AISATS and YIAPL to construct high-tech cargo hub in Noida

The MMCH at Noida International Airport is scheduled to commence operations in 2024.

Air India's joint venture firm AISATS and Yamuna International Airport have on May 31 announced the signing of a concessionaire agreement to establish a multi-modal cargo hub (MMCH) at the upcoming Noida International Airport.

Under the agreement, AISATS will take charge of designing, constructing, financing, and operating the cargo hub, which will occupy 87 acres of land and provide efficient intermodal connectivity to manufacturing hubs across the country, the company informed the exchanges.

The MMCH at the Noida International Airport is scheduled to commence operations in 2024.

The cargo hub aims to “revolutionise” the logistics sector by offering a cargo processing and transportation grid that reduces logistics costs, streamlines coordination processes, and enhances speed and transparency in the supply chain, the release said.

Value add

Nipun Aggarwal, Chairman of AISATS, emphasised the importance of the Noida cargo hub in providing timely cargo facilities to the northern region of India, while also improving infrastructure, value-added services, and cost efficiency in the logistics and air cargo sectors.

“Air India sees tremendous growth opportunities in Uttar Pradesh and is keen to provide seamless cargo connectivity within the state to power this growth. We have no doubt the AISATS MMCH at Noida will have a knock-on effect and help increase India’s trade, provide employment opportunities and ease the movement of goods across the country,” Aggarwal said.

"Our goal is to enhance Uttar Pradesh's supply chain efficiency and make Noida a strategic cargo gateway to North India and beyond. Through our collaboration with YIAPL, we aim to deliver a seamless and best-in-class cargo experience for all stakeholders and position Noida International Airport as a key player in the global cargo industry," added Sanjay Gupta, CEO of AISATS.

AISATS, is a 50:50 joint venture between Air India (a Tata Group entity) and SATS (a leading provider of food and gateway services in Asia). Yamuna International Airport (YIAPL), is a special purpose vehicle (SPV) formed by Noida Airport concessionaire Zurich AG.

Growth strategy

The strategic location of this cargo hub seeks to seamlessly connect various modes of transportation, facilitating the smooth flow of cargo within India and internationally, the release added. AISATS also highlighted the growth potential in the air cargo logistics space in India and expressed its commitment to developing Noida as a strategic air cargo and export hub in partnership with Tata Group's Air India.

Bob Chi, CEO of SATS Gateway Services, added that this development would further expand their global air cargo hub handling capabilities as part of their growth strategy.

“India is one of the world’s fastest-growing economies with huge opportunities for growth in the air cargo logistics space. Establishing an integrated logistics gateway in Noida will help develop the region into a strategic air cargo and export hub. Such a development also accelerates the expansion of our global air cargo hub handling capabilities as part of SATS’ twin-engine growth strategy,” Chi said.

The project will “enhance efficiency, foster growth … and play a vital role in connecting manufacturing hubs and facilitating seamless cargo operations” in India, the release added.