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Air cargo has been one of the fastest growing sector in the world economy for the last four decades and
plays a vital role in the economic development of a nation. Air cargo logistics means using aircraft and
warehousing services for the transport of goods quickly from point of origin to point of consumption for
satisfying the requirements of the customers. Air cargo is used mostly for shipping goods that are highly
valuable, time-sensitive and perishable. Globally, more than one third of the value of goods traded
internationally is transported by air and therefore air cargo industry is considered as a barometer of global
economic health. It is the fastest mode of transport and offers benefits of secure handling, speed and
geographical and temporal flexibility. But it is relatively expensive. One kilogram cost average six times than
ocean container freight. That high cost is compensated by reduced inventory and warehousing cost.
Air cargo logistics process is a time definite endeavor that requires the co-ordination of multiple parties,
namely shippers, freight forwarders, carriers, customs, warehousing agents, ground handlers, consignees.
Warehouse is the place where goods are stored. In Calicut airport warehouse is managed by Kerala State
Industrial Enterprises, a state government undertaking. It is a bonded warehouse. It is situated in the restricted
area and mainly used for storing cargo.
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OBJECTIVES OF THE STUDY
The study attempts to analyze the development and performance of exports and imports in airway. The
objectives included
Agricultural, marine, paper magazines etc are exported and imported mainly to Middle East countries and
domestic too.
The present study aimed to gain practical knowledge about cargo handling in Calicut airport. Export and import
details of Calicut airport is statistically depicted in the report which gives clear idea about the export import
performance of Calicut airport.
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INDUSTRY PROFILE
History of KSIE
Kerala State Industrial Enterprise Limited (KSIE) was setup in 1973 as a holding company of the government
of Kerala under the industries department. KSIE was formed to receive and nurse the sick units under the
industries department.
In 1979 government of India took a decision that air cargo complex should be setup at a suitable location by the
consigned state government. The complex where intended to bring all import or export activities under one roof.
To begin with Trivandrum was identified as a suitable location and the government of Kerala appointed Kerala
State Industrial Enterprises Limited as the operating agencies for setting up and running Air Cargo Complex in
the state.
Thus as a government of Kerala undertaking, KSIE was appointed as the custodian of the Air Cargo Complex at
Trivandrum airport in 1979 by Government of India.
Later on KSIE extended its operations to Kochi and Kozhikode airport during 1985 and 1995 respectively,
KSIE had to stop functioning of Cochin air cargo complex during the year 1999 when the cochin international
airport was commissioned.
In addition to the air cargo complex at Trivandrum and Calicut airport, KSIE has engaged in the trading and
marketing activities ranging from consumer goods to industrial products. KSIE is successful in establishing,
managing and efficiently operating five business centre located at Trivandrum, Kottayam, Kochi, Palakkad and
Kozhikode.
As a part of trading the company has stepped into e-business by hosting its own e-com portal which also
provides opportunities for small and medium size business firm to join this venture as “partners in progress”.
The e-com portal of the company www.keralarcade.com is the first of its kind in Kerala with online payment
facility.
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KSIE is also functioning as the Virtual Office of Agricultural and Processed Food Products Export
Development Authority (APEDA). The ministry of commerce government of India has appointed KSIE as the
virtual office of APEDA in Kerala.
“Kerala soap” the only manufacturing unit of KSIE was inaugurated on 1st January 2010 at Vellayil, Kozhikode.
The premium soaps like Kerala sandal, Thrill exotic and Thrill chempaka introduced into the market have
created a new sensation in the mind of people.
After inaugurating the second phase of Kerala soap on 27th January 2011 more products like VEP, Kairali, wash
well detergent cake etc. will do reach the hands of the people. KSIE ltd. has launched our dream project Cochin
International Container Freight Station (CICFS) at Eloor, Kalamasseryon 25th January 2011.
