Bengaluru, In an effort to make Kempegowda International Airport (KIA) a successful cargo hub, Bangalore International Airport Limited (BIAL) has opened India's first on-Airport Public Bonded Warehouse.

According to a statement released by the BIAL on Friday, the 10,000 sq. ft warehouse facility has come up to meet the demands of customers for re-export & long-term storage of bonded cargo, at minimal logistics cost.

"The facility will be operated by Cargo Service Centre (CSC) and it will be under the jurisdiction of the City Commissionerate, Bengaluru Customs. This facility will reduce supply chain costs and facilitate trade at India's IT hub and surrounding regions," the statement said.

The statement further added that the Public Bonded Warehouse will help re-export goods, long-term storage of bonded cargo besides assisting in partial clearances and allow value-added services such as labeling, packing and repacking services.

"The warehouse will not only simplify processes and meet customer demands with the help of key stakeholders, including the Bengaluru Customs, the BIAL took this step to set up India's first on-campus Public Bonded Warehouse.

"This demonstrates BIAL's commitment to support the Airport cargo community, as well as bolster the growth of BLR Airport as a cargo hub," BIAL's Chief Strategy & Development officer Satyaki Raghunath said.

The statement also said that KIAL airport has processed 99,154 MT of cargo in the first five months between April and August 2020, recording a 92% growth in Cargo Air Traffic Movements.

"It offers the largest air cargo terminal in South India, with a handling capacity of 570,000 MT and an average travel time of nine hours from major manufacturing clusters across South India. BLR airport is emerging as the preferred cargo gateway for industries from the region, making it the third busiest Cargo Airport in the Country and the busiest in South India," the statement added.

"Bengaluru handles a large volume of imports. BLR airport is the busiest and most preferred cargo terminal for manufacturers in South India," it said.