Govt unveils national air cargo policy to develop industry

16 Jan 2019 Evaluate

With an aim to make India among the top five air freight markets by 2025 and creating air transport shipment hubs at all major airports over the next six years, the government has unveiled its much-awaited national air cargo policy. The policy will encourage code sharing/inter-line agreements between foreign and Indian carriers. As per the policy, international cargo comprises 60% of the total air cargo tonnes handled in the country, logging a growth of 15.6% in the previous fiscal, while domestic cargo grew by over 8%, which reflects the skewed modal mix, in which roads account for over 60% of cargo transportation as compared to the global average of around 30%.

The policy document highlighted that Indian express industry is one of the fastest growing markets globally, but with a small share of about 2% of the global market. The domestic express industry, a key constituent of the Indian express industry, is estimated to be worth Rs 17,000 crore. The international express is estimated to contribute Rs 5,000 crore to the Indian express industry. The potential in the new markets needs to be explored with long-term infrastructure creation in order to sustain cargo growth in the next 10-15 years at least.

The cargo policy also seeks to establish agreements between national carriers/ freighters and integrators to improve domestic connectivity as well as encourage the establishment of agreements between national and international carriers/freighters and other airline operators to provide access to key global cargo hubs. It also aims to promote the development of a last mile/first mile connectivity program at international/regional gateways.

Besides, as part of the security strategy under the policy, the strategy will address security related to the physical cargo, people handling the cargo, data and information related to shipments within and across all chains of custody transfers. To increase process transparency while decreasing shipment delays, costs and dwell time, a fully automated paperless trade environment with minimum face-to-face interactions will be implemented. Moreover, the policy covers all three categories of air cargo transport - domestic cargo to ensure efficient flow of goods across India; international cargo facilitating all indigenous export and import of goods; and transit international cargo by making India the transit cargo hub of choice to and from other parts of the globe.

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