AN EVOLVING MARKET

The Indian air cargo market stands under one per cent of the global air cargo market. However, the market is slowly picking up with the government and other stakeholders focusing more on the advantages of air cargo services. Recently, there was a series of developments of cargo terminals in the country alongside the UDAN scheme. 

Market scenario

During the Covid times in March 2000, when the passenger traffic came to almost a standstill, the air cargo movement took off at a greater pace, especially driven by the phama and e-commerce segments.

The air cargo operations have seen a surge in 2021 after the Covid impacting the market. Reports indicate that there was a 29% growth in cargo shipments to 264,510 tonnes in August 2021 from a year earlier. Apart from the existing air cargo facilities across the country, the government is setting up more air cargo complexes at prospective locations of the upcoming UDAN airports. The government in its budget has announced the setting up of 4 cargo terminals at the 4 locations to cater to the international cargo.

Air cargo terminal development

Cargo demand during the pandemic has forced Indian airports to accelerate or augment their cargo capabilities, and to develop or expand exclusive terminals for handling temperature-sensitive pharmaceuticals or express e-commerce cargo.

Till the year 2014, there were 11 domestic air cargo terminals and 19 international air cargo terminals in India. AAI Cargo Logistics and Allied Services Company Limited (AAICLAS) has created another 27 domestic air cargo terminals. In addition, there are Joint Venture (JV)/Public Private Partnership (PPP) and State Government airports which are also engaged in the process of establishment of domestic as well as international air cargo terminals. Thus, the cargo handling potential has been considerably enhanced to facilitate faster movement of goods.

Market outlook

Air cargo is poised for high growth in India in the coming years owing to the expected growth in exports. Also, the e-commerce is expected to grow to five times its current size in India by 2026. This will demand more infrastructure creation in air cargo handling in the country. Currently the share of Indian air cargo segment is miniscule at below one per cent of the global market, which indicates a lot of opportunities in this untapped market. Delhi Airport has set up India's first dedicated Transshipment Excellence Centre (TEC) to provide seamless and efficient transshipment services. In the down south, Bangalore airport has created additional infrastructure to handle demand and position itself as the cargo hub of the region. We need for such developments at emerging and potential regions to serve the business better and make the Indian air cargo market globally competitive.

Hits: 0