India currently handles around 3 million tonnes (mt) of air cargo per year and the sector has witnessed a steady recovery post the pandemic. As per data from the Airports Authority of India, airports in India handled a total of 2.74 mt of freight during 2023-24 (up to January 2024), with around 0.27 mt being handled in January 2024 alone. Delhi airport, in particular, handles around 1 mt of cargo annually, accounting for around 30 per cent of the country’s air cargo business. Complemented by air cargo handling at other airports such as Hyderabad and Goa, the GMR Group is seen to be the leader in the air cargo segment.
A tiered infrastructure has been created at Delhi airport, where Tier 1 infrastructure comprises cargo warehouses and Tier 2 infrastructure includes warehousing capabilities outside the cargo terminal and those needed for feeding in the cargo through the cargo terminal. The airport has 12 dedicated freighter bases with a Code-F facility. This enables large freighter aircraft to park near the terminal. The airport also features a nose-loading facility, with three nose-load facilities available for simultaneous loading. Although Delhi airport handles around 1 mt of cargo annually, it has a cargo handling capacity of 1.8 mt per year. Given this capacity and the current amount of cargo handled, there is a significant scope for development. Further, taking into account that the airport handles almost 30 per cent of the air cargo, a facility that integrates various aspects in an efficient and time-bound manner is essential.
Initiatives in place
The air cargo sector and cargo processes have undergone various infrastructural changes over time. Air cargo currently functions in a manner similar to DigiYatra, with paperless transaction of cargo. Under this, the movement of physical paper documents along with the cargo is eliminated, as the cargo is transported from the cityside gate to the aircraft, and then to the destination. This is being carried out at various airports in the country, including Delhi airport. Further, the government has launched the “Turant Customs” programme, a faceless assessment where customs officials are not required to carry out face-to-face activities.
Works are also under way with the Ministry of Civil Aviation (MoCA) and other industry forums, focused on technology and infrastructure deployment to reduce processing times. Automated loading pits are also being used. Investments would continue for cityside infrastructure as well. Further, open skies policies have reinstated for freighter aircraft, with the objective of increasing capacity in Indian skies.
Challenges
With the significant growth of airports across the country, in addition to the privatisation of a few of them, the cargo sector has witnessed advancements too. Cargo can be pushed from the cityside to the aircraft in around an hour at bigger airports. A similar time frame, however, may not be feasible at smaller airports. This could be attributed to the limited availability of automation and mechanised facilities, leading to physical loading by loaders. Therefore, there is a need to ensure that different segments of the industry have access to equal opportunities and achieve a similar level of efficiency. This is one of the key challenges at the industry level.
On one side, technology has played a key role in passenger facilitation and management at various airports. On the other, the adoption of such technologies on the cargo side is still at a nascent stage. This necessitates the cargo industry to catch up. Internet of things (IoT), machine learning (ML) and data analytics solutions need to be brought in at the implementation stage.
The adoption of technologies in cargo processes would create an additional need. The loaders and individuals handling these technologies are required to be aware of the shipment and specific handling requirements that come along with it. Hence, the empowerment and skilling of manpower becomes a key need.
In comparison to other countries, the delivery time for cargo in India is much longer. Although the duration has witnessed an improvement from the earlier average of five days to the current 48 hours, there is still significant scope for development in this aspect.
Step-up in cold cargo handling
Technology was notably employed in the movement of cold temperature cargo. Challenges were faced in the movement of cold temperature cargo, especially pharmaceuticals. There are various techniques for the transportation of pharmaceuticals from the industry, involving the use of reefer trucks. These are then stored at temperature-controlled cold storages at various terminals. However, movement of this cargo from the cargo terminal to the aircraft at the apron was a challenge. Although the distances are around 100 metres, the cargo, when moved, could be affected by extreme temperatures such as at Delhi airport, where summer temperatures would reach almost 40 degrees Celsius. This is one of the crucial technology gaps. As a solution, the use of refrigeration on dollies was adopted. A dolly with a two-tonne palletised load system module container can be used to create a refrigerated environment for the movement of pallets from the terminal to the aircraft.
Data loggers are also being increasingly used. Companies generally place these IoT devices into the pallet, enabling remote monitoring of temperatures. In recent times, data loggers have also been used along with artificial intelligence (AI), data analytics, big data and ML. They will be able to ensure that any breaches in the temperature limits are prevented in future.
Future targets
The MoCA, and the industry as a whole, have an ambitious target to push almost 10 mt of cargo through Indian airports by 2030. This is an increase of more than three times from the current handling capacity. Further, by 2030, India is expected to have a trillion-dollar economy of exports only, almost double the current levels. Air cargo is also expected to witness growth and assist in this development. Commodities such as electronics, pharmaceuticals and chemicals are air-worthy products and are likely to create additional demand. Delhi airport has also been witnessing the emergence of new commodity areas such as electronics and these are expected to witness an increasing trend in the future too. Hence, the focus on infrastructure in the cityside and the airside at cargo terminals is gaining increasing importance. This would also be aided by the benefits brought about by upcoming facilities such as the multimodal cargo hub at the Noida International Airport.
In sum
With the recovery of air cargo movement post the pandemic, the demand for air cargo services is expected to increase further in the coming years. The current use of IT solutions and further adoption of AI, IoT and big data are expected to help in achieving the targets for cargo volumes at Indian airports. The use of these technologies is also likely to increase in the efficiency of cargo operations. Further, operators are increasingly adopting sustainable practices in their operations in order to reduce their carbon footprint. An increase in the use of technology across smaller airports would also help overcome the challenges faced at present. Hence, new cargo facilities at upcoming airports and capacity expansion at existing ones are expected to drive to the air cargo handling capacity in the country.
Based on remarks by Rishi Michael Herenz, Head, Strategy and Business Development, Cargo and Logistics, GMR Group, at a recent Indian Infrastructure conference
