Asia Aviation Associates-Airfreight stations summit, Ludhiana Punjab,India
Airfreight Stations and Logistics
Ludhiana, Punjab, India
30 September, 2014
Prof. Dinesh Kumar
Asia Aviation Associates, New Delhi
We are here because we believe
in the fact that Tier II, III cities will
drive India’s international and
domestic cargo growth!
- Asia Aviation
Freight Scenario - IATA
Cargo markets regained confidence in early 2014. Load factors capacity
outstripped growth, 2.6% versus 1.4%.
The air freight lost business to alternative transport modes.
Integrators are taking an increasing share.
continuing modal shift to less-expensive maritime transport.
World trade, grew 3% in 2013.
Airport connections continue to grow.
50,000 scheduled airport pairs,
Goods worth $6.6 trillion was carried by air in 2013.
Total air freight tonnage was 50 million metric tons.
Freight Scenario - IATA
In 2014, airlines will transport
3.3 billion passengers
50 million metric tons of cargo
economic footprint--58 million jobs
$2.4 trillion of business activity.
Over1/3 of the value of goods traded internationally is
delivered by air.
In just 100 years, aviation has become an essential part
of global infrastructure. It has also been a catalyst for
change and economic driver.
People working together in global supply chains.
Opportunities- You can be anywhere in less than 24
Freight Scenario - India
1.4 million tons of intl. cargo
0.8 million tons of domestic cargo
2.4 million tons of total freight
Target - 7 million tons target
To lay down policy guidelines for setting up of Air Freight Stations on the lines of
ICD/CFS and to ensure e clearance of proposals .
•Develop Public Private Partnership model of Air Cargo facilities at Airports and
at Off Airports and expeditious clearance of the proposals
Monitor Quality of Service parameters by various stakeholders
Promote major gateway airports as Cargo hubs facilitating transshipment
Planning Commission has highlighted importance of augmenting the off
airport facilities for decongesting the airport and reduc delay in movement
of air cargo.
Where land is not available within the airport, off- airport Air Cargo Village can be
developed…. Similar to ICD/CFS.
Standard guidelines by the Department of Commerce/customs.
Air Freight Station at of Off Airport - any Logistics operator may setup the facility.”
Air Freight Station (AFS) advantages:
•It is an integrated chain that offers Customized logistics solutions with
and minimal logistics cost.
•Space requirements outside the boundaries of Airports .
•Availability of more covered warehouse storage for international cargo.
•More equipments at various locations as per demand.
•Deployments of manpower is spread over locations.
•Traceability is made easier.
•De-stuffing of Unit Load Device (ULDs) will be faster .
•AFS can be located at less congested and road restriction free areas
•Congestion at airport can be reduced
•safe and secure airport as ULDs are shifted
•AFS becomes a business model
•Reduced cost and increased efficiency.
•Complement an on-airport Air Cargo Terminal.
If efficiency of cargo clearance expedited, capacity could increase by 100%
•Nahva Sheva the largest container Port of the country 4 Million
TEUs served by 20 off dock Container Freight Stations.
•Chennai Container Terminal is being served by about 30 Container
Freight Stations in a radius of In 7 years the volume of cargo five
times to reach 1.5 Million TEUs.
•Due to competition there is quality in service and affordable tariffs.
•Port terminals as transit points and not handling / storage areas.
•Off airport facility - ICD/CFS can be game changer in increasing
international and domestic cargo.
•November 2007 Chennai Commissioner notified Central
Warehousing Corporation facility at Virugambakkam, the first ever Air
Freight Station in India.
•CFS at Mulund -Container Corporation of India in 2010 as a facility to
handle air cargo 2010
•AFS approved in 2009 at Ahmadabad.
•However, these are yet to become fully operational
Barriers – Customs EDI system data inflow from and to AFS ;
Ramp transfers; BCAS procedures on screening AFS cargo and
Reluctance of Carriers agreement with AFS for ULD Fix
processing time for application for Regulated Agents
AFS will promote key gateway airports as Cargo
Transshipment Hubs These will ultimately become logistics
feeder hubs to smart cities, Dedicated Freight Corridors,
National Logistics Network
Transshipment cargo be a mere 2 %
In airports like SIN, FRA, DXB, HKG 50%.
Other countries the trucks from the AFS etc are given flight
numbers, why not in India Position ULDs at AFS by carriers –
Business is changing – Help plan loads
Customs Manual 2011 defines ICD/CFS as: "A common
user facility with public authority status equipped with fixed
installations and offering services for handling and
temporary storage of import/export laden and empty
containers carried under Customs transit by any applicable
mode of transport placed under Customs control. All the
activities related to clearance of goods for home use,
warehousing, temporary admissions, re-export, temporary
storage for onward transit and outright export,
transshipment, take place from such stations."
8.3.1 Customs Cost Recovery Issue
Airfreight Stations can be integrated
as centres of International and
Industry/Infrastructure Status to Air Cargo
The contribution of air cargo sector needs to be
adequately and appropriately recognized so that
India’s fast growing International and domestic trade
by air is facilitated, enabled, integrated and expanded
comparable to the developed nations.
A comprehensive policy framework governing
airfreight stations is the necessity in order to meet the
target of $700 billion exports by 2018.
Potential of India’s air cargo
Airport Cargo Handled (mmtpa)
Hong Kong 4.6
CDG, Paris 2.0
Changi, Singapore 1.7
These AFSs increase transaction cost and time
Only good for hinterland where there is no airport.