“India’s air cargo sector is experiencing a transformative boom”

At the tenth edition of the PHDCCI Aviation & Air Cargo Summit 2024, themed 'Skies of Change – Shaping a New Futuristic Aviation Ecosystem' held in New Delhi, India’s Civil Aviation Minister, Kinjarapu Ram Mohan Naidu, addressed the audience with remarkable insights into India’s aviation and air cargo industry.

The summit, aimed at addressing transformative shifts in the industry, seeks to explore innovative strategies for creating a sustainable, efficient, and future-focused aviation and air cargo landscape. Its goal is to support India’s aspirations of becoming a global hub and leader in the sector.

Naidu mentioned that India’s aviation sector is at a transformative crossroads, marked by staggering growth. He noted that the country had 74 airports in 2014, a number that has now increased to over 157.

Talking about the air cargo industry he said “India has a lot of potential and it is experiencing a transformative boom.” Naidu also provided statistics on the air cargo sector in India, noting that the total cargo handled increased from 2.47 million tonnes in the financial year 2020-21 to an anticipated 3.36 million tonnes in the financial year 2023-24.

For context, it’s worth noting that Hong Kong International Airport, the world’s busiest international cargo airport, handled 4.3 million tonnes of cargo in 2023 alone—more than the total cargo handled by all Indian airports combined.

He stated that the government is working to establish India as a global cargo hub by enhancing connectivity, reducing turnaround times, and improving efficiency. "Recognising the potential of air cargo, we have embarked on developing dedicated freight corridors, implementing digital processes such as airway bills, and investing in state-of-the-art cargo terminals," Naidu added.

He also shared the success story of AAI Cargo Logistics and Allied Services Company Limited (AAICLAS), which was incorporated on August 11, 2016, as a 100% subsidiary of the Airports Authority of India (AAI).

In response to India’s economic growth and the rising significance of air cargo in the national economy, AAICLAS was established as a distinct entity from the Airports Authority of India to address future challenges. Currently, AAICLAS manages 20 international and 31 domestic air cargo terminals across India, along with one courier facility. The company has developed modern, integrated terminals equipped with advanced systems such as Automated Storage and Retrieval Systems (ASRS), Elevated Transfer Vehicles (ETVs), and other mechanised solutions to meet operational demands and ensure customer satisfaction.

Keku Bomi Gazder was appointed the first CEO of AAICLAS in June 2017 and held the position until March 2022. Ajay Kumar is the current CEO of AAICLAS, while Gazder now serves as Managing Director & Chief Executive Officer at Aviapro Logistic Services.

Naidu also urged industry leaders to explore how technological advancements can be integrated with existing air cargo systems in India. He emphasised the importance of enhancing the customer experience through the adoption of modern technologies. Additionally, he noted that metro cities such as Delhi, Mumbai, and Bangalore have the potential to serve not only as major air travel hubs but also as key air cargo hubs.

Naidu highlighted Prime Minister Modi’s initiative to develop one product per district, emphasising the unique advantages of these production locations. He encouraged the industry to find ways to connect with and integrate these districts into its network.

He highlighted the opportunity to leverage India’s strategic geographic location as an advantage for transshipment.

Addressing the key challenges of the industry, he noted that the lack of dedicated freight carriers is a significant issue and that much of the cargo is still being handled as belly cargo, causing inefficiencies.

“We have to move into the idea of having our own freight corridors and freight carriers at least between the metro cities domestically,” stated Naidu.