Focusing on the current disruptions in the air cargo market, and how BIAL has responded to it by expanding its cargo capacity to meet demand, Satyaki Raghunath, COO, Bangalore International Airport (BIAL) shares, ”In April 2024, as per IATA, the global airline industry recorded 21.7 billion Cargo Tonne-Kilometers (CTKs) globally, which represents an 11.1% increase year-on-year (YoY). The industry counted 85.3 billion CTKs year-to-date (YTD) in April, indicating a 12.7% increase compared to 2023. The industry experienced a 7.1% annual increase in Available Cargo Tonne-Kilometers (ACTKs) in April 2024. Global international air cargo capacity also saw a significant increase of +10.3% in the month of Jan 2024. In 2023, the air cargo industry faced significant challenges with collapsing market demand and rates leading to revenue declines, forcing many all-cargo carriers to scale back operations. Supply chain disruptions and capacity constraints impacted demand despite economic conditions remaining favourable for the sector. BLR Airport has actively responded to these disruptions by expanding its cargo handling capacity to accommodate the potential rise in air cargo movement. In FY ’24, BLR Cargo continued its growth momentum, with several notable achievements including: In May 2023, BLR Airport achieved a significant milestone with the successful transition of two of India’s brownfield cargo terminals. The cargo terminals are now primarily managed by Menzies Aviation (Bengaluru) Private Limited (MABPL) and WFS (Bengaluru) Pvt Ltd (WFSBPL). Additionally, a new Domestic Cargo Terminal project initiated by MABPL is underway and scheduled to be operational within the year. Air India SATS Airport Services (AISATS) has taken on the development, financing, operation, and maintenance of a new greenfield logistics park at KIAB for a 15-year period. The 370,000 sq. ft. park will offer Grade-A warehouse space with features such as …

According to a latest report by Alvarez & Marsal (A&M), the demand for Grade A warehousing stock will grow at a compounded annual growth rate of 12.5 percent until FY30. At present, up to 70 percent of Grade A demand comes from Delhi NCR, Mumbai, Bengaluru, Chennai and Pune. India is witnessing an emergence of high-quality warehousing infrastructure, recognizing warehouses as crucial components in delivering exceptional customer experiences. Sectors which are primarily driving the demand are retail, third-party logistics (3PL) and ecommerce. According to the report, these sectors are projected to contribute approximately 80 percent of the total demand for Grade A warehousing over the next five years. To meet the demands of a rapidly evolving market, these warehouses are equipped with state-of-the-art facilities and are strategically located near key transport hubs for efficient distribution. With advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the evolving needs of various industries, contributing to the overall growth and efficiency of India’s logistics ecosystem. ‘

United Parcel Service (UPS) is all set to sell its Coyote Logistics business unit to RXO for $1.025 billion, the companies said. The transaction will be funded with a mix of equity and debt, including a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, North Carolina-based RXO said in a statement. “The decision to sell our Coyote Logistics business allows an even greater focus on our core business,” UPS Chief Executive Officer Carol Tome said. RXO helps shippers and carriers to move freight. UPS bought Coyote Logistics from private equity firm Warburg Pincus for $1.8 billion in 2015 to expand its full-truckload services.

