The Hindu Business Line : CWC facility may get nod for storing imported air cargo

Chennai May 2 The Central Warehousing Corporation, Virukambakkam, Chennai, is likely to become the country's first Air Freight Station (AFS) to store imported air cargo. The objective is to decongest the Chennai airport, and its success could mean that it would be replicated across the country.

The Central Board of Excise and Customs (CBEC) has given its in-principle approval for the project and a formal letter needs to be issued to CWC, according to Mr J.K. Batra, Director-General, Safeguards and Trade Facilitation, CBEC.

Faced with congestion at the Chennai air cargo complex last year end, the air cargo user community here came up with a suggestion that the AFS around the city could be used to hold imported goods. An aircraft's cargo would be shifted to the Central Warehousing Corporation's facility, about 8 km from the airport, and consignees would take delivery of the cargo after statutory clearances and duty, he told Business Line on the sidelines of a seminar on `Facilitation in Logistics' organised by the Chennai Custom House Agents Association.

"Consignees cannot say they will clear half the cargo in the airport and the rest at CWC," said Mr Batra.

There are over 20 agencies, including airlines, involved in the air cargo trade. Each agency's responsibility needs to be clarified, and this would be a difficult exercise and take some time, he said.

The AFS would help companies such as Nokia, Flextronics and Motorola that work on Just-In-Time schedule.

"These companies had a tough time last year in getting their cargo on time," said an industry source.

The AFS also offers other advantages. If the cargo is moved on arrival, the chances of pilferage are reduced, the covered storage would mean less damage and once the cargo is accounted for deliveries would become easier and faster. This would also prevent palletised cargo from being left at the parking bays, the source said.

In 2006-07, the Chennai airport handled 1.95 lakh tonnes of international cargo (mostly import) compared with 1.67 lakh tonnes in the previous year, an increase of 17 per cent. Some of the international cargoes include garments, leather, pharmaceuticals, chemical, mobile and engineering goods, he said.