The Hindu Business Line : BIAL to develop airport as a regional cargo hub

(FROM LEFT) Mr Craig Smyth, Managing Director, Menzines Aviation Plc; Mr V.S. Bobba, Chairman, Bobba Group of Companies; Mr Albert Brunner, CEO, Bangalore International Airport Ltd; Mr S. Venkat, Company Secretary, Air India; and Mr Ng Chin Hwee, President and CEO, SATS, at a press conference in Bangalore on Tuesday. — G.R.N. Somashekar

Bangalore , May 16

The upcoming Bangalore International Airport at Devanahalli will be developed into a regional cargo hub, according to Bangalore International Airport Ltd (BIAL) CEO, Mr Albert Brunner. Its cargo potential has been put at between 2 lakh and 3 lakh tonnes in the next three years by the two newly enlisted cargo-handling operators.

BIAL, on Tuesday, signed a 15-year agreement with two concessionaires to run its cargo operations.

BIAL had last month announced the Singapore Airport Terminal Services-Air India combine as a cargo-handling partner. The other competing consortium is the Bangalore-based Bobba Group, which has teamed up with the UK's Menzies Global Aviation.

A new phase of expansion

The Air India Company Secretary, Mr S. Venkat, said the airline was entering a new phase of expansion on its goal of $7-billion turnover. Mr Ng Chin Hwee, President and CEO of Singapore Airport Terminal Services (SATS), said this was their first cargo foray into India and estimated that the current 1.2 lakh-tonne cargo potential was expected to treble in 10-15 years.

The combined investment of both the cargo operators will be around Rs 150 crore. They will design, build, finance and operate their respective cargo facilities, according to BIAL's Chief Commercial Officer, Mr Stephan Widrig.

BIAL has already signed up the consortium of Indian Oil, Indian Oiltanking and Skytanking as its aviation fuel facility operator. A third cargo player may become necessary if the volume touched 3.5 lakh tonnes. Mr Brunner said, "The selection of the cargo concessionaire marks a significant step towards creating the Bangalore International Airport into a regional cargo hub. BIAL is committed to offer cargo facility services to airlines and shippers at the best international standards and competitive prices."

Airport redesign & launch

Mr Brunner said the enlargement and redesign of the airport would cost between Rs 460 crore and Rs 530 crore more. However, the cost of Phase I was frozen at Rs 1,412 crore. Half of the additional and non-crucial works would be tendered out afresh in the coming weeks and decided by September-October this year.

Mr Ng and Mr Venkat signed the agreement for the SATS-AI combine and Mr V.S. Bobba, Chairman, Bobba Group of Companies, and Mr Craig Smyth, Managing Director, Menzies Aviation plc, for the other concessionaire.