While govts are simplifying customs processes to boost EoDB and enhance the efficiency of global trade, the sector is investing in creating cargo terminals, cold chains, AFSs, and multimodal hubs to optimise speed, connectivity, and expanding fleets. This pivot aims to make air cargo a seamless, efficient, and vital component of modern supply chains rather than just seasonal, or tactical, service.
Ritika Arora Bhola
Indian air cargo sector is in the middle of a structural transformation. New air cargo terminals, Air Freight Stations (AFSs), freighter-friendly airports, and multimodal logistics hubs are being rolled out as part of a push to reduce logistics costs and strengthen the country’s position in international trade.
As air cargo capacity expands, the focus is also shifting from what is being built to how efficiently it is being utilised. For shippers, freight forwarders, and airlines, infrastructure alone is no longer enough — the quality and predictability of the air cargo experience matters more than sheer scale.
Operational capability
The first phase of air cargo growth was defined by infrastructure creation. Airports added terminal space, cold chain facilities, and truck docks to address long-standing capacity constraints. Today, the second phase is underway centred on operational practices that decide cargo flow daily.
However, progress remains uneven. While some gateways have moved decisively towards clock-driven operations, others continue to run within legacy processes, limiting the benefits of newly created capacity.
Predictability takes precedence
While multimodal cargo hubs try to integrate air, road, rail, and inland waterways, user expectations have also evolved. Speed, once the dominant metric, is no longer the sole priority. Today, predictability of service has become the most critical requirement across the air cargo ecosystem.
For shippers, freight forwarders, ground handlers, and airlines predictable air cargo release timelines matter more than marginal gains in transit speed. Reliable schedules allow for better production planning, inventory management, and working capital optimisation. Uncertainty, caused by inconsistent Customs processing, variable truck availability, or fragmented handoffs between various transport modes, frequently results in higher indirect costs than air freight rates.
Lower logistics costs
Multimodal cargo hubs are positioned as the cornerstone of India’s logistics strategy. By connecting air cargo with road, rail, and inland waterways, they guarantee reduced congestion, improved hinterland access, and lower overall logistics costs. In theory, these hubs should enable smoother cargo transfers and faster first- and last-mile movement.
In practice, the user experience often falls short of this vision. Infra has grown faster than coordination. Cargo encounters breaks or delays between modes due to misaligned operating hours and terminal schedules, inconsistent digital systems, or lack of standardised procedures across stakeholders. Rail linkage exists at select locations, but scheduling integration with cargo ops is limited. Trucking efficiency varies depending on the availability of automated truck management systems. As a result, while physical assets are visible, end-to-end integration is still in progress.
Digitalisation
Digital platforms, such as Airport Cargo Community Systems, are playing a crucial role in narrowing the gap between infra and user experience. By linking airlines, customs, handlers, and LSPs on a single digital interface, these systems improve visibility, enable better planning, and reduce congestion at air cargo terminals.
Paperless customs processes, advance data filing, and e-payments are reducing manual intervention and discretionary delays. At airports where these tools are fully embedded, truck turnaround times have fallen sharply, and cargo release has become more predictable.
Round-the-clock operations
Extended operating hours is another reform in reshaping efficiency, and 24×7 ops allow airlines to optimise schedules, reduce congestion during peak windows, and improve asset utilisation.
However, 24×7 operations are effective when all stakeholders like customs, handling, security, trucking, and warehouse operators are available. Partial implementation results in bottlenecks.
Intent and impact
Air cargo infrastructure expansion reflects policy intent and long-term vision. But the next phase of transformation will be defined by new construction and better execution. Users across the board are clear in their expectations: Predictable service levels, more transparent processes, and dependable multimodal connectivity.
The advantage will lie in how reliably the system performs daily, across every gateway. Today, with India investing in new cargo terminals, AFSs, freighter-friendly airports, and multimodal cargo hubs, the ecosystem is undergoing a decisive transition. Beyond capacity expansion, operational practices are reshaping turnaround times, cost efficiency, and service reliability. These reforms address the evolving expectations of the shippers, freight forwarders, and airlines.
CargoTalk spoke to industry professionals who presented a progress report on the challenges and transformation of the air cargo sector.
Operational practices
Amit Tandon, CEO & MD, Asia Shipping India, said, “With the new terminals and AFS capacity increasing, the shift is how air cargo is handled every day. Digital processes and the gradual move towards paperless documentation are helping reduce back and forth and where ops run longer hours, cargo flow is better. What users want is clear timelines and fewer surprises. The direction is positive, and as these reforms mature, they will improve turnaround times and operating efficiency across the ecosystem.”
He added, “Today’s user expectation is not only speed — it is predictability. Multimodal hubs can be a game changer because they connect air cargo with road and rail more seamlessly. The opportunity now lies in aligning processes, systems, and stakeholder coordination, so that infra on the ground translates into consistent service for customers.”
Measurable gains at airports
Fletcher Samuel, Senior Lead, Cargo Business, Bangalore International Airport Ltd (BIAL), said, “India’s investment in new cargo terminals and multimodal hubs is shifting toward digitally integrated, paperless documentation, and 24×7 ops, improving turnaround times and cost efficiency.”
Elaborating on the role of digital platforms in improving coordination across stakeholders, he said, “The Airport Cargo Community System (CargobyBLR) digitally links airlines, Customs, forwarders, and handlers, enabling real-time visibility, smarter capacity planning, and reduced congestion. The Automated Truck Management Facility has cut average truck turnaround time from four hours to one hour, with 78 per cent of trucks processed within 20 minutes, improving landside efficiency.”
