Apparel buyers revive alternatives in India amid Bangladesh struggles
India’s textile/apparel export hub of Tirupur, near Chennai, in Tamil Nadu state, is bouncing back ...
FDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK DHL: STRONGER TIESXPO: TOP PICKDHL: HIT HARDWMT: NEW CHINESE TIESKNIN: NEW LOWS TSLA: EUPHORIAXPO: RECORDTFII: PAYOUT UPDATE
FDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK DHL: STRONGER TIESXPO: TOP PICKDHL: HIT HARDWMT: NEW CHINESE TIESKNIN: NEW LOWS TSLA: EUPHORIAXPO: RECORDTFII: PAYOUT UPDATE
Adani Group’s newest flagship airport project at Navi Mumbai, on the outskirts of the city, seems to have become a strong bet for airlines and related logistics stakeholders looking to capitalise on India’s air cargo boom, propelled by manufacturing expansion and ecommerce demand.
Navi Mumbai International Airport (NMIA) is scheduled to begin commercial operations next spring, with 31 March its official launch date.
NMIA claims some significant “cargo green shoots” from the potential synergies between transport modes, given its proximity to the Nhava Sheva seaport, which accounts for the lion’s share of India’s export/import containerised trade, and the region’s logistics service clusters.
“NMIA holds high cargo appeal, as its inland access systems are congestion-free, unlike in Mumbai City,” said an industry observer.
According to industry sources, several domestic and foreign airlines active in the Indian skies are close to signing on to begin schedules out of NMIA, a project designed to de-congest Mumbai Airport and keep pace with the country’s burgeoning air traffic demand.
The new airport has been designed with a sophisticated integrated air cargo terminal, featuring some 36,000sq metres of space for domestic and some 25,500 sq metres for international cargo. Current estimates are that it will have capacity to handle 800,000 tonnes of cargo in the first phase of operations.
Domestic carriers IndiGo and Air India, earlier reluctant to shift or reshuffle their Mumbai schedules, are now said to be in the queue to jump on the bandwagon, sources told The Loadstar.
“We are interested, as any other airline would be, [in the Navi Mumbai option],” an IndiGo executive said.
That’s significant, as India’s largest private airline is in the midst of expanding its CarGo network strengths for a greater market share, eyeing a 17% increase in volumes in fiscal year 2024-25, that runs to the end of March.
SpiceJet is the other home-grown player preparing to land at NMIA, while Sri Lankan Airlines and Thai Lion Air are also known to have already filed “firm” interest deals with Adani.
“Most airlines are in touch with us for slots, as Mumbai Airport is extremely tight on space,” a senior executive at Adani Airport Holdings told The Loadstar.
Emirates and Air India declined to comment when contacted by The Loadstar.
Freight forwarders, often squeezed by delays at Mumbai Air Cargo complex, are betting on an improved freight experience at NMIA, especially for perishables. Tarun Arora, director at IG International, described the new Navi Mumbai air cargo complex as a game-changer for the fresh fruit industry.
“Faster shipping times mean a longer shelf life and reduced spoilage,” Mr Arora told The Loadstar. “Ultimately, consumers could enjoy a wider variety of fresher, higher-quality produce.”
At the same time, considering that both Mumbai airports are under Adani’s operational management, industry sources do not expect any business poaching tactics.
Air cargo logistics stakeholders, meanwhile, generally see NMIA as a watershed development as demand builds at a healthy pace and the overstretched Mumbai Airport has little room to expand.
Suneet Gupta, global head of cargo community systems at Kale Logistics Solutions, noted that NMIA had the potential to process 2.5m tonnes of cargo by 2032.
He said the project presented an opportunity for developing a multimodal logistics ecosystem, thus providing “multiple tailwinds for shippers”, adding: “It could be a one-stop solution for logistics needs.”
Adani is known for aggressive commercial and operational strategies, and it’s believed that the group will replicate its tested business model at NMIA, its eighth Indian airport.
Amid bullish long-term economic indicators, the government has made aviation a top priority, with massive plans to double the domestic airport network, to 300, by 2047.
Awarded to Zurich Airport, Noida International, near Delhi, the other big-ticket investment on that front, also expects to be operating by April.
You can contact the writer at [email protected].
Comment on this article