ACAAI demands greater investment

The Air Cargo Agents Association of India (ACAAI) has published a country report on the status of the subcontinent's airfreight industry, which outlines healthy activity, despite the need for substantial investment on the ground.
GROUND CONTROL: ACAAI wants local systems upgraded.
GROUND CONTROL: ACAAI wants local systems upgraded.

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The Air Cargo Agents Association of India (ACAAI) has published a country report on the status of the subcontinent's airfreight industry, which outlines healthy activity, despite the need for substantial investment on the ground.

The association's report indicates that a number of factors have combined to produce strong growth, including the dedicated launch of freighter services by several large airlines and the government raising the limit of foreign direct investment in cargo airlines from 49% to 74% of the company.

As a result, air cargo has overtaken the ocean freight and rail freight market by expanding at nearly 19% in the last three years, as opposed to 10.3% and 9.2% for road and rail, respectively. In addition, the privatisation of cargo management at many of India's metropolitan airports is also accelerating growth impressively.

However, the report also highlighted the inadequacies of India's fledging airfreight network, referring in particular to the lack of infrastructure, in terms of documentation, procedures, automation, systems and roads, and overbearing regulation, which limits the cargo local clearance time to around 36 hours.

In addition, a lack of experienced manpower, the poor Indian Customs IT equipment, and the fragmented EDI of the major players in the field of logistics are also limiting factors on the growth of the industry locally.

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