Emirates SkyCargo and LODD Partner on Autonomous Middle-Mile Cargo Drones
By AirPro News
Emirates SkyCargo and LODD Autonomous: A New Era for Middle-Mile Logistics
The logistics landscape is undergoing a significant transformation as major industry players look toward Automation to solve age-old efficiency problems. In a move that signals a shift in how air freight handles regional distribution, Emirates SkyCargo has signed a Memorandum of Understanding (MoU) with LODD Autonomous, an Abu Dhabi-based developer of autonomous aerial vehicles. We view this collaboration not merely as a technological experiment, but as a strategic step toward redefining the “middle-mile” sector, the critical link between major transport hubs and local distribution centers.
Signed at the Dubai Airshow in November 2025, this agreement outlines a roadmap for developing and deploying autonomous cargo drone solutions across the Emirates network. The Partnerships focuses on the “Hili,” a heavy-lift hybrid Vertical Take-Off and Landing (VTOL) Drones. We understand that the primary objective is to conduct feasibility studies and live demonstrations, validating the technology for potential integration into daily operations. This initiative aligns closely with the UAE’s “Operation 300bn” industrial strategy, which aims to foster indigenous technological advancement and industrial capacity.
For the logistics industry, the implications of this partnership extend beyond simple innovation. It represents a concerted effort to bypass traditional infrastructure bottlenecks. By leveraging autonomous aerial technology, Emirates SkyCargo aims to connect its dual-airport hubs, Dubai International (DXB) and Dubai World Central (DWC), with a speed and efficiency that ground transportation simply cannot match. We see this as a direct response to the growing need for faster, more reliable transfer times in an increasingly congested global supply chain.
Solving the Middle-Mile Conundrum
The “middle-mile” has long been a pain point in logistics, often characterized by inefficiencies and delays caused by road congestion. Currently, cargo moving between Emirates’ key hubs or regional warehouses relies heavily on trucking corridors. These routes are subject to traffic variability, resulting in transfer times that can exceed four hours when processing is included. We recognize that the introduction of the LODD “Hili” drone is designed to circumvent these ground-level obstacles entirely, creating an “air bridge” that ensures consistent and rapid transit.
The strategic goal of this partnership is to validate the use of heavy-lift drones for these specific routes. Unlike last-mile delivery, which focuses on small parcels reaching the end consumer, middle-mile logistics involves moving bulkier, consolidated cargo between facilities. The Hili drone is engineered to handle this requirement, offering a warehouse-to-warehouse solution that is significantly faster than trucking but more cost-effective than traditional cargo aircraft or helicopters. We believe this capability could be particularly transformative for high-value, time-sensitive goods such as pharmaceuticals and critical spare parts.
Furthermore, the collaboration is set to run through 2027, with live trials expected to commence in the near term. This timeline suggests a cautious but committed approach to integration. By partnering with a local Startups backed by the UAE’s Advanced Technology Research Council, Emirates SkyCargo is able to test these frontier technologies without bearing the full weight of development costs alone. It is a symbiotic relationship where the established carrier provides the operational playground, and the tech startup provides the innovation.
“Time is the enemy in logistics… Our collaboration with Emirates SkyCargo blends LODD’s frontier technologies with the country’s enduring commitment to safe, scalable, and sustainable logistics.” — Rashid Al Manai, CEO of LODD Autonomous.
Technical Capabilities of the Hili Drone
To understand the potential impact of this partnership, we must look at the hardware itself. The LODD “Hili” is distinguished as the UAE’s first indigenous heavy-lift cargo drone. It utilizes a hybrid-electric propulsion system, employing electric motors for vertical lift and an internal combustion engine for forward cruise. This hybrid approach allows for a range of up to 700 km (435 miles), which is sufficient to cover all inter-emirate routes and even regional connections across the Gulf. We note that this range capability offers a distinct advantage over pure electric alternatives that may struggle with longer distances due to battery weight constraints.
In terms of payload, the Hili is capable of carrying 250 kg (550 lbs), which is roughly equivalent to two Euro pallets. This specification places it firmly in the B2B logistics category, separating it from smaller consumer delivery drones. The drone operates fully autonomously, capable of gate-to-gate operation without a remote pilot for every flight segment. Crucially, its VTOL capability means it does not require a runway. It can land at warehouses, logistics hubs, or unprepared sites, drastically reducing the infrastructure investment required to expand the network.
When placed in the context of the global market, the Hili holds its own against international competitors. For instance, while Dronamics’ “Black Swan” offers a higher payload, it requires a 400-meter runway, limiting its operational flexibility. Similarly, the US-based Elroy Air offers a comparable VTOL solution but with a shorter range of 500 km. We observe that the Hili’s combination of range, payload, and infrastructure independence positions it as a highly competitive solution for the specific geographic and logistical challenges of the region.
Regulatory Framework and Future Outlook
The success of autonomous aviation relies heavily on the regulatory environment, and this partnership benefits significantly from the UAE’s proactive stance. The General Civil Aviation Authority (GCAA) has introduced new “U-space” Regulations, effective as of January 2025. These regulations create a designated airspace and a structured framework for commercial drone operations, including mandatory “Green Zones” for flight. We understand that LODD is actively navigating these certification processes, ensuring that the technology is not just capable, but also compliant and safe for civilian airspace.
Looking ahead, the successful deployment of this technology could trigger a broader shift in the industry. If the “middle-mile” drone model proves viable, we may see a reduction in the reliance on light trucking for specific cargo categories. This transition would not only improve speed but also contribute to Sustainability goals by reducing carbon emissions associated with road traffic. The hybrid propulsion of the Hili drone offers a cleaner alternative to diesel trucks, aligning with global environmental targets.
Ultimately, this MoU serves as a proof-of-concept for the “Make it in the Emirates” campaign, showcasing the region’s high-tech industrial capabilities. For Emirates SkyCargo, it is a low-risk entry into the future of aviation. For the industry at large, it is a test case for the scalability of autonomous heavy-lift logistics. We will be watching closely as the feasibility studies progress, as the results will likely influence logistics strategies far beyond the borders of the UAE.
Concluding Section
The partnership between Emirates SkyCargo and LODD Autonomous represents a calculated step toward a more automated and efficient logistics future. By targeting the specific inefficiencies of the middle-mile sector with specialized hybrid VTOL technology, both entities are addressing a real-world problem with a tangible solution. The combination of the Hili drone’s technical specifications and the UAE’s supportive regulatory framework creates a fertile ground for innovation.
As we move toward 2027, the outcomes of these trials will likely set precedents for how autonomous cargo vehicles are integrated into existing supply chains globally. If successful, this initiative could redefine the speed and flexibility of air freight, proving that the future of logistics lies not just in bigger planes, but in smarter, autonomous connections.
FAQ
Question: What is the primary goal of the partnership between Emirates SkyCargo and LODD Autonomous?
Answer: The partnership aims to develop and deploy autonomous cargo drone solutions, specifically focusing on “middle-mile” logistics to connect airports and warehouses, thereby bypassing road congestion and improving transfer times.
Question: What are the key specifications of the LODD “Hili” drone?
Answer: The Hili is a hybrid VTOL drone capable of carrying a payload of 250 kg (550 lbs) with a range of up to 700 km (435 miles). It operates fully autonomously and does not require a runway for takeoff or landing.
Question: How does the Hili drone compare to traditional transport methods?
Answer: The drone offers a “warehouse-to-warehouse” air bridge that is faster than trucking due to the avoidance of traffic, yet significantly cheaper to operate than traditional cargo planes or helicopters.
Sources: Emirates SkyCargo
