Cargo and Logistics

Airport Intelligence Series Modernizing Air Cargo Operations at U.S. Airports: Closing the Infrastructure Gap May 2026 6 min read The Scale of the Opportunity Air freight carries approximately 35 percent of world trade by value, despite accounting for less than 1 percent of total cargo volume by weight. In an era defined by speed-to-market, supply chain resilience, and the growth of cross-border e-commerce, the sector’s importance continues to compound. Globally, airport cargo volumes reached a record 128.9 million metric tonnes in 2025 up 2.9 percent year-on-year. Six of the world’s twenty busiest cargo airports are in the United States, and the country hosts three of the top five global express cargo hubs. Ted Stevens Anchorage International Airport (ANC) now ranks first in the United States and third globally for air cargo throughput, handling approximately 3.9 million metric tonnes and ranking third globally behind Hong Kong and Shanghai Pudong. Its recently completed Master Plan Update – a 20-year development framework projects 2.8 percent compound annual cargo growth and identifies over $300 million in near-term cargo infrastructure investment. UPS’s Louisville Worldport surpassed FedEx Memphis to become the world’s largest express air cargo hub by peak-day capacity in early 2026, with 25 percent more tonnage throughput. But outside the top few cargo hubs, investments lag demand and therein lies the opportunity for private capital. The Problem Statement: The Infrastructure Gap is a Systemic Problem Outside the major integrator hubs, the state of air cargo infrastructure across the U.S. airport network is characterised by chronic underinvestment, legacy design, and operational inefficiency. The Airport Cooperative Research Program (ACRP) has commissioned a study to develop a Guide for Developing Airport Cargo Handling and Warehouse Infrastructure Through Public-Private Partnerships. The study is expected to document this gap, noting that cargo buildings at many airports are insufficiently sized, poorly configured with internal columns that obstruct equipment movement and undersized doors and fundamentally incompatible with modern cargo handling requirements. The gap manifests across three distinct facets. 1. Physical Facilities Cargo terminals at mid-size and regional airports were largely designed in an era of break-bulk freight, not the high-throughput, palletised, and containerised volumes that dominate today’s market. Many lack the column-free floor plates, dock-height doors, and ramp-direct access required for efficient unit load device (ULD) handling. Cold-chain storage critical for pharmaceuticals, perishables, and biosciences cargo remains inadequate at the vast majority of U.S. airports. The pandemic-era e-commerce surge increased baseline cargo volumes at airports that were barely on the cargo map, and those airports are now handling freight at scales their infrastructure was never designed to support. 2. Operational Technology The ACRP research (Report 143 and its ongoing supplement) confirms that cargo handling at U.S. airports “typically still relies on manual labor” and that methods “range from very manual and labor intensive to highly automated, depending largely on volume and speed of cargo handling required.” The key qualifier is that high-volume integrator hubs (FedEx Memphis, UPS Louisville) are heavily mechanised and automated, but they are the exceptions. Across the broader U.S. airport network particularly at mid-size and regional airports handling general cargo, charter freight, and smaller forwarder operations manual handling of ULDs, break-bulk freight, and loose cargo remains the norm. This technology gap translates directly into longer dwell times, higher error rates, and diminished attractiveness to time-sensitive cargo carriers. 3. Landside Connectivity Truck congestion remains one of the most acute bottlenecks in U.S. air cargo operations. The Government Accountability Office (GAO) reported that “more than two-thirds of the 37 stakeholders interviewed” identified challenges with warehouses, truck areas, and roadways across 11 U.S. airports[1]. Truck parking, queuing, and staging areas were specifically flagged as “too few, too small, and quite crowded.” Insufficient truck staging areas, poorly configured internal roadways, and the absence of dedicated cargo access roads at many airports mean that landside delays frequently negate the speed advantage that shippers pay for air transport. As e-commerce fulfilment cycles shorten and last-mile delivery expectations tighten, this landside constraint has become an increasingly visible competitive liability. Filling the Gap: The Case for Cargo P3s The scale of the capital requirement combined with the fiscal constraints facing most U.S. airport authorities makes the case for public-private partnerships (P3s) in air cargo infrastructure both compelling and increasingly urgent. P3 models are already delivering results at airports globally that have moved decisively to adopt it. Different P3 Models Model 1: Ground Lease / Developer-Led (the dominant U.S. model) How it works. The airport authority retains ownership of the land and grants a long-term ground lease typically 25 to 50 years to a private developer-operator. The