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‘FTAs reduce trade barriers & remove export regulations & facilitate EXIM traffic’

C K Govil, President ACAAI shares, “India has been promoting ease of doing business, and FTAs are a testimony to that effort. India has been promoting FTAs with bilateral and regional partners to boost export-oriented domestic manufacturing. Last year, India carried 2.2 million tonnes of air cargo, 70% of which was to international sectors. This is one-tenth the size of the American air cargo market and one-fifth of China’s. This figure can increase if air cargo is prioritized under the FTAs. India currently has 13 FTAs operational and 8 under negotiation. These are bound to uplift Indian trade on the global platform. In the past five years, India’s merchandise exports have grown by 20.75% to countries with which it has signed FTAs. It will go up if FTAs focus on air cargo. While the National Logistics Policy and Gati Shakti gave the recognition to air cargo, now it needs the boost that prioritization in FTAs can provide. FTAs reduce trade barriers and remove export regulations, thus facilitating EXIM traffic. India’s exports to ASEAN Countries have increased from US$25.13 billion in 2016 to US$31.49 billion in 2021. Our exports to SAFTA nations have grown from $18.60 billion in 2016 to $22.08 billion in 2021, and to South Korea from $3.52 billion in 2016 to $4.68 billion in 2021. Our FTAs have brought in a cumulative investment of $89.54 billion in just five years. And that is just the beginning. We have seen a similar trend whenever an FTA has been signed, and the number of Indian trade partners is increasing. This will attract further foreign investments and participation in our country. Air cargo cannot be left behind amid all this action.”

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‘Free exchange of export or import of cargo by air between two nations will boost cross border trade’

Sunil Kohli, MD, Rahat Cargo says, “In the current global context, a free-trade policy leading to a Free Trade Agreement (FTA) between two nations may simply be termed as the absence of any trade barrier between them. However, the respective governments having entered into such FTAs do not necessarily abandon all control of imports and exports or eliminate all protectionist policies which may also have exceptions in regard to import of specific drugs not approved by its regulators, pharmaceuticals or processed foods, fruits & vegetables, not in conformity with their approved standards. Therefore, in light of the availability of a free exchange of goods between two countries, it can be undoubtedly surmised that air cargo can play a vital role in transporting assorted commodities between them at an accelerated pace. And hence formulating a policy prioritising the air cargo on FTAs can yield an extremely positive outcome which may facilitate the countries to experience faster & unhindered growth while better meeting the needs of their consumers. Further, a free exchange of export/import of cargo by air between two nations would definitely enhance quantum of such activities thereby leading to a boost in the cross border trade with mutual commercial advantages.”

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Pune Airport records 6.32% growth in domestic air cargo in six months

Pune’s domestic freight has increased to 6.32% increase in the last six months. According to reports from the airport authorities, a total of 19,662.5 metric tons of domestic cargo were processed between April and September 2024-25. This surge in cargo activity highlights an expanding role for Pune’s businesses and entrepreneurs in the region’s growing logistics network, says official reports.  The rise in domestic air freight indicates not only an increase in trade and commerce but also a positive sign of Pune’s integration into the broader logistics infrastructure of the country. This growth in cargo traffic is especially notable considering that, just a year ago, only domestic freight services were operating at the airport, with international cargo services suspended. However, with the resumption of international services, the airport has witnessed a substantial uptick in the movement of goods, the reports add. The domestic cargo at Pune Airport includes a wide variety of goods ranging from fresh vegetables and fruits to pharmaceuticals, small consumer goods, and industrial products. The airport’s handling of these goods is carried out using advanced systems that ensure swift and efficient processing. A dedicated department is in place to handle the logistics, and the goods are subjected to rigorous checks before being cleared for transport.

