Air Cargo: Low achieve­ment

A much higher growth rate can be achieved if a con­certed ef­fort is made to un­lock the true po­ten­tial of air cargo through im­proved in­fras­truc­ture, higher op­er­a­tional ef­fi­cien­cies and sim­pli­fied pro­ce­dures and reg­u­la­tions.

Cargo Talk - - Report -

Air cargo, though just around 1-2 per cent of the global cargo move­ment, contributes to around 32-35 per cent by value of cargo shipped. It is crit­i­cal for in­dus­tries such as phar­ma­ceu­ti­cals, elec­tron­ics, ma­rine ex­ports, flori­cul­ture where ship­ments are time-sen­si­tive. The In­dian air cargo in­dus­try is a clas­sic case of high po­ten­tial but low achieve­ment, de­spite the ad­van­tages of eco­nomic growth, de­mo­graph­ics and gep­graph­i­cal lo­ca­tion.

In­dian govern­ment adopted ‘Open Sky’ pol­icy for the air cargo sec­tor in early 1990s, un­der which In­dian or for­eign car­ri­ers were al­lowed to op­er­ate sched­uled and non-sched­uled cargo ser­vices to and from any air­port in In­dia. Since the adop­tion of open skies pol­icy, it has seen a growth in in­ter­na­tional air cargo traf­fic. But in FY 2014-15, In­dia han­dled a to­tal cargo through­put of 2.52 MMTPA. This pales in com­par­i­son with air­ports like Hong Kong, Mem­phis, Shang­hai and In­cheon which alone han­dle more through­put than all In­dian air­ports com­bined. The do­mes­tic air cargo sec­tor grew 18 per cent on the back of the e-com­merce boom. This year, the cargo traf­fic dur­ing Apr 15 - Jan 16 has grown by 6.1 per cent, with do­mes­tic cargo growth fall­ing to just 5.4 per cent.

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