developer finances, designs, builds, and operates the cargo facility at its own risk, then sub-leases space to cargo airlines, freight forwarders, and logistics operators. The airport receives a combination of upfront payments, annual base rent (often indexed or stepped), and a percentage of sub-tenant revenue. At lease expiry, the improved property reverts to the airport at no cost. Business model. The developer earns its return through the spread between its cost of capital and the sub-lease rents it charges tenants. Typical sub-lease terms run 5–10 years, meaning the developer re-prices the facility to market multiple times within a single ground lease. The airport’s revenue is lower than if it self-developed, but it takes on zero construction or tenancy risk and preserves its capital for airside investment. Real examples: Salt Lake City (SLC) – AFCO (backed by Ardian Infrastructure) was selected in early 2026 as preferred bidder to develop a $50M+, 150,000 sq. ft multi-tenant cargo facility under a long-term ground lease. AFCO finances, builds, leases, and manages the facility; the airport contributes only the land and planning approvals. The facility will handle general cargo, e-commerce, and temperature-controlled operations. Model 2: DBFOM (Design-Build-Finance-Operate-Maintain) How it works. The airport onboards a single private partner to take on the entire project lifecycle: design, construction, financing, operation, and long-term maintenance of the cargo facility. The private partner typically holds a concession of 25-40 years and recovers its investment through user charges (throughput fees,

Airport Intelligence Series The Smart Cargo Terminal: A Practical Framework for Technology Integration March 2026 5 min read The Global Air Cargo sector currently navigates an environment where the challenges facing the industry are different from those of the past. On one hand, there are factors such as geopolitical tensions, trade policy shifts, and trade lane disruptions; while on the other, there are challenges arising from capacity constraints, expensive labour and sustainability commitments. For decades, the answer to cargo growth was simple: build more warehouses. When volumes rose, we expanded footprint and adjusted layout. With the rapid growth of traffic and the associated aeronautical infrastructure needs of airports, physical space constraints are plaguing all the major airports. Cargo facilities that require prime real estate at an airport, with airside access are impacted by this constraint too.  Technology provides a solution, enabling optimization of the cargo capacity. But it is easier said than done. The question facing cargo operators and handlers today is not whether to transform or not. It is about how to do it  without falling into the trap of fragmented, reactive technology adoption that creates new inefficiencies rather than eliminating old ones. In this article, we propose a framework to facilitate decision-making on technology integration for cargo terminals to function as an intelligent and ecosystem-connected facilities. The Core Strategic Shift The path to greater throughput is no longer paved with more square footage. It is built on smarter use of what already exists. Technology integration, when executed along with architectural design, allows stakeholders to extract significantly more output from current or future planned facilities. The evidence from airports that have made this transition demonstrates measurable gains in throughput, dwell time reduction, labour productivity, and service reliability. When we think about cargo facilities planning, technology solutions are often a layer on top, unaccounted for in the design stage resulting in sub-optimal outcomes. An integrated solution would mean drafting out a plan for technology adoption at different phases and working backwards to the design of the physical space, incorporating the requirements of future technology. In other words, the vision for a smart cargo terminal must dictate the design of the terminal, and it must be planned thoroughly. A Three-Layer Framework for Technology Integration in Air Cargo Facilities Technology integration is most effective when approached as a structured maturity pathway rather than a collection of isolated pilots. Hence, a three-layered approach, where each successive capability builds on the foundation established by the one before it. Each layer has standalone value and its potential is enhanced with combination of other layers. Decision makers can hence use the framework to craft a practical path of realizing the vision of a smart cargo terminal. Layer 1: Physical Automation Automation is the first and most tangible step. It addresses the highest-visibility pain points — manual handling inefficiencies, peak-period bottlenecks, ULD damage, and the safety risks inherent in labor intensive environments. Technologies in this layer include Autonomous Mobile Vehicles (AMVs), robotic pallet movers, and Automated Storage and Retrieval Systems (AS/RS) Shanghai Pudong International Airport deployed heavy-load AGVs in their cargo terminal to manage rising e-commerce volume and labour dependency. They deployed six 10-tonne-capacity AGVs integrated with China’s first lift-and-run system. Operating 24/7 with precision control, these systems reduced manual transfers and improved throughput stability. At FedEx South Pacific Regional Hub in Singapore, AI-enabled robotic sorting arms process up to 1,000 parcels per hour across 100 destinations with >98.5% accuracy, while allowing manpower redeployment to higher-value functions. Physical automation makes the strongest case in environments characterised by high volume, complex handling requirements, or significant space constraints. It delivers measurable gains when deployed correctly. Layer 2: Intelligence Integration While Layer 1 would standardize workflows and and increase throughputs, it does not adapt well to real time variability. Unexpected disruptions or fluctuating demand may restrict its efficiency.  