Monday, December 23, 2024

Businesses hit by 18-month suspension of international air cargon Local businesses now relying on road transport, which increases shipping costs and time

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Visakhapatnam, a key industrial hub in India, is grappling with significant logistical challenges due to the ongoing suspension of international air cargo services at its international airport. The disruption, which has lasted over 18 months, has severely impacted the region’s export and import operations, forcing businesses to rely on more costly and time-consuming alternatives.
Local businesses are feeling the pinch, with many relying on road transport, which increases shipping costs and time. “The delays are having a direct impact on our ability to meet global demand,” said a representative of a leading pharmaceutical company.
The situation is particularly acute for companies like Brandix India Apparel City in Atchutapuram, which relies heavily on air freight for importing raw materials from and exporting finished garments to Sri Lanka. “Around 50 per cent of the cargo space on these flights would be utilised by our shipments, optimizing the overall flow,” said a company representative.
Union Minister Kinjarapu Ram Mohan Naidu has been actively advocating for a resolution. “The government is aware of the challenges faced by the industry,” Naidu said. “We are pushing for immediate steps to revive the international air cargo service.” He raised the matter with Minister Nara Lokesh during a visit to Visakhapatnam in September, who subsequently discussed it with the Union Minister.
Despite ongoing efforts, tangible progress has been slow. O Naresh Kumar, vice-president of the AP Air Passengers Association, confirmed that discussions are ongoing, saying, “We met with the Union Minister during his recent visit, and he spoke to the Chairman of the Airport Authority of India (AAI) about the issue. We are hopeful that air cargo services will resume soon.”
Currently, flights to destinations like Singapore, Bangkok, and Malaysia have the capacity to carry cargo but are restricted to passenger transport. Adding to the challenge, the Kuala Lumpur service is slated to cease operations in January due to insufficient passenger traffic, further reducing potential cargo capacity.
The local business community is urging immediate action, as the impasse continues to affect businesses in Visakhapatnam. Raja Reddy, Director of Visakhapatnam Airport, confirmed that discussions regarding the resumption of international cargo services are ongoing in Delhi. “We are exploring the possibility of assigning international cargo operations to the AP Trade Promotion Corporation.”

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