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PROFILE OF PORT
Calicut International Airport (IATA: CCJ, ICAO: VOCL), also known as Karipur Airport, is an
international airport serving the Metropolitan area of Kozhikode, Malappuram and rural Malabar
in Kerala, India. It is located in Karipur, about 28 km (17 mi) from Kozhikode and 25 km (16 mi) from
Malappuram. The airport serves as an operating base for Air India Express. It was the twelfth-busiest airport in
India in terms of overall passenger traffic. It is the third-busiest airport in Kerala
after Kochi and Thiruvananthapuram. It was given international airport status on 2 February 2006.
PORT HISTORY
Calicut airport gained its sanction after a long period of struggle, which began in 1977, under the leadership of
freedom fighter late K.P. KesavaMenon. In the 1990s, Gulf Malayalis played an important part in the
development of the airport - they collected funds for the purpose, when the Union Government said it did not
have funds. This led to the inception of, the Malabar International Airport Development Society, which helped
raise funds for the airport's development. Consequently, major developments of facilities, such as extension of
runway from 6,000 feet to 9,000 feet to facilitate operation of big-bodied aircraft, were carried out, with loans
from HUDCO.
It received the status of an international airport on February 2, 2006, which led to development in its
infrastructure, for handling the operation of international flights from its terminal. It holds the distinction of
being the 12th-busiest airport in India, and 11th-busiest in cargo handling, in terms of its passenger traffic.
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Airline and Destination from Calicut International Airport
2 Air India & Air India Express Abu Dhabi, Bahrain, Dammam,
Doha, Dubai, Kuwait, Muscat,
Riyadh, Sharjah
3 Etihad Airways Abu Dhabi
4 Indigo Dubai
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COMPANY PROFILE
Calicut Air Cargo Complex was set up in May 1995, as UB Centre in the Old Customs House Building at
Beach Road, Calicut and later the entire operation was shifted to the Company’s own building at Karipur, in the
present location in September, 1999. In the very next year the then Unaccompanied Baggage Centre has been
declared as a full-fledged Air Cargo Complex having facilities for Import and Export of Commercial Cargo. On
an average, KSIE is handling 500 MT of Import Cargo including personal baggage at present.
Export of perishable cargo through Calicut Airport has commenced during September, 1998. We are exporting
mainly fresh vegetables, fruits, food stuff, textile/ garments, printed materials, marine products etc. to different
locations world over especially to the Middle East. Betel leaves and flowers are the other items we normally
export. Export operation is taking place at the area allotted to KSIE by the Airport Authority at the Airport
premises. KSIE has installed a wide bodied X-ray Machine with modern facilities as required by the BCAS
Regulations at export section costing of Rs. 50 lakhs for the above purpose
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FACILITIES AVAILABLE AT CACC
The Calicut Air Cargo Complex was constructed at a total cost of 500 lakhs. At present CACC has a total built-
up area of 3,990 Sq.M as detailed below:
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MAJOR ACTIVITIES
3) E-Business
Future Plans
The Calicut Airport has become International now and providing of improved infrastructure facilities in the
Cargo Complex is highly essential. KSIE is also planning to provide additional facilities such as the Cooling
Room facility for flowers and fresh fruits, Cold Storage for specified cargo, Weigh Bridge, additional X-Ray
Machines, Cool Room facility for Marine Products etc. For this, the Company proposes to request the State
Government to acquire and handover 10 acres of land adjacent to the Airport premises for setting up a full-
fledged Export Bay.
CONCEPTUAL FRAMEWORK
Definition of Cargo
In economics, Cargo freight are goods or produce being conveyed-generally for commercial gain-by
ship, Boat or aircraft, Although the term is now often extended to overall type of freight, Including that carried
by Train, Van, Truck or Inter-modal container. The term cargo is also used in case of goods in the cold chain,
because the perishable inventory is always in transit towards a final end use, even when it is held in cold storage
or other similar climate controlled facility.
Multi-modal container unit, designed as re-usable carried to facilitate unit load handling of the goods
contained, Are also referred to as Cargo, specially by shipping lines and logistic operations. Similarly aircraft
ULD boxes are also documented as cargo, with associated packing list of the items contained within. When
empty containers are shipped each unit is documented as a cargo and when goods are stored within, the content
are termed as containerized cargo.