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IndiAirport Expo 2024 focused on transforming air cargo & airports

PHD Chamber of Commerce & Industries (PHDCCI), along with Radeecal communications & IFW Heidelberg Expo GmbH & GATE, Germany is  organising the 3rd Edition of International Expo & Summit – IndiAirport Expo 2024 from November 26-28, 2024 in New Delhi. Based on the success of the previous 2 editions, IndiAirport Expo 2024 –an International Exhibition & Conclave is focusing on airports and all its ancillary products & services, MRO industry & aviation technology, infrastructure, advancement, facilities, services & ground handling equipment and other relevant industries. Piyush Srivastava, Senior Economic Adviser, Ministry of Civil Aviation said, “Cargo business in India is actually growing on the belly of the passenger aircraft, largely. 85% of the cargo that flies off and into the country is the belly of the aircraft.The belly capacity will obviously increase as we are having a large number of aircraft on board, so it is going to increase exponentially. What would be required is, at the back end, we also upgrade the technology. The technology will have different dimensions. One is, of course, the technology, the mechanization is, of course, the technology, the mechanization at the airport, the terminals themselves. The other would be the stakeholders, who actually get the cargo and bring it to the airport.”  

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Construction deal signed for the Silk Way Cargo Village

Silk Way Alat Free Economic Zone Company (SW AFEZCO) has signed a design and build agreement with Modern Construction Group for the development of the Silk Way Cargo Village. Modern Construction Group will design and construct three facilities that will form its cargo village – a cargo terminal, the Silk Way office building, and a shared freight forwarder facility. The Cargo Village will be located in the Alat Free Economic Zone, which is being developed as Azerbaijan’s first dedicated export value added and manufacturing zone.Alat Free Economic Zone (AFEZ) is located close to the seaport of Baku, about 65 kms away from the city, and will also feature a dedicated cargo airport when construction is complete. The capacity of the airport will be 500,000 tons annually at the first stage, with further gradual increase reaching up to 1.5m tons per year. The cargo airport is expected to open no later than the first quarter of 2026. “This agreement marks a transformative step toward establishing Azerbaijan as a premier global logistics hub,” said Jawad Dbila, managing director of SW AFEZCO.” He added, “The fully automated 30,000 sq m cargo terminal, the largest in the Caspian Sea region, will set new standards in sustainable construction and enhance trade connectivity between Europe and Asia, solidifying Azerbaijan’s strategic role in the global logistics network.”

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Allcargo Gati launches fastest direct delivery services to Imphal & Varanasi

Allcargo Gati has launched the fastest direct delivery services through its Air Express Service to Imphal and Varanasi from key metro cities such as Mumbai, Delhi, Ahmedabad, Bengaluru, Hyderabad, Pune, Chennai, and Kolkata. Allcargo Gati is among the leading express logistics companies in India to offer direct delivery services to Imphal via air from major metros cities. This expansion of the Air Express Service is a part of the company’s commitment to providing faster connectivity with quicker turnaround time, more efficient logistics solutions, catering to the growing needs of businesses across India. The Air Express service is directly connected to 34 commercial airports nationwide, ensuring speedy deliveries beating the industry standard. Designed for volume-based logistics delivery, it supports a wide range of industries and offers end-to-end solutions for both Tier 1 and Tier 2 cities. With multiple cut-off times, late pickups, and next-day delivery options. Allcargo Gati is uniquely positioned to offer reliable and high-speed logistics services, meeting the evolving demands of businesses across the country. Uday Sharma – Chief Commercial Officer – Allcargo Gati Limited added, “Expanding our Air Express Service to Imphal and Varanasi marks a significant step in supporting India’s growing business landscape. This rapid direct delivery service to metro cities ensures quicker transit for time-sensitive shipments, helping businesses improve operational efficiency, reduce supply chain bottlenecks, and lower inventory costs. By enabling faster and more reliable deliveries, our Air Express Service empowers Indian businesses to expand their reach, optimize operations, and scale competitively in today’s dynamic markets.”