Predictability
While speed and pricing continue to matter, predictability has become the requirement across the ecosystem. He said, “Users expect a mix of faster linkage, more predictable service levels, and lower logistics costs — with predictable service levels as priority. While speed and pricing matter, flexibility in first- and last-mile flow and fragmented multimodal handoffs continue to hit overall efficiency.”
Global alignment
Huned Gandhi, MD, Air and Sea Logistics Indian Subcontinent, DACHSER India, said, “Air cargo development has moved decisively beyond infrastructure creation to focus on operational efficiency and policy-led reforms. Digitalisation, paperless customs processes, and extended operating hours are reducing cargo dwell times and improving asset utilisation across major gateways.”
Multimodal hubs
Expanding user expectations from multimodal integration, Gandhi added, “Users today expect a balanced outcome that delivers speed, reliability, and cost efficiency together. However, predictability of service has become the most critical requirement for domestic and global supply chains. Multimodal cargo hubs are a policy intervention in order to reduce logistics costs and improve competitiveness. While physical infrastructure is developing rapidly, the user experience depends, obviously, on operational coordination, regulatory alignment, and digital integration across various transport modes.”
Last-mile challenges
Highlighting similar concerns, Keku Bomi Gazder, CEO and MD, Aviapro Logistic Services, said, “India’s investment in modern cargo terminals, AFSs, and multimodal hubs, backed by digitalisation, paperless clearances, and 24×7 ops is improving cargo turnaround times and lowering logistics costs. Faster documentation, real-time tracking, and 24×7 processing reduce delays. These reforms align with the expectations of shippers, forwarders, and airlines, though consistent implementation across locations is critical for uniform efficiency.”
“While infra creation has accelerated, the gap lies in last-mile coordination, process standardisation, and digital integration across modes. Inconsistent service quality, limited real-time visibility, and uneven adoption of best practices often dilute the benefits of new facilities, leaving users wanting more predictable end-to-end cargo movement,” he added.
Service innovation
Ketan Kulkarni, CEO and MD, Allcargo Logistics, said, “India’s expanding cargo terminals, multimodal hubs, and digital platforms are elevating efficiency and reliability of freight corridors. However, infra alone cannot deliver seamless logistics outcomes. What the industry needs now are integrated processes, aligned workflows, and time-critical services that optimise performance across core supply chain participants and transport modes.”
Citing examples, Kulkarni added, “Solutions, such as Allcargo Logistics’ expanded Air Express service, offers delivery within 24 hours across eight cities backed by linkage to 40 commercial airports. This shows how service innovation can meet evolving demands for reliability and speed.”
Better automation
India’s rapid expansion of air cargo infrastructure signals intent to become a global cargo hub. However, users today expect more than physical capacity. While digitalisation, paperless customs, and 24×7 ops have improved turnaround times, inconsistencies in implementation, last-mile connectivity, and stakeholder coordination remain gaps.
CK Govil, Chairman and Managing Director, Activair Airfreight India, said, “India’s investment in cargo terminals, AFSs, and multimodal hubs is steadily improving turnaround times and lowering avoidable costs. Faceless assessment, e-payment, and data filing have cut dwell times, improved predictability, and transparency for shippers, while airlines benefit from faster aircraft and cargo release cycles.”
“Users of the ecosystem today expect faster linkage, predictable service levels, and lower logistics costs in an order of priority. Predictability and reliability outweigh sheer speed. The visible gap between infra creation and user experience lies largely in execution and this gap will require process standardisation, interoperable IT systems across modes, and a service-oriented mindset that measures success not by capacity, but by predictable transit times, lower dwell hours, and total logistics cost delivered to the user.”
Abhishek Goyal, CEO & Executive Director, Aeroprime Group, said, “An industry reset is underway, but execution remains the final-mile. Investments in new cargo terminals, AFSs, and multimodal hubs, backed by digitalisation, ECCS-enabled paperless clearance, and round-the-clock customs, are converting paperwork and heavy processes into clock-driven operations. At IGI Airport, for instance, turnaround times have reduced from 41 to 35 hours, while costs have dipped by 20 per cent due to automation and lower dwell times. But there is still a long way to go. While per-unit costs have improved, structural logistics costs, trucking, warehousing, and slot availability remain the pain points.”
Constraints, such as freighter parking shortages, breaks in cold chain continuity, inconsistent operating procedures, and uneven digital adoption continue to limit utilisation. Process integration is improving, digital platforms are gaining traction, and service-level awareness is rising across stakeholders. The next phase will require sustained focus — SOPs, fortifying accountability, and aligning people, processes, and tech — so that infra investments translate into internationally competitive outcomes.
Ramanathan Rajamani, CEO, AISATS, said, “Digitalisation, paperless clearance, and round-the-clock operations have begun to reshape turnaround times and cost efficiency, particularly at larger gateways, by reducing dwell times and manual intervention. For airlines and freight forwarders, predictability has improved, while in the case of shippers, faster processing and transparency are tangible gains.”
“While infrastructure has scaled rapidly, full scale digitalisation depends on uniform adoption, system integration, and consistent execution. Today, users of the ecosystem expect faster connectivity and lower logistics costs and consistent service levels. The visible gap lies not in infrastructure creation, but in integration of systems between shippers, freight forwarders, ground handlers, airports, and regulatory authorities. Multimodal hubs will deliver their potential when digital systems and service standards move in synchronisation.
