We must work with govt to improve how policies are structured to facilitate transshipment and to improve security regulations to enable movement of goods and drive industry progress. Our focus includes investing in a new domestic cargo facility and expanding our terminals, says Satyaki Raghunath, COO, BIAL.
CT Bureau
What is your vision for the Indian air cargo sector? How do you see it growing in the coming years?
I think there is significant potential for Indian air cargo. We have been a market where there has not been that much air cargo tonnage, but over the past five years, there has been huge growth. COVID highlighted the critical role of air cargo in transporting essential supplies and life-saving equipment. The pandemic underscored its importance to society. Ending this year with over 440,000 metric tonnes, our vision for the next decade is ambitious—to double or even triple the volume to reach 1.2 to 1.5 million metric tonnes. With this trajectory in mind, we foresee a similar growth pattern for the overall market, projecting a three-fold increase over the next 10 years. This vision represents the potential that lies ahead for the Indian air cargo sector.
What are the crucial pain points for airport operators?
It is all about knowing that there is an opportunity and making sure we take advantage of it. It will entail collaborating with airline partners, freighters, and the wider ecosystem to ensure we take advantage of the growing demand and opportunity to reclaim air cargo’s place in terms of being a vital revenue stream for the airlines and airports. But equally, I think it is also about working with the government to improve how certain policies are structured to facilitate transshipment through India, to improve some of the security regulations to enable greater movement of goods and drive industry progress. Active engagement and proactive measures are a must for the industry to navigate and overcome these challenges effectively.
Please share the upcoming plans at BIAL?
Our upcoming plans revolve around strategic partnerships and significant investments to drive the growth of our cargo business. Last year, we joined forces with two global air cargo terminal operators, WFS and Menzies Aviation. It is a 15-year concession, and from our perspective, I think we have got the two best global companies onboard. With a substantial capacity of 715,000 metric tonnes at BLR Airport, we are well-positioned for expansion and development. Our focus for the future includes investing in new domestic cargo facility, expanding our global terminals, enhancing our cool port facilities, establishing a large, automated truck parking facility, and implementing a fully paperless system. Transitioning from a concession model to a JV model with a 26 per cent stake in each cargo entity reflects our commitment to making cargo a focal point of our business. We are optimistic about the prospects ahead and aim to reach 1.2 to 1.5 MMT by the mid-2030s. This represents a significant growth from our current volume. These initiatives underscore our dedication to advancing and solidifying our presence in the air cargo industry.