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Concept of Air Cargo Movement
Air cargo, commonly known as air freight, is collected by firms from shipper and delivered to customer.
Aircraft were first used for carrying mail as cargo in 1911. Eventually manufactures started designing aircraft
for other type of freight as well.
There are many commercial aircraft suitable for carrying cargo such as the Boeing 747 and the bigger AN124.
It was properly build for easy conversion into a cargo aircraft. Such as large aircraft employ quick loading
containers known as unit load devices (ULD) much like containerized cargo ship. The ULD are located in the
front section of the aircraft. Popular commercial aircraft transformed to a cargo aircraft such as SAAB 340A is
designed for high revenue and profitability in short-medium haul operations.
Types of Cargo
General Cargo
Dangerous Goods
Live Animals
Valuable Goods
Perishable and Non-perishable Cargo
Frozen Cargo
Unaccompanied Baggage
SEA Here we introduce a brief note about the cargo movements in India. In India we can see the major cargo
movements are based on following routes.
SEA
ROAD
RAIL
AIR
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CARGO MOVEMENT THROUGH SEA
India has a long coastline of 5560 kilometers. Having access to the sea on three sides with 11 major and 168
minor/intermediates ports. Major ports are directly under the administrative control of central government.
While minor/intermediate ports are managed and administrated by the respective maritime countries, and it is
well suited for transportation of bulk cargo at lower cost. Coastal shipping as the complimentary mode of
transport is not only an economic necessity but also a valuable asset in times of emergency.
Transport sector accounts for 6.4% of GDP size of road freight is estimated at $10billion. In India many logistic
companies are involved in movement of cargo through roads.
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AIR CARGO COMPLEX
Import
Export
Transshipment
Import
It is a process of bringing goods or services into a country from abroad for sale
Export
It is a process of sending goods or services to another country for sale
Transshipment
Transshipment is the shipment of goods or containers to an intermediate destination, then to yet another
destination. One possible reason for transshipment is to change the means of transport during the journey
known as trans-loading.
Exporters
IATA Agents
Custodian of warehouse (KSIE)
Airlines
Customs department
Airport Authority of India
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ORGANISATIONAL CHART
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IMPORT
Import is the process of movement of goods from one country to another country. Mainly import items are
classified as unaccompanied baggage, commercial cargo and valuable cargo.
IMPORT DOCUMENTS
Once before arrival of cargo at destination port, the carrier has to file the details of cargo arriving to such
port of importing country with the customs. The filing of such details of cargo is called IGM filing (Import
General Manifest Filing). The procedure to file IGM are done by the carrier of goods or his agent. Normally
IGM is filed on the basis of Bill of Lading or Air Way Bill, issued by the carrier. The IGM (Import General
Manifest) contains the details of shipper, consignee, number of packages, kind of packages, description of
goods, Air way bill or Bill of Lading, number and date, flight or vessel details etc.
Once after filing Import General Manifest, the importer or his customs broker files necessary documents
for import with customs under the said imported goods. This filing is done on the basis of IGM information
filed by the carrier on the arrival of goods. If any mistakes in filing IGM, the import customs clearance
documents cannot be accepted, as the details of such document has to be matched with the details in Import
General Manifest.
So if any details in IGM filed wrongly, such details have to be amended with customs before filing
documents of clearance.
Once after amendment necessary information in Import General Manifest, the importer or his agent can
file bill of entry and proceed to complete customs formalities to take delivery of cargo.
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AIR WAY BILL
An Air Way Bill (AWB) or a consignment note is a receipt issued by a International airline for goods an
evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the Air Way
bill is non-negotiable.
The Air Way bill is the most important document issued by the carrier either directly or through its
authorized agent. It is a non-negotiable transport document. It covers transport of cargo from airport to
airport. By accepting a shipment an IATA Cargo Agent is acting on behalf of the carrier whose Air Way
bill is issued.
Air Way Bills have Eleven Digit Numbers which can be used to make bookings, check the status of
delivery, and current positions of the shipment.
