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GMR Group has commissioned a second cargo terminal at Rajiv Gandhi International Airport, expanding the airport’s cargo handling infrastructure as air freight volumes continue to grow across pharmaceuticals, perishables and industrial shipments.
The new facility, launched by GMR Hyderabad International Airport Ltd, will initially handle around 50,000 tonnes of cargo annually, with infrastructure provisions allowing capacity to scale up to 100,000 tonnes in future phases.
Located within Hyderabad airport’s cargo complex, the terminal has been designed to support both domestic and international freight movement. The infrastructure includes separate inbound and outbound processing zones, dedicated import and export handling areas, multi-level storage systems and larger build-up and breakdown sections to improve shipment turnaround times.
A key focus area for the terminal is temperature-sensitive logistics. The facility includes a climate-controlled pharmaceutical handling zone aimed at supporting Hyderabad’s position as a major exporter of vaccines, bulk drugs and life sciences products.
The expansion comes as Indian airports increase investments in specialized cargo infrastructure to accommodate rising demand from e-commerce, healthcare, electronics and high-value manufacturing sectors. Hyderabad airport has emerged as one of India’s largest cargo gateways, handling more than 167,000 tonnes of freight during FY25, according to airport data.
Industry analysts say the additional cargo capacity could strengthen Hyderabad’s role in regional air logistics by improving throughput efficiency for freight forwarders, airlines and supply chain operators serving southern and central India. The development is also expected to support cold-chain distribution and multimodal cargo connectivity linked to the airport’s aerospace and warehousing ecosystem.
Airport officials said the new terminal has been planned with scalability in mind, allowing future expansion as cargo traffic grows across export-oriented sectors.
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There is certainly a spike in the demand for biologics, vaccines, other life-saving drugs, and precision medicines, and they have increasingly become central to the ever-evolving healthcare system. Delivering these across different regions is vital to mankind and requires precision and speed that define the ultimate prerequisites for high-value essentials. With the unique “geographical superpower” of Hong Kong, i.e., the access to half the world’s population within five hours flying time, Cathay Cargo is further bolstering the aviation gateway for the GBA and even the international market by incorporating Cathay Fresh and Cathay Pharma through its Cold Chain Logistics expertise. One of the critical pieces of this strategy is the Air Land Fresh Lane, developed in collaboration with Airport Authority Hong Kong. The system allows creating a clear and efficient intermodal pathway, which facilitates the transportation of inbound goods shipped via Hong Kong to the customs-controlled facilities of the mainland using the same air waybill. The importance of this move is considerable. Traditionally, temperature-sensitive pharmaceutical cargo transported to the Greater Bay Area was prone to re-documentation, delayed customs processing, and cargo re-classification. This resulted in higher risks of exposure to non-optimized temperatures. With Cathay Cargo, it will be possible to avoid such disruptions due to the continuous refrigerated handling from the moment the cargo is discharged from the airplane to its ground transportation. The logistics structure includes temperature-controlled dollies for airport ground movements, GPS-tracked temperature-controlled vehicles, thermal loggers, and chain of custody management by one person in an effort to reduce the risks of temperature excursions while in transit. Besides transport, Cathay Cargo's pharma solution package is being touted as a model to be adopted by others within the region for handling pharma cargo in its regulated form. The facility at the Hong Kong International Airport that is used for pharma handling has been certified by the IATA CEIV Pharma Certification Standards. The facility utilizes near real-time monitoring protocols via the use of its Ultra Track program, thus making it possible to undertake proactive actions when thermal drift or any other irregularities occur while moving and handling. This, alongside an extensive network of over 70 approved drug handling facilities worldwide, ensures continuous supply chains that are becoming decentralized and multi-destination. The coincidence is that this is taking place at the same period as the growth of biotech capabilities of the Greater Bay Area. The areas of Shenzhen, Guangzhou, and Macau are becoming one of the world’s leading biotech centers in Asia due to investments made in biologics manufacture and therapeutics. For more such news and updates, follow CARGOCONNECT.
