Air India SATS (AISATS)—a joint venture between Air India and Singapore-based SATS Ltd—has inaugurated a new on-airport integrated logistics park at Bengaluru’s Kempegowda International Airport (BLR Airport). The US23.6 million facility marks one of South India’s largest airside logistics investments to date and is designed to support multimodal cargo handling, trade facilitation, and the country’s broader ambitions to reduce logistics costs and boost exports.
The eight-acre AISATS BLR Logistics Park aims to serve as a high-capacity, digitally connected cargo hub with 240,000 square feet of Grade A warehouse space, bonded facilities, shared cold storage, and office infrastructure tailored for Customs House Agents (CHAs) and freight forwarders. Its integration into BLR Airport’s cargo precinct—India’s third busiest cargo hub—positions it as a critical node in the government’s national logistics modernisation strategy.
“This development reflects our commitment to transforming Bengaluru into a premier logistics and trade gateway. With a focus on digitisation, efficiency, and multimodal connectivity, the park is built to meet the demands of both exporters and freight operators,” said Ramanathan Rajamani, CEO of AISATS.
Supporting India’s trajectory
The facility becomes operational at a time when India’s air cargo volumes are rebounding and the sector is drawing increasing attention from policymakers. BLR Airport recorded a throughput of 502,480 metric tonnes in FY 2024–25, up from 412,668 metric tonnes in FY 2021–22. The airport now handles 40 percent of South India’s air cargo, with an ambition to double volumes to 1 million metric tonnes by 2030. The new logistics park will be central to realising this objective.
To enhance turnaround times and multimodal fluidity, AISATS will operate dedicated airside-to-landside trucking corridors that expedite movement between the park and airport terminals. This is particularly relevant in India, where end-to-end logistics costs still account for approximately 13–14 percent of GDP, nearly double that of developed economies. Enhanced connectivity and integrated warehousing are expected to directly improve throughput for time-sensitive cargo segments, including pharmaceuticals, electronics, precision equipment, and perishables.
Chairman of AISATS, Nipun Aggarwal, emphasised the policy alignment of the project: “The AISATS BLR Logistics Park is more than an infrastructure investment—it is a strategic enabler for India’s ambition to become a global logistics powerhouse, in line with the National Logistics Policy and Make in India.”
Connectivity and customs facilitation
The facility’s design reflects a growing emphasis on integrated customs and trade facilitation. By offering a bonded public warehouse, AISATS aims to serve original equipment manufacturers (OEMs), cross-border e-commerce players, and third-party logistics (3PL) firms seeking to consolidate, store, and clear cargo efficiently within the airport perimeter.
Notably, the facility is digitally integrated with India’s ICEGATE customs platform, enabling automated filings, track-and-trace visibility, and streamlined clearance. Officials anticipate a 25–30 percent reduction in average dwell times for general cargo and temperature-sensitive shipments over the next 12–18 months.
These developments are expected to resonate strongly with international logistics firms and regulatory observers as India scales up its digital single window trade clearance system. The country has advanced significantly on the World Bank’s Logistics Performance Index (LPI), moving up six positions to rank 38th globally in 2023. Continued infrastructure-led improvements at major air cargo hubs are likely to further enhance India’s standing.
Bob Chi, CEO of APAC Gateway Services at SATS, commented: “This park strengthens our regional and global logistics network. With increased capacity and digitally integrated workflows, we are creating a seamless logistics experience for our customers across Asia and beyond.”
