BIAL Steps Up Initiatives To Become South India's Cargo Gateway

Bangalore has catapulted from a sleepy backwater to a world-class export hub all thanks to its start-up ecosystem, driven primarily by IT and ITES sectors. That apart, the manufacturing and perishables industry has also contributed to its growth. And Bengaluru’s Kempegowda International Airport serves as a catalyst to accelerate international trade.

- Surya Kannoth

The cargo business at Bengaluru International Airport (BIAL), which operates Kempegowda International Airport (KIA) contributes 11 percent of Karnataka’s GDP (approximately Rs 12,50,000 crore), substantially higher than the global average of 2-3 percent. To sustain this growth in the long term, BIAL has embarked on a journey to enhance and build on its infrastructure, standards and best practices ensuring that they consistently raise the bar in easing the movement of goods and products to and from South India.

Next on the cards, is the creation of a free trade area (FTA) or a special economic zone (SEZ) on the campus in an effort to make the airport a cargo hub for the region.

“At this point, we are exploring multiple options. We know that we have to start thinking of what next when the current cargo facility reaches its capacity (5.7 lakh tonne annually) - whether we want to expand by scaling up the current facility or setting up a multimodel logistic hub or a free trade zone is currently under consideration,” revealed Raj Andrade, vice-president (business development, marketing & strategy), BIAL during a recent interaction with media.

According to Andrade, close to 100 acres of land has been earmarked in the master plan for the FTA or SEZ. The feasibility study for the same is currently underway. The airport’s expansion plan also involves the Terminal 2 and a second runway.

“To enhance the passenger experience, we are already developing Terminal 2 and the second runway, which will be operational in the next few years. With the free trade zone, we can develop the airport as the single gateway for cargo traffic,” he added.