Air Way Bills are issued in eight sets of different colours. The first Three copies are classified as
Originals. The first original, green in colour, is the issuing carriers copy. The second, coloured pink, is
the consignee’s copy. The third, coloured blue, is the shippers copy. A fourth brown copy acts as the
delivery receipt, proof of delivery. The other three copies are white.
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Procedure for delivery of Un-accompanied baggage:
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IMPORT PROCESS FLOW CHART
Receipt of cargo in the presence of customs officials as per the AirWay Bill shown in the
manifest
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EXPORT
CACC provides all facilities to export goods to inside and outside of India at a greatest level.
Export is a process of movement of goods in one to another country. In CACC mainly export items
include in vegetable, fish, food, stuff and perishable items. Following departments/ agencies mainly
perform their duties at export terminal.
Customs Department
All Airlines
IATA Agents
Customs House Agent
Export procedure worked on the basis of IATA’s. In the case of export, a special copy of each Air Way
Bill issue during a reporting period is send to the settlement office for processing.
Exporting refers, a little or bulk quantities of product. Export charges are collected by the cargo
authority from exporters are called “Terminal Charges “. The cargo authority on the basis of weight
must measure export product.
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EXPORT DOCUMENTATION
Invoice
Packing List
Certificate of Origin
Shipping Bill
Certificate of Measurement
Cart Ticket
EGM in export trade means Export General Manifest. This is the document which has to be field with
customs department by shipping liners or aircraft liners. Once your cargo crossed the border of your country,
the ‘export’ taking place and government of the said country treat said goods as ‘Export’. As per customs point
of view, once issued ‘let export order’ custom department allow the cargo to move out of country.
Further tracking on the cargo is not available. Difference between EGM and IGM with the customs. In other
words, issuing ‘Net Export Order’ thus mean that cargo move out of the country.
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The act of movement of cargo is carried out by the carrier of goods. Once after completion of customs
formalities, goods are moved by the carrier. Once the cargo crossed border of the country, carrier intimates
customs department by filling necessary documents regarding the departure of goods with details of vessel or
aircraft, date of sailing/flying etc… EGM is one of the proofs taken by the customs department as the proof of
Export while certifying the export promotion copy of shipping bill. Also read EGM (Export General Manifest)
difference between EGM and shipping Bill.
Labelling of airline
Complete customs assessment and obtain “Net Export Order”
Screening of cargo by the airline security officer
Cargo of filling to container or pallet
Load to airline on road
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EXPORT PROCESS FLOW CHART
Verification of identity
Entry of export cargo having airway bill & catering order & weighting and collection
Containerization/Palletization by airlines
Airport
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TRANSSHIPMENT
As per provisions in the Customs Act, the Commissioner of Customs and Central Excise, used to grant
permission to Kerala State Enterprise Limited or to the concerned Airline based on the application filed by them
along with bond and bank guarantee to undertake bonded trucking between CACC and Trivandrum/Cochin Air
Cargo Complexes. Some of the airline bring import cargo meant for the destination to Calicut occasionally. The
international cargo meant for the destination is also required to be broad to CACC by the airline along with the
cargo destined to Calicut. Such cargo will be loaded into the truck and sent to concerned destination as bonded
cargo. In bonded trucking, the cargo is loaded into the truck by the porters in the presence of representatives of
Customs, Airlines and KSIE after loading the door is locked by the custom representatives using a special type
of lock known as ‘BOTTLE SEAL’. This bottle seal shall have a serial number printed on it. All the necessary
documents relevant to the transshipment cargo are sent by on truck courier. On reaching concerned destination
the airline representatives handover all the documents to the customs representatives. After inspection of bottle
seal by the customs representative at the receiving port, the seal is cut and the door is opened for unloading the
cargo at the concerned Air Cargo Complex at Cochin or Trivandrum. The receipt of the cargo is acknowledged
by the customs officials through a certificate preferred as Re-Warehousing certificates. The transshipment is
complete after the receipt of the Re-Warehousing certificate at CACC.
