Noida Airport to add much-needed cargo capacity for India

On February 5, 2024, Uttar Pradesh Finance Minister Suresh Kumar Khanna announced allocating ₹1,150 crore for the upcoming Noida International Airport (DXN) at Jewar as he tabled the budget for fiscal year 2024-25 in the state assembly. This is only the latest investment into the ambitious project to build South Asia's biggest airport.

The central government has set an ambitious target of achieving 10 million tonnes of air cargo by 2030. In the current scenario, 90 percent of Indian international volumes are carried by non-Indian carriers. Domestic airlines are catching up with massive aircraft orders, which requires airports to add cargo handling capacity to meet this burgeoning demand.

In this context, greenfield airports like Noida International Airport will play a crucial role, not only in building capacity but also in providing world-class facilities to the industry. The airport is in close proximity to industrial and commercial centres, and is set to capitalise on its advantageous location to facilitate efficient connectivity and seamless transportation of goods between industries and global markets.

“The airport will significantly enhance the capacity requirements of the North Indian air cargo market, especially for Western UP and the National Capital Region (NCR) which has multiple large industrial clusters of electronics, textiles, automotive, pharmaceuticals, perishables etc,” says Kiran Jain, Chief Operating Officer, Noida International Airport. “Notably, there is also an agreement for road access dedicated to cargo on the eastern side of the airport.”

The airport is being developed by Yamuna International Airport (YIAPL), a 100 percent subsidiary of Zurich Airport International. To be operational by the end of 2024, Noida Airport plans to have an integrated Multi-Modal Cargo Hub (MMCH) across 87 acres. In fact, YIAPL has selected Air India SATS Airport Services (AISATS) to design, build, finance and operate the facility.

“The MMCH, being developed by AISATS, includes two distinctive infrastructure projects, - one being the Integrated Cargo Terminal (ICT) developed on a land parcel of 30 acres and an Integrated Warehousing & Logistics Zone (IWLZ) developed on 57 acres.”

“We firmly believe that the MMCH at the airport, with the integrated infrastructure, efficient processes coupled with technology & automation will create an efficient ecosystem for the air cargo supply chain,” she added.

Phase 1 of ICT with domestic, international and express courier terminals with a combined annual throughput capacity of over 250,000 tonnes is under construction and expected to be ready by the end of 2024.

“Subsequently, the capacity will be enhanced to approx. two million tonnes spread across domestic, international & express courier terminals along with a dedicated coolport facility for perishables, pharmaceuticals & other temperature-sensitive cargo as well. Apart from the development of main cargo terminal buildings, other associated facilities such as a trucking centre for parking of trucks with amenities for truckers are also under development to facilitate seamless movement of air cargo at the airport.”

The integrated logistics project is currently undergoing the design stage and it is expected to have warehousing facilities such as Bulk Unitization Program (BUP) facility for build-up/break-down of pallets/containers, consolidation centre, customs bonded warehouse, a logistics park for e-commerce players & 3PL companies.