The estimate was presented by senior officials of MIAL during launch of a common user terminal (CUT ) for domestic air cargo operations on Monday.
Riding high on e-commerce growth, Mumbai International Airport Ltd (MIAL), which opened a new domestic cargo terminal near Western Express Highway in Vile Parle, expect 7-8% growth in business annually. At present, e-commerce logistics form about 75-80 % of the total domestic cargo business of MIAL.
The estimate was presented by senior officials of MIAL during launch of a common user terminal (CUT ) for domestic air cargo operations on Monday.
The CUT has been outsourced to Concor Air Ltd on build-operate-transfer basis. The project has the capacity to handle 300,000 metric tonne of cargo annually and is built on the an area of 60,000 square feet.
"The need to upscale air cargo facility was necessitated in view of an increased growth in the domestic air cargo business in the last three years with the rise in e-commerce," said a senior MIAL official on the sidelines of the event.
A recent study by trade association body Assocham estimated the likely size of the e-commerce industry in the country at over $38 billion by 2016, a 67% jump over 2015. The e-commerce industry was $17 billion in 2014 and a mere $3.8 billion in 2009, when it was in a fledgling state. After taking over the redevelopment work of city airport in 2006, MIAL had commissioned an offshore CUT near Marol pipeline in the FY 2010-2011 as a temporary arrangement.
"Since CSIA is a land constraint airport, we planned for an elevated cargo terminal building structure whereby all the arriving domestic cargo will be managed from the basement level while the departing cargo is being handled at the upper level," said the official on design of the CUT.
At present, only Air India and Bluedart handle their own domestic cargo operations, while Jet airways has reportedly shifted its operations to the newly launched CUT in Vile Parle.
Though the global freight industry has been in a stagnation in recent times due to slowdown in global economies, the Indian freight transport market is expected to grow at a compounded annual growth rate (CAGR) of 13.35% by 2020 driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors, another Assocham report said in December last. Air freight comprises around 1% of the total freight market in India, which will grow around 12.5% CAGR over the next five years with the lower turnaround time needed for delivery such as 24-hour deliveries by the e-commerce sector, the report said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "cargo")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}