The Hindu Business Line : `More competition in cargo handling biz to improve quality of service'

GREATER competition in the cargo handling business will improve the quality of service and bring down prices, according to Mr Jan de Vegt, Chairman, Cargo Service Centre India Pvt Ltd, a subsidiary of KLM Royal Dutch Airlines.

Talking about the impact of the proposed restructure and revamp of airports in the country, Mr de Vegt said privatisation of airports would definitely be a positive as more players would be able to take part in the operations.

Mr de Vegt, who is also Vice-President, Operations, Cargo, KLM, told Business Line that while the principal focus of CSC was cargo handling, the company would look at providing the entire gamut of ground handling services to more airlines, as and when private players are allowed in these sectors.

CSC India provides air cargo handling, warehousing and distribution services to KLM-Northwest Airlines in Delhi and Mumbai, and to Singapore Airlines in Chennai. It is also the sole operator at the Centre for Perishable Cargo in the Indira Gandhi International Airport, Delhi.

CSC's competitors in the country include Khambatta, Globe Ground and Airports Authority of India. Globally, it is associated with Swissport International Ltd, a force in the global ground and cargo handling business.

Mr de Vegt said the investment flow in manufacturing boded well for the growth of the cargo handling business. The growth of cargo movements in India was evident from the large number of freighters that were winging their way into the country.

Talking about the latest trends in the cargo handling business, he said service providers were trying to establish standard operational models to improve efficiencies. Customisation of services for individual customers affected efficiency. "If you try to do the same operation in many different ways, it will hurt efficiencies," he said.

Among the main challenges faced by the company in India were poor infrastructure and a multitude of small-sized packages that took up a lot of space, said Mr Radharaman Panicker, CEO, CSC India. Besides, he said, the Government should open up handling operations for competition to improve service quality. India handled 5 lakh tonnes of cargo annually, as compared to 1 million tonnes in Singapore, he said.

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