Air cargo volumes at Mumbai International Airport Ltd. (MIAL) are on the rise, and a new domestic air cargo terminal that opened earlier this week is expected to allow the airport to capture a larger portion of India\u2019s booming e-commerce market. The new, 60,000-square-foot facility will contribute an additional 300,000 metric tonnes of capacity and will be used by all carriers, except for Air India and Blue Dart, which use their own cargo-handling facilities.
\nMIAL projects medium-term growth in the air cargo business at 7 to 8 percent, annually, with e-commerce currently making up about 75 to 80 percent of the airport\u2019s total domestic cargo business. In 2015, according to an airport official, MIAL handled 200,000 tonnes of domestic cargo and an additional 500,000 tonnes of international cargo.
\nEarlier this year, India\u2019s aviation minister, Ashok Gajapathi Raju, told The Hindu that \u201ccargo has a tremendous potential,\u201d in spite of the fact that \u201cvery little cargo is going into the belly of aircraft and being exported.\u201d Mr. Raju cited high tunaround times and inefficient airports as causes.
\nThese developments come in the wake of an announcement by Amazon that it will invest US$5 billion into India\u2019s e-commerce sector, worrying domestic players like Flipkart, Snapdeal and Paytm. A recent study by The Associated Chambers of Commerce & Industry of India (ASSOCHAM) estimated that the e-commerce industry in India will be worth more than $38 billion by the end of this year, a 67 percent increase over 2015. ASSOCHAM also predicted that, although air cargo currently comprises only 1 percent of the total freight market in India, a brisk 12.5 percent compound annual growth rate (CAGR) over the next five years would increase its role in the national economy.
\nBut with the online sale of retail goods in the B2C category expected to account for 3 percent of total retail by 2020, up from 0.4 percent in 2014, the market is still nascent, according to PwC. Further, the professional services firm anticipates orders-per-million to more than double from five million in 2013 to 12 million by 2016.
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
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