When artificial intelligence is deployed as the intelligence layer above physical automation, it provides precisely this capability: adaptive decision-making and real-time optimisation across the entire terminal operation. Where automation delivers the execution backbone, AI delivers the decision-making intelligence. There are several cargo management system (CMS) products that provide an integrated platform covering sales, warehouse management, ULD management, mail handling, revenue management etc. Rather than allowing AGVs, storage systems, and handling equipment to operate as independent automated silos, the CMS integrates them into a unified terminal management platform. Real-time analytics, predictive task allocation, and system-wide visibility through mobile interfaces enable continuous performance monitoring and dynamic resource deployment. These platforms have been deployed in live cargo environments including Shanghai Pudong, Finnair Cargo Terminal, Istanbul’s Mega Hub amongst others. Layer 3: Ecosystem Integration While the cargo terminal may be highly automated and intelligently managed, if the broader ecosystem — landside, airside, and city processes operates without real-time visibility into asset location, and systemic inefficiencies persist. Ecosystem integration extends digital visibility to every asset and actor in the cargo supply chain. Smart labels, IoT-enabled tracking, and connected community platforms transform fragmented multi-stakeholder processes into coordinated operations. This is the larger vision. By equipping non-powered assets like ULD dollies, loose pallets, and ground support equipment, with battery-operated trackers, real-time visibility across both airside and cargo zones can be achieved. Hoopo, an Israel based company has deployed its tracking technology at several global airports and reported favourable outcomes. These include a 70% reduction in manual search time for assets and, a 50% faster GSE response times, with direct downstream benefits for aircraft turnaround performance. At Kempegowda International Airport, Bengaluru, the response was structural. Rather than addressing individual pain points in isolation, the airport built a single digital platform, the Airport Cargo Community System, that connected airlines, customs, freight forwarders, ground handlers, and trucking partners into a shared operational view. Landside congestion, often the most stubborn bottleneck at high-growth gateways, was tackled directly through an automated truck management facility. The results were measurable: average truck turnaround dropped from four hours to one, and 78% of vehicles now enter the terminal within 20 minutes. Export dwell time came down

Airport Intelligence Series The Smart Cargo Terminal: A Practical Framework for Technology Integration February 2026 5 min read The Global Air Cargo sector currently navigates an environment where the challenges facing the industry are different from those of the past. On one hand, there are factors such as geopolitical tensions, trade policy shifts, and trade lane disruptions; while on the other, there are challenges arising from capacity constraints, expensive labour and sustainability commitments. For decades, the answer to cargo growth was simple: build more warehouses. When volumes rose, we expanded footprint and adjusted layout. With the rapid growth of traffic and the associated aeronautical infrastructure needs of airports, physical space constraints are plaguing all the major airports. Cargo facilities that require prime real estate at an airport, with airside access are impacted by this constraint too.  Technology provides a solution, enabling optimization of the cargo capacity. But it is easier said than done. The question facing cargo operators and handlers today is not whether to transform or not. It is about how to do it  without falling into the trap of fragmented, reactive technology adoption that creates new inefficiencies rather than eliminating old ones. In this article, we propose a framework to facilitate decision-making on technology integration for cargo terminals to function as an intelligent and ecosystem-connected facilities. The Core Strategic Shift The path to greater throughput is no longer paved with more square footage. It is built on smarter use of what already exists. Technology integration, when executed along with architectural design, allows stakeholders to extract significantly more output from current or future planned facilities. The evidence from airports that