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TVS ILP acquires 1.40 lakh sq. ft. facility in Siliguri to enhance cross-border trade

TVS Industrial & Logistics Parks (TVS ILP) has penetrated deeper into the east market with the recent acquisition of a new state-of-the-art industrial facility in Siliguri, West Bengal. Spanning 1.40 lakh sq. ft. on a 5.66-acre plot in Fulbari, this new facility marks TVS ILP as the first major developer to establish a presence in the city, solidifying its role as a pioneer in delivering Grade A industrial infrastructure across the country. Siliguri, a major Tier 2 city in West Bengal, straddles the Darjeeling and Jalpaiguri districts and serves as the ‘Gateway of North-East India’. Traditionally known for its tea, timber, and tourism industries, Siliguri has seen rapid growth in transportation and logistics, making it an essential hub for trade and industrial operations. Its location on the Eastern Corridor and access to NH 27 solidify its position as a key logistics and industrial hub. TVS ILP’s new Siliguri Park is designed with a focus on operational efficiency and flexibility. It currently hosts a leading e-commerce player and offers build-to-suit options, ensuring that the facility can accommodate a variety of business requirements. The region has a wide array of fast developing industries like pharmaceuticals, e-commerce and retail boosting the demand for high quality and strategic supply chain solutions and logistical infrastructure. The facility by TVS ILP features pre-engineered structures, ample parking, and modern amenities designed to provide reliable, efficient warehousing solutions best-suited for businesses in Siliguri and beyond. The new facility’s strategic location offers outstanding connectivity making it easy for clients to facilitate their customer needs.

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Allcargo to set up logistics park in Jhajjar, Haryana

Allcargo Group plans to establish a logistics park in the Jhajjar area of Haryana. The project will include a free trade warehousing zone, a domestic tariff area, a rail-connected private freight terminal that serves railway cargo transit, and other associated businesses. Additionally, it will be equipped to manage contract logistics services for both inbound and outbound travel. “The establishment of a logistics park in Haryana has been approved in principle by Allcargo. Subject to the required regulatory permissions and rail connectivity, the facility should be operating by 2018, according to the company statement. About 200 acres of freehold agricultural land near the Dedicated Freight Corridor (DFC) has been selected by the corporation for the development of the aforementioned project, said reports.

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Kale joins Cargo iQ to boost digitalisation

Kale Logistics Solutions (Kale) has joined Cargo iQ as a new strategic associate partner, specialising in digitalisation and supporting digital reporting capabilities. The Partnership will further Cargo iQ’s ambitions to ensure air cargo quality standards are met and continuously improved through data reporting and collaboration. As a Strategic Associate member, Kale will be offering insight to help members optimise their digital capabilities and improve stakeholders’ communication, in line with Cargo iQ quality standards. “As facilitators of collaboration and drivers of digitilisation for the global air cargo industry, it is great to work with Kale as a strategic partner,” said Marie Seco-Köppen, Executive Director, Cargo iQ. “Their proven expertise in helping logistics export/import stakeholders achieve better coordination, visibility, resource optimisation, and rapid information exchange, will enable more industry stakeholders to improve process quality across their operations.” “We are proud to work with Cargo iQ, to help improve the air cargo industry through collaboration and bring more digital solutions to the community,” said Amar More, CEO, Kale Logistics Solutions. “Our team is excited to work with Cargo iQ especially with our cargo community systems and expertise in digital harmonisation that support the quality standards Cargo iQ continuously improving.”  

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Domestic logistics industry revenues to grow up to 9% in FY25: ICRA

The domestic road logistics industry is expected to register a growth of up to 9 per cent in revenues in the ongoing 2024-25 financial year, according to ICRA. The organised road logistics sector witnessed a growth of 4.6 per cent in the 2023-24 fiscal year, the rating agency stated. As per ICR, the industry logged a revenue of ₹23,273 crore in FY24. “ICRA expects the revenues of the Indian road logistics industry to grow by a moderate 6-9 percent year-on-year (y-o-y) in FY25,” it said. The agency further said it also maintains a stable outlook for the sector, fuelled by various government measures and policies in favour of the sector on expectations of good demand outlook from segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods. Srikumar Krishnamurthy, Senior Vice President & Co-Group Head of Corporate Ratings, ICRA, said, “In FY24, the growth was subdued on account of a relatively muted demand amid high inflation, an uneven monsoon, a relatively lacklustre festive season and the rising interest rate regime.” “We expect the industry operating profit margins to remain in the range of 11-12 percent in FY25, with the organised players expected to maintain the pricing premium amid an overall inflationary cost scenario,” he said.

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