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. 

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.”

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.”