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    Home»Air Cargo and Logistics»South Africa needs efficient air cargo hubs to boost economic growth
    Air Cargo and Logistics

    South Africa needs efficient air cargo hubs to boost economic growth

    Nandi BikoBy Nandi BikoJuly 30, 20263 Mins Read
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    South Africa needs efficient air cargo hubs to boost economic growth
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    Efficient performance by South Africa’s air cargo hubs was a key strategic instrument to propel the country’s economic growth and increase its competitiveness in world markets. So highlighted FedEx Sub-Saharan Africa Operations MD Nelson Teixeira.    

    “The rapid expansion of the e-commerce sector, the rise in cross-border trade, and growing demand for South African exports are key market indicators that necessitate a closer look at how air cargo operations can be used to gain a competitive advantage,” he stressed.

    He cited the results of a recent study by the University of Johannesburg’s College of Business and Economics, which had surveyed 120 sector stakeholders at South African airports. These included cargo operators and airport officials, as well as policymakers. The study’s outcomes showed that improving the quality of infrastructure and the greater adoption of technology could be major factors in avoiding delays in cargo shipments.

    Delays caused by infrastructural bottlenecks could damage consumer confidence and indeed the international perception of the South African air cargo sector, he cautioned. It also reduced the local sector’s competitiveness and so increased the chances