have made this transition demonstrates measurable gains in throughput, dwell time reduction, labour productivity, and service reliability. When we think about cargo facilities planning, technology solutions are often a layer on top, unaccounted for in the design stage resulting in sub-optimal outcomes. An integrated solution would mean drafting out a plan for technology adoption at different phases and working backwards to the design of the physical space, incorporating the requirements of future technology. In other words, the vision for a smart cargo terminal must dictate the design of the terminal, and it must be planned thoroughly. A Three-Layer Framework for Technology Integration in Air Cargo Facilities Technology integration is most effective when approached as a structured maturity pathway rather than a collection of isolated pilots. Hence, a three-layered approach, where each successive capability builds on the foundation established by the one before it. Each layer has standalone value and its potential is enhanced with combination of other layers. Decision makers can hence use the framework to craft a practical path of realizing the vision of a smart cargo terminal. Layer 1: Physical Automation Automation is the first and most tangible step. It addresses the highest-visibility pain points — manual handling inefficiencies, peak-period bottlenecks, ULD damage, and the safety risks inherent in labor intensive environments. Technologies in this layer include Autonomous Mobile Vehicles (AMVs), robotic pallet movers, and Automated Storage and Retrieval Systems (AS/RS) Shanghai Pudong International Airport deployed heavy-load AGVs in their cargo terminal to manage rising e-commerce volume and labour dependency. They deployed six 10-tonne-capacity AGVs integrated with China’s first lift-and-run system. Operating 24/7 with precision control, these systems reduced manual transfers and improved throughput stability. At FedEx South Pacific Regional Hub in Singapore, AI-enabled robotic sorting arms process up to 1,000 parcels per hour across 100 destinations with >98.5% accuracy, while allowing manpower redeployment to higher-value functions. Physical automation makes the strongest case in environments characterised by high volume, complex handling requirements, or significant space constraints. It delivers measurable gains when deployed correctly. Layer 2: Intelligence Integration While Layer 1 would standardize workflows and and increase throughputs, it does not adapt well to real time variability. Unexpected disruptions or fluctuating demand may restrict its efficiency.  When artificial intelligence is deployed as the intelligence layer above physical automation, it provides precisely this capability: adaptive decision-making and real-time optimisation across the entire terminal operation. Where automation delivers the execution backbone, AI delivers the decision-making intelligence. There are several cargo management system (CMS) products that provide an integrated platform covering sales, warehouse management, ULD management, mail handling, revenue management etc. Rather than allowing AGVs, storage systems, and handling equipment to operate as independent automated silos, the CMS integrates them into a unified terminal management platform. Real-time analytics, predictive task allocation, and system-wide visibility through mobile interfaces enable continuous performance monitoring and dynamic resource deployment. These platforms have been deployed in live cargo environments including Shanghai Pudong, Finnair Cargo Terminal, Istanbul’s Mega Hub amongst others. Layer 3: Ecosystem Integration While the cargo terminal may be highly automated and intelligently managed, if the broader ecosystem — landside, airside, and city processes operates without real-time visibility into asset location, and systemic inefficiencies persist. Ecosystem integration extends digital visibility to every asset and actor in the cargo supply chain. Smart labels, IoT-enabled tracking, and connected community platforms transform fragmented multi-stakeholder processes into coordinated operations. This is the larger vision. By equipping non-powered assets like ULD dollies, loose pallets, and ground support equipment, with battery-operated trackers, real-time visibility across both airside and cargo zones can be achieved. Hoopo, an Israel based company has deployed its tracking technology at several global airports and reported favourable outcomes. These include a 70% reduction in manual search time for assets and, a 50% faster GSE response times, with direct downstream benefits for aircraft turnaround performance. At Kempegowda International Airport, Bengaluru, the response was structural. Rather than addressing individual pain points in isolation, the airport built a single digital platform, the Airport Cargo Community System, that connected airlines, customs, freight forwarders, ground handlers, and trucking partners into a shared operational view. Landside congestion, often the most stubborn bottleneck at high-growth gateways, was tackled directly through an automated truck management facility. The results were measurable: average truck turnaround dropped from four hours to one, and 78% of vehicles now enter the terminal within 20 minutes. Export dwell time came down

