SATS Ltd. (SATS) announced that AISATS, the company's joint venture company in India with Air India Limited, has been selected by Yamuna International Airport Private Limited (YIAPL) to design, build, finance and operate an integrated Multi-Modal Cargo Hub (MMCH) at the upcoming Noida International Airport in Jewar, Uttar Pradesh.
In its announcement, SATS said AISATS expects to finalise and conclude the terms of a concession agreement with YIAPL in the coming weeks.
Noida International Airport will be the National Capital Region's second major international airport when completed at the end of 2024 and is positioned as the gateway to the rapidly growing North India region.
SATS noted that Western Uttar Pradesh and the National Capital Region host multiple large industrial clusters of textiles, electronics, e-commerce, pharmaceuticals and perishables.
"The five-tier MMCH is the first of its kind in India and will comprise an Integrated Cargo Terminal (ICT) and an Integrated Warehousing and Logistics Zone (IWLZ) to be built over 87 acres of land, with concessions spanning up to 20 years and 37 years respectively," the Singapore-based ground handling and catering provider said.
SATS noted that the MMCH would include integrated facilities with airside access for general cargo, e-Commerce, temperature-controlled goods for perishables and pharmaceuticals, and express courier shipments.
It will also provide trucking facilities to support road-to-road, road-to-air, and air-to-road movements.
India: the next logistics hub
"We are excited to partner with Noida International Airport to build a state-of-the-art, modern, and efficient cargo infrastructure by making the best use of technology," said Sanjay Gupta, CEO of AISATS, noting that India is envisioned to become the next logistics hub for the world.
"... Owing to multi-modal connectivity, we are certain that this multi-modal cargo hub will truly become the gateway to North India," Gupta added.
Bob Chi, CEO of SATS Gateway Services, noted India as an "important market" in SATS' twin-engine growth strategy.
"Through our partnership in AISATS, we hope to strengthen our collaboration in India and leverage SATS' capability in air cargo hub handling to unlock the huge potential in Uttar Pradesh to support India's economic growth," Chi said.
Meanwhile, SATS said in its announcement released on February 13 that there is "no certainty" yet of the finality of the deal.
"There is no certainty a concession agreement will be signed," SATS said, adding that it will make timely announcements, if necessary, of any further material developments, such as the conclusion of definitive terms, in accordance with its obligations under the listing rules of the Singapore Exchange Securities Trading Limited.
