The document discusses the potential for airfreight stations in India to drive future growth in air cargo. It notes that tier 2 and 3 cities are expected to be major drivers of domestic and international cargo. It provides statistics on current global and Indian air cargo volumes and discusses how airfreight stations located off airports can help increase efficiency and capacity by reducing congestion at airports. The document advocates for a comprehensive policy framework and industry status for air cargo logistics to help India expand its air cargo sector in line with other major economies.

1. Airfreight Stations and Logistics Seminar
Ludhiana, Punjab
30 September, 2014
Prof Dinesh Kumar
Asia Aviation Associates, New Delhi

2. 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 Associates

3. I am grateful to the participants,
Speakers, Manufacturers, Importers, Exporters,
Logistics Service Providers, dignitaries

4. 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.

5. 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 hours.

6. 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

7. Airfreight Stations
ACPLB
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
•
Inter-Modal connectivity
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.”

8. Air Freight Station (AFS) advantages:
•It is an integrated chain that offers Customized logistics solutions with Accountability
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%

9. Airfreight Stations
•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

10. Airfreight Stations
Barriers – Customs EDI system data inflow from and to AFS ; Ramp
transfers; BCAS procedures on screening AFS cargo and granting RAS
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
Long term leases for AFS etc

11. Airfreight Stations
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

12. Airfreight Stations
Airfreight Stations can be integrated as
centres of International and domestic
Express/Courier/cargo/CFS/ICD/SEZ/Ind
ustrial Parks

13. Airfreight Stations
Industry/Infrastructure Status to Air Cargo logistics
Sector
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.

14. Potential of India’s air cargo
Airport Cargo Handled (mmtpa)
Hong Kong 4.6
Dubai 3.0
Incheon 2.7
Pudong 2.6
CDG, Paris 2.0
Changi, Singapore 1.7
Schiphol 1.6
Bangkok 1.3

15. Airfreight Stations
Views
These AFSs increase transaction cost and time
Only good for hinterland where there is no
airport.