emirates to use Dubai as a hub, with Turkish Airlines for the use of Hong Kong International, and YTO Cargo Airlines to use Jiaxing Airport, located near Hangzhou, once finished. It will also use Kuala Lumpur International where the construction of a roboticized e-fulfilment hub under a Cainiao-Malaysia Airports Holding Bhd. joint venture has already begun.