Container Corporation of India (Concor) have announced the launch of direct container train service form Bengaluru to the Krishnapatnam Port Container Terminal (KPCT) and from June 19 to cater the growing export of granite, gherkins, coffee, pharmaceuticals and engineering machinery.
The train will have a maximum carrying capacity of 90 TEUs and will operate very Friday evening from Bengaluru. This service will reduce the transit time to 18 hours from the existing 24-48 hours by road.
Krishnapatnam Port is also congestion free Port and dedicated only for container trains.
The Bengaluru EXIM cargo traffic is estimated at 200,000 TEUs and Concor handles more than half of this traffic at around 115,000 TEUs.]]>
Positive outlook seen for India’s air cargo industry
India’s air cargo industry is expected to handle 2.8 million tonnes of cargo by 2018, increasing at a compounded annual growth rate (CAGR) of 5.5 per cent mainly due to the relaxation of Foreign Direct Investment (FDI) limits by the government, says a study carried out Netscribes, a market research agency.
Last year, the market size was 2.26 million tonnes and experts said that the industry will maintain the growth path for at least the next five years, according to the study.
The government’s focus on attracting foreign direct investment has proved to be a major boost for the industry, the study said. “Allowing 100 per cent FDI in existing airports and under automatic routes along with 100 per cent tax exemption for airport projects for the next 10 years, have been major growth drivers,” a Netscribes analyst said.
The government has also identified 24 airports across the country for the development of cargo terminals. “Airports located in tier-two and tier-three cities have been identified where common user domestic cargo terminals will be established after checking feasibility,” the Minister of State for Civil Aviation, Mahesh Sharma, said.
The Airports Authority of India (AAI) has already established common user domestic air cargo terminals at Coimbatore, Jaipur and Lucknow airports.
The report also highlighted the challenges faced by the Indian air cargo market due to the lack of dedicated air cargo warehousing facilities at major airports and restrictions on sanctioning of licences for operating bonded warehouses.
With increasing trade activities in the Asia-Pacific region, the Indian air cargo industry has the second fastest growth rate in the world, ranking just behind the Middle East. As per the study, international air cargo traffic is expected to grow at an average rate of 4.7 per cent year-on-year over the next two decades.
Early imports of Food products expected due to monsoon blues
Analysts, however, said India mostly waits until July or August for importing food items and enhancing supplies. Lowering import duties on food items such as pulses and oil seeds will help prepare for supplies when crops fail because of poor rains. Similarly, many experts questioned why India cannot place the import orders for pulses and oilseeds in June itself, if the IMD has warned of a higher probability of weak summer rains, instead of waiting until July.