Cargo hub will strengthen supply chain for industries in Western Uttar Pradesh and National Capital Region and enhance connectivity to key cities around the world
SATS Ltd. (“SATS”) today announced that AISATS, the company’s joint venture company in India with Air India Limited, has been selected by Yamuna International Airport Private Limited (“YIAPL”) to design, build, finance and operate an integrated Multi-Modal Cargo Hub (“MMCH”) at the upcoming Noida International Airport in Jewar, Uttar Pradesh. AISATS expects to finalise and conclude the terms of a concession agreement with YIAPL in the coming weeks. Western Uttar Pradesh and the National Capital Region host multiple large industrial clusters of textiles, electronics, e-commerce, pharmaceuticals and perishables. Positioned as the gateway to the rapidly growing North India region, Noida International Airport will be the National Capital Region’s second major international airport when completed at the end of 2024.
The five-tier MMCH is the first of its kind in India, and will comprise an Integrated Cargo Terminal (“ICT”) and an Integrated Warehousing and Logistics Zone (“IWLZ”) to be built over 87 acres of land, with concessions spanning up to 20 years and 37 years respectively. The MMCH will include integrated facilities with airside access for general cargo, e-Commerce, temperature-controlled goods for perishables and pharmaceuticals, and express courier shipments. It will also provide trucking facilities to support road-to-road, road-to-air, and air-to-road movements. This integrated multi-modal infrastructure will facilitate seamless and best-in-class cargo experience for all stakeholders, and enhance the efficiency of the region’s supply chain.
Sanjay Gupta, CEO of AISATS, said, “We are excited to partner with Noida International Airport to build a state-of-the-art, modern, and efficient cargo infrastructure, by making the best use of technology. India is envisioned to become the next logistics hub for the world, and the government is taking necessary measures to make logistics more efficient and globally competitive. We are aiming to develop world-class infrastructure to deliver a seamless, best-in-class cargo experience for all stakeholders. Catering to a large catchment area with a huge growth owing to multi-modal connectivity, we are certain that this multi-modal cargo hub will truly become the gateway to North India.”
Bob Chi, CEO of SATS Gateway Services, added, “India is an important market in SATS’ twin-engine growth strategy, and our partner in India, the Tata Group, has a significant presence in Uttar Pradesh in various businesses. Through our partnership in AISATS, we hope to strengthen our collaboration in India and leverage SATS’ capability in air cargo hub handling to unlock the huge potential in Uttar Pradesh to support India’s economic growth.”
There is no certainty a concession agreement will be signed. SATS will make timely announcements, if necessary, of any further material developments such as the conclusion of definitive terms, in accordance with its obligations under the listing rules of the Singapore Exchange Securities Trading Limited.
Shareholders are advised to exercise caution when dealing in the securities of SATS and to refrain from taking any action in respect of their investment which may be prejudicial to their interests. Shareholders are advised to read this media release and any further announcements by SATS carefully. Persons who are in doubt as to the action they should take should consult their stockbroker, bank manager, solicitor or other professional advisers.