Aviation cargo services outshine railways, shipping, says ASSOCHAM

India's rapid economic expansion, commerce and the fast growing food processing sector has led to a strong and secular growth in air cargo traffic. Domestic cargo movement of airlines has shot up by about 34 per cent in 2007, while international cargo movement has grown by 15 per cent.

Cargo growth in aviation over the last three years has overtaken the railways and shipping, and is set to grab part of their share of freight traffic, says the Associated Chambers of Commerce and Industry of India (ASSOCHAM), which sponsored the ASSOCHAM-Eco Pulse (AEP) study.

The AEP study on Changing Pattern of Cargo Traffic in India from 2000 to 2007 analysed three major modes of transportation — aviation, railways and shipping. It found that cargo business in the aviation sector grew by around 19 per cent, against 10.3 per cent and 9.2 per cent in shipping and railways during the last three years.

The burgeoning domestic traffic has reduced the proportion of international airfreight to inland traffic from 200 per cent in 2000 to 164 per cent in 2007, mainly because of the rise of low-cost domestic airlines.

Along with logistic companies and retail majors, domestic airlines are launching dedicated freight aircraft to boost goods traffic within the country.

The government is laying emphasis on the food-processing sector and horticulture, giving rise to a need for greater capacity in low-cost domestic airfreight. Dedicated freight aircraft flying national and international routes would give a boost to industry, ASSOCHAM president Venugopal Dhoot said.