How Lack of Cargo Aircraft Retards Industry Growth – Operators

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Nigeria’s domestic air cargo industry is facing significant challenges due to the lack of dedicated cargo aircraft, which has hindered the efficient transport of goods across the country. Operators are forced to rely on the limited capacity of passenger planes to move cargo, a situation they describe as insufficient for the sector’s growth.

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Dr. Lucky Omokhodion, CEO of Ehi Multi Systems Nig. Ltd., explained that General Sales Agents (GSAs) depend heavily on passenger aircraft, leading to limitations in the air cargo business. He emphasized that while investing in cargo aircraft is capital-intensive, it remains a necessary move for the industry’s development.

“We do not have cargo flights; we only use passenger flights to move cargoes. This situation became particularly concerning when major carriers like Dana and Arik experienced disruptions, which severely impacted the business. Thankfully, Arik is back, but the situation remains challenging,” Omokhodion said.

He further noted that investors are hesitant due to the risk of operating undercapacity. “For instance, if a cargo plane flies goods to Abuja but returns empty or half-full, the investor incurs significant losses.”

The unavailability of cargo aircraft has led to operators losing customers, who have sought alternative transport methods. Perishable goods, like fresh fruits and vegetables, have been particularly affected, often spoiling due to canceled or delayed flights.

Ibom Air’s Chief Operating Officer, George Uriesi, called for a more coordinated and strategic approach to develop Nigeria’s air cargo potential. Similarly, Herbert Odika, Executive Director of Operations at Skyway Aviation Handling Company, highlighted key challenges facing the industry, including fluctuating aviation fuel prices, regulatory bottlenecks, inadequate storage facilities, and outdated technology.

Odika recommended that successful air cargo operations would require a closer collaboration between government agencies and handlers, regular training for staff, and improved warehousing and storage facilities.

Auwalu Babura, Group Managing Director of Red Star Express, stressed that boosting air cargo operations could positively impact Nigeria’s GDP. He noted that approximately $5 billion is needed to upgrade infrastructure across 24 airports in the country.

Additionally, Fortune Idu, Chairman of the Nigeria Aviation Awards, pointed out that the International Air Transport Association (IATA) has found a direct correlation between enhanced air cargo connectivity and an increase in trade value. “A 1% increase in cargo connectivity is associated with a 6.3% rise in total exports and imports,” Idu said. He urged the establishment of a framework for air cargo logistics, emphasizing the need for a comprehensive strategy involving airports and associated stakeholders.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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