Following the successful launch of the Bangalore Logistics Park at India’s third-busiest international airport in late April, Ramanathan Rajamani, CEO, AISATS, is now focused on the seamless operationalisation of the country’s largest multimodal cargo hub at the upcoming Noida International Airport. An engineering graduate and a master’s in logistics from the National University of Singapore, Rajamani tells INFRASTRUCTURE TODAY that he is actively scouting new airports in tier-1 and tier-2 cities for expansion. Edited excerpts.
What is your outlook on the opportunities in India’s logistics sector?
India’s freight and logistics market is projected to grow 8.8 per cent annually, reaching $484.43 billion by 2029, up from $317.26 billion in 2024. This expansion is driven by infrastructure modernisation, policy reforms, and technological advancements. Multimodal logistics hubs are enhancing domestic and international trade efficiency. DFCs (Dedicated Freight Corridors) of the Indian Railways, Bharatmala, and Sagarmala are cutting transit times by up to 50 per cent, while air cargo infrastructure growth is strengthening supply chains. The express logistics market is set to reach $25 billion by 2026, fuelled by e-commerce expansion and last-mile delivery demand. AI-powered logistics, automated warehousing, and blockchain-based tracking are improving efficiency and transparency. With India emerging as a preferred global logistics hub under the China Plus One strategy, government initiatives like Make in India, Krishi Udan 2.0, and the National Logistics Policy are attracting foreign investments. As multimodal connectivity and digital transformation accelerate, the country is on track to become a global leader in logistics efficiency.
Is that one of the reasons you often characterise the expansion in air cargo infrastructure as a ‘milestone moment’ for Indian logistics?
There are two main reasons. First, the cargo market in India is experiencing phenomenal growth. Bangalore airport, for example, already handles 500,000 metric tonnes (MT) per year, with a target of 1 million MT within the next five years. And this is just Bangalore. Across India, the growth trajectory is even stronger. Second, India’s logistics sector is still somewhat unstructured. A well-defined approach to cargo movement, storage, and handling is essential to achieving the government’s aim of reducing logistics costs from 14 per cent of GDP to 9 per cent. This can only happen with the development of modern, well-planned infrastructure to support industry needs.
Many have termed the current growth in air cargo ports as transformative. How valid is that assessment?
That assessment is valid. For the air cargo industry to scale sustainably and move higher volumes efficiently, both within cities and across borders, a well-integrated ecosystem of logistics parks, multimodal transport, and digitised infrastructure is essential. The development of structured, tech-enabled facilities delivers immense value to cargo handlers, freight forwarders, and transport providers by enhancing speed, transparency, and operational efficiency. This isn’t just growth — it’s a structural transformation of the logistics backbone that supports India’s trade ambitions.
What industry segments do you see as boosting the ongoing expansion in the medium and long term?
In the medium term, e-commerce is one of the biggest drivers. Online shopping continues to grow at an extraordinary pace, increasing demand for express courier terminals, distribution hubs, and sortation centres. Seamless first-and last-mile connectivity will be essential in supporting this expansion. In the long term, multimodal cargo hubs will become increasingly important, especially in larger cities where airports and seaports act as major cargo conduits. While distribution hubs and sortation centres will drive short-to medium-term growth, multimodal cargo hubs will underpin long-term logistics expansion.
You particularly single out the expansion in aviation infrastructure as being a major contributor to this trend. As India looks to develop aerotropolises, what kind of push can they provide to the air cargo business?
Aerotropolises have the potential to transform the way air cargo operates in India. By developing integrated ecosystems around major airports, these hubs bring together businesses, logistics providers, traders, and ancillary services in one location. This proximity drives faster turnaround times, lowers operational costs, and ensures seamless access to warehousing, customs, and value-added services. In effect, an aerotropolis functions like a satellite city, enhancing
cargo efficiency while catalysing regional economic growth. As India accelerates its aviation and logistics ambitions, aerotropolises will play a pivotal role in enabling greater connectivity, streamlined operations, and global trade competitiveness.
With a state-of-the-art logistics park inaugurated at Bengaluru’s Kempegowda International Airport and the large multimodal cargo hub underway at Noida International Airport, why is now the right time to invest in India’s logistics sector?
Bengaluru’s logistics ecosystem was already well-developed, with established cargo terminal operators. We have now introduced the logistics park concept here to enhance efficiency. Noida International Airport, on the other hand, is a greenfield project where we are developing both the integrated cargo terminal and the integrated warehouse and logistics zone, making it a multimodal cargo hub connected by air, rail, and road. Beyond these two projects, further opportunities are emerging, particularly in brownfield developments. For example, Kolkata airport issued a tender last year for the redevelopment and operation of its cargo terminal, and similar projects are taking shape elsewhere. With India’s air cargo market expanding rapidly, we anticipate a growing demand for logistics parks and multimodal cargo hubs.
What are the key highlights of your newly opened logistics park in Bengaluru?
The Bangalore Logistics Park is strategically located near the airport cargo terminal, allowing efficient cargo movement between storage areas and the terminal. Another major advantage is its proximity to the national highway, which ensures faster transportation of goods between the airport and the hinterland. Our warehouse model is designed to accommodate MSMEs (micro, small, and medium enterprises) alongside larger players. The availability of common-user warehouse space and pay-per-use options supports smaller enterprises while fostering a collaborative logistics environment.
How much have you invested in the facility?
We have invested Rs.2 billion.
How has the market responded to the Bengaluru facility?
The response has been very positive. Over 70 per cent of the space has already been occupied, with key industry players such as DHL Express, FedEx, DB Schenker, Blue Dart, and Kuehne+Nagel already operating within the facility. Demand remains strong, with more companies seeking space.
