The focus will not be limited only to such movements. The ambition is to extend the coverage from Dubai to wherever clients want their shipments to reach – by air
One of India’s biggest conglomerates, the $11 billion Mahindra Group, has picked Dubai to be the international hub for its air cargo chartering operations. The entity, Mahindra Logistics, has already entered partnerships with multiple fleet operators and with a focus on riding the higher volume of shipments moving between India through to the UAE and then beyond, reported Gulf News
The focus will not be limited only to such movements. The ambition is to extend the coverage from Dubai to wherever clients want their shipments to reach – by air.
“What we have launched out of Dubai is our global chartering business, which is only for cargo,” said Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics Ltd.
“In the long run, we’ll have full freighters deployed to move material across the world, but essentially anchored in and out of Dubai.”
Mahindra Logistics is the second major Indian company to confirm Dubai as its international hub in recent weeks. Malabar Gold & Diamonds recently moved into its new base at Dubai’s Gold Souk Ext., from where all of its overseas operations will be handled.
The Mahindra Group’s reach stretches across industries: automotive, cargo, industrial, retail and high-tech consultancy.
It will not be an easy run since air cargo chartering remains intensely competitive, with UAE and Gulf’s legacy airlines having a major say in the movements.
This agreement lends weight to our broader macroeconomic view of Dubai as a natural choice for expansion, enabling us to make regional and global advancements,” said – Rampraveen Swaminathan of Mahindra Logistics Ltd
But in a post-Covid environment, there has been a shift in shipment patterns, and Mahindra Logistics can expect to cash in on that.
“By global, we mean it’s not restricted only on the Middle East or GCC,” said Saurav Chakraborty, Head – Global Cross Border Solutions at Mahindra Logistics Ltd.
“We are going to target the segment of foreign-to-foreign movement, say from Shanghai to Istanbul.
So, the world is going to be ours.”
“The CEPA agreement has led to a 14% annual increase in bilateral trade, creating new trade opportunities and registering a multi-year high in exports from India to the UAE (in the 12 months to end March 2023), which increased from $28 billion to $ 31.3 billion.
From our perspective, CEPA reaffirms the strength of the UAE-India relationship and serves as a high-level strategic confirmation that the UAE will continue to be a major trading partner for India.
This agreement lends weight to our broader macroeconomic view of Dubai as a natural choice for expansion, enabling us to make regional and global advancements,” said – Rampraveen Swaminathan of Mahindra Logistics Ltd.
What the company does is lease the entire aircraft – at all times. There is no piecemeal approach of sharing space in the cargo-hold of another airline. Mahindra Logistics will book a certain number of trips with airline owners on a full-aircraft basis.
This gives the flexibility to cover anything from small to bigger sized payloads. “Or even odd dimensions,” said Swaminathan.
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