The Hindu Business Line : Bobba group, Menzies form venture for cargo handling

The Bangalore-based Bobba group and its partner Menzies Aviation plc have formed a 51:49 venture to pursue cargo handling at Bangalore's greenfield international airport. Their combine, one of the two airport cargo concessionaires, plans to invest Rs 75-80 crore in the initial phase, Mr V.S. Bobba, Chairman of the Bobba group, told Business Line.

It will take up the construction of its facilities in September this year and expects to complete the work in a year. The tendering process to pick 3-4 sub-contractors will start shortly, Mr Bobba said, adding that the work on architectural designs has been assigned to JAPCON.

The Rs 1,412-crore airport has been estimated to generate cargo capacity of 2-3 lakh tonnes a year from the operational year, 2008.

The other cargo player at BIA, Air India-Singapore Airport Terminal Services Ltd, has formed a 50:50 venture for the Bangalore airport cargo. It is expected to put in a similar amount in its facilities. This is the first Indian cargo foray for aviation services major SATS, according to its President & CEO, Mr Ng Chin Hwee. Each player has been allotted 7.3 acres on the airport site at Devanahalli, 30 km from the city. The airport company Bangalore International Airport Ltd, will in turn get a minimum annual guaranteed payment from the two players, according to Mr Stephan Widrig, Chief Commercial Officer of BIAL.

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