In addition following agencies and some regulations are also involved in the Export and Import activities
at Calicut Air Cargo Complex:
1. PLANT QUARANTINE
The mandate of plant quarantine service within the directorate of plant protection quarantine and the
storage is to prevent the entry, Establishment and spread of exotic pests in India as per the provisions of the
destructive insects and pests act, 1914 and the notifications issued there under.
Undertaking the inspection of consignment of plants and plant products moving in international traffics
with the object of preventing the introduction and/spread of pest and surveys for pests of quarantine
significant control, Contain and eradicate them.
Providing assurance to importing countries that consignment exported from India are free from pests of
quarantine significant through globally acceptable export certification as per International Plant
Protection Convention (IPPC).
Promoting safe trade by creating awareness amongst customers and effectively implementing
transparent policies through trained personnel.
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2. APEDA
The agricultural and processed food products export development authority (APEDA) was established
by the government of India under the agricultural and processed food products Export Development
Authority Act passed by the parliament in December 1985.
Kerala State Industrial Enterprises also function as the virtual office of APEDA under ministry of
commerce and industry, government of India. The activities of virtual office of APEDA are looked after
by the general manager Air Cargo Complex.
Founded on 23rd February 1947, the organization promotes world-wide proprietary, industrial and
commercial standards. It is headquartered in Geneva, Switzerland, and as of March 2017 works in 162
countries.
It was one of the first organizations granted general consultative status with the United Nations
Economic and Social Council.
Use of the standards aids in the creation of products and services that are safe, reliable and of good
quality. The standards help businesses increase productivity while minimizing errors and waste. By
enabling products from different markets to be directly compared, they facilitate companies in entering
new markets and assist in the development of global trade on a fare basis. The standard also serve to
safeguard consumers and the end users of products and services, ensuring that certified products confirm
to the minimum standard set internationally.
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4. DANGEROUS GOODS REGULATION (DGR)
The safety of many depends on the strength of the supply chain. Dangerous goods surround us every
day, everywhere. Be strong link and apply IATA dangerous goods regulations. The IATA DGR is the
trusted source to help you prepare and document dangerous shipment. Recognized by the world airline
for almost 60 years, the DGR is most complete, up to date and user friendly reference in the industry. So
next time you prepare, process, accept or handle a dangerous good shipment.
(GROUND INCIDENT)
Hazard Class
Immediate Action
division and
Dangerous Good Minimise leakage
Compatibility Hazard Description
Class and Contact with
Group
other cargo
1.3C
1.4G
1.4B Explosives
Fire and minor blast
1.4C (acceptable on Notify Fire
hazard and / or minor
1.4D cargo aircraft Department
propulsive hazard
1.4E only)
1.4G Guard against fire
Explosives
1.4S (safety) Small fire hazard
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against fire
Flammable
Liquid Combustible, DO NOT use water
4.1 Spontaneously contributes to fire under any
4.2 Combustible ignites in contact circumstances
4.3 Dangerous with air ignites in
When wet contact with water
Ignites combustibles
on contact Reacts
Notify Fire
Oxidizer violently with other
5.1 Department Guard
Organic substances
5.2 against fire DO
peroxide
NOT use water
Harmful if
swallowed, inhaled
ISO Late area
or in contact with
6.1 obtain qualified
Toxic substance Skin
6.2 assistance DO NOT
touch
Causes disease in
humans and Animals
Radioactive
Radiation hazards Keep away
7 cat 1 White
and Harmful to minimum 25m
7 cat 2/3 Radioactive
health
Yellow
Notify Fire
Hazardous to skin Department Guard
8 Corrosive
and Metal against fire Avoid
Contact With Skin
Evolves small
Polymeric Beads
quantities of
Magnetized Avoid contact with
flammable gas
9 material carbon Skin No immediate
Affects navigation
dioxide, solid action required
system Causes sub
(Dry ice)
cooling/suffocation
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5. INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)
The international Air Transport Association (IATA) is a trade association of the world’s airlines.
