Air cargo sector essential for Africa but needs infrastructure and regulatory reform

19th February 2019

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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Air transport would play a crucial role in the growth of intra-African trade, because of the poor terrestrial communications across the continent and the number of landlocked countries it contains. So affirmed South African Airways (SAA) CEO Vuyani Jarana in his keynote address at the opening of the Air Cargo Africa 2019 conference and exhibition in Kempton Park on Tuesday.

But, he pointed out, increasing air cargo traffic within Africa would require the development of the necessary infrastructure at airports. Moreover, air traffic charges and levies should be set to promote air traffic -- excessive charges and levies served to discourage air traffic and could make some routes uneconomic to operate.

Africans had already adopted mobile telecommunications and "mobile money" and their governments had to follow suit, and adopt modern, digital, mobile technologies for customs and excise and security. The continent should use the Fourth Industrial Revolution to leapfrog its development.

There was a need to expand air traffic between city pairs within Africa, he stated. Meanwhile, SAA was looking at its cargo operations to see where it could innovate.

The liberalisation of air traffic across the continent could double intra-African trade, highlighted Airports Company South Africa (ACSA) group executive: business development Charles Shilowa in his keynote address to the conference. "ACSA considers itself a key role player in stimulating intra-African trade and intercontinental trade," he said.

He pointed out that his company was on the verge of upscaling and modernising its air cargo operations at its flagship OR Tambo International Airport (east of Johannesburg). Construction of its new midfield air cargo terminal was about to begin.

He affirmed that, over the past 12 years, ACSA had transformed itself into the partner of choice for a range of airport services across Africa. The group was proud that it had built up important skills, which it was sharing with its African partners.

Africa needed air cargo to fulfill its potential for growth, observed STAT Media Group editor-in-chief RK Patra in his welcoming address. (STAT Media founded Air Cargo Africa a decade ago; in future the conference and exhibition would be organised by Messe Munchen although STAT Media would remain a partner.)

"Technological advances have brought about drastic changes in the air cargo industry," he noted. Across the continent, modernisation of infrastructure and regulatory reform had to go hand-in-hand.

"E-commerce ... can help air cargo in Africa," he affirmed. But challenges across the continent included the high costs of last-mile delivery services and the lack of banking services.

Edited by Creamer Media Reporter

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