How lack of cargo aircraft retards industry growth – Operators

Nigeria’s domestic air cargo industry is suffering due to a lack of cargo aircraft for the dedicated transport of cargo within the country.

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The General Sales Agents (GSAs) are only making use of belly aircraft to move cargo, as they seek a more coordinated air cargo development strategy.

According to the Chief Executive Officer of Ehi Multi Systems Nig. Ltd., Dr Lucky Omokhodion, the dependence of GSAs on passenger aircraft has limited the growth of the air cargo business in Nigeria.

He said that investing in cargo aircraft was capital intensive, but was a worthy cause.

“We do not have cargo flights, we only have passenger flights, and it is through the passenger flights that we take all cargoes across the nation.

“It became worrisome, recently, because Dana is not flying, and Arik had issues. These really brought the business to zero. Thankfully, Arik is back. Those are our major carriers.

“What an investor will be considering is how to transport goods at an acceptable rate but the quantity should match what he will be spending on fueling and other things.

“If a cargo aircraft takes goods to Abuja, for instance, it should be loaded with cargoes back. The investor will be losing if it flies back empty or half-empty,” he said.

Omokhodion said that air cargo operators had lost customers because of the unavailability of cargo aircraft.

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“Some customers have taken alternative means to transport their cargoes,” he said.

According to him, fresh fruits and vegetables, among other perishable goods, from some states to another, have spoilt as a result of cancelled or delayed flights.

The Chief Operating Officer of Ibom Air, Mr George Uriesi, had called for a more coordinated and strategic approach to fully harness the country’s potential in the sector.

The Executive Director, Operations, Skyway Aviation Handling Company, Mr Herbert Odika, listed some challenges facing Nigeria’s air cargo industry.

He said that the challenges included fluctuation in aviation fuel price, regulatory bottlenecks, inadequate storage facilities and lack of advanced technology.

For smooth cargo export, Odika recommended export regulations, encouragement of airlines and handling companies, and regular training of employees of handling companies and security personnel.

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He said that successful air cargo operation would require government agencies to work with the handlers while the handlers should regularly train and re-train their staff and be innovative.

“Airlines and handlers should give a satisfactory customer experience. Also, good warehousing and storage facilities should be put in place,” Odika said.

The Group Managing Director/Chief Executive Officer, Red Star Express, Mr Auwalu Babura, said that improved air cargo operation would positively affect Nigeria’s gross domestic product.

According to Babura, Nigeria needs five billion dollars to fix infrastructure in 24 airports.

The Chairman of Nigeria Aviation Awards, Mr Fortune Idu, said that the International Air Transport Association had identified a correlation between improved air cargo connectivity and higher total trade value.

“One per cent increase in cargo connectivity is associated with 6.3 per cent increase in total exports and imports.

Idu urged establishment of a framework for air cargo logistics that would examine the responsibilities of airports and various associates in the air cargo distribution link, as well as their operational readiness.