AIR CARG O WEEK


WEEKLY NEWS NIGERIAN OPERATORS CALL FOR REFORMS


BY Ajinkya GURAV


NIGERIA’S domestic air cargo industry is facing significant challenges, particularly due to the acute shortage of dedicated cargo aircraf t, a situation that has resulted in stunted growth and loss of customers, according to operators in the sector. Industry


stakeholders have voiced their


concerns about the dependence on passenger aircraf t to transport cargo, which they argue is insuf ficient to meet the country’s growing air cargo demand. The lack of investment in cargo-dedicated aircraf t


is also slowing the


sector’s expansion and hindering Nigeria’s ability to harness its full potential in the global air freight market.


Critical bottleneck Lucky Omokhodion, CEO of Ehi Multi Systems Nig. Ltd., highlighted that the current business model, which involves using passenger flights to


transport cargo, is unsustainable


Omokhodion pointed out


that


investors are


hesitant to commit to cargo aircraft due to the cost-benefit challenges. “For a cargo aircraft to fly from Lagos to


Abuja, for instance, it needs to be fully loaded with goods for both legs of the trip. If it flies back empty or half-empty, the investor incurs significant


losses,” Omokhodion


“The result is that potential investors are deterred from entering the market,


contributing to the shortage of cargo aircraf t and exacerbating the problem.”


Coordinated improvements To unlock the full potential of the air cargo industry, stakeholders have called for the establishment of a comprehensive framework for air cargo logistics. Herbert Odika, Executive Director of


Operations at Skyway Aviation Handling Company,


outlined and


limits the growth of the air cargo sector. This reliance has become particularly problematic with recent disruptions, such as the temporary suspension


of Dana Air’s operations and


operational issues with Arik Air, which brought the air cargo business to a near halt. “We do not have cargo flights. We only have flights, and it


passenger is through these


that we take all cargo across the nation,” Omokhodion added.


“These limitations have


severely impacted the ability to move goods ef ficiently, leading to delays, losses, and frustrated customers.”


Financial constraints One of the key reasons behind the lack of investment in cargo-dedicated aircraf t is the high capital cost associated with acquiring and


operating these specialised planes. how challenges around


aviation fuel costs, regulatory hurdles, storage issues and a lack of innovative technology are all slowing progress in the sector. “Airlines


and handlers should give a


satisfactory customer experience. Also, good warehousing and storage facilities should be put in place,” Odika outlined. Fortune Idu, Chairman of the Nigeria Aviation


Awards, proposed the creation of a logistics strategy that examines the roles and responsibilities


of airports, airlines, cargo


handling companies, and government agencies in air cargo distribution. This framework would ensure that all players in the supply chain are operationally ready to meet the growing demand for air cargo services. “One percent increase in cargo connectivity is associated with a 6.3 percent


in total exports and imports,” said Idu. This of


demonstrates strengthening


the economic Nigeria’s


infrastructure,” Idu outlined. www.aircargoweek.com 23 SEPTEMBER 2024 ACW air 07


explained. further


increase


potential cargo


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