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'Aviation to outshine traditional cargo carriers'

Fuelled by surging economy and is set to cut further into traditionally preferred channels of transportation, an Assocham study has said.

india Updated: Sep 04, 2007 17:13 IST

Fuelled by surging economy, cargo growth in the aviation sector surpassed freight movement by railways and shipping, and is set to cut further into traditionally preferred channels of transportation, an Assocham study has said.

With the advent of dedicated cargo aircraft at international and domestic routes, the fast growing goods traffic by air is expected to chip away the share of railways and shipping if immediate reforms are not started to boost the traffic flow in the latter, Assocham Eco Pulse (AEP)study said.

The AEP Study on 'Changing Pattern of Cargo Traffic in India for the period of 2000-2007, analysing three major modes of transportation has found that cargo business in the aviation sector has grown by around 19 per cent as against 10.3 per cent and 9.2 per cent growth in shipping and railways freight traffic during last three years.

Economic expansion, robust commercial activity and fast growing food processing sector has led to a strong and secular growth in air cargo traffic. The domestic traffic of the airlines has shot up by about 34 per cent in 2006-07 while international cargo movement registered an estimated growth of 15 per cent. Bulging domestic traffic has reduced the proportion of international freight to inland traffic from 200 per cent in the year 2000 to 164 per cent in 2007 primarily on account of rise in low-cost domestic airlines.

"With the government laying emphasis on food processing sector and horticulture, there is a need for greater cargo capacity at low cost in the domestic market. Dedicated freight aircraft at national international routes would give a boost to industry," Assocham President Venugopal N Dhoot said.