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23 April 2025

Air India SATS Unveils Rs 200 Crore Logistics Park

The new facility at Bengaluru airport aims to boost cargo capabilities and trade efficiency.

BENGALURU: Air India SATS Airport Services Private Limited (AISATS) officially launched the AISATS BLR Logistics Park at Kempegowda International Airport (KIA) on April 22, 2025. This significant development comes with an investment of Rs 200 crore, marking it as one of the largest on-airport logistics parks in South India.

Spanning eight acres, the AISATS BLR Logistics Park is designed to cater to a variety of cargo needs, featuring a modern two-level main warehouse that offers over 240,000 square feet of Grade A warehousing space. This facility is tailored to serve freight forwarders, express courier operators, and logistics companies. Additionally, it includes a common-user general warehouse space aimed at small and medium enterprises (SMEs) and cold storage warehouse space available for pay-per-use access.

Complementing the main warehouse is an 11,000-square-foot public bonded warehouse that enables importers and original equipment manufacturers (OEMs) to securely store and manage their cargo shipments under Customs bond. Furthermore, the logistics park includes an office block providing 24,000 square feet of space for Customs House Agents, logistics companies, and support services.

In a bid to enhance operational efficiency, AISATS will also provide trucking services to facilitate economical and seamless cargo movement between the logistics park and cargo terminals, which are located just 3 kilometers apart within the airport.

As one of the fastest-growing airports globally, KIA holds a 13% market share in total volume cargo across India and an impressive 40% share in cargo processing among airports in South India. The airport recorded an annual cargo tonnage of 502,480 metric tons in FY25, with ambitions to handle 1 million metric tons of cargo by the year 2030.

Bob Chi, CEO for APAC Gateway Services of SATS, emphasized the importance of the new logistics park, stating, "The AISATS BLR Logistics Park is set to play a crucial role in strengthening Bengaluru’s air cargo capabilities, boosting trade, and reinforcing India’s position as a leader in industrial and economic development. It will serve as a vital node in accelerating SATS’ hub-handling capabilities across our global network."

Hari Marar, Managing Director and CEO of Bangalore International Airport Limited (BIAL), echoed this sentiment, noting, "The facility is a significant addition to our growing cargo ecosystem at Kempegowda International Airport, which is already the leading exporter of perishables in the country and houses the country's largest domestic cargo terminal by design capacity."

Furthermore, the AISATS BLR Logistics Park aligns with the company's national expansion strategy and complements the upcoming Multimodal Cargo Hub (MMCH) at Noida International Airport, as noted by Kelvin Seow, Chief Commercial Officer at AISATS. Seow mentioned that more investments in infrastructure may follow, indicating a commitment to enhancing India's logistics capabilities.

The launch of the AISATS BLR Logistics Park is not just a milestone for AISATS but also a strategic move that reflects the growing demand for efficient logistics solutions in the region. As the logistics landscape continues to evolve, the establishment of such facilities is crucial for supporting the burgeoning e-commerce sector and meeting the needs of various industries.

With the increasing volume of air cargo traffic and the need for faster and more sustainable supply chains, the AISATS BLR Logistics Park is positioned to play a pivotal role in the future of logistics at Kempegowda International Airport and beyond. The facility is expected to enhance cargo handling capabilities, improve operational efficiencies, and support the rising demand for a streamlined logistics process.

The strategic importance of KIA cannot be understated, as it serves as a critical hub for trade and commerce in the region. The investments being made in infrastructure, such as the AISATS BLR Logistics Park, are vital for maintaining the airport's competitive edge in the logistics sector.

As Bengaluru continues to grow as a major economic center, the establishment of advanced logistics facilities like the AISATS BLR Logistics Park will be instrumental in driving economic growth and facilitating international trade. This development is a clear indication of the city's commitment to becoming a global logistics hub, capable of meeting the demands of the modern economy.

In conclusion, the launch of the AISATS BLR Logistics Park at Kempegowda International Airport signifies a major advancement in India's logistics infrastructure. With its state-of-the-art facilities and strategic location, it is poised to enhance Bengaluru's air cargo capabilities and support the region's economic growth.