Air cargo industry must grow 12.9 pc annually to achieve national aviation policy target

New Delhi, Oct 21 (UNI) The Indian cargo industry needs to grow at a rate of about 12.9 per cent every year from 2018 to 2027 to achieve National Civil Aviation Policy vision of reaching cargo volumes of 10 million tonnes (MT) by 2027, a study said on Sunday.

‘There is an urgent need to uplift Indian cargo market to achieve the overall vision of the aviation ministry,’ suggested a knowledge report on Civil Aviation and Cargo, conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with consultancy firm Auctus Advisors. 

The report said international and domestic air freight is projected to grow at an overall compounded annual growth rate (CAGR) of 8.2 per cent. ‘Considering this trend to continue till 2027, projected international and domestic air cargo will be 3.6 MT and 2.1 MT respectively resulting in total air cargo traffic of 6.8 MT.’ 

The study also highlighted various issues confronting aviation logistics sector in India – lack of enabling infrastructure, lack of automated material handling systems, high manual intervention in the processes and inadequate skilled manpower are some of the key areas where Indian air cargo industry lags global peers. 

‘There is an urgent need for creating adequate freight carrying capacity within Indian air network through creation of new cargo terminals and expansion of existing ones.’

The study suggested implementing a rating system for cargo terminals in-line with ASQ (Airport Service Quality) ratings at passenger terminal to motivate operators to improve infrastructure and provide superior quality of services.