‘Poor air cargo facilities discourage traders in Vizag’

By SNV Sudhir

Visakhapatnam, Sep 20, 2013: Lack of proper air cargo facilities, infrastructure and connectivity at the local airport is said to be forcing the local business houses and exporters go to cargo terminals at Hyderabad and Chennai for their business, said a study by the students of GIITAM Institute of Management (GIM). The study was conducted on the request of Confederation of Indian Industry (CII) and Airports Authority of India (AAI) to dfecide on the feasibility of air-connectivity, develop necessarily infrastructure and also model of operation.

The study pointed that over 10,000 tonnes can be exported or imported immediately using Air-cargo facilities at Vizag airport. Pharmaceutical, garment and sea-food industries are the beneficiaries. Having such facility in Visakhapatnam will have very high impact on the local economy in creating jobs, expansion of business and increase in foreign exchange reserves.

Dean & principal of GIM Prof K Siva Rama Krishna, Associate Professors K P C Kishan and Dr U V Adi Narayana along with 10 students from MBA have spent nearly two months during summer to conduct Field survey by contacting over 100 companies.

Globally products namely pharmaceuticals, basic chemicals, apparel, sea food are mostly transported by air. Though Vizag has become the hub for all these products with the development of businesses in SEZs namely pharma city and Brandix Apparel Park there are no proper infrastructure facilities to transport then by air. There is strong case for developing the air-cargo service in the city.

In addition to the industry in and around Vizag, the city is in close proximity with major cities and towns in neighbouring Odisha and Chhattisgarh.  Setting-up necessary infrastructure would enable many trading houses to export agricultural produce such as Mangoes, Papaya and cashew, Sea food such as Tuna, Shrimp, Fish and Crabs, Dairy products such as milk powder, butter, cheese, and panner and cut-flowers to  Middle-east and Singapore. The Apparels made in SEZs are being exported to the USA, Europe and Middle-east countries.

Most of the companies have sought facilities like automated air cargo system, freezers, strong, cold rooms, warehouses for handling special cargo.

“Since there is assured business, it would be good case for attracting air-connectivity and investments in developing eco-system. PPP model such as GMR-Menzies Aviation may be adopted for developing infrastructure and operate the service in a timely manner,” said Dr Adi Narayana.