Air Cargo Forum India (ACFI) launched its Goa Chapter under the chairmanship of Thakur Purushottam, Business Head – GMR Goa Air Cargo at Goa Chamber of Commerce & Industry (GCCI). “This collaboration with ACFI will ensure the successful implementation of our regional initiatives, fully supported by our ACFI President and esteemed members. My vision is to build strong connections between the ACFI Goa Chapter and key players in the Air Cargo and Supply Chain sector in Goa and adjoining region. I firmly believe that managing the complexities of supply chain management and distribution networks effectively in this evolving landscape calls for building a strategic roadmap for air cargo logistics. I assure that the entire Goa Chapter will strive towards bolstering development initiatives to boost trade not only within this chapter but across the country,” said Purushottam. Ahmad Raza Khan, Partner, Samuel Dias & Co., Vice Chairman of ACFI Goa Chapter was also present at the prestigious launch. Swetika Sachan IAS, Secretary Industries, Govt. of Goa was invited as the Chief Guest.  The event was also graced by Abhishek Pravimal, IAS, MD, GIDC, Dr. Pravin Khullar, President, GPMA and Manguirish Pai Raikar, Chairman, Goa State Council of ASSOCHAM. The ACFI Governing Board and ACFI Secretariat will select the Goa Chapter Board members with the goal of boosting air cargo trade in the region. This initiative will focus on advocating regulatory changes with authorities, upskilling our industry colleagues, organizing curated events, as well as workshops, and driving collaboration with fellow trade bodies to advance the Air Cargo Logistics sector both in Goa and nationally. The primary aim of the Goa Chapter is to align with the ACFI Head Office and work towards common …

  C K Govil, President, ACAAI shares, “There’s need to simplify regulatory procedures. Simplification of customs and clearance processes to reduce delays. Harmonization of regulations and standards with international norms. Streamlining of licensing and operational permits also necessary. There is a need to Invest in modernizing and expanding airports, cargo terminals, and warehousing facilities. Development of dedicated cargo airports or zones. Enhancing connectivity with multimodal transport networks (road, rail, sea) crucial. Encouragement of digitalization and the use of advanced technologies (e.g., blockchain, AI) to improve efficiency. Support for research and development in logistics and supply chain management. Introduction of policies that promote the growth of the air cargo sector. Financial incentives, such as tax breaks or subsidies, to attract investment and innovation. Support for small and medium-sized enterprises (SMEs) in the logistics sector. Policies and incentives to promote the use of green technologies and practices. Support for initiatives that aim to reduce the carbon footprint of air cargo operations. Training programs and educational initiatives to develop a skilled workforce for the logistics and air cargo sectors. Collaboration with educational institutions to ensure curriculum relevance to industry needs. Implementation and enforcement of robust security measures to protect cargo. Ensuring adherence to safety standards to prevent accidents and losses. Bilateral and multilateral agreements to facilitate smoother international cargo movements. Active participation in global forums to influence international logistics policies. By addressing these areas, governments can significantly enhance the efficiency, competitiveness, and sustainability of the air cargo and logistics sectors.”

Ketan Kulkarni, Chief Growth Officer, Allcargo Group  shares, “As India is aspiring to become a $7 trillion economy, the logistics industry is set to play the role of a growth catalyst which will usher in the new era of economic progress. For that, the logistics industry requires consistency in policy, technology and infrastructure-led reforms. It is extremely encouraging to note that the NDA government in its third consecutive term has emphasised on the continuity and stability in the decision-making and policy measures and we expect the reflection of that intent in the full Budget. The logistics industry is at the cusp of technology transformation and structural transition thanks to the launch of National Logistics Policy and PM Gati Shakti National Master Plan. The foundation has been laid to further strengthen the logistics competitiveness of our country so that it becomes a key global manufacturing hub and investment destination. The full budget needs to continue with the infrastructure push to add momentum to the transformation-led growth. The logistics industry requires a holistic infrastructure development push to build a stronger distribution network and global value chain linkages. Along with infrastructure development, the budget should announce fiscal stimulus to boost the entrepreneurial ecosystem and create employment opportunities to drive consumption.  As the country aims to become carbon neutral by 2070, the full budget should propose measures to increase e-mobility and renewable energy adoption. The logistics industry expects incentives and policy support to adopt sustainable practices to accelerate the country’s progress towards a green economy.  There should be policy continuity in developing economic railway corridor programmes to boost rail freight share and reduce carbon emission as well as enhance operational and cost efficiency.  A dedicated focus …

