Page 8 - LUA May June 2024 for Website

COVER STORY

Mar 2024 Feb 2024
11.4%
Industry 13.8% Photo: Kenya Airways Cargo
Source: IATA Sustainability and Economics, IATA Monthly Statistics Latin America 7.8% 10.0% 19.9%
14.1%
Africa

Asia / Pacific

Europe

Middle East

3.1%
North America
10%
0%
5%
15%
Growth in international CTKs (YoY) by airline region of registration 20% 25% 30%
Africa and Perishable Logistics Africa
events organised by Logistics Update Africa
in Nairobi. Moreover, airline charges on Photo: Swissport Kenya
the continent are higher, further burdening
carriers and impeding their growth.
“Airlines’ cooperation, commercial
agreements, and partnerships are essential hand-in-hand with the success of the
to improve connectivity. African Airlines entire economic ecosystem,” says Racheal
Association (AFRAA) route network and Ndegwa, CEO of Swissport Kenya.
cargo coordination is aimed at creating a Improving air When it comes to infrastructure and to
forum for airlines to cooperate. Another support the growth of the aviation and air
success factor is airline consolidation. Over cargo capacity cargo sectors, African nations are investing
the past 18 years, the African continent has provides a growth heavily in upgrading and expanding their
had the lowest level of market consolidation platform for the airport infrastructure. Major airport
compared to the other regions in the globe. projects are underway in countries like
The engagement of states, airlines, and all entire economy. Ethiopia, Nigeria, Kenya, and South Africa,
the relevant stakeholders is necessary to enhancing capacity, improving operational
effectively achieve the required outcomes RACHEAL NDEGWA efficiency, and catering to the increasing
SWISSPORT KENYA
on airline consolidation in Africa,” says demand for passenger and cargo services.
Abderahmane Berthé, Secretary General, Cargo Hubs and Logistics Parks play
AFRAA. liberalising air services, and facilitating the a crucial role in the African air cargo
Berthé also highlighted significant movement of goods across borders. logistics sector, particularly in facilitating
factors such as trade and tourism “In recent years, the air cargo industry the efficient movement of goods across the
development. He pointed out that intra- in Africa has become one of the fastest- continent. These facilities serve as strategic
Africa trade currently stands at less than growing sectors; during the next five years, locations for the sorting, consolidation,
20 percent, in stark contrast to over 50 trade is expected to climb by 15-20%. The and distribution of cargo, enhancing
percent in other regions. Similarly, intra- export of perishable goods, including as connectivity and reducing transit times.
Africa tourism remains relatively limited, flowers from Kenya, fruits from South Ethiopian Cargo has recently
with the focus often being on tourism from Africa, and Cairo, is what is fueling inaugurated a new e-commerce logistics
non-African regions. Berthé emphasised the expansion and presents significant facility, investing USD 55 million. This
the importance of facilitating air travel potential for economic development dedicated warehouse, designed for
through visa openness, noting that throughout the continent. The goal across e-commerce goods, mail, and courier
currently, 50 percent of African citizens the African continent is raising quality services, represents a significant
require a visa to travel within Africa. standards so that African exports can advancement for the African continent's
Initiatives like the Single African Air more easily compete with goods coming industry. It positions Addis Ababa as the
Transport Market (SAATM) and the from South America and other regions of primary cross-border e-commerce logistics
African Continental Free Trade Area the world. Improving air cargo capacity hub for Africa and beyond.
(AfCFTA) are aimed at addressing these provides a growth platform for the entire "The e-commerce logistics facility is
challenges by promoting open skies policies, economy – at Swissport, we see our success a significant breakthrough for Ethiopian

6 LUA MAY - JUNE 2024