The Ministry of Civil Aviation has fast tracked creation of air freight stations (AFS), an off-airport common user facility, to handle air cargo across the country. It is a key project to be highlighted in the 100-day achievement of the new government, according to sources.

The AFS will help in penetration of international air cargo activities into manufacturing and consumption clusters located in the hinterland, as well as decongest air cargo terminals.

Better planning by airlines for export will be facilitated as advance information about Customs clearance will now be available.

The idea is to cut down transaction costs for companies, improve productivity, efficiency and enhance competitiveness. By providing AFS closer to production/consumption hubs, the air cargo industry would get the required support and boost, said sources.

The concept of AFS was first introduced seven years ago in Chennai to help customers take delivery of cargo in one or two days. However, it failed to take off owing to absence of an integrated approach involving all connected agencies.

The new government wants to revive the project with a few changes. This was discussed at an Air Cargo Logistic Promotion Board meeting in Delhi, said sources.

A draft guideline prepared by MoCA on AFS is under circulation with various stakeholders. It is a globally accepted practice to confine terminals (sea or airport) as transit points and extend all other processes to outside facilities.

India was lagging in this concept but with the advent of Customs Electronic Data Interchange, Risk Management System and Accredited Clients Programme coupled with the congestion in the approach roads, seaports have realised the advantages of container freight stations (CFS) that have sprung up in Chennai, Nhava Sheva, Kolkata, Tuticorin and Visakhapatnam.

Feedback from industry suggests that there is need for common and binding policy guidelines to facilitate setting up of AFS, covering all government agencies and other private operators involved in the supply chain of export and import cargo, sources said.

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