In a major move to provide relief to the airlines, the BJP-led Delhi Government plans to reduce Value Added Tax (VAT) on Aviation Turbine Fuel (ATF). The announcement is aimed at providing relief to airlines grappling with the rising operational costs amid a hike in global fuel prices. It is learnt that the proposed cut in VAT is expected to replicate the model adopted by Maharashtra, which had earlier slashed VAT on ATF from 18% to 7% in a bid to boost the aviation activity and reduce the overall airline operating expenses. As of today, Delhi levies 25% VAT on ATF, among the highest rates in the country, and industry stakeholders have long maintained that this is a significant factor in increasing the cost of airlines, particularly at the congested aviation hub of the national capital. Reliable sources seem to suggest that the move is intended to ease pressure on the aviation sector when ATF prices have increased globally due to instability in West Asia and rising crude oil prices. A major component of airline operational costs is fuel, and any rise in ATF prices impacts airline profitability and passenger fares. Officials also hope that lowering the VAT on aviation fuel will enable airlines to deal with rising costs and avoid hiking air ticket prices in the next few months. Airlines have expressed concern over rising fuel costs and cautioned that sustained rises in crude oil prices would eventually be passed on to passengers via higher fares. The aviation industry has long urged states to rationalize taxes on ATF, saying that India's aviation fuel taxes remain among the highest in the world and could benefit from lower taxes to improve connectivity, drive passenger traffic, and support the long-term growth of the sector. The decision is also being viewed as an attempt by the Delhi government to keep up with other major aviation hubs. Earlier this year, when the VAT in Maharashtra was reduced, it had reportedly resulted in operational benefits for airlines and an increase in fuel uplift at the airports in the state. While it is still awaiting an official announcement, sources said that discussions on the proposal are at an advanced stage and a final decision could be taken soon. In recent weeks, the ongoing Iran-Israel conflict has added to the pressure on ATF prices by disrupting global crude oil markets and stoking fears about supply instability in West Asia. For more such news and updates, visit CARGOCONNECT.
India’s air cargo sector has achieved a major milestone, handling a record 3.72 million metric tonnes (MMT) in FY2024-25, underlining the country’s growing prominence in global trade and logistics. The achievement marks a 47 percent rise compared to 2.53 MMT recorded a decade ago in FY2014-15, reflecting sustained investments in aviation infrastructure, policy reforms, and regional connectivity initiatives. The sharp rise in cargo volumes comes at a time when India is positioning itself as a strategic logistics hub for Asia-Pacific trade flows. Industry observers note that the growth has been supported by expanding e-commerce demand, rising pharmaceutical exports, perishables movement, and increasing integration of Indian manufacturers into global supply chains. Cargo operations are now active across 74 airports nationwide, significantly broadening the country’s air freight network. The government, along with the Airports Authority of India, has accelerated investments in warehousing capacity, cargo terminal modernisation, and multimodal logistics integration to support the sector’s expansion. Major infrastructure projects are expected to further strengthen capacity over the next few years. Upcoming greenfield airports at Noida International Airport and Navi Mumbai International Airport are developing large-scale cargo handling facilities aimed at reducing congestion at existing metro airports and improving regional cargo distribution. At the same time, AAI Cargo Logistics and Allied Services Company (AAICLAS) is modernising terminals at strategic locations including Srinagar, Dehradun, Dibrugarh, Dimapur, Vijayawada, and Jodhpur. Policy support has also emerged as a key growth enabler. One of the long-standing challenges for Tier-II and Tier-III airports has been the cost burden associated with customs operations. To address this issue, the government has introduced a reimbursement mechanism for customs deployment expenses at 27 airports, including 15 dedicated cargo terminals, during the 2024-27 period. The initiative is expected to improve the financial viability of smaller cargo gateways and promote decentralised trade growth across regional India. The momentum appears set to continue. Official figures indicate that India had already handled 2.98 MMT of air cargo by December of the current fiscal year, placing the sector on course for another record performance. Globally, air cargo demand also remains resilient. According to the International Air Transport Association, worldwide air cargo volumes touched record levels in 2025, supported by strong international trade activity and growing cross-border e-commerce. For India, the latest milestone signals more than just rising freight volumes. It reflects the country’s broader ambition to become a globally competitive logistics and manufacturing hub backed by modern infrastructure, policy-driven reforms, and stronger regional connectivity. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 https://cargoconnect.co.in/ 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
