Logistics experts say Mihan logic doesn't work

Nagpur: Local industrialists may still be harping on Mihan, but logistics professionals do not seem to be in mood the buy the story. At the Confederation of Indian Industries (CII) meeting on logistics in Nagpur, Mihan being touted as a catalyst for this sector drew ridicule from them.
Experts said the very idea of aircraft landing in Nagpur to redistribute cargo for the country and fly back was flawed. There are already three cargo hubs in the middle-east, leaving hardly any scope for another in Nagpur. They were of the view that Maharashtra Airport Development Company (MADC) should have concentrated on bringing in manufacturing sector in the SEZ rather than invite IT industries that do not generate any physical cargo.
"As far as the special economic zone (SEZ) part is concerned, Mihan has all the infrastructure ready giving it an advantage over other areas. However, nobody is buying the cargo hub story," said Nirav Kothary of US-based real estate consultancy firm Jones Lang Lasalle that came up with a report on logistics sector in Nagpur along with the CII during the seminar.
Kothary explained that the theory of planes landing in Nagpur to redistribute cargo did not work. For that, some airline has to make Nagpur its hub and the government needs to push it. So far no airlines seems interested, he said. The gulf already has three hubs by Emirates, Etihad, and Qatar airlines, leaving little scope for Mihan. Nagpur is also not a major production or consumption centre to generate cargo. Moreover, the area hardly has throughput of high value, low volume cargo that is transported by air, he added.
25/06/11 Shishir Arya/Times of India

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Categories: Airports Jun 2011, Cargo Jun 2011