Do­mes­tic air cargo: eCom­merce is the key to growth

Cargo Talk - - Front Page - KAL­PANA LOHUMI

De­spite the global re­ces­sion, do­mes­tic air cargo is grow­ing faster than in­ter­na­tional air cargo and is ex­pected to sur­pass the in­ter­na­tional cargo by ap­prox­i­mately 400 mmt. This, de­spite the fact, that the sec­tor has not re­ceived ba­sic ameni­ties such as planned in­fras­truc­ture and heavy ser­vice tax to name a few. CARGOTALK speaks to a few do­mes­tic play­ers to know the needs and re­quire­ments of the sec­tor.

Su­raj Agrawal Pres­i­dent, DACAAI

There is a rea­son­able growth of around 15-20 per cent in do­mes­tic air cargo sec­tor. We be­lieve growth is more due to the boom in eCom­merce sec­tor to meet com­mit­ments with the end con­sumer. But due to lack of proper in­fras­truc­ture, un­avail­abil­ity of suf­fi­cient space and re­quired equip­ment, lack of proper ground han­dling, there is de­lay in con­nec­tion and util­i­sa­tion of flight space.

Cost of ter­mi­nal charges and freight are also on the higher side. Levi of ser­vice tax of 14 per cent also adds to cost. Other modes of trans­port such as road and rail have abate­ment of 70 per cent and in in­ter­na­tional cargo tax is not even ap­pli­ca­ble.

Un­for­tu­nately till date, the Gov­ern­ment has con­sid­ered air cargo only as in­ter­na­tional cargo. But now, with ef­forts by Do­mes­tic Air Cargo Agents As­so­ci­a­tion of In­dia (DACAAI), the Gov­ern­ment has started think­ing about the needs of do­mes­tic cargo too. DACAAI has sub­mit­ted a de­tailed re­port to MoCA and AAI on the ideal ter­mi­nal re­quire­ment. It has put for­ward de­mands to MoCA to form a sep­a­rate fo­rum to re­solve the is­sues of this sec­tor.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.