Adani and Assam Government plans to develop Perishable Cargo Market of North East at LGBI Airport

Adani and Assam Government plans to develop Perishable Cargo Market of North East at the LGBI Airport.

Assam government and the Adani group-backed Guwahati International Airport Limited (GIAL) are in advanced level talks to develop a high-end perishable cargo market near the Lokpriya Gopinath Bordoloi International Airport for the export of agricultural products of the region to the international markets.

“Very soon GIAL is planning to develop a perishable cargo market for the entire North East near the LGBI airport. We are having talks with the Assam government and will assist the state government in developing the cargo market," Utpal Barua, Chief Airport Officer of GIAL told Business Northeast.

Barua added that the northeast region has a huge potential for the cargo market and the Adani group will endeavour to bring about perceptible growth in the cargo business in the region.

“The most powerful chilly- Bhut Jolokia, the finest ginger cultivated on earth, varieties of cactus, bamboo products, rice products, tea products, rare flora and fauna, wildlife and rich heritage products enrich the northeast region with a huge potential of cargo market, hitherto unexplored,” Barua said.

Guwahati airport has witnessed a growth in cargo movement at a compound annual growth rate of 18 per cent for the last 10 years.

Inbound cargo at the airport stands at 11,300 MT while the outbound cargo stands at 5,700 MT in 2016-17, according to a survey.

Notably, the Assam Industrial Development Corporation set up a Centre for Perishable Cargo (CPC) at LGBI Airport, Guwahati in 2008. The project aimed to provide state-of-the-art infrastructures for air cargo handling facilities, and cold storage and to boost the export of horticulture products from the North Eastern Region.
It may be mentioned here that, the Ministry of Civil Aviation has announced the waivers on seven cargo routes covering 53 airports of the country under Krishi UDAN 2.0 which focuses on perishable agricultural and horticultural produce from the Northeast and other hilly regions.

The model adopted for targeted promotion of cargo of farm produce is the 'hub and spoke model' under which distribution of goods takes place from a centralised hub.

Airside transit and transhipment infrastructure will be created at Bagdogra and Guwahati airports, and at Leh, Srinagar, Nagpur, Nashik, Ranchi, and Raipur airports as a part of the focus on North East, tribal and hilly districts. Cargo facilities are also proposed to be developed at Agartala, Dibrugarh, Dimapur, Imphal, Jorhat, Lilabari, Silchar and Tezpur airports under the model in the current financial year.

The routes with focused products for air cargo identified are Guwahati and Hong Kong for pulses, fruits and vegetables; Dibrugarh-Delhi and Dubai for mandarin and oranges. Agartala to Delhi and Dubai for pineapple triggers hope for farm producers and entrepreneurs in the agricultural and horticultural sectors.

Having hassle-free cargo movement at the hubs will require huge investment for the expansion of existing cargo handling areas with modern facilities of transit and transhipment to cater to future market demands.

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