International cargo operations at Visakhapatnam airport hangs fire

Reduction of licence fee from Rs 6 lakh to Rs 3.5 lakh yields little.

VISAKHAPATNAM: The international cargo services in the Vizag International Airport which were scheduled to start last year hang fire as things are not going according to the plans. Even after floating tenders thrice in the last one-and-a-half years, the bidders are shying away from the project.

There was not a single private operator who came forward when the tenders were floated for the first two times. In the third time too, there was no response.  Since the conditions were eased, including the reduction of licence fee from Rs 6 lakh to Rs 3.5 lakh, there was only one bidder who showed interest in the proposal when the tender was floated for the third time. However, it was rejected by the Airports Authority of India (AAI) as the bidder did not fulfil the requirements, said airport director Vinod Sharma.

Speaking to Express, Vinod Sharma said, “To handle the international air cargo operations at the airport, we are negotiating with AP State Trading Corporation Limited (APSTC). The discussions were held a few days ago in the airport with the APSTC CMD and the latter has agreed. We are now working on the agreement that has to be signed between both the parties and are waiting for the final letter of approval, after which the cargo services are expected to be launched in two-three months,” he added.  

The Port City is already connected to three international destinations _ Singapore, Dubai and Kuala Lumpur. The fourth international flight to Colombo is expected to begin in July. Hence, if all goes well, there would be a direct cargo service to these destinations which would facilitate trade services and generate revenue. Moreover, the cargo services to other countries which are not directly connected to Visakhapatnam will be operating from Vizag- Hyderabad/Mumbai/ Delhi- the USA/UK.   

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