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Airport Authority of India looks at masterplan review for Chennai Airport

Intention is to look into possibility of outsourcing works, probably a build-operate-transfer model for air cargo terminal

Gireesh Babu Chennai
The Airport Authority of India (AAI) might go for a new cargo terminal on outsourcing model by revising its master plan for the Chennai Airport, if it accepts a report of the Centre for Asia Pacific Aviation (CAPA) on the modernisation of the Airport.

"In our phase II development, we are open to have a new cargo terminal on outsourcing model in the Chennai Airport," said G K Chaukiyal, member (operations), AAI. He was addressing various stakeholders in air cargo industry an interactive session on Aviation Cargo Industry: A vital link in logistics, organised by the Southern India Chamber of Commerce and Industry and Chennai Custom House Agent's Association, in assocition with Air Cargo Agents Association of India.

Speaking to reporters, he added that the master plan would be changed if a CAPA report is accepted by the Authority. Decision on acceptance of the report would be taken in next two weeks. The study was to look into the actual potential of the Chennai Airport both in terms of passenger and cargo freight.

The intention is to look into the possibility of outsourcing the works, probably a Build-operate-transfer (BoT) model for the air cargo terminal, which is also a model followed by some of the other airports in the country.

Generally, under the model, the land would be provided by the Authority, in which the private company has to develop and maintain the terminal. The private company for BoT model would be identified through tender process. However, model through the revision of the master plan would be considered only after the report is accepted, he said.

It may be noted that recently, during the inauguration of the new domestic and international terminals of the Chennai Airport, the AAI has said that it is looking at the potential of the Chennai Airport becoming a hub for airline companies in South East Asia region. The connectivity with sea ports and the availability of major cargo routes would be an advantage for the airport to become a hub, compared to the airports in the nearby states, said V P Agrawal, chairman of AAI.

According to the AAI officials, the current cargo facility of Chennai Airport has a capacity of 11 lakh tonne, of which only 3.5 lakh is utilised and there is enough potential in optimising the existing capacity.

Yashwant S Bhave, chairman of Airports Economic Regulatory Authority of India, while delivering his speech, said that the Chennai Airport has a potential to emerge as a hub for air cargo industry. The regulator would stick to its duty to offer a fair and nutral framework for the airlines industry, he told the industry officials.


The government is currently looking at setting up no-frills, low cost airports and airlines which could bring down the cost of travelling for the citizen, said Machendranathan, additional secretary, Ministry of Civil Aviation, Govt of India.
 

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First Published: Feb 09 2013 | 6:11 PM IST

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