A curtain raiser was organized recently by ACFI – Air Cargo Forum India as a precursor for the annual conclave to be held in the capital on 3rd May 2023. It was attended by the top mandarins of the ACFI who highlighted the mission of ACFI and the details of the conclave.
The conclave was billed to be an event that would be attended by people from across the supply chain spectrum. The theme of the conclave would be, Cargo Udaan – Connecting and Empowering the Indian Skies.
ACFI was in its 11th year of its operation. It was established on 14th September 2012, with the mandate to ‘build a world class environmentally friendly air logistics industry, innovation with credible allied activities and providing business facilitation to boost the Indian economy.’ It has since been a catalyst for the promotion of air cargo logistics industry and trade for the past 10 years. The tasks before it has gained in importance.
Propelled by demand for e-commerce, and time sensitive cargoes such as pharmaceuticals and perishables goods, opportunities await India’s air cargo industry. The China-Plus-One strategy, is an opportunity for India to be a hotspot for global manufacturers and buyers. This strategy which was initiated in 2008, was a decision taken by 18 economies to avoid investing in China and to diversify their businesses to alternative destinations. So far, the countries that have benefited from this strategy have been the EU, Mexico, Taiwan, and Vietnam. India has not quite been able to extract opportunities from this policy.
Yashpal Sharma, President – ACFI, Managing Director, Skyways Group, stated that air cargo would empower the small businesses. It would enable them to reach out to consumers worldwide.
This conclave was expected to address the shortcomings that would prop up India’s participation in the global value chains. The conclave would have three sessions. The first session would be on Air cargo. The second session would dwell on international air cargo and the third session would be on domestic air cargo. All the sessions would have a galaxy of speakers from the aviation and allied industries. The business sessions will highlight the various possibilities, opportunities, challenges, and action plans for the India skies to get 10 million tons by 2030-31. Satish Lakkaraju, Chairman – Event Management Task Pillar Global Head – Air Freight and Pharma WIZ Freight (Radar Freight Ventures Pvt Ltd) said, “the event would be addressing multiple issues.”
Five key areas that have been identified. They are:
1. Infrastructure development. With over 387 routes and 60 airports operationalised, the big and small airports of India will improve the current infrastructure. Further making the airports more accessible to the businessmen, through modern highways and local connectivity.
2. Integration of modes of transport. Enhancing the lack of integration between different modes of transport such as air, roads, railways, and waterways.
3. Technology adoption. This could be done through the successful implementation of Unified Logistics Interface Platform, (ULIP). ULIP would ensure induction of technology across different value chains and across various Government agencies that would create a platform for data exchange among government and private entities, directly or indirectly involved in the Indian Logistics ecosystem.
4. Simplification of regulation. Though there has been simplification of regulations, still much needed to be done. Global best practices need ed to be looked at and implemented expeditiously. By simplifying regulations and creating more business-friendly environment, India could attract more investment and give a fillip to India’s participation in global value chains.
5. Skill development. India has the advantage of having the youngest workforce in the world. With an average age of 27, which was below the global average, India had a unique advantage. It therefore became imperative to invest in training education and skill development of the youths. There were ample opportunities in the logistics sector.
Lakkaraju who would be the moderator for the first session titled, The Business Galvaniser, explained the importance and benefits of air cargo. There were several misconceptions which he wanted to clear. He explained that first and foremost air cargo was reliable. It was fast and flexible. The amount of cargo that could be carried varied from 100 kgs to several tons. It had global reach to any part of the world, landlocked or otherwise, which was its USP. It was an ideal mode of transport for time sensitive cargo. There was visibility to enable the shippers to trace and track the cargo. Customized solutions were also available for the shippers.
He would also explain the various cargo sectors that they would cover and its potential. The types of cargo that could be carried ranged from chemical, food, aerospace, retail, animal husbandry etc. He felt that the industry was expected to grow exponentially. Globally the connectivity was around 3200 airports with 6000 trade lanes. In terms of value air cargo represented 35% of the total volume.
He emphasized that though the air cargo appeared to be expensive, the pace of the movement of the cargo, made the return of investment, justifiable for the shipper. For comparison he said that a shipment to Brazil would take about 60 days by sea, whereas by air, the time taken would be only seven days.
However, challenges existed where transhipments were concerned. This would be discussed in the second session of the conclave. The second session would be moderated by Sanjiv Edward, Vice President – ACFI, Chief Executive Officer – Cargo and Logistics, GMR Group. He would be tackling issues pertaining opportunities and challenges in international air cargo.
The third session would be handled by Keku Bomi Gazder, Managing Director and CEO, Aviapro Logistics Services Pvt Ltd, member ACFI. He would moderate the session on domestic air cargo. He said that the air cargo market could be broken down to 33% as domestic cargo, 33% as imports and 33% as exports. The session would focus on the challenges in the domestic sector. He expected the domestic cargo to have a CAGR growth of 6.8% to 9%, which he believed would be the fastest growing segment in the Indian cargo industry. Under the KRISHI UDAN Scheme, 16 airports have been identified to enhance the export opportunities of the North East region that would enhance cargo movements and exports.
India’s overall exports is projected to scale new heights, growing at 13.84 percent during FY 2022-23 over FY 2021-22 to achieve USD 770.18 billion worth of exports. This conclave would allow various stakeholders to not only highlight their problems, but also present many opportunities to leverage their potential.
