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   randhi 
        Mallikarjun Rao (GMR) must be a satisfied man. As promoter of the state-of-the-art 
        Greenfield airport at Hyderabad, his dream of making the airport a hub 
        came closer to fulfillment when the airport recently signed its first 
        client -- Turbo Jet Engines -- for the country’s first airport-based 
        Free Trade Zone (FTZ) at Rajiv Gandhi International Airport (RGIA), Hyderabad. 
        An elated S G K Kishore, CEO, GHIAL said: “The Free Trade Zone at 
        the airport is envisioned to fuel the growth of a strong airport-driven 
        economy. It will provide a compelling value proposition to players across 
        the industry value chain by offering modern and integrated ecosystem that 
        will bring down transportation costs and reduce the turnaround time for 
        movement of goods. The FTZ will also provide facilities for servicing, 
        distribution, trading, warehousing of goods and other value additions.” All strong pointers to boosting air cargo 
        growth. Top officials in the cargo division of the airport point out that 
        the operations of Turbo Jet Engines would comprise repair and calibration 
        of aircraft parts with original equipment manufacturers and airlines sending 
        equipment from any part of the world to the facility at the FTZ. The facility 
        will also derive synergies from the aircraft MRO located at the airport, 
        besides supporting air cargo stakeholders such as airlines and logistics 
        players, thus creating a multiplier effect and an integrated ecosystem.
 The development is significant, considering 
        that it will complement air cargo growth and boost product diversification 
        at RGIA and dovetail with the airport’s strategy to establish facilities 
        to provide seamless facilitation of goods and services in line with its 
        vision of making RGIA the ‘Logistics Hub of India’.
 For the son of a farmer from the coastal district 
        of Srikakulam in the state of Andhra Pradesh to move into the big leagues 
        as an infrastructure developer, it was indeed a huge leap. But G M Rao 
        and his team have been hugely successful: not only is there the Rajiv 
        Gandhi International Airport (RGIA) at Hyderabad but there is also the 
        classy -- and now well-known – Indira Gandhi International Airport 
        in Delhi and the Sabiha Gokcen Airport at Istanbul. The GMR Group also 
        has 9 highways, 2 Special Investment Regions, 9 Power Plants, 3 coal blocks 
        and 2 power transmission assets spread out across the country. All this 
        in a short span of 20-odd years after entering the infrastructure sector.
 The GMR Hyderabad International Airport (GHIAL) 
        is a joint venture promoted by GMR Infrastructure (63 per cent), Airports 
        Authority of India (13 per cent), Andhra Pradesh government (13 per cent) 
        and Malaysian Airports Holdings Berhad (11 per cent). GHIAL has the mandate 
        to build, own and operate the airport for 60 years. The airport started 
        operations in March 2008 with an initial capacity of 150,000 tons of cargo 
        handling capacity per annum and 12 million passengers per annum (MPPA).
 Pushing the hub concept through, the GHIAL management 
        has taken a leaf out of successful airport stories being played out at 
        Dubai or Memphis, where there was little or no industrial activity. Today, 
        airports at both places are not only thriving but Unlike Memphis International 
        Airport, GHIAL’s vision is to develop an Aerotropolis around the 
        airport; link the airport and area businesses offering quick efficient 
        access to suppliers and customers through the country and the world; attract 
        investments, create jobs, boost economic growth around the airport and, 
        of course, lastly develop the Integrated Logistic Hub.
 To add muscle to the hub concept, GHIAL has done 
        some basic research comparing the UAE with India. While the UAE (Area: 
        83,600 sq km) with its GDP of $47,729 handled 16,951 MT of air cargo per 
        billion dollars of GDP output, India with its 3,287,263 sq km area and 
        a GDP of $3.694 handled only 516 MT of air cargo per billion dollars of 
        GDP output. In fact, India is also nowhere near Hong Kong (12,883.4 MT/bn 
        $ GDP) or Singapore (6,164.4 MT/bn $ GDP). There is, therefore, potential 
        for India to play a major role in the air cargo market. In addition, the 
        Hyderabad airport satisfied all the conditions required for a hub among 
        which were its strategic location, infrastructure, air and road connectivity, 
        an industrial belt around the airport, multi-modal connectivity and a 
        captive FTZ/SEZ.
 A senior airport official commented that the 
        airport and its infrastructure was the best kept secret in the international 
        air cargo community. Indeed, RGIA has performed beyond expectations even 
        in these hard times with almost 70 per cent of exports coming from pharmaceutical 
        products. What it is looking for is participation from more carriers.
 Even as a dedicated cargo team ventures into 
        the hinterland to source business opportunities, the airport management 
        on its part is in innovation mode at all times. This has seen the commissioning 
        of the second or alternate runway capable of taking Code-E aircraft last 
        year in September.
 
  Two months later, a dedicated upgraded cargo 
        apron to accommodate Code-F (A380 type) aircraft was commissioned. Pitching 
        itself as the “Pharma Hub” of the country, the dedicated cargo 
        apron was essential to accommodate widebody planes. The move was aimed 
        to boost and sustain the integrity of end-to-end cold chain from shippers’ 
        premises to consignees. It was in the innovative mode that the apron was 
        constructed after consultations with customers. Through its unique “VoC” 
        (Voice of Customer) customer feedback initiative, it was decided to set 
        up Code-F aircraft parking stands in close proximity to the terminal since 
        that would ensure the cold chain integrity. These initiatives have enabled 
        RGIA to provide world-class facilities. Said Carsten Hernig, Regional Director, South 
        Asia & Middle East, Lufthansa Cargo, which flies in freighters to 
        transport pharma products, “An excellent infrastructure is essential 
        especially to transport temperature-sensitive goods.” The carrier 
        was delighted with the facilities provided by Hyderabad airport, “which 
        meets precisely all the necessary requirements. This,” said Hernig, 
        “is another important step in the successful Pharma hub cooperation 
        between Hyderabad Airport and Lufthansa Cargo.”
 Tirthankar Ghosh
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