Cargo handling at Mangalore International Airport will be partly privatised before Mach next and goods will be handled at a building close to the terminal building at Kenjar.

The Airports Authority of India (AAI) has planned to privatise the entire cargo handling at the airport in due course of time.

It is to attract more cargo by exempting the private agency from paying royalty to the AAI for two years.

Director of the airport J.T. Radhakrishna told The Hindu that the AAI has now permitted the airport to allow a private agency to handle domestic cargo but not international ones.

Now, domestic cargo is being handled at the new terminal building at Kenjar and the international cargo at the old terminal building at Bajpe by the government.

Bids would be invited shortly to select the private agency, and it has been planned to start domestic cargo operations through the agency before March 2015, he said.

Mr. Radhakrishna said that sometime ago, the State government handed over a 3.05-acre private land close to the terminal building at Kenjar to the AAI.

The land had a building called Dakkan Park. This building was just 200 metres away from the terminal building.

Domestic cargo operations would be started in this building as the AAI headquarters has permitted it.

International cargo operations would be shifted from Bajpe to the Dakkan Park building at Kenjar once the AAI permitted it.After the AAI gives permission,bids would be invited.

Domestic cargo being handled now includes only parcels and postal articles.

Later, there would be scope to handle other domestic cargo.

Mr. Radhakrishna said that the AAI would exempt the private party from paying 13 per cent royalty of the total business.