Only one bidder for global air cargo terminal in Visakhapatnam

Visakhapatnam: The Vizag Airport is finding it hard to get bidders for an operator to handle the international air cargo operations at the airport.

Even after inviting bids for the second time this year, only one company has shown interest and it has posed a big question mark over the international cargo handling.  If Vizag Airport officials get clearance for the only one bid from Airports Authority of India (AAI), Chennai, international air cargo operations at the airport would take off by December this year.  

The undue delay in starting of international air cargo operations at Vizag Airport has come in for criticism from politicians and industrialists. Despite the reduction in license fee (from Rs 6 lakh to Rs 3.5 lakh an year), only one developer has submitted the technical bids to handle the international cargo from Vizag Airport.  

Chief administrator of Air Travellers Association (India) D. Varada Reddy said that some operators have been discouraging the developers to handle the international air cargo at the airport citing that the international cargo operations at airport not profitable. In the beginning of 2016, one firm which had bagged the tender, failed to start operations and later withdrew on the ground that international cargo operation was not feasible at Vizag Airport. The AAI has to create infrastructure for international cargo.  

Speaking to this correspondent, Vizag Airport director V.K. Sharma said that one firm has submitted the technical bid and the financial bid has to be opened and reviewed by the airport soon following which approvals would be sought from AAI to go ahead with the operations of the international air cargo terminal.

If all goes as per plan, the international air cargo operations at Vizag Airport would start by December 2016. Once the international cargo facility starts, cargo can be handled on flights heading towards Singapore, Kualalumpur and Dubai from the Vizag Airport, he added.