CARGOCONNECT-APRIL2025 - Flipbook - Page 14
PURPOSEFUL
Capacity building underway
in India’s air cargo sector
I
ndia’s air cargo industry is undergoing a remarkable transformation, driven by speed, regulatory
reforms, digitisation, and most importantly,
infrastructure development as the government
wants to expand the nationwide network to
200 airports over the next 昀椀ve years, up from
some 150 at present. Given the growth expectations,
the Indian air cargo industry as a whole has set an
ambitious target for the sector’s expansion – to ferry
10 million tonnes (MT) by 2030 – a big jump from the
current 3.5MT or so, as country’s remains poised to
become an anticipated US$5 trillion economy by 2030.
However, many in the industry believe that the country
has a significant chance of hitting the overarching
target even earlier. According to sector leaders, over
the next five years, India may have
about 50 freighters operating, up from
some 28 at present. In a signi昀椀cant
move, India’s Directorate General
of Civil Aviation (DGCA) liberalised
its aviation policy in February last
year, allowing foreign cargo airlines
to operate from all international
airports across the country – a
mandate lasting three years.
While the aspirations of the
industry are laudable, and many
developments are taking place
with support from the government and industry, there is still
much to be achieved. Foreign
airlines such as Emirates, Qatar,
Turkish and Cathay Paci昀椀c that
operate in India do not have a
sizable home market but boast
a large 昀氀eet and capacity that
far exceeds their country’s
needs. They effectively use the
sixth freedom tra昀케c right (commercial aviation right
of an airline to carry load from one foreign country
to another with a stopover in its home country) and
gain the most. India, on the other hand, does not have
even a single airline that’s comparable to these foreign
carriers in size. So, there is an urgent need for India to
build and augment its air cargo capacity.
At present, Indian airports have a total air cargo
handling capacity of approximately 6.5 MT. The Ministry
of Civil Aviation (MoCA), the Airports Authority of
India (AAI) and its subsidiary AAI Cargo Logistics
and Allied Services (AAICLAS) have set a goal to
further boost air cargo activity in the country through
infrastructural developments, including setting up
new cargo terminals (integrated, multimodal, and
dedicated), augmenting and expanding existing
14 | CARGOCONNECT APRIL 2025
terminals and developing cargo
transhipment hubs. At present,
there are 72 domestic and 30
international air cargo terminals
in India. The country’s cargo movement is heavily concentrated at
the joint venture ( JV) airports,
which are responsible for 64% of
domestic cargo tra昀케c and 79% of
international cargo tra昀케c.
Apparently, many airports have
undertaken major terminal construction
work in 2023 by integrating modern
cargo handling equipment and stateof-the-art technology to ensure smooth
operations. For instance, an import cargo
terminal was launched at Cochin International Airport in October 2023 with
a cargo handling capacity of 0.2 MT per
annum. Another cargo
terminal was inaugurated at Durgapur
airport in West BenIndian airports have a
gal in August 2023,
total cargo handling
expected to handle
capacity of approx.
25,000 tonnes of cargo
6.5 MT at present.
in the next eight to ten
years. Similarly, ManMoCA, AAI, and
galuru International
AAICLAS looks to
Airport launched
further boost capacity
an integrated cargo
through
infrastructural
terminal in May 2023,
capable of handling
developments.
9,000 tonnes of international and domestic
cargo per annum. Another notable achievement is the
inauguration of Air Cargo Logistics Centre III at the
Indira Gandhi International Airport, Delhi, in February
2023, making it a cargo transhipment hub between
Bangladesh and other global destinations. In a latest,
Menzies Aviation has launched India’s largest Green昀椀eld
Domestic Cargo Terminal in terms of designed capacity
at Bengaluru Airport. The 245,000 sq ft facility is
equipped to handle approximately 360,000 metric
tonnes at its peak, with the potential for expansion to
400,000 metric tonnes.
Indian airlines are also tapping the air cargo potential
by expanding their freight operations, and experts say
there is no better time than now for the country to
augment its freighter cargo capacity to reach at least
50-60% of the required capacity. Reportedly, the two
Indian operators Air India and IndiGo, in 2023, placed
massive orders for 470 and 500 aircraft, respectively,
with steady delivery till 2030. With Akasa Air announcing
