• Andhra Pradesh launched the Air Cargo Forum India (ACFI) Andhra Pradesh Chapter in Visakhapatnam to develop the state as a key air cargo hub, aiming to decentralise India’s logistics network, reduce congestion at metro airports, and support the country’s goal of US$2 trillion in exports by 2030.
• The initiative focuses on policy reforms such as Open Sky liberalisation and elimination of “double dipping” charges, alongside infrastructure development for multimodal connectivity, cold-chain logistics, and GDP-compliant pharma facilities to support high-value exports like seafood, pharmaceuticals, and electronics.
• Visakhapatnam’s strategic location, combined with public-private collaboration through ACFI, positions it as a competitive eastern gateway, with digital cargo systems, streamlined customs, and sector-specific investments key to enhancing efficiency, reducing lead times, and integrating India’s airfreight ecosystem.

Andhra Pradesh, India, has taken a decisive step towards positioning itself as a key logistics hub on India’s eastern seaboard with the launch of the Air Cargo Forum India (ACFI) Andhra Pradesh Chapter in Visakhapatnam. The initiative, inaugurated on 2 September by Chief Minister Shri Nara Chandrababu Naidu and attended by more than 350 delegates from across aviation, logistics, trade, and industry, underscores a coordinated policy and industry push to decentralise India’s air cargo network and unlock new gateways for international trade.

The event featured a CEO Roundtable with senior leaders and policymakers, where critical sectoral challenges were highlighted, including calls for a more liberal Open Sky Policy and the elimination of “double dipping”—the practice of applying multiple charges for similar services in the cargo handling process. These issues, long considered bottlenecks in India’s logistics competitiveness, are now in sharper focus as trade volumes expand and India aims to raise exports to US$2 trillion annually by 2030.

A strategic inflection point for eastern India

The launch comes at a time when India’s air cargo industry is undergoing a structural shift. For decades, the country’s logistics flows have been heavily centralised, with Delhi and Mumbai airports together handling more than 45 percent of the nation’s airfreight. This concentration has led to congestion, limited capacity flexibility, and increased dependence on transshipment hubs in the Gulf and Southeast Asia.

Visakhapatnam offers a compelling alternative. As India’s third-largest port city, its location along the Bay of Bengal makes it a natural gateway to East and Southeast Asia. With deep-water ports, industrial corridors, and a growing base in pharmaceuticals, seafood, and electronics, Andhra Pradesh is well positioned to emerge as a logistics and manufacturing hub for high-value exports.

The Chief Minister, who has long advocated infrastructure-led growth, highlighted logistics as central to the state’s industrial vision, aligning it with the National Logistics Policy (NLP) and the PM GatiShakti initiative. Both policies aim to integrate multimodal transport systems and bring India’s logistics costs—currently estimated at 13–14 percent of GDP—closer to the global benchmark of 8–9 percent.

“Integrated multimodal connectivity is vital for Andhra Pradesh’s economic future,” Naidu said at the launch. “Our objective is to create a seamless network where ports, airports, and industrial clusters work in harmony to support trade growth and strengthen the state’s competitiveness.”

Industry perspectives: Advocacy and action

ACFI’s leadership emphasised that the formation of the Andhra Pradesh Chapter reflects a deeper commitment to addressing policy and operational challenges across India’s logistics ecosystem.

Sanjiv Edward, President of ACFI, noted: “The launch of the Andhra Pradesh Chapter is a major step towards enhancing the state’s role in India’s air cargo growth story. With ACFI’s vision of acting as a catalyst for air cargo growth and the government’s focus on developing integrated logistics hubs, we are confident Andhra Pradesh will emerge as a leader in logistics on the eastern side.”

Edward’s comments underscore ACFI’s role as an advocacy body uniting stakeholders from airlines, airports, freight forwarders, express operators, customs brokers, and terminal operators.

Satish Lakkaraju, Chairman of ACFI’s Outreach Pillar & Partnerships, highlighted the association’s collaborative approach: “Our discussions with the Hon’ble Chief Minister on critical issues like the Open Sky Policy and double dipping reflect ACFI’s commitment to addressing industry challenges and enabling sustainable growth. The support shown today is highly encouraging.”

