Im­pro­vise in­fra­struc­ture and cost ef­fi­ciency

Cargo Talk - - Aircargo -

and reg­u­la­tors for bet­ter air cargo sup­ply chain pro­ce­dures Bring­ing down the lo­gis­tics costs Has­sle-free road trans­porta­tion for seam­less do­mes­tic net­work DFCs through­out In­dian ge­og­ra­phy to be planned and ex­pe­dited with ex­cel­lent con­nec­tiv­ity to air­ports In­creased par­tic­i­pa­tion of air cargo stake­hold­ers: • De-con­gest ex­ist­ing in­fra­struc­ture through op­ti­mum util­i­sa­tion of 24x7 oper­a­tions Elec­tronic stan­dard­i­s­a­tion of air cargo re­lated doc­u­ments In­fra­struc­ture de­vel­op­ment, au­to­ma­tion, security and safety com­pli­ance must be adapted by all air cargo stake­hold­ers Ex­porters/im­porters and trans­porters need to be in­cluded in air cargo stake­holder com­mu­nity for fram­ing ef­fec­tive sup­ply chain an Will NCAP helps?

With the New Civil Avi­a­tion Policy (NCAP) there is a great op­por­tu­nity for for­eign play­ers to in­vest more in the coun­try, will it help mak­ing India as a suc­cess­ful tran­ship­ment and con­sol­i­da­tion hub? Com­ment­ing on the same, Kat­gara says, “The for­eign in­vestors can bring their tech­nol­ogy and ex­per­tise and use cheap labour and re­sources to make a cost ef­fec­tive trans­ship­ment hub as an al­ter­na­tive to ex­ist­ing ones.”

“But be­fore any other plan we need to put our act to­gether to sim­plify the pro­ce­dures and cre­ate a frame­work for seam­less cargo oper­a­tions not only for trans­ship­ment cargo but our reg­u­lar ex­ports and im­ports too,” Kat­gara adds.

“The NCAP per­mits 100 per cent FDI in Green­field Projects and 74 per cent FDI in Brown­field Projects un­der au­to­matic route. FDI be­yond 74 per cent for Brown­field Projects is un­der govern­ment route. These along with the change in 5/20 rule will give siz­able boost to In­dian skies,” points Sharma.

“NCAP is talk­ing about sim­pli­fy­ing custom and other reg­u­la­tory process with SLAs clearly de­fined for ev­ery stake­holder, which will help smooth func­tion­ing of trans­ship­ment move­ment pro­mot­ing ramp-to-ramp transfer cargo, ul­ti­mately lead­ing to con­sol­i­da­tion and cre­at­ing of air cargo hub,” shares Bangera.

Gandhi be­lieves, “It will cer­tainly help both In­dian and for­eign play­ers to add more ca­pac­ity in India”, and added, “Re­forms of reg­u­la­tory poli­cies are al­ways wel­come and will cer­tainly wit­ness a ma­jor growth.”

“For­eign play­ers will in­vest and this will help to cre­ate world class in­fra­struc­ture and bet­ter fa­cil­i­ties for cargo hubs,” Harit opines. More freighters: Boon or bane?

Ac­cord­ing to Bangera, it is right time for In­dian airlines to start freighters ser­vices; with the GST bill get­ting cleared, it paves way for in­crease in us­age of air cargo, added to it will be the GDP growth fore­casted which will see in­crease in the man­u­fac­tur­ing and trad­ing ac­tiv­ity. There will enough cargo to be moved and In­dian airlines can cap­i­talise by start­ing freighter ser­vices.

On the con­trary, Kat­gara feels this is not the right time for In­dian airlines to start oper­at­ing freighter. “We do not have the crit­i­cal min­i­mum mass to sup­port freighters. They need to im­prove the re­li­a­bil­ity of the freight ser­vices by bring­ing in 98 per cent flown as booked per­for­mance in or­der to at­tract crit­i­cal min­i­mum mass of cargo by im­prov­ing its share of both ex­ports and im­ports.”

“Freighters are slowly mak­ing a come­back on the global scale but the over­all de­mand has de­creased sub­stan­tially. Newer air­planes like the B777, A350-1000 have bet­ter belly space and the in­crease in pas­sen­ger traf­fic has al­ready created a fa­vor­able belly ca­pac­ity in the mar­ket. Freighters can only be planned on high de­mand routes. The re­gional con­nec­tiv­ity scheme of NCAP 2016 might cre­ate strong de­mand for do­mes­tic freighters, and newer mar­kets are likely to open up with com­mer­cial oper­a­tions at smaller air­ports. A care­ful de­mand plan­ning has to be done by airlines be­fore they start oper­at­ing do­mes­tic freighters,” stresses Gandhi.

NCAP will cer­tainly help both In­dian and for­eign play­ers to add more ca­pac­ity in India. Re­forms of reg­u­la­tory poli­cies are al­ways wel­come For suc­cess­ful hub-and­spoke model, ‘bank of flights’ needs to be im­ple­mented. In­dian car­ri­ers should also start us­ing wide body air­crafts to SAARC coun­tries We must learn from over­seas hubs that cargo in­fra­struc­ture is much more than the cargo ter­mi­nal, but also in­cludes spe­cial fa­cil­i­ties

“Airlines across the world have been find­ing dif­fi­cult to run freighters. The cur­rent rate lev­els, in­crease in belly ca­pac­ity of some new air­crafts, etc are mak­ing run­ning of freighters as non-vi­able,” opines Sharma.

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