Ministry of Civil Aviation is targeting to achieve 10 million tons of air cargo by 2030 from current 3.33 million tons roughly translating to a CAGR of 13.5% with the collective effort of all industry stakeholders and enhanced cargo capacities at metro airports. Kamesh Peri, CEO-India, Çelebi Delhi Cargo, shares more details:
Q1. As a cargo handler, what are the notable transformations made in the past two years to keep moving the cargo efficiently?
Over the past year, the Cargo sector has been going through a transformation at multiple levels, thereby becoming increasingly dynamic. Digitalisation and offering customer satisfaction are the two notable transformations that have occurred in the past two years, leading to the air cargo industry’s evolution.
As per TIACA’S 2022 INSIGHT Report, companies in the aviation sector continue to improve efficiencies and accelerate their digital transformation, however, 34% have yet to start their digital transformation.
Freight forwarders play a key role in this shift as well. It is also worth noting that technology will continue to be a facilitator rather than a disruptor. Innovative technology will be adopted indefinitely. Technology is transforming the freight forwarding and transportation industries.
As a Cargo handler we’re focusing on infrastructure and solution development so that we can continue to provide our customers with much reliable and flexible capacity, backed by new technology initiatives.
Q2. The government is providing a major push to the cargo sector. Kindly share your views on the same.
The government is working towards the growth of the industry and as mentioned in the 2022 budget, they plan to grow at 9.2 percent and focus on infrastructure development for the industry. It will directly impact the productivity of the cargo and logistics sector. Another significant positive is Gati Shakti Yojana and its data interface element, which will increase technology adoption across all modes and facilitate operations.
Recently, the Union Minister for Civil Aviation, Jyotiraditya Scindia has said that ramping up regional connectivity is the new focus area for the government. The minister also said the industry’s growth would be further supported by developments in other segments such as flight training organisations (FTOs) and cargo.
More specifically for the cargo sector, Ministry of Civil Aviation has a vision of achieving 10 million tons of air cargo by 2030 from the current number of 3.33 million tons, which roughly translates to a CAGR of 13.5%. It’s an ambitious target but achievable with collective effort of all industry stakeholders. To achieve the target of 10 million tons, cargo capacities at metro airports would require to be enhanced and the Airport operators are mindful of the same. Industry players besides metro volumes need to also focus on transportation of cargo loads from Tier II & III. To facilitate this, Govt. is planning to establish 33 new domestic cargo terminals by 2024-2025 which will allow air cargo sector to flourish and grow. Further, Ministry of Civil Aviation has robust plans for physical infrastructure for airports, which are essential for cargo handling. Ministry plans to spend close to INR 98,000 crores over 4 years in terms of setting up new greenfield airports and expansion of existing brownfield airports.
Q3. Technology has definitely played a crucial role during the pandemic and lockdown times. How do you think it can further help the cargo sector?
Due to the pandemic, technology has accelerated innovation, increased coordination despite working remotely, and accelerated change adoption among all stakeholders. IT has risen to the forefront as a critical enabler of business continuity and transformation as a result of the pandemic. Celebi will continue to push the boundaries of technology initiatives, with accelerated digitisation as the standard and intelligent technologies such as Blockchain, AI, and IOT serving as the blueprint for survival and eventual leadership in this space.
Innovative technology such as AI and ML will be implemented indefinitely to provide enhanced visibility, efficiency, and informed decision-making when it comes to air freight. IATA also oversaw the modernisation of cargo standards and introduced technological tools such as ONE Record, Interactive Cargo Project, Cargo Connect, e-freight / e-AWB, and FEDeRATED, some of which are still in the works.
