AISATS Weighs Logistics Park Expansion as Bengaluru Airport Eyes 1 Mn Tonne Cargo Target

• AISATS Expands Warehousing Services with Flexible Short-Term Storage
• AISATS Launches On-Demand Warehousing at BLR Logistics Park to Power Agility for Shippers and Forwarders

Bengaluru, Oct 14, 2026. AISATS is weighing additional warehousing capacity at its Bengaluru airport logistics park as the facility approaches full occupancy, with the airport targeting annual cargo throughput of one million metric tonne by 2030. The company is also expanding its service offering through short-term storage for urgent and specialised shipments, allowing customers to rent space for as little as one day.

The AISATS BLR Logistics Park reached 70 per cent occupancy within its first year of operations and is on track to achieve full occupancy, the company said in a press release. While AISATS has indicated that additional infrastructure may be needed as cargo volumes grow, it has not announced a confirmed expansion plan, investment amount, or timeline. Any capacity addition will depend on cargo growth projections and the airport’s broader hub strategy.

Occupancy Drives Capacity Review

Spread across eight acres, the logistics park brings together Grade A warehousing, a customs-bonded warehouse, a consolidation centre, cold storage and office space, along with services such as packing, labelling and cargo inter-shuttle operations. The facility is located close to the airport and has access to National Highway 44.

The park was developed to bring freight forwarding and cargo preparation activities closer to the airport’s cargo terminals. This allows operators to consolidate shipments from different locations before moving them for air transport, reducing the need for repeated transfers between off-airport warehouses and the airport.

Salim Chaudhary, COO, AI SATS and company executives said the facility was planned around longer-term cargo demand projections, but occupancy has risen faster than anticipated. The company is considering whether a second facility may be required to accommodate future demand, with the timing and scale dependent on the airport operator’s projections.

Bengaluru airport has set a target of handling one million metric tonnes of cargo annually by 2030. AISATS executives said the pace of growth towards that target would help determine the additional logistics infrastructure required. While AISATS has not firmed up its expansion plans or investment outlay, Raj Mahmia, Head Cargo Logistics Services, AISATS, indicated that a facility of this scale would typically entail an investment of Rs 400 to 500 crore.

Short-Term Storage Targets Smaller Shippers

Alongside its review of long-term capacity, AISATS has introduced a Short-term Warehousing Solution (STW) for freight forwarders, shippers and businesses that need storage for urgent, last-minute or temporary cargo requirements. The service covers general and temperature-controlled cargo, with rental periods starting at one day and no requirement for a long-term lease.

The short-term facility currently has a storage capacity of around 25 tonne. AISATS has discussed the possibility of increasing this to 100 tonnes by allocating an additional 10,000 square feet, but the proposal has not been finalised.

The model is intended to help smaller and mid-sized businesses avoid paying monthly rent for dedicated warehouse space that they may use only intermittently. It can also provide additional capacity during seasonal cargo peaks, including Diwali, Christmas and New Year, when some businesses experience a temporary increase in shipments.

AISATS said the service had also been used to store oversized medical equipment requiring special handling, as well as chemicals and pharmaceutical ingredients at its common-user cold storage facility. General cargo storage is priced at 55 paise per kilogram per day, while temperature-sensitive cargo costs 85 paise per kilogram per day, according to information shared during the briefing.

Logistics Park Attracts Global Freight Forwarders

The facility has attracted multinational logistics companies including DHL, DSV, FedEx, Kuehne+Nagel and CEVA Logistics, according to AISATS. The short-term offering extends access to the park’s infrastructure to smaller freight forwarders and shippers that may not require dedicated warehouse space throughout the month.

Customers can also access packing and labelling support, dedicated manpower, forklift services and cargo inter-shuttle operations. The integrated set-up is intended to allow cargo to be prepared and consolidated near the airport before it is transferred to cargo terminals.

AISATS said demand for logistics infrastructure was being driven by sectors including electronics, semiconductors, engineering goods, aerospace and pharmaceuticals. The company did not provide a breakdown of cargo volumes or revenue contributed by these sectors.

“The response from the market has been extremely encouraging, with occupancy already reaching 70 per cent,” Salim Chaudhary said. He added that the short-term warehousing service was designed to provide access to warehousing infrastructure without long-term commitments.

Expansion Depends On Cargo Growth

AISATS said future capacity additions would depend on the commercial viability of the investment and the pace at which the airport’s cargo volumes grow. The company is awaiting greater clarity on the airport’s projections before determining the infrastructure required to support demand.

The logistics park forms part of AISATS’ cargo and logistics operations. The company, a 50:50 joint venture between Air India and Singapore-based SATS, also provides airport ground-handling and cargo services across its network in India.

For now, the immediate focus includes filling the existing park and extending its services to businesses with shorter or specialised storage needs. Any decision on a second facility will depend on the scale and timing of future cargo demand.