A cold war between two ground handling agencies—AAI Cargo Logistics and Allied Services Company Ltd (AAICLAS), a subsidiary of the Airports Authority of India (AAI), and AI Airport Services Limited (formerly Air India Air Transport Services Limited)—continues to affect the handling of goods at the Chennai air cargo complex.
The fact is that AIASL currently serves over 50 per cent of the airline cargo terminal operation with less than 15 per cent of the total export warehouse space and zero terminal space for imported cargo under its administration. On the other hand, AAICLAS ( the landlord ) has a lot of unused space due to low patronage by their customers (airlines ). These two situations are creating an artificial shortage of space for smooth export cargo operations at the terminal every week, making all already poor EXIM cargo services at the Chennai air cargo complex unworkable for the trade, said Dinesh K Krishnan, Chairman of Air Cargo Agents Association of India (ACAAI), Southern Region.
“We have ample terminal space for current and future tonnage, but still cargo handling is hampered due to lopsided distribution of terminal space. This is a recurring issue, and there is no solution at hand. We have been repeatedly telling the authorities concerned to find a solution to the problem. However, nothing has happened,” he added.
Until a few years ago, the Chennai air cargo complex was the air cargo gateway of south India. However, due to continued neglect by the terminal operators, we are now in the red,” the ACAAI, SR, recently wrote to the authorities in Delhi on the issue.
AAICALS and AIASL are on mutually destructive war paths in Chennai with each accusing the other of encroachment of their territories/ tonnage/ revenue, rental arrears and non-renewal of rental agreement. This cold war has been going on for years now due to which an already stressed operations and commercial situation at the Chennai air cargo complex has become even more critical, the association said.
The trade has moved their cargo to other airports to escape this poor service. The trade is still struggling to meet the customers’ basic demands. However, the association said that neither of the operators is discharging their responsibilities to trade as expected of them. “The stakeholders tried to bring both these warring parties to address the needs for better customer service to the EXIM trade but it has failed,” it said.
Krishnan said the association plans to meet senior officials at AAI in Delhi and also in the Tami Nadu government to find a solution to this issue.
When contacted, sources in the two ground handling agencies claimed that things were normal at the complex.