Air cargo: Steps to growth

The Domestic Air Cargo Agents Association of India (DACAAI) recently organised its fifth annual convention at Holiday Inn Aerocity. Industry experts talked about several issues and challenges and discussed how the sector's efficiency could be improved.

There are various industries that are dependent on air cargo such as perishables and high value goods. These require just-in-time delivery. Here lies the business opportunity for the air cargo market but the question is–are we ready to serve these sectors? The government understands the issues of dwell time, congestion and infrastructure and is working proactively with trade partners.

Dr Mahesh Sharma Minister of State (Independent Charge) for Culture, Tourism and MoS for Civil Aviation The growth in the domestic air cargo sector is taking place because of several initiatives by the government, be it the impending GST, the ‘Make in India’ initiative or the development of cargo terminals in airports across the country. However, we need to ensure that growth comes from out-ofthe-box thinking. There are many challenges but every challenge itself is an opportunity. We need to take steps so that the four metropolitan cities become transhipment hubs. Sahil Mehta

Director Sovika Group We work with seven ministries and this is a challenge. We cannot build infrastructure for the transportation industry in isolation–these are not hospitals or schools. Until and unless there is collaboration, nothing can be done for passenger transport or cargo. There is a need for multimodal transport. The issue is not just of infrastructure but of quality infrastructure and design. There has to be a plan for sound infrastructure. Development starts with the government. Tushar Jani Chairman

CSC The domestic air cargo sector is growing. Considering the potential for the growth of air cargo in India, the government is taking advantage of the situation by providing cargo facilities in tier II and tier III cities. This initiative will definitely facilitate growth in this sector. Suraj Agarwal President DACAAI There are many challenges. These include skills, infrastructure at airports, designs of airport, multimodal connectivity, land acquisition and technology and airport capacity, Consolidation is going to affect the industry in a big way. Infrastructure is a major issue. But who will deliver this infrastructure? I would like to urge the industry to sensitise the government about these problems. Kapil Kaul CEO CAPA Do we have enough infrastructure to cater to the requirements of the air cargo industry? The needs are many, terminals should have automation. The terminal should not only be able to handle the throughput but also volume, especially at peak times. We have to reduce dwell time, otherwise other modes are there to take air cargo’s place and to serve the needs of the customers. Gaurav Ghuwalewala Vice President

DACAAI