Page 24 - ITLN July - Aug 2023 for Magzter
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Interview
             Satyaki
             Raghunath

         certified  there, get it customs-cleared                                 Secondly we have got a number of
         and put it in a bonded truck there so                                  international airlines who bring their
         when it comes here it doesn’t have to go                               dedicated freighters here, whether they
         through all of the checks all over again.   I think we do about        are Turkish (Cargo), Qatar, Cathay Pacific
         It can then go out straight for export.   43% of south India           or Emirates and a number of others.
         It comes in a bonded, sealed truck, it    and about 30% of               I think there are 13-14 different
         comes to our ATMF, gets cleared, then   overall India in terms         airlines who come in here from a
         it goes to our cargo terminal and it goes                              freighter perspective and all of them
         out for exports. So the whole point is   of perishables. We had        have driven cargo growth here across
         that you can do it there. Once you seal it   about somewhere in the    Bengaluru and what has been very
         and set it up, the LogiConnect route is a   region of 40,000 MT of     gratifying is that it’s been increasing.
         bonded truck that’s coming here. So the   perishables last year.
         good part is that you don't have to come                               Along with your partners - what is
         here like one used to historically and                                 some of the physical infrastructure
         have to go through the whole customs                                   that you are building now?
         process here, it's been cleared and so   I think we do about 43% of south   Currently we have just finished a large
         it’s ready for shipping.           India and about 30% of overall India   round of investment. We have capacity
                                            in terms of perishables. We had about   here for about 750,000 tonnes annually.
         Your perishable journey is facilitated   somewhere in the region of 40,000   Our volumes are in the region of around
         by the coolports at the airport. Could   tonnes of perishables last year. So I   450,000 tonnes this year. I think we are
         you talk about how this is BIAL’s   think we are in that range and we are   not building anything right now but as
         strong point?                      hopeful that it is an area where we will   we look forward we will be building a
         So we have got about 60,000 tonnes   continue to grow over the next decade.  new domestic cargo facility and we have
         of annual capacity here across the                                     just awarded a tender for a new logistics
         BLR Airport perishable and cold chain   Could you talk about the new   park which will also commence shortly
         facilities. And that’s split as 40,000   custodians who have been taking over   and should be ready in the early part of
         and 20,000 across two facilities on   at the airport and what kind of growth   2024. I think over the course of the next
         the AISATS and the Menzies side.   they will drive?                    decade we will invest significantly to
         Fundamentally what it does is these   From our perspective, partnerships   grow the facilities from 750,000 tonnes
         are dedicated cold chain facilities which   come from airlines, freight forwarders,   to 1.2 - 1.4 million tonnes.
         are temperature controlled. And in   government stakeholders but our
         partnership with a couple of other people   previous concessions ended in May   Is e-commerce a vertical you hope to
         who have IoT temperature controlled   2023. Our new concessionaires are WFS   grow?
         devices like Envirotainer and others for   and Menzies, two of the world’s largest   I think e-commerce has already grown
         instance - you can bring your farm fresh   cargo operators, who took over at the   significantly. If you look at our ECT
         produce or meat, pharmaceuticals etc   end of May. These are joint ventures that   (Express Cargo Terminal) it was driven
         in temperature controlled trucks or   BIAL also has a stake in.        by the fact that there was a huge amount
         facilities to the cold chain facilities.   I think, from the perspective of the   of growth in e-commerce and a huge
           We have 60,000 tonnes of capacity   cargo community, it is our intent to grow   amount of growth in digital.  And you can
         here across our terminals and they are   cargo volumes to about somewhere   also see that from the fact that Amazon
         temperature sensitive and you can set   between 1.2 to 1.5 million tonnes   has Prime Air sitting in India. And
         the range to what you want in order to   annually by the early 2030s. The idea   between south Indian airports they are
         maintain the integrity of the cold chain.   of getting into these partnerships is to   already servicing various Indian airports.
           And as they go through the facility they   drive that growth.          I think that is again set to grow and
         are completely within that temperature                                 you will see that growth. I think it will
         controlled facility which means that we   How many cargo airlines come to BLR   come out of electronics, consumer
         can guarantee to our customers or   Airport right now and what capacity   goods, agriculture, perishables - we do
         farmers or pharmaceutical companies   addition will be coming in this year and   a lot of flowers, eggs - things like that.
         that you can get from say when they   the next two years?                Equally, you will see growth in new
         produce or cut it or ship it and within   It is very difficult to predict that but I   sectors that may not be apparent today
         24 hours it gets to its destination   think what we are very thrilled about is   but as India grows, I think, manufacturing
         and that cold chain integrity is never   that today three of the largest dedicated   will be a huge area. You will see a lot
         broken. So I think that's what we have   freighter companies actually fly their   more exports in manufacturing, under
         done very successfully because if   own aircraft here. We have Fedex, DHL   ‘Make in India’ policy, so I have no doubt
         you look at our export commodity for   and Aerologic together and then we   at all that in the early to mid 2030s, we
         instance; our biggest numbers have   have UPS and that’s not something that   will have 90 million passengers and a
         come from agricultural produce and   you see at too many airports. I believe   million and a half metric tonnes of cargo
         pharmaceuticals (within that       that alongwith Delhi we are the only   - I think that will happen. It's a natural
         export number).                    airport who actually has that advantage.   sort of growth! 
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         July - August 2023                                                                              www.itln.in
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