Air cargo must grow 12.9% an­nu­ally: Study

Cargo Talk - - Contents -

“There is an ur­gent need to up­lift the In­dian air cargo mar­ket to achieve the over­all vi­sion of the aviation min­istry,” sug­gests the knowl­edge re­port on Civil Aviation and Cargo, jointly con­ducted by The As­so­ci­ated Cham­bers of Com­merce and In­dus­try of In­dia (ASSOCHAM) and con­sul­tancy firm Auc­tus Ad­vi­sors.

The In­dian air cargo in­dus­try needs to grow at a rate of about 12.9 per cent ev­ery year from 2018 to 2027 to achieve Na­tional Civil Aviation Pol­icy’s (NCAP 2016) vi­sion of reach­ing cargo vol­umes of 10 mil­lion tonnes (MT) by 2027, notes a re­cent ASSOCHAM-Auc­tus Ad­vi­sors joint study.

Pro­jected in­ter­na­tional and do­mes­tic air cargo will be 3.6 MT and 2.1 MT, re­spec­tively, re­sult­ing in to­tal air cargo traf­fic of 6.8 MT

The re­port sug­gests that in­ter­na­tional and do­mes­tic air freight is pro­jected to grow at an over­all Com­pounded An­nual Growth Rate (CAGR) of 8.2 per cent. “Con­sid­er­ing this trend to con­tinue till 2027, pro­jected in­ter­na­tional and do­mes­tic air cargo will be 3.6 MT and 2.1 MT, re­spec­tively, re­sult­ing in to­tal air cargo traf­fic of 6.8 MT,” it states.

The study also high­lights var­i­ous is­sues con­fronting the aviation lo­gis­tics sec­tor in In­dia. Lack of en­abling in­fra­struc­ture, lack of au­to­mated ma­te­rial han­dling sys­tems, high manual in­ter­ven­tion in pro­cesses, and in­ad­e­quate skilled man­power are some of the key ar­eas where In­dian air cargo in­dus­try lags be­hind global peers. “There is an ur­gent need for cre­at­ing ad­e­quate freight car­ry­ing ca­pac­ity within the In­dian air net­work through creation of new cargo ter­mi­nals and ex­pan­sion of ex­ist­ing

ones,” the re­port states. The ASSOCHAM-Auc­tus study also sug­gests im­ple­ment­ing a rat­ing sys­tem for cargo ter­mi­nals, in-line with ASQ (Air­port Ser­vice Qual­ity) rat­ings at pas­sen­ger ter­mi­nal to mo­ti­vate op­er­a­tors to im­prove in­fra­struc­ture and pro­vide a su­pe­rior qual­ity of ser­vice. It also sug­gests un­der­tak­ing proac­tive mea­sures to iden­tify Tier-II and Tier-III cities for set­ting up Com­mon User Do­mes­tic Cargo Ter­mi­nal (CUDCT). In­tro­duc­tion of a sep­a­rate com­pre­hen­sive air cargo pol­icy to re­duce bot­tle­necks in freight move­ment are also a sug­ges­tion of the ASSOCHAM-Auc­tus study. Ac­cord­ing an in­dus­try status to the In­dian air cargo lo­gis­tics sec­tor would also go a long way in bring­ing down the cur­rent lo­gis­tics cost and im­prov­ing ef­fi­ciency.

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