Airport Intelligence Series Cross Border Ecommerce Growth: Can Airport Infrastructure Keep Up? November 2025 7 min read Global e-commerce sales are expected to reach $6.4 trillion in 2025, with Asia accounting for the largest share. More than three billion people will make an online purchase in 2025. That’s a staggeringly high proportion of the world population!!! Cross-border e-commerce is pegged at around 20% of global ecommerce market and is one of the fastest-growing segments of the global economy, powered by advances in technology, logistics, and trade frameworks. More than 60% of shoppers buy international products through online marketplaces and brand websites, while over 40% discover them via social media. In India’s cross-border ecommerce space, clothing, electronics, and beauty products remain the popular categories. The recent and unpredictable US tariffs will have a varied effect on online players, dependent on their supply chains and ability to absorb or restructure costs. There could be reshoring of manufacturing facilities in the near term giving online companies more geographical flexibility. Inspite of the tariffs, the outlook for cross-border ecommerce remains robust. The global cross-border e-commerce consumer market is expected to reach $1.84 trillion by 2030 at an 8.71% Compound Annual Growth Rate. IATA says 80% of e-commerce goods by value travel by air. The surge in e-commerce volume is straining existing airport infrastructure, leading to a focus on expanding and modernizing cargo terminals and logistics facilities. The peakiness of ecommerce flows is stretching cargo facilities that weren’t designed for the peak surge. How are Airports and Cargo Operators responding to the growth? Airports looking to capture market share are heavily investing in some form of automation to increase speed and optimize capacity. robotic handling systems, digital customs and paperless processes, real-time tracking and data visibility tools, Integrated control centres that optimize flows in near-real time. Post Covid, several global hubs have doubled down on dedicated cargo infrastructure for fast and efficient processing. New gateways such as SMARTIST are fast growing and taking away market share from the incumbents. Some examples of forward-looking airports and their automation push are highlighted in the table below.  To truly unlock e-commerce growth, airports must strengthen their landsidе connectivity. A multi-modal logistics strategy is no longer optional—it is the competitive edge. Seamless integration with highways and national freight corridors reduces dwell time and enables reliable first/last-mile delivery. Where feasible, direct links to rail freight or proximity to seaports create powerful cross-modal synergies, allowing airports to function as true logistics hubs rather than isolated airfreight nodes. Airports are building exclusive cargo road networks to separate trucks from passenger traffic, cut dwell times, and reduce congestion. Segregated access can reduce truck turnaround by 20–35%, critical for e-commerce cut-offs. Dedicated freight/rail connectivity into cargo zones and road-seaport corridors reduces total supply costs and increase catchment area. India Focus India is the third-largest e-commerce market globally, with $60 billion in Gross Merchandise Value (GMV) and the second-largest number of online shoppers (over 270 million). India’s air-cargo market size in 2024 was ~3.26 million tons, and “rapid expansion of e-commerce” is one of the key growth drivers.  E-commerce exports from India presently account for an estimated US$2+ billion, a small fraction of the global addressable market. New trade agreements such as the India–UK FTA are opening tariff-free access for Indian exporters to high-value markets, while trade corridors with ASEAN and Africa are helping diversify risk and unlock fresh growth opportunities. In parallel, India is considering a major policy shift that could redefine its export ecosystem. The Ministry of Commerce is evaluating a proposal to allow FDI-backed e-commerce players to operate an inventory-based model exclusively for exports. If implemented, global platforms would, for the first time, be permitted to stock and ship Indian-made goods directly to international markets. Expectation is that this will grow 50-100 times the current volume to excess of US$ 200 billion in the next 10 years. That’s an ambitious target set by the government. Tariff pressures are near term headwinds that are expected to go away as the India-US Trade Deal nears the finish line. We spoke to the cargo leadership at a major hub in India, Kempegowda International Airport at Bangalore (IATA Code BLR) on what they are doing to stay ahead of the curve. The cargo growth at BLR has been phenomenal – over half a million tonnes of total tonnage in Financial Year 2025 (15% year on year growth). BLR has truly established itself as a cargo gateway for the southern catchment in India. Bangalore International Airport Limited (BIAL), the concessionaire for the airport, is bullish on the future of cross-border ecommerce. “Cross-border e-commerce is transforming global trade and will continue to grow at double-digit rates. With consumers demanding faster delivery and businesses seeking