Volga-Dnepr Group, the conglomerate of international air cargo carriers with 30+ years of profound expertise in transporting various types of cargo, managed to triple its healthcare and humanitarian volumes in the first nine months of 2020 itself, surpassing the point of over 55,000 tonnes, delivering essential cargo amid the pandemic and offering dedicated logistics solutions for a wide range of shipments—PPE, medical equipment, temperature-sensitive medical products, sophisticated and delicate vaccines, oversized medical and disinfecting vehicles and others. The Group introduced dedicated long-term charter programmes, which guaranteed capacity availability for customers and high-quality services, supported by timely and user-friendly communication—with constant booking confirmations, website e-services with regards to track and trace, and schedule updates through e-mail in auto mode with frequency and other settings adjusted upon customers’ needs. In an exclusive interaction, Konstantin Vekshin, Chief Commercial Officer discusses with Ritika Arora Bhola, how together with their strategic partners they follow the best industry practices and create guidelines which are clear for all participants to get the maximum level of excellence in transportation logistics.
Tell us about Volga-Dnepr Group’s business operations worldwide—freighters operations, ground handling activities, capacity, types of cargo handled, etc.
Our first flight dates back to 1990 – this was the beginning of Volga-Dnepr Group—which gradually expanded from AN-124 and IL-76 charter to Boeing 747F and Boeing 777F scheduled operations worldwide, as well as Boeing 737F express deliveries.
Today, we are one of the leading groups of air cargo carriers and consists of three independent airlines—Volga-Dnepr Airlines, AirBridgeCargo Airlines, and ATRAN airlines—supporting businesses in leasing, insurance, MRO, trucking, and training areas. We provide efficient logistics solutions to the market by using its unique fleet of the ramp and non-ramp aircraft and operating charters onboard AN-124, IL-76 for oversized and super-heavy cargoes, and Boeing 747F, 777F, and 737F for general and special cargoes, also oversize and heavy, including temperature-sensitive, dangerous goods, live animals, e-commerce—thereby, providing customised logistics solutions by embracing all stages of the transportation process, whether consulting, design and manufacture of special loading frames, packaging advice, and support, organisation of multi-modal services, obtaining of airport permits and approvals, ground handling arrangements, etc.
Tell us about Volga-Dnepr Group’s business operations worldwide—freighters operations, ground handling activities, capacity, types of cargo handled, etc.
Our first flight dates back to 1990 – this was the beginning of Volga-Dnepr Group—which gradually expanded from AN-124 and IL-76 charter to Boeing 747F and Boeing 777F scheduled operations worldwide, as well as Boeing 737F express deliveries.
Today, we are one of the leading groups of air cargo carriers and consists of three independent airlines—Volga-Dnepr Airlines, AirBridgeCargo Airlines, and ATRAN airlines—supporting businesses in leasing, insurance, MRO, trucking, and training areas. We provide efficient logistics solutions to the market by using its unique fleet of the ramp and non-ramp aircraft and operating charters onboard AN-124, IL-76 for oversized and super-heavy cargoes, and Boeing 747F, 777F, and 737F for general and special cargoes, also oversize and heavy, including temperature-sensitive, dangerous goods, live animals, e-commerce—thereby, providing customised logistics solutions by embracing all stages of the transportation process, whether consulting, design and manufacture of special loading frames, packaging advice, and support, organisation of multi-modal services, obtaining of airport permits and approvals, ground handling arrangements, etc.
How was the year 2020 for Volga-Dnepr Group’s cargo operations despite the pandemic? What was the impact on the operations of its subsidiaries?
2020 has been a turbulent year for many industries, with air cargo being no exception. But we managed to cope with the challenges, adjusting our flight schedule, planning charter flight programmes, operating urgent charters to guarantee delivery of much-needed cargo worldwide and assisting the regions and nations in their battle against COVID-19. If we try to sum up all the on-goings, it would be:
Speed of reactions: With the rapid spread of COVID-19, lockdowns and closure of borders, we needed to react quickly and adapt our regular schedule, process the charter permits, re-configure our network and re-route most of the flights via Krasnoyarsk instead of Moscow to avoid crew change in China and 14-day quarantine. This all happened within one month timeframe, made possible by our experience, expertise and knowledge to reshape processes which normally would take months to complete.
Adaptability: We introduced variety charter options in the beginning and later on, we went on for long-term charter programmes for our long-standing customers to guarantee capacity and support their business activities. Apart from the operational side, we had to make sure that we as a service provider and as an employer do not spread or catch the virus, which could be achieved only with the introduction of additional biosafety measures. This covered additional investments of our personnel (crew medical checks, COVID-19 tests, PEE, dedicated hotel accommodation and crew transportation) and equipment (disinfection of cargo and aircraft).
Flexibility: We have always been prompt in following the market sentiments and customer demands. This has enabled us to offer more charter options and long-term charter programmes. This has now become the backbone of COVID-19 logistics, as sometimes the situation changed within minutes and we all needed to act accordingly. It is fair to notice that while 2019 had not been the best year for the air cargo industry, it helped us significantly to prepare for COVID-era, as we remained least affected and introduced additional measures for cost-optimisation.
What about the cargo volumes handled during 2019-20? How is the group gearing up at present to achieve the pre-COVID growth?
