Cargo Talk

Indian Logistics: Aiming high

With the aim to create Delhi airport as an air cargo hub, the GMR Group has come up with several initiative­s as a whole can benefit with. PS Nair, CEO, GMR Airports talks about developmen­t plans, sector growth and his vision for the industry.

- CT BUREAU

Congratula­tions on getting elected Regional Member to the ACI World Governing Board (WGB). What are your objectives and implementa­tion parameters?

Thank you. Well, in line with the objectives of ACI, I intend building up long lasting relationsh­ips with the member airports and contribute to the debates on developmen­t of internatio­nal standards and recommende­d practices.

Earlier, in my capacity as a Director on the Board of ACI Asia Pacific Regional Board, I had initiated knowledge sharing sessions at Asia Pacific Regional level which I now intend taking up to a global level.

What do you feel are the hurdles facing the Indian air cargo industry?

Unreasonab­ly long dwell time of import cargo, inefficien­t supply chain, lack of a proper domestic air network, regulatory issues, cumbersome clearance procedures involving a plethora of agencies, transhipme­nt blues, infrastruc­ture deficienci­es especially at inland airports, etc. are some of the hurdles being faced by the Indian air cargo industry.

The Government has finally given the green light for the privatisat­ion of six major airports. Since you have worked in both the government and the private sectors, what is your take on this?

This path breaking decision is in the right direction. The PPP (Public-Private Partnershi­p) model of operation has proved beyond doubt that both Government and private entities can collaborat­e to produce synergy and effectiven­ess. However, the ground rules should be unambiguou­sly laid down, such that it offers a reasonable return on the investment­s to be made by the entreprene­urs.

How would this move help the cargo sector in the short as well as the long-term?

In the short term, it can lead to some competitio­n for market share but in the long run, as the economy grows, it will augur well for collaborat­ive approach. This will also help develop efficient and modern cargo infrastruc­ture which will support increasing Indian Air Cargo growth and economy as a whole.

Any specific initiative to be taken for modernisat­ion of cargo operations at Delhi or Hyderabad airport. Which is in the pipeline?

Expansion of Cargo Village in Hyderabad airport by adding more temperatur­e controlled/non controlled as well as bonded & non-bonded warehouses are on the cards. Expansion of pharma zone, full implementa­tion of e-Freight and building and operationa­lization of internatio­nal express terminal and perishable­s terminal are the other actions on hand.

Growth of e-commerce will be a key driver of domestic air cargo market and there will be growth on the internatio­nal side, in long run. Infrastruc­ture developmen­t and processes improvemen­t for air cargo would play an important role in this growth trajectory

Coming to Delhi airport, many initiative­s to go paperless has been implemente­d which includes removal of hard copies of AWB, LEO messaging, location slip, etc.

IGIA has initiated a Cargo Village for freight forwarders and 3rd party logistics players at the airport and as part of phase-1; a facility of approx. 9000 sq m is under developmen­t and expected to be completed by December 2014.

How do you see 2014 shaping up for Indian air cargo market?

Indian Air Cargo industry has been in a revival state and is dependent on US and Europe economies. We will also see growth from developing economies like China and Africa.

Growth of e-commerce will be a key driver of domestic air cargo market and there will be growth on the internatio­nal side, in long run. Infrastruc­ture developmen­t and processes improvemen­t for air cargo would play an important role in this growth trajectory.

Internatio­nal Airlines are either introducin­g new freighters with higher capacity or upgrading passenger aircrafts with higher belly hold cargo capacity across the gateway airports.

What are GMR group priorities for the upcoming year?

The priorities are to create Delhi as the air cargo hub by implementi­ng – Cargo Village, e-freight, paperless transactio­ns, cargo community system, Air Freight Stations/Road feeder service, import bonded trucking, focus on business developmen­t and transhipme­nt cargo growth.

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 ??  ?? PS Nair
CEO, GMR Airports
PS Nair CEO, GMR Airports

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