CARGOCONNECT-MAY23 - Flipbook - Page 42
FEATURE : AIR CARGO
The implied additional urgency that comes with e-commerce – particularly where
the consignee is the end consumer – means that we cannot always process
e-commerce traffic through the same channels as “normal” air cargo. Some of the
e-fulfilment processes also require additional facilities and capabilities. That’s why
Hactl’s value-added logistics subsidiary, Hacis, has opened a dedicated e-commerce
fulfilment facility in 2021, and has recently installed temperature-controlled
storage and work spaces, for e-commerce perishables fulfilment.
WILSON KWONG, CHIEF EXECUTIVE, HACTL
with this, the Union Budget 2023-24 has laid the foundation
for India’s continued macro-economic growth and managed to
do some heavy-lifting by outlining a clear transport focussed
development, funneling investments in infrastructure, promoting
green growth by transitioning to cleaner energy sources first.
As per the leading industry players, India’s Union budget
2023 is slated to bring broad-based development and act as a
growth multiplier for the economy.
The budget follows the government’s vision of ‘Atmanirbhar
Bharat’ and of India becoming a US$5 trillion economy by 2025
by focusing on extensive connectivity, reducing logistics costs
and with an emphasis on the greener and sustainable practices
in the warehousing and supply chain
networks.
Firstly, the overall infrastructure
spend is up by 33 per cent to 10 lakh
crores, which forms 3.3 per cent of GDP
in this year. The investment of `75,000
crore, including `15,000 crore from
private sources, allocated for 100 critical
transport infrastructure projects, for
last and first mile connectivity and for
ports, coal, steel, fertiliser, and food
grains sectors, also brought in the desired
optimism to the logistics sector.
The budget outlined that the
revamped credit guarantee scheme for
MSMEs is to take effect from 1st April
2023, through infusion of `9,000 crore
in the corpus. This scheme would enable
additional collateral-free guaranteed
credit of `2 lakh crore and also reduce the cost of the credit by
about 1 percent. Another MSME-friendly announcement made
in the budget was that 95 percent of the forfeited amount,
relating to bid or performance security, will be returned to
MSMEs, by the government, and government undertakings in
cases where the MSMEs had failed to execute contracts during
the COVID-19 period.
The Finance Minister has announced `35,000 crore outlay for
energy security, energy transition and net-zero objectives. The
government’s emphasis on this is likely to spur investment and
skill development in relevant industries and these investments
are also vital spearheads in India’s efforts to achieve net-zero
carbon emissions by 2070.
The Union Budget 2023 has committed considerable resources
towards infrastructure development through dedicated freight
corridors, increased land, air, and sea connectivity; and technologydriven solutions for a better supply chain visibility. There is also
a renewed spotlight on the air cargo industry and the need for
formulating a seamless air cargo movement.
Jasmine Singh, Senior Executive Director and Head –
Industrial and Logistics, CBRE India shares, “The Union Budget
2023-24 presented by the finance minister also emphasised
promoting a “green” economy. The provisions support capital
investments towards energy transition, net-zero objectives,
and energy security. The real estate sector has been under the
spotlight for meeting sustainability goals, and developers have
begun to deliver net-zero targets and contribute to the larger
cause of climate change. Given the necessity to reduce carbon
emissions, the environmental norms play a significant role in
the industrial and logistics segment as occupiers expect logistics
facilities to include a range of advanced features to support their
long-term business goals. Sustainability
elements now feature at the top and are
no longer an additional feature. Instead,
it has become a necessity to define the
competitiveness of any warehousing
project. The sector is now contributing
towards the green goal and has set eyes
on net-zero targets with intertwined
decarbonisation strategies. Features
that are now part of upcoming projects
include steel structures to hold solar
panels, sewage treatment plants (STP)/
water treatment plants (WTP), daytime
light/ridge ventilation, greening of facilities, etc. As we move forward in 2023, the
developers and occupiers are evaluating
the entire supply chain, with respect to
ESG standards, to achieve their goals.
Green certificates, renewable energy,
and green operations form the new strategic approach in the
warehousing sector.”
Taking cue from Singh’s statement, Kwong says, “India’s
moves are echoed throughout large parts of the world.”
“We are all keen to reduce our dependence on fossil fuels
for environmental reasons, but also what has happened to the
wholesale energy prices has sparked a new interest in energy
security,” he adds.
THE UNION BUDGET 2023-24 HAS
LAID THE FOUNDATION FOR INDIA’S
CONTINUED MACRO-ECONOMIC
GROWTH AND MANAGED TO DO
SOME HEAVY-LIFTING BY OUTLINING
A CLEAR TRANSPORT FOCUSSED
DEVELOPMENT, FUNNELING
INVESTMENTS IN INFRASTRUCTURE,
PROMOTING GREEN GROWTH,
BY TRANSITIONING TO CLEANER
ENERGY SOURCES FIRST.
42 | CARGOCONNECT MAY 2023
INDIAN FREIGHTER FLEET
DEVELOPMENT AND THE CASE AT HAND
Over the next two years, India will spend approximately `980
billion (US$12 billion) on airports, with airline orders for hundreds
of new planes to meet the resurgent travel demand, placing strain
on the existing infrastructure.
The world’s fastest-growing aviation market plans to increase
the number of airports from 148 to 220 by 2025, with private
builders investing about US$9 billion and the state-run Airports
Authority of India (AAI) contributing the remainder. It entails