India’s logistics landscape is undergoing a structural recalibration, and the latest signal comes not from a major metro but from the eastern seaboard. Andhra Pradesh’s decision to integrate its logistics ecosystem with the Unified Logistics Interface Platform (ULIP) marks a pivotal shift toward data-driven, interoperable freight systems an evolution with direct consequences for the country’s air cargo sector.

The Memorandum of Understanding (MoU) signed between the Government of Andhra Pradesh and NLDSL (NICDC Logistics Data Services Ltd) is more than a state-level digital initiative. It indicates a policy moment in which logistics efficiency, air cargo competitiveness, and multimodal planning are increasingly being anchored in digital governance. Announced in the presence of Union Minister of Commerce and Industry Shri Piyush Goyal and Chief Minister of Andhra Pradesh N. Chandrababu Naidu, the agreement signals the state’s intent to build an integrated data layer that spans ports, airports, industrial corridors and warehousing clusters embedding ULIP at the core of real-time logistics management.

A digital architecture for modern cargo networks

ULIP is India’s most comprehensive logistics data exchange, integrating 44 systems across 11 ministries through 136 APIs and enabling access to more than 2,000 real-time data fields. Over 210 industry applications have already been built on the platform, generating more than 200 crore API transactions to date.

The MoU allows Andhra Pradesh to construct a centralised logistics dashboard fed directly by ULIP to monitor state-wide freight flows, multimodal utilisation, air cargo performance, and critical key performance indicators across government departments. For an economy that leans heavily on export-oriented manufacturing and temperature-sensitive cargo, such digital synchronisation offers tangible gains.

Airports at Visakhapatnam, Vijayawada and Tirupati stand to benefit immediately. Each handles distinct cargo segments pharmaceuticals, seafood, automotive, and agri-freight that require tight coordination between customs, cold-chain operators, port gateways, and ground handlers. Real-time visibility across these nodes can compress dwell times, reduce truck congestion outside cargo terminals, and improve predictability for exporters managing narrow time windows for perishables and APIs.

Optimising Andhra Pradesh’s export corridor

Andhra Pradesh holds a unique position in India’s export matrix. The state is a major origin point for marine exports, pharma active ingredients, aerospace components, automotive systems, electronics assembly and high-value perishables. Many of these categories exhibit high dependency on air freight.

Visakhapatnam Airport, for instance, has seen rising uplift across pharma, engineering and seafood consignments. ULIP-enabled transparency covering vehicle movement, customs status, terminal handling progression and multimodal handoffs can help mitigate bottlenecks that limit throughput and affect time-definite shipments.

Cold-chain visibility is another structural issue. With Andhra Pradesh responsible for a significant share of India’s shrimp exports, ensuring temperature integrity from farm gate to aircraft is essential. Integrating ULIP with port-side and airport-side reefer monitoring systems could strengthen export reliability, a feature increasingly scrutinised by overseas regulators and buyers.

Anchoring national policy ambitions

The MoU aligns with India’s broader logistics reforms under the National Logistics Policy (NLP) and PM Gati Shakti. NLP aims to reduce logistics costs currently estimated at 13–14% of GDP to levels closer to OECD benchmarks, while Gati Shakti connects infrastructure projects through a unified geospatial network. ULIP serves as the digital spine between these two policy pillars.

For the Ministry of Civil Aviation, which projects India’s air cargo capacity to expand from 3.3 million tonnes to 10 million tonnes by 2030, the success of such digital corridors will determine whether physical capacity can be matched by corresponding improvements in speed, transparency and reliability. Without integrated data systems, expansions in airside infrastructure risk being diluted by inefficiencies in the first and last mile.

Implications for air cargo competitiveness

The digitisation initiative strengthens the competitive position of Andhra Pradesh’s airports by embedding them into a transparent, interoperable freight ecosystem. This matters for several reasons.

First, international air cargo benchmarks show that real-time visibility can reduce dwell times by 20–40%, depending on commodity mix and airport congestion patterns. For shippers of pharmaceuticals, medical devices and seafood, reductions of even a few hours can determine market access, shelf-life, or compliance with overseas regulatory requirements.

Second, ULIP’s integration with customs, port authorities, transport systems and trade document repositories enables seamless multimodal shift between ports and airports. For exporters who alternate between sea and air depending on market demand, runway access and lead-time volatility, this flexibility carries clear commercial value.

Third, the initiative helps position the state as a preferred destination for global forwarders, integrators and 3PLs evaluating India’s secondary logistics markets. Predictable digital workflows make airports more attractive for regional consolidation, trans-shipment and express cargo operations.

Industry perspectives: A shift from physical to digital infrastructure

While the MoU announcement did not include industry commentary, logistics stakeholders familiar with India’s digital pivot highlight the strategic significance of AP’s decision.

Government of Telangana asserted on ULIP’s interoperability “is essential for building confidence among exporters and overseas buyers who increasingly expect real-time supply chain data, not periodic updates.”

The government further stated that, “this initiative will reduce friction for export-dependent sectors like perishables and pharma, where the cost of delay is disproportionately high.”

These observations point to an industry reality: digital capacity, not just airside capacity, is shaping competitiveness.

Regulatory and governance dimensions

The MoU reinforces several emerging principles in India’s logistics governance, namely that data interoperability must be treated as a public good; that API-based regulation can reduce discretionary decision-making; and that states must align with global standards set by ICAO, WCO, IATA and related bodies.

Such alignment is increasingly important as global supply chains reconfigure and compliance requirements tighten. As cross-border e-documentation, advanced cargo information systems and electronic airway bills become mandatory across markets, states with end-to-end digital capability will be better positioned to meet international expectations.

A blueprint for India’s Next-Generation air cargo network

Ultimately, the Andhra Pradesh–NLDSL partnership demonstrates what a modern air cargo ecosystem requires: real-time data, multimodal synchronisation and predictive analytics layered on top of conventional infrastructure.

If implemented with rigour, the initiative could reduce logistics costs, enhance export competitiveness, and improve multimodal utilisation across ports and airports. It also creates a test case that other Indian states may replicate as the country moves toward a unified digital logistics architecture.

In an era where trade flows increasingly reward transparency, throughput and digital governance, Andhra Pradesh’s adoption of ULIP marks a substantive step toward aligning India’s air cargo ecosystem with global best practices. It offers a preview of how states can transition from fragmented logistics management to a coordinated, data-driven strategy; one that enhances both domestic efficiency and international credibility

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