The Hindu Business Line : Kolkata airport must unload problems

It is surprising but true that the country's first air cargo complex does not have any terminal for air cargo agents to function. As a result, they are required to shuttle between their city offices and the airport. This is not only time-consuming but also operationally cumbersome. A fully modern cargo complex, once developed, can act as the transhipment centre to Nepal, Bhutan and Bangladesh.

THE air cargo agents in the eastern region, mostly operating out of Kolkata airport, have drawn the attention of the appropriate authorities to the major areas where the airport has been found to be woefully lacking. The problem areas identified include the inadequacy of warehousing space, absence of an exclusive terminal for the cargo agents at the cargo complex, lack of modern cargo handling equipment and systems, inadequate facilities for refrigerated cargo, lack of special infrastructure for agricultural and horticultural cargo and of a proper EDI system and, capping it all, the absence of a modern fully integrated cargo complex.

The country's first air cargo complex was set up in Kolkata airport several years ago. But the situation has come to such a pass that basking in the old glory will not suffice any more. There has been virtually no major expansion of the warehousing space for exports in the complex. With the volume of traffic growing (an estimated 33 per cent growth recorded in past five years), the shortage of space is causing problems.

An old hangar has been functioning as warehouse for exports. This is certainly not an ideal place for handling exports. The air cargo agents feel that there should be proper warehouse with about 10,000 sq m of space, also with provisions for future expansion.

It is surprising but true that the country's first air cargo complex does not not have any terminal for air cargo agents to function, with the result the agents are required to shuttle between their city offices and the airport. This is not only time-consuming but also operationally cumbersome as it is difficult to achieve proper coordination. The air cargo agents, therefore, have pleaded with the authorities for allotment of at least 10,000 sq m of space for having a terminal of their own.

Among other facilities needed include proper EDI system, as the present system operated by the Customs, it is complained, does not always function properly, causing delays in shipments, installation of an elevated of stacking system, augmentation and upgradation of refrigerated cargo on priority basis and the creation of special infrastructure to promote exports of products like vegetables, fruits and flowers.

The need for a full-fledged modern cargo complex at Kolkata can hardly be over-emphasised, more so because the development of the existing complex has all along been on a piecemeal and makeshift basis. The modern complex, if and when set up, should be complete with facilities for faster clearance so that the undue harassment to shippers/forwarders generally caused by unnecessary shuttling between the city office and the airport could be avoided.

A fully modern cargo complex, once developed, can also act as the transhipment centre/gateway to Nepal, Bhutan and Bangladesh. It can also act as the transhipment centre for domestic cargo.

Air exports through India have registered an impressive growth since the 1990s. The late 1970s and early 1980s saw double-digit growth, which dropped to single-digit in the late 1980s. In the 1990s, the situation again took a turn for the better. However, the four international airports posted a varying degree of growth. Kolkata airport, which was the busiest of all four airports till the 1960s, both in terms of passenger and cargo traffic, gradually lost its significance with Mumbai and Delhi becoming more and more important. Those who had hoped to see Kolkata airport's cargo complex, the country's first such outfit, emerging as the front-runner in the country's air-borne trade, were disappointed.

With 65.5 per cent of the market share in value terms, Sahar International airport in Mumbai tops the list against Kolkata's 3.1 per cent. However, in terms of gross weight handled, Kolkata's share was 8.6 per cent compared to Sahar's 42.5 per cent and IGI's (New Delhi) 26.7 per cent.

Throughput this period, according to air cargo industry sources, three characteristics marked the development of the air cargo sector, unidirectional cargo causing imbalance (that is, more exports than imports), a slow increase in freights and heavy backlog of export shipments during the peak period.

Between 1996-97 and 2001-02, the tonnage handled at the Kolkata airport rose from 19,845 tonnes (comprising 13,739 tonnes of exports and 6,106 tonnes of imports) to 26,385 tonnes (exports 17,735 tonnes and imports 8,650 tonnes). Nearly 56 per cent of the traffic handled comprised leather and leather goods, garments approximately 20 per cent, perishables and machinery and spares five per cent each and the balance items such as mica, silk, textile and orchids and goods handled for people in diplomatic services.

The weekly capacity out of Kolkata airport is around 550 tonnes, though not evenly distributed throughout the year. Yet, the capacity has been found to match the demand for space as off-station carriers lift cargo by domestic carriers for international shipments through Mumbai and Delhi.

One of the reasons why the air cargo agents emphasise the need for upgradation of existing facilities and augmentation of infrastructure is the projection of higher exports of leather and leather goods and garments from eastern region.

Between 1996-97 and 2001-02, the exports of leather goods through the Kolkata airport rose from 7,165 tonnes to 8,698 tonnes, with the projection of 10 per cent growth annually during the next five years. Similarly, garments exports during the period increased from 2,186 tonnes to 2,697 tonnes, with the projection of more than 10 per cent growth in next five years.

The growth in garment exporters through Kolkata would have been much higher only if the facilities at the airport had matched the requirements of the trade. The exporters having units in the north-eastern states route their shipments through Mumbai/New Delhi. The north-eastern states, emerging as exporters of canned food and flowers, too prefer other airports for shipment purpose to Kolkata due to the lack of infrastructure needed for export of items such as vegetables, fruits and horticultural products. The same is true about the exporters in the neighbouring State of Orissa, who too send their cargo through Delhi/Mumbai.

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