Changehangs inthe air


With all the troubles surrounding the flood-ravaged nation at the moment it is perhaps not surprising that Pakistan’s air freight industry is in turmoil. Much needs to be done if cargo ship- ments are once again going tomove quickly and safely to, fromandwithin the country


Alpine International Freight and Logistics, says there is an “alarming” absence of a comprehen- sive aviation policy in Pakistan in the face of many different challenges. These problems include the effects of the


N


global economic slowdown, the volatility in fuel prices, a worsening law and order situation in Pakistan and some of its surrounding countries, energy and power crises, currency depreciation,


ot holding back on his punches, Muhammad Bhatti, general man- ager of UAE-headquartered ABC Best International Freight Manage- ment and managing director of


plus numerous other financial and administra- tive issues. Bhatti points out that Pakistan is in an ideal


position to profit from the air logistics busi- ness. The country is strategically located between the economically important regions of South Asia, Central Asia and the Middle East, but nonetheless cargo yields plummeted by 16 percent last year and volumes measured in rev- enue freight tonnes were down by 10.1 percent. He quotes a study that claims the total vol-


ume of air cargo handled in the country can be increased from the 330,000 tonnes seen in the 2004/05 financial year to about 866,000 tonnes


in the 2015/16 fiscal year – but he warns that this is unlikely to happen without the help of “proper measures being taken to sort out the ongoing prob- lems” in the country’s air freight infrastructure and the related procedures presently in use. Bhatti maintains that the


country’s air cargo handling facilities at all its airports should be improved further, in order to rectify the faults that are hin- dering growth. These problems include a


lack of ground and aircraft capacity, charging anomalies, the lack of foreign cargo opera- tions, security, lack of cold storage facilities and inefficient business processes. But the air cargo industry cannot survive in


isolation and it will need firmsupport fromeffi- cient rail and road networks, as the chances are that its importance is going to increase exponen- tially in the next two decades. Bhatti continued: “Due to these problems,


about 95 percent ofPakistan’s exports are by sea, but the tiny percentage of air freighted items are estimated to be worth 8 percent of the total value.” He believes: “This tiny percentage can be


increased by establishing all the modern equip- ments and tools and encouraging the airlines to come forward and put their strength into the


Bhatti – there are numerous challenges to overcome


market to be improved.” Bhatti noted here that the


introduction of independent air carriers in Pakistan has helped to improve the situation. “It was a good sign when four new private airlines were started ... in the early 1990s. “These airlines did very well


to competewith thewell-estab- lished presence of state-con- trolled Pakistan International Airways.” However, he blames the


economic sanctions that were imposed on Pakistan and its neighbour India in 1998 for causing two of the four emerg-


ing Pakistani airlines to file for bankruptcy and to liquidate their assets. “It was not until the early 21st century that


the industry started to pick up again, allowing the entry of a new carrier in the market – Air- blue, a private sector airline based in Karachi.” Bhatti noted: “It is now Pakistan’s second- largest carrier with a 20 percent share of the domesticmarket.” He concluded: “One important point must


be kept in the minds of the concerned authori- ties and this is that much investment can be expected in the future ifwe can resolve the secu- rity concerns, while reducing the amount of bureaucratic red tape that has to be cut through.”


UK orders Pakistani freight to be re-screened


After the recent bomb plot on an all-cargo aircraft uncovered by the security authorities at its East Mid- lands airport, the govern- ment in Great Britain has tightened up on security procedures involving the screening of air cargo pass- ing through the country. UK transport secretary


Philip Hammond outlined: “Cargo originating from some cities in India, Qatar, Pakistan, Iran, Bangladesh, Thailand,


the Maldives,


ments leaving the coun- tries deemed to pose the highest risk and entering the UK, but he assured that these delays would be measured in “minutes and hours, rather than days and weeks”. After meeting with


Sudan and Libya will have to be re-screened after arriving in Britain (and) before being load- ed onto onward flights.” Hammond said the new approach would potentially create delays for ship-


Hammond promises minimum delay to shipments


industry representatives, Hammond said that a sys- tem had been discussed that would grade the per- ceived risk from those countries sending air car- go to the UK. Countries that already have screening measures


matching more closely those of the UK and the EU could have easier access to the country than those that do not, he indicated.


Page 22


29 November 2010


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