resilient supply chains, airports will play a critical role in enabling this growth. At BLR Airport, we see this as an opportunity to integrate automation, multimodal connectivity (Logi-connect 2.0), and sustainability into our cargo ecosystem. The future belongs to airports that can combine speed, compliance, and technology to support seamless international commerce.” What is the airport doing to facilitate this growth and how does it align with their overall cargo strategy? “At BIAL, we are reimagining cargo operations to meet the surge in cross-border e-commerce. Our investments include India’s largest greenfield domestic cargo terminal, a state-of-the-art Logistics Park, and an Airport Truck Management Facility (ATMF) to streamline movement and reduce turnaround times. We are leveraging digitization through the Airport Cargo Community System (ACS), and IoT-enabled tracking to ensure faster, safer, and transparent handling. These initiatives align with their vision to handle highly achievable goal of 1 million metric tonnes of cargo by 2030 and would position BLR as a leading global cargo gateway.” With Navi Mumbai and Noida airports nearing commissioning, India stands at the threshold of a transformative decade for cross-border trade and air cargo growth! Share Share Share

Airport Intelligence Series Air Cargo Growth: Deep Dive into the India Market August 2025 3 min read Air cargo plays a unique role in global trade. While ocean freight moves nearly 99% of world trade by volume, dominated by low-value bulk commodities like oil, ores, and grains, air freight carries less than 1%. Yet, it accounts for almost 35% of trade value, serving as the backbone for perishable, high-value, and time-sensitive goods. Air cargo growth has historically underperformed as compared to the more relatable passenger numbers in India. There is structural dependence on the limited “cheap” belly and the regulatory and policy bottlenecks have constrained the cargo volume growth.  But there is light at the end of the policy tunnel perhaps with BCAS recently eliminating screening requirements for transfer cargo and allowing tail to tail transfers. The infrastructure really needs to catch up – ball is in the court of the airport operators and ground handlers. Back to the history lesson – if we merely extrapolated 10 years of pre-covid air cargo growth performance, we would end up with 3.2 million tons for domestic and 5.3 million tons for international in 2040. That signifies a CAGR of about 5.5-5.8% for domestic and international. In the overall context, this represents an uptick in the growth witnessed from 2010 to 2020 – 6.3% CAGR for domestic and 4% CAGR for international – but not by much. The 2026 export volumes are discounted due to the second round of tariffs on high value goods such as gold and jewellery, and some textiles. We don’t buy the hypothesis that the growth is going to be muted for long due to the tariffs or continue along the trend line. For various reasons, India’s air cargo sector now stands at an inflection point. The country is South Asia’s largest air cargo market. That’s not a surprise.  What’s behind the inflection point in the trend? The value of the iPhones and electronics consignment has exponentially grown with numbers only out of Chennai Port (~$10.6 billion in export). Data from Counterpoint Research shows that 71 per cent of iPhones sold in the US between April and June this year were made in India, up sharply from 31 per cent a year earlier. The rise of high value manufacturing will continue – the second round of tariffs are not going to have an impact on iPhone prices.  Ecommerce has grown around 25% year on year for the last 3 years. The gross merchandise value of e-commerce is expected to be scale-up 5x to 500 billion USD in the next 10 years.  Significant investments are being made in augmenting the cargo handling capacity in India – the new Bangalore domestic cargo terminal and upcoming Multi-Modal Cargo Hub in Noida airport are examples of state of the art cargo infrastructure. Avinia was fortunate to have led mandates for Cargo Master Planning and capacity assessment on the two nation building projects. And the supply on the belly side isn’t a problem in the near-term, with the supply side forecast outpacing the regression based demand numbers by a mile – 2.1 million tons of supply by 2030 for domestic and 3.8 million tons of supply by 2030 for international. There is a potential upside or high case with a more conducive tariff environment that could result in up to 20-25% higher volumes than the baseline. Encouraging greater widebody penetration, attracting dedicated freighter operators, and aligning belly-hold strategies with cargo demand corridors could create disproportionate growth. The infrastructure readiness will align with the demand growth ultimately. There is a compelling return on investment (ROI) case for private capital to enter the air cargo and logistics sector.  Note:  Domestic Forecast: A composite baseline forecast was developed using a combination of parameters, including India’s GDP and crude oil prices. International Forecast: A composite baseline forecast was developed using a combination of parameters, including India’s GDP, world GDP, and crude oil prices. Share Share Share