A start-up Indian express cargo company, Deccan Express Logistics, has unveiled ambitious plansto operate a fleet of freighters and use its own cargo terminals at major airports. It plans to
raise $200 million and launch operations on January 1, 2009.The company is the latest venture of entrepreneur Capt GR Gopinath who founded one of India’sfirst low-cost passenger airlines, Air Deccan, in 2003. This was sold to Kingfisher Airlines inDecember 2007 and re-branded as Kingfisher Red last month.
The strategy of Deccan Express, according to several Indian newspaper reports, is to set up acentral hub at Nagpur, which the Indian government aims to turn into a major logistics centre forthe country, and operate flights to Delhi and Hyderabad. It would largely control its groundinfrastructure at the airports. It is also considering creating a road transport network based on afranchise model.
According to The Hindu newspaper, Deccan Express aims to raise $200 million (€136 million) tofinance its business plan, with about $70 million to be generated within the next few months. Thecompany has initially ordered two Airbus cargo planes and said it plans to increase the fleet toten in the future.
“It is crucial that the growth in various sectors of the economy be pushed to all regionsincluding the hinterlands of the country. The airports and seaports at Mumbai and Chennai aresaturated leading to distribution delays and huge amounts of wastage. The emergences of new cargohubs at Hyderabad, Delhi and Nagpur will not only create hinterland linkages but will also spur theservices, agricultural and manufacturing sectors to make inroads into the interiors,” Gopinath toldthe Economic Times newspaper.
The company last month signed agreements with Delhi and Hyderabad airports to develop modernexpress terminals at the two airports, and will move into the two new facilities once they havebeen constructed. At Delhi, it will use a 2,000 sqm facility as its hub for northern India. AtHyderabad, it will have exclusive use of 300 sqm within the domestic cargo handling terminal, whichit plans to build up as a hub for its future business in central and southern India. In July, itsigned a deal to set up a central hub at Nagpur.
”Hyderabad and Delhi are the modern corporate capitals of India and also strategic gateways toother parts in south and north India. The setting up of infrastructure at these strategic locationswill enable Deccan Express Logistics to establish an extensive state of the art multi-modal(surface and air) storage, transportation and delivery network reaching out to every corner of thecountry,” Gopinath said.