Sandeep Jain, CFO, NDR InvIT Managers shares, “The Government of India has implemented several measures to boost the infrastructure and logistics sectors. Initiatives like the National Logistics Policy (NLP) and BharatmalaPariyojana are strengthening these sectors and enhancing connectivity. Each kilometer of road constructed improves connectivity, fueling the growth of the logistics sector. These initiatives are crucial for India to achieve its $5 trillion economy goal. In February, the Finance Minister of India unveiled a significant 11% increase in capital infrastructure spending for the upcoming fiscal year, raising the capital expenditure outlay to ₹11.11 lakh crore. We believe the upcoming budget will be focused on Viksit Bharat and it presents a critical opportunity for the government to further fortify India’s infrastructure sector. Increased investment in infrastructure projects, particularly in renewable energy, transportation, and logistics, will not only drive economic growth but also create jobs and improve overall connectivity. While the government has taken various steps to strengthen India’s infrastructure and logistics sector, there is also a need for GST rationalization. Additionally, more emphasis on boosting consumption will further support the growth of these sectors. In the upcoming budget, measures like tax incentives for InvIT investments and streamlining regulatory processes will significantly enhance their ability to attract capital and contribute to India’s long term infrastructural goals.”  

Vipin Vohra, Chairman, Continental Carriers says, “The Logistics industry expects that the newly formed Govt will reconsider the proposal of permanent GST exemption for international transportation/ freight services via air and ocean for export shipments, with consideration to include ancillary services in relation to international transportation of goods such as customs clearances, warehousing, storage, cargo handling, packing, port/ airport charges, etc. also be exempted to enable further streamlining of associated costs for exporters. As a global practice, nowhere in the world, GST is charged on the export shipments, moving either through Air or by Ocean. As the GST is ultimately credited back to the exporter, the levy is not justified.  Currently, GST activities are decentralized across states, leading to varying GST queries from each state. Businesses with offices in multiple states expend considerable resources and manpower addressing these diverse requirements. To streamline this process, centralizing GST operations with standardized queries, regardless of the state, is recommended. Such centralization would save taxpayers nationwide significant time and resources. The implementation of National Logistics Policy under PM Gati Shakti National Master Plan and ‘Make in India’ scheme(s) will result in enhancement of international cargo movement through the Airports. Presently, the Cargo Terminals at international Airports is heavily congested at peak time. This expected increase in the cargo will result in further deterioration in the situation. Govt may consider incentive based proposals private players for setting up of the off-Airport Cargo handling locations near the Airports and at the Industrial belts to ease the situation. In order to achieve 10 MMT of annual cargo throughput by 2030 the commercial potential in Tier II and Tier III needs to be tapped and cargo upliftment capacity from Indian Airports needs to …

Satish Lakkaraju, Senior VP and Global Head – Pharma and Airfreight at WIZ says, “The cargo and freight forwarding sector eagerly awaits the Union Budget 2024-2025, anticipating strategic measures to propel growth. Key expectations include enhanced infrastructure allocations for dedicated freight corridors, logistics parks, and port modernization to bolster efficiency and connectivity. Initiatives to integrate blockchain, AI, and IoT solutions, coupled with incentives for automation and digitization, are sought to drive innovation and process optimization. Regulatory reforms simplifying compliance norms and legal frameworks are desired to ease operational hurdles. Furthermore, the industry hopes for policies promoting sustainability, skill development, and public-private partnerships to nurture a robust and future-ready logistics ecosystem. A balanced approach addressing stakeholder interests is crucial for catalyzing the sector’s transformation.”

Xerrxes Master, President, Association of Multimodal Transport Operators of India (AMTOI) shares, “Continued focus on the Digital India initiative, including expansion of internet connectivity and digital services in rural areas. Investment in cybersecurity infrastructure to protect against digital threats, will provide boost to the sector.” He adds, “Continued emphasis on infrastructure projects, including roadways, railways, airports, and ports, to spur economic growth and create jobs.  Measures to boost the manufacturing sector, particularly through schemes like Production Linked Incentives (PLI) to encourage domestic production and  export. R&D Incentives: Increased funding and tax incentives for research and development to foster innovation required and Support for tech startups through incubation centers and easier access to funding needed.”