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Asia Aviation Associates-Airfreight stations summit, Ludhiana Punjab,India

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Asia Aviation Associates-Airfreight stations summit, Ludhiana Punjab,India

  1. 1. Airfreight Stations and Logistics Seminar Ludhiana, Punjab, India 30 September, 2014 Prof. Dinesh Kumar Asia Aviation Associates, New Delhi www.asiaaviationassociates.com dineshk.aviation@gmail.com +91 9818696033
  2. 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. 3. 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.
  4. 4. 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.
  5. 5. 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
  6. 6. 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.”
  7. 7. 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%
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. Airfreight Stations Airfreight Stations can be integrated as centres of International and domestic Express/Courier/cargo/CFS/ICD/SE Z/Industrial Parks
  12. 12. 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.
  13. 13. 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
  14. 14. Airfreight Stations Views These AFSs increase transaction cost and time Only good for hinterland where there is no airport.
  15. 15. THANK YOU