Consisting of 274 airlines, primarily major carriers, representing 117 countries, the IATA member
Airlines account for carrying approximately 83 percentage of the total available seat kilometers air
traffic. IATA supports airline activity and help in formulating industry policy and standard. It is
headquartered in Montreal, Quebec, Canada with executive offices in Geneva, Switzerland.
IATA was formed in April 1945 in Havana, Cuba. It is the successor to the international Air Traffic
Association which was formed in 1919 at The Hague, Netherland. At its founding, IATA consisted of 57
Airlines from 31 countries. Much of IATA’s early work was technical and it provided input to the newly
created international civil Aviation organization, which was reflected in the annexes of the Chicago
Convention, international treat that still governs the conduct of international Air Transport.
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TARIFF AT CACC
CACC provide customer friendly services with lowest service charges and rates.
I. Warehousing/Demurrage charges
Valuable cargo
(Gold, Silver, Currency, Jewellery etc… requiring locker facility)
Days Rate
st
1 week ( 1 to 7 days ) Rs5/- per kg per day subject to minimum of
Rs1000/- per consignment
th
8 day onwards Rs10/- per kg per day from the date of
arrival subject to minimum of Rs1500/- per
consignment
Unaccompanied Baggages/ Commercial cargo
Days Rate
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II. Transportation Charges
Up to 50kg Rs40/-
51-75 kg Rs65/-
76-100 kg Rs90/-
101-150 kg Rs140/-
Up to 25kg Rs15/-
26-50 kg Rs25/-
51-75 kg Rs35/-
76-100 kg Rs45/-
101-150 kg Rs65/-
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Charges beyond 3days (from 4th day onwards) Rs0.50/- per kg per day in
addition to rs6/- as per
item
3 Handling charges for in-bound TP cargo Rs2/- per kg
V. Forklift charges
( per piece )
Up to 250kg Rs100/-
251-500 kg Rs150/-
501-750kg Rs200/-
751-1000kg Rs250/-
Above 1000kg Rs250/- in addition to rs100/- for every
250kg or part thereof
Rs0.50/- per kg per day beyond 36 hours subject to a minimum of Rs100/- per day per consignment.
Rs1/- per kg for perishable cargo and Rs1.50/- per kg for general cargo wherever screening and security
certification is done by the concerned airlines.
Rs1.50/- per kg for perishable cargo and Rs2/- per kg for general cargo wherever screening and security
certification is done by KSIE.
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4) Terminal Charges
5) Forklift Charges
( per piece )
Up to 250kg Rs100/-
251-500kg Rs150/-
501-750kg Rs200/-
751-1000kg Rs250/-
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OBSERVATIONS
1. The Calicut Airport is one of the major airports which promote the foreign trade.
2. The airport is having proper EDI System
3. It is found that reduction of flights have affected the exports and imports.
4. Vegetables, fruits and flowers are the main export items from the airport
5. Middle East is the main destination of Calicut Airport.
6. It’s found that the present cargo terminal is weak in terms of handling capacity. This problem will be
overcome by the establishment of new terminal in 15 acres shortly.
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CONCLUSION
Today air cargo has a major role in the economy of our country. Here at Calicut air cargo complex, air cargo
complex is controlled by Kerala State Industrial Enterprise Ltd. As a company KSIE is successful in
establishing, managing and effectively operating the enterprises, which is under the Government of Kerala.
KSIE is acting in custodianship to ensure, checking in all activities.
As a trainee in KSIE, it was a great experience for us; we have learned many things in a short span of time, like
warehouse management, export and import procedures. And we got much additional information apart from our
syllabus that surely will help us to build our career.
1) The KSIE can provide container and cargo handling equipment sufficient for the development of cargo
terminal.
2) More private participation leads to the increase of cargo terminal.
3) The Airport can concentrate on improving the storage facility for imported cargos.
4) Modernization of airport facilities and use of updated technology can improve operational efficiency.
5) The airport should improve facilities for more airlines and should take necessary steps for introducing
more airlines.
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BIBLIOGRAPHY
www.ksie.com
www.keralaarcade.com
www.calicutaircargocomplex.com
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ANNEXURE
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