Such engagement is particularly relevant as India’s cargo growth has been robust yet uneven. WorldACD data indicates that India handled approximately 3.3 million tonnes of air cargo in 2024, with pharmaceutical shipments accounting for 10 percent of global pharma airfreight volumes. Electronics, automotive components, and perishables remain key export sectors, but inefficiencies in customs clearance and infrastructure have hindered scalability.

Policy priorities: Open Sky and pricing transparency

Calls for Open Sky liberalisation reflect industry demands for greater flexibility in freight capacity deployment. Currently, restrictive bilateral agreements can limit foreign freighter operations, particularly in tier-2 and tier-3 cities. Allowing more direct cargo flights to and from emerging hubs such as Visakhapatnam could reduce reliance on transshipment hubs in Dubai, Singapore, and Hong Kong, cutting lead times and costs.

Addressing double dipping is equally critical. Industry stakeholders argue that overlapping charges imposed by multiple entities in the supply chain increase logistics costs and erode India’s export competitiveness. Standardising pricing frameworks and service-level agreements would create transparency, notably for small and medium-sized exporters who often lack bargaining power.

The Visakhapatnam advantage: Infrastructure and industry clusters

Visakhapatnam’s strength lies in its multimodal connectivity. The city hosts one of India’s busiest ports, supported by road and rail links to industrial hubs in Andhra Pradesh, Odisha, and Telangana. Its air cargo potential has remained largely untapped, but the state government’s recent infrastructure investments and ACFI’s advocacy aim to change this.

Andhra Pradesh is already a major seafood exporter, with shipments valued at US$7.5 billion annually, requiring cold-chain logistics that meet stringent global standards. Pharmaceutical manufacturing is also expanding, with the state home to several large-scale API producers. Together, these sectors present a compelling case for specialised air cargo facilities, including GDP-certified pharma terminals, perishables handling infrastructure, and bonded trucking corridors.

India’s broader logistics challenge

India’s logistics ecosystem has shown steady progress in recent years, with significant investments in airport modernisation and multimodal corridors. However, systemic inefficiencies remain. The World Bank’s Logistics Performance Index 2023 placed India 38th, behind Singapore (1st), the UAE (4th), and China (19th). Cargo dwell times at major airports average 24–48 hours, significantly higher than Singapore’s 12-hour benchmark.

Digitalisation is another key gap. According to IATA, global e-AWB penetration exceeds 80 percent, whereas India remains below 60 percent, limiting transparency and speed. These metrics highlight the urgency of initiatives such as the ACFI Andhra Pradesh Chapter, which aims to drive regional reforms that complement national efforts.

Policy takeaways and next steps

The Visakhapatnam launch offers several actionable lessons for policymakers and industry leaders:

1. Decentralised growth strategy: Developing hubs in the east can decongest metros and enhance resilience as India’s exports scale.

2. Regulatory harmonisation: Streamlined customs processes, pricing structures, and service standards can improve ease of doing business and attract direct freighter operations.

3. Digital cargo infrastructure: Mandating e-AWB adoption, deploying cargo community systems, and enabling API-driven pre-arrival customs clearance are essential to reducing dwell times.

4. Sector-specific investments: Cold-chain capacity and pharma corridors will be vital to capturing high-yield exports from Andhra Pradesh and neighbouring states.

5. Public-private collaboration: Platforms such as ACFI must continue to galvanise policy alignment between private-sector innovation and government initiatives.

Building a competitive eastern gateway

The launch of the Andhra Pradesh Chapter is more than a symbolic milestone. It signals a broader recalibration of India’s logistics map, with Visakhapatnam emerging as a potential counterweight to traditional cargo hubs. For exporters in eastern and northeastern India, enhanced connectivity could reduce lead times and diminish reliance on western gateways.

Whether these ambitions are realised will depend on execution. Infrastructure investment must be accompanied by regulatory reform, pricing transparency, and a digital-first operating environment. If successful, Visakhapatnam could become a blueprint for decentralised logistics development, supporting India’s export ambitions while strengthening resilience in an increasingly volatile global trade landscape.

For the air cargo community, the message is clear: India’s growth story is no longer confined to its metros. Regional hubs such as Visakhapatnam may define the next phase of global connectivity, driving a more competitive and integrated airfreight ecosystem.