The Express Industry Council of India (EICI)
recently released the Indian Express Industry-2018 report which presents
an optimistic scenario for the domestic express industry.
With an annual growth rate of 15 per cent,
the express industry in India has rocketed upward.
However, the report stated, though it has
enormous potential, obstacles have stymied its growth.
Among the obstacles EICI points out are
lease periods for infrastructure developments.
The period should be increased to 30 years.
“For development of air cargo infrastructure,” the report
said,” there should be time-bound approval from the Bureau of Civil
Aviation Security (BCAS),” aimed at example, for the commissioning
of cargo and express terminals.
Flipkart Challenges Operators
Pointing to Amazon and home-grown Flipkart,
the report said that “e-commerce players have challenged express
operations and “unlocked” opportunities by bringing in value
“In fact, e-commerce players have
caused a major disruption in the domestic cargo sector.
“E-retail, as a part of the B2C express
segment, is estimated to contribute Rs 5000 crore ($752 million) to the
express industry during this fiscal.
“In terms of volume, the report states,”
close to 1.3 million shipments are being shipped daily – including
the forward fulfillments and returns,” the report said.
E-Retail Changes Everything
“The dynamic and competitive nature
of the e-retail segment has brought in many new trends for the industry
such as adoption of alternate delivery methods, customer-centric delivery,
shift from air express to surface express, increase in regional movement,
adoption of technology and expansion to remote locations,” the report
Need For Greater Handling Flexibility
The report also pointed out that if foreign
cargo carriers were allowed to self-handle security functions and obtain
regulated agent certification, it would facilitate the ease of doing business
and also hasten the development of the air infrastructure as well as air
Overseas For Domestic All Cargo?
the most important recommendation made in the report concerns domestic
cargo carriers .
“The government,” said the report,
“should allow domestic cargo carriers to fly abroad.
“That,” according to Vijay Kumar,
COO of EICI, “will not only bring more operators but give us a level
playing field” with international cargo operators.
“The EICI would like the government
to re-evaluate the civil aviation policy and open the skies to domestic
cargo operators, Mr. Kumar declared.
Today India's top domestic air cargo operator
is Blue Dart and the only other dedicated cargo carrier – though
on a much smaller scale – is Quikjet.