Just-in-time manufacturing coupled with global outsourcing business model will continue to push demand for Air cargo

business in India. Faster movement of raw materials, components, parts and spares help firms in maintaining lower inventories
Transshipment or Transhipment is the shipment of goods or containers to an intermediate destination, and then from there to yet another destination.

Transshipment throughput at Indian airports is assumed to grow at a much higher rate than what it is now based on a number of factors. Transshipment cargo constitutes as high as 60-70% of total volumes handled by some of leading airports tends to be negligible for Indian airports. A significant potential lies for the Indian airports to become transshipment hub. Given its geographic location, India is well placed to capitalize on this opportunity. While neighboring countries of India, particularly Bangladesh and Sri Lanka, have sizeable international trade with Europe and US, they have very limited direct connectivity to US and Europe.

Further, security regulations are becoming stringent in developed regions such as Europe and U.S.A. in so far as air freight is concerned. It is our understanding that India is and it will continue to be capable of complying with such regulations which itself will place India at an advantageous position when it comes to air cargo operations in the region. Also, India has a large scope for multi-modal connectivity because of its vast coast line with access to modern ports in the region. As India becomes a key node in the network of most global airlines, the transshipment service would offer a significant market potential. If the growth potential of this segment is appropriately harnessed, Indian airports can become cargo hubs of the region.