Bengaluru emerges as southern India’s leading air cargo hub

Kempegowda International Airport in Bengaluru is starting to emerge as southern India’s leading air cargo hub, something underscored by two recent initiatives at the fast-growing facility.

Kale Logistics Solutions, a logistics-focused IT solution provider, recently installed an airport cargo community system (CCS) at BLR which has been adopted by 95% of airport stakeholders.

The CCS streamlines and digitizes cargo operations and is a key part as part of Bengaluru’s goal to become a smart airport. The system was launched in March and built on an existing community system, but the near-total take-up has attracted attention.

This, though, is just the beginning of digitization at both Bengaluru and more broadly, Amar More, Kale Logistics’ Mumbai-based CEO said in a recent interview. “Even on the [CCS], we’ve only just begun. There’s a lot to do,” he said.

Leading the list of how Kale will deepen its relationship with Bengaluru as a high-tech partner will be further steps on sustainability. In practical terms for shippers, this means eliminating more paper copies than it is doing right now, added More, without saying whose paper would go.

“We are also looking at deep tech initiatives,” said More, outlining uses in temperature and condition monitoring of shipments. Here, Kale is working with a company called Tag Box that works with the pharma companies at the airport; the city is home to more than 150 pharmaceutical companies and biotechnology organizations, while the city of Hyderabad, a mere 500 km to the north, is home to more than 800 such companies.

Also in the mix are the uses of the internet of things (IoT), interfacing with temperature sensors and other technology to share visibility within Bengaluru’s air freight community, said More, adding that there will also be more use of artificial intelligence.

“Most importantly, we are going to work on setting up digital corridors between Bengaluru and their trade partners, connecting the communities,” said More.

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This is likely to be a far-reaching initiative, as those trade partners are not just in India but also outside the country’s borders. Dubai has regular connections with Bengaluru, so the idea is already afoot about “linking that community to Bengaluru,” More said. A connection would have several benefits, including end-to-end visibility as well as ability for the information on the Bengaluru community platform being re-used by the community in Dubai, he added.

Bengaluru is not the only airport in India or overseas Kale is working with. In India, the company is “already starting” work with India’s largest airport group and, while looking to airports elsewhere in the world, More was coy about naming them.

“We are in touch with 40 airports and ports globally, a lot in North America,” said More, who added that the company would be making other announcements soon.

Kale’s announcement followed one from DHL, which plans to open the largest express-handling facility airside at BLR. Located within the airport property, the newly expanded Bengaluru Gateway by DHL Express spans over 112,000 sq feet, four times larger than the previous facility. 

This will see 17 designated international freighters operate through Bengaluru; when operating at full capacity, the new facility will be able to handle over 90,000 tons of shipments per year. In turn, this will enable DHL Express to offer connections which are 12 to 24 hours faster, and faster delivery of imported goods across India, and reduce the daily cut-off time for shipment pick-up by up to 60 minutes, the company said.

“The Bengaluru Gateway is part of our €750 million (US$844.5 million) investment to bolster our infrastructure in Asia-Pacific and enhance connectivity for countries and businesses. With strong international imports and exports driving the increasing cargo volume in Bengaluru, our new facility supports Bengaluru’s strategy to provide capacity of 1 million tons at its airport in the next few years,” Ken Lee, DHL Express Asia Pacific’s Hong Kong-based CEO, added.

Primary export trade lanes for the DHL facility are expected to be North America and Europe, with Asia Pacific and Europe figured as key import trade lanes, with the facility providing greater support to the electronics, automotive, fashion and life sciences and medical industries.

Despite the pandemic, volumes at Kempegowda continue to grow. The facility had its highest monthly throughput since opening in 2008 when it processed 37,319 metric tonnes (MT) of cargo in August, the airport said in a statement.

International cargo (both imports and exports) accounted for 24,304 MT, also the highest ever, information from the facility showed. Exports hit an all-time high throughput of 15,224 MT.

BLR is now the third-busiest airport in India, having 41% of the market in southern India. Not only is it close to Bengaluru’s manufacturers and to pharma from Hyderabad, but round-the-clock support from Indian Customs has made it more of a hub than other, more rule-bound facilities.

There are currently 14 dedicated freighters operating to and from BLR each week. Its current annual cargo capacity is 715,000 MT. “Our aim is to expand the cargo infrastructure to provide a capacity of 1 million MT in the next few years,” a facility representative said, in a written statement.

Michael Mackey