With Noida airport set to host a multimodal cargo hub upon completion, how will it transform India’s logistics landscape?
With Noida airport set to host a state-of-the-art multimodal cargo hub, it will be a game-changer for India’s logistics sector. As several multinational companies relocate their manufacturing operations to Noida, the facility’s connectivity to road, rail, and air networks will create a fully integrated logistics ecosystem. This seamless multimodal integration will significantly streamline cargo movement, reducing time and costs. Since we are developing both the cargo terminal and the associated warehousing and logistics zones, our focus is on ensuring smooth coordination across these areas, which will drive operational efficiency and help position Noida as a key logistics hub in India and globally.
What kind of investment have you allocated for the Noida airport project?
The project is being developed in phases under a long-term concession framework. We have earmarked an investment of approximately `10 billion for the creation of world-class cargo infrastructure at Noida International Airport. This includes the integrated cargo terminal as well as warehousing and logistics facilities that
will form the backbone of the multimodal
cargo hub.
What would you recommend to spur the growth of logistics parks?
The focus should be on developing logistics parks that serve as one-stop service centres, offering shared resources such as safety and security services to multiple players. The industry must avoid duplication of infrastructure within these spaces, ensuring cost efficiency and optimal resource utilisation. If every operator had their own security personnel, handlers, and forklift drivers, congestion would increase significantly. A centralised service provider like AISATS enables more effective use of available space while reducing costs for users.
What more may be required to enhance or improve the overall logistics infrastructure framework?
India’s logistics sector is undergoing rapid modernisation, but further improvements will unlock even greater efficiency, cost optimisation, and sustainability. Expediting the full operationalisation of DFCs and expanding multimodal logistics parks will play a crucial role in enhancing freight movement. The Union Budget 2025-26 has prioritised investments in air cargo hubs, smart warehousing, and multimodal connectivity, ensuring a more seamless and efficient supply chain network. With DFCs expected to reduce transit times by 50 per cent, rail logistics is poised for a transformation. Strategic initiatives such as dynamic pricing models, targeted incentives, and improved intermodal coordination will further encourage cargo movement via rail, reducing dependence on road transport and lowering emissions. Additionally, regulatory simplification remains a key priority, while platforms like, ULIP (Unified Logistics Interface Platform) and the E-Logistics Marketplace have streamlined operations, AI-driven clearance systems can accelerate approvals and improve predictability for businesses.
Sustainability is also emerging as a defining factor in this transformation. Green logistics initiatives, including the electrification of trucking, carbon credit incentives, and renewable energy-powered logistics parks, will drive long-term environmental benefits. As India continues to integrate AI-powered cargo tracking, automation, and blockchain-based transparency, the country is well-positioned to become a global leader in logistics innovation and supply chain excellence.
With AISATS firmly established in the Indian market, which regions are next on your expansion radar?
We are actively exploring new opportunities, particularly as more airports undergo privatisation. Whenever a new tender is issued, we conduct a thorough business case evaluation and, if viable, pursue participation. Our strategy prioritises tier-1 and tier-2 cities, where cargo volumes justify large-scale infrastructure investments. With the backing of our two parent organisations—the Tata Group, known for its excellence, and SATS, a global leader in cargo services—we aim to expand our footprint while ensuring efficient and high-quality logistics solutions.
As you expand your footprint, how are you addressing the manpower shortage?
We have adopted two key approaches. Firstly, we hire talent from the local communities around our operational sites. Secondly, we provide extensive training through our in-house academy, equipping recruits with the skills necessary to integrate seamlessly into the workforce.
Given your experience with Singapore Airlines—one of the world’s leading airline systems—how do you view the growth prospects for air freight services here?
Growth will ultimately be dictated by market dynamics. The aviation sector frequently sees the emergence of new companies, alongside consolidations and mergers. However, in the end, success depends on market forces and the economic viability of the business.
How will the proposed India-Middle East-Europe Economic Corridor (IMEC) benefit the region’s logistics sector?
The India-Middle East-Europe Economic Corridor (IMEC) is not just a new trade route, it’s a strategic leap that will reshape the future of logistics. As someone deeply involved in building integrated cargo infrastructure, I see this corridor as a game-changer for global supply chains. IMEC is expected to reduce transit times by up to 40 per cent and bring down logistics costs by nearly 30 per cent. That’s transformative, particularly for Indian exporters eyeing faster access to Europe and vice versa.
– Manish Pant
AISATS: Elevating Aviation and Cargo Experience
- Founded – Established in 2008, AISATS is a JV between Air India (Tata Group) and SATS, a global leader in aviation services.
Comprehensive Ground Handling Services – Offers passenger assistance, ramp handling, baggage handling, flight operations, and cabin dressing. - Air Cargo Expertise – Operates state-of-the-art cargo terminals, including the Air Freight Terminal and COOLPORT in Bengaluru, handling diverse shipments from perishables to pharmaceuticals.
- Presence Across India – AISATS has a strong footprint in major airports, including Delhi, Bengaluru, Hyderabad, and Thiruvananthapuram.
- Strategic Infrastructure Investments – Committed to `2 billion in Bengaluru and `10 billion in Noida, reinforcing India’s logistics capabilities.
- Technology-Driven Operations – Pioneering digitised cargo handling and advanced logistics solutions to enhance efficiency.
- E-Commerce & Express Logistics Growth – Supporting the booming e-commerce sector with distribution hubs and courier terminals.
- Aerotropolis Vision – Contributing to India’s airport cities, integrating logistics with commercial and trade ecosystems.
- Talent Development & Training – Addressing manpower shortages through a dedicated training academy, ensuring skilled professionals in logistics.
- Commitment to Sustainability – Implementing eco-friendly logistics solutions and optimising cargo operations to reduce environmental impact.
Source: Company, IT Research