The hub is expected to be fully operational next year. Credit: Fejuz via Unsplash.

The Air India SATS Airport Services Private (AISATS) joint venture (JV) and Yamuna International Airport Private have entered a concession agreement to develop a multimodal cargo hub (MMCH) at India’s under-construction Noida International Airport. 

Expected to be operational next year, the hub will feature an integrated cargo terminal and an integrated warehousing and logistics zone. 

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Spread out across 87 acres, the facility will link various transportation modes with consolidated ancillary and value-added services.

It is projected to bring about a notable decrease in expenses related to logistics costs, and streamline processes.

SATS Gateway Services CEO Bob Chi said: “Establishing an integrated logistics gateway in Noida through our AISATS joint venture with Tata Group’s Air India will help develop the region into a strategic air cargo and export hub. Such a development also accelerates the expansion of our global air cargo hub handling capabilities as part of SATS’ twin-engine growth strategy.”

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The hub will comprise a ‘Coolport’ for the management of temperature-sensitive cargo, along with a bulk utilisation programme facility for integrators and global forwarders.

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It will also include a customs-controlled warehouse, as well as 3PL warehouses.

Other features include a logistics park for e-commerce players, a consolidation centre for freight forwarders and agents, and a trucking centre.

The hub will leverage AISATS’ solutions, including a cloud-based cargo management system and a single-window cargo community system, among others.

A 50:50 JV between Air India and SATS, AISATS will be tasked with designing, building, financing and operating the hub.

AISATS chair Nipun Aggarwal said: “The AISATS MMCH at Noida will play an integral part in providing just-in-time cargo facilities for the North India region and will support in levelling up the Indian logistics and air cargo sectors with state-of-the-art infrastructure, value-added services and improved cost efficiency.

“We have no doubt it will have a knock-on effect and help increase India’s trade, provide employment opportunities and ease the movement of goods across the country.”