AISATS Launches Short-Term Warehousing at Bengaluru Airport Logistics Park for Smaller Forwarders

Summary

Air India SATS Airport Services has introduced a short-term warehousing service at its BLR Logistics Park inside Kempegowda International Airport, allowing forwarders and shippers to rent general and cold storage from just one day with no long-term lease. The ₹200 crore park has reached 70% occupancy in its first year, driven by electronics, pharma and other high-value cargo.

Article

Bengaluru: Air India SATS Airport Services (AISATS) has launched a Short-Term Warehousing (STW) service at its BLR Logistics Park at Kempegowda International Airport, offering on-airport storage that can be rented for as little as one day without a long-term lease.

What does the service offer?

The service covers both general and temperature-controlled cargo. It targets overflow volumes that build up at airports, including urgent and last-minute shipments, seasonal peaks around Diwali, Christmas and New Year, project cargo, and oversized or specialised consignments.

AISATS says the facility has already been used to store odd-sized medical equipment, as well as specialty chemicals and pharmaceutical ingredients in its common-user cold store.

Short-term users can also buy add-on services such as shuttles to the cargo terminals, packing and labelling, forklifts and dedicated manpower.

Who is the service aimed at?

Global forwarders including DHL, DSV, FedEx, Kuehne+Nagel and CEVA Logistics already operate from the park. The new service targets the next tier: mid-sized and smaller forwarders, shippers and businesses whose storage needs are occasional and do not justify a dedicated lease.

This builds on AISATS’s positioning of the park’s common-user and pay-per-use spaces as a gateway for SMEs.

What is the BLR Logistics Park?

The park opened in April 2025 inside the airport. AISATS developed it for about ₹200 crore under a 15-year design-build-finance-operate-maintain agreement with Bangalore International Airport Ltd.

The eight-acre site includes a two-level main warehouse with more than 2.4 lakh sq ft of Grade A space, a public bonded warehouse, a consolidation centre, cold storage and an office block.

Because the park is on-airport with access to NH44, AISATS says users avoid trucking cargo to off-airport warehouses 40 to 50 km away, cutting both transit time and haulage costs.

How is the park performing?

Salim Chaudhary, Chief Operations Officer at AISATS, said the park has reached 70% occupancy in its first year and is on track for full occupancy. He said demand for flexible storage is rising alongside cargo volumes, particularly for urgent, short-duration and specialised loads, and that the new service gives forwarders access to premium infrastructure “without the constraints of long-term commitments.”

AISATS identifies electronics, semiconductors, engineering goods, aerospace and pharmaceuticals as the main sources of demand, reflecting Bengaluru’s position as one of India’s busiest air cargo gateways for high-value, time-sensitive goods.

Why does it matter?

Flexible, pay-per-use storage close to the airside lowers the barrier for smaller forwarders to access Grade A infrastructure, while helping larger players manage seasonal peaks without committing to additional long-term space. As India’s air cargo volumes grow, such models could help airports make better use of on-airport capacity and reduce congestion at cargo terminals.

AISATS is a 50:50 joint venture between Air India and Singapore’s SATS Ltd and handles ground and cargo operations at airports including Bengaluru, Delhi, Hyderabad and Noida.

FAQs

What has AISATS launched in Bengaluru?

A Short-Term Warehousing service at its BLR Logistics Park, offering storage from one day with no long-term lease.

What types of cargo can be stored?

Both general and temperature-controlled cargo, including urgent, seasonal, project and oversized shipments.

Who is the service designed for?

Mainly mid-sized and smaller forwarders, shippers and businesses with occasional storage needs.

How large is the BLR Logistics Park?

The eight-acre park has a two-level main warehouse with more than 2.4 lakh sq ft of Grade A space, plus bonded, cold storage and consolidation facilities.

What is the park’s current occupancy?

It has reached 70% occupancy in its first year and is on track for full occupancy, according to AISATS.