USolution-centric approach needed to create a world-class cargo and logistics industry: Jayant Sinha

Friday, March 9, 2018

Hyderabad: The air cargo industry has high potential to be developed as a major industry and economy enabler like the passenger aviation industry. Highlighting this at ‘WINGS INDIA 2018’, Union Minister of State for Civil Aviation Mr. Jayant Sinha said that there is a need for a collaborative, consultative and a comprehensive approach between the private sector air cargo and logistics industry and the government.

Addressing the Roundtable on Cargo and Logistics at ‘WINGS INDIA 2018’, organized by FICCI jointly with the Ministry of Civil Aviation and Airport Authority of India, Mr. Sinha stated that the need of the hour is a solution-centric approach to creating a best in world-class industry. He said that government will play a facilitator role in regulation and policy and initiatives are already underway for a comprehensive involvement of the Ministry of Commerce and Industry and the Department of Revenue.

Growing at about 15% annualised growth and a 20% EBITDA, the air cargo industry ships about 3.7 lakh metric tonnes goods every year. The primary sectors are agri and food products, pharmaceuticals, leather and textiles.

India and the International Air Transport Authority (IATA) today exchanged an understanding for skill development.

For simplifying air cargo movement, two e-freight portals were launched, which are among the first in the world. It was also announced at WINGS India that a committee under the chairmanship of the Cabinet Secretary has taken an important step towards removal of detained cargo within 120 days from airports. This will help create more infrastructure and physical space for cargo sat airports in the country.

Today, 65% of air cargo, including domestic and international are moved by top 10 airlines and the vast majority of air cargo is concentrated at the top 10 airports of the country. The forward-looking agenda of the government would be to distribute the shipment of air cargo to regional airports.