In 2019, the three carriers within Volga-Dnepr Group carried over 700,000 tonnes of cargo worldwide. In 2020, this figure was 4 per cent less and surpassed the mark of 670,000 tonnes which is a great achievement amid the pandemic, lockdowns and regional restrictions. Throughout 2020, our planes were up in the sky delivering much-needed cargo with PPE, vaccine equipment, medical supplies and other cargo aimed at overcoming COVID-19 consequences. We continued to follow market sentiments and customers’ needs and introduced new products within Volga-Dnepr Group, which are long-term regular charter and ACMI programmes, as well as scheduled and charter operations. Of course, we do leave space for free sales (though various channels, including e-bookings), urgent charter options and prioritising healthcare shipments such as vaccines. This product and service range is allowing us to follow our growth strategy and we are confident to achieve pre-COVID-19 volumes soon.
Tell us about the state-of-the-art infrastructure for efficient cargo handling, transportation and logistics operations.
It is not just infrastructure and equipment but qualified and experienced logistics practitioners who are able to come up with dedicated logistics solutions for various commodities and industries. For more than 30 years, we have been nurturing specialists, gaining the right expertise and knowledge. We adhere to the industry principles standards in terms of quality standards and handle all special cargo in line with IATA respective standards (IATA LAR, TCR, DGR, etc.). We are IATA CEIV-(re)-certified and follow regulators’ guidelines (IATA vaccine handling) and OEM requirements.
Throughout all the years of our existence, we had strived to enhance our quality performance by joining industry associations such as Pharma.Aero, Cargo iQ, Cool Chain Association, etc. and been an active member contributing to the overall industry improvement (Validaide, IATA One Source).
We have capable fleet of freighters with the possibility to adjust in-flight environment settings (temperature, humidity, pressure, etc.) required for various types of cargo, as well as for the transport of unique out-of-gauge shipments, or live animals.
Most importantly, we work with reliable and trust-worthy partners across the globe – ground and apron handling, airport agents, airport authorities, RFS providers, etc. to guarantee intact and smooth handling. With stringent risk assessment in place, we make sure that we cooperate only with high-quality stakeholders.
How have relationships with your key customers changed in the new normal? How have you restructured your logistics network strategy to suit the way shippers approach carrier relationships?
We keep a healthy balance in carrier/customer relationship with effective KAM, shouldered by effective CRM, introduction of new digital channels in line with industry developments, sales support on all levels (HQ, regional), in a way trying and finding win-win solutions for both parties.
Together with our partners, we have introduced a series of meeting at all levels to guarantee that we are on the same page, and responding to every question/query. So far, it has been a successful exercise, as all the problems could be solved even from home office, further supported by our Ops teams on site.
With above, our expanded product portfolio—scheduled cargo operations, charter cargo operations, long-term charter, and ACMI programmes—has been able to guide us through these turbulent times, offering specialised solutions for all the parties involved.
What is your assessment of the quality of infrastructure in Moscow (Russia), especially related to logistics? Are they set to support Volga-Dnepr Group’s operations in the long run or do you feel there’s the need for more?
The airports are doing their best to have infrastructure that complements and in line with the world’s best. At our hub in Sheremetyevo International Airport, we have seen significant infrastructure enhancement, as the airport is set to develop passenger operations as well as cargo. Thanks to their commitments and support, we have been able to develop our dedicated solutions for temperature-sensitive cargo, perishables, live animals, dangerous goods, and others. Of course, there is always room for improvement, but we are happy to see our partners advancing in the world of logistics together with us. We are in constant dialogue with every airport with respect to ramping up of our capabilities which could drive the growth of Russia in the global logistics sector and use its unique geographical advantage.
How do you assess the ongoing developments taking place at Russian Airports that are set to facilitate enhanced vaccine movements that Volga-Dnepr Group and its subsidiary airlines aim to achieve and instate?
Some major airports are better prepared to handle vaccine movements with advanced temperature-sensitive facilities, whereas others are less equipped. For such cases, we are ready to offer dedicated logistics solutions with direct ‘aircraft-truck’ multimodal solutions, map out special solutions such as recharging of special containers for temperature-sensitive products well in advance, and/or cooperating with dry ice providers to get enough of it that would last throughout the entire journey (in line with safety requirements).
What significant items are transported to and from India? Any impending plans for enhanced connection with India?
India is one of the countries which have been on the radar for many air cargo carriers due to its increasing export and import volumes. In general, with leading export volumes for pharma and perishable products, the country is the perfect origin for destinations in Europe, North America, Russia, and CIS countries. Besides, the growing imports for high-tech and dangerous goods make India an ideal destination from Asia (particularly China). This ultimately coincides with AirBridgeCargo’s network and in fact, we had planned to add Mumbai in 2020 but the pandemic led to its postponement. Right now, we are making overtures for possible launch with our key accounts, as well as local freight forwarders.
How is the Group digitalising its logistics and end-to-end visibility processes?
Digitalisation embraces more facets of our processes. Today, not only do we offer digital services for customer experience enhancement, such as booking tools for our customers globally, through our own website or partners’ platforms (Cargo.One and Web.Cargo), track and trace, extended MobApp features and customised advanced schedule features and updates. We have also put our efforts into digitalisation of internal processes aimed at creation of an HR ecosystem within the Group, operations field, and improvement of internal doc flow.
Most significantly, we have strengthened the Cargo Supermarket concept within our Group—allowing us to handle all cargo requests through a one-stop-shop and find the most suitable logistics solution. This is a time-saving tool for both parties which have especially proved beneficial during the pandemic.
Looking at the current changing environment, what’s most critical to your mind to succeed?
Successful companies are the ones with the right people in the right places. We value our personnel across the globe for their ability to overcome challenges, for thinking out of the box, and for the ‘can-do’ attitude—which has supported us during the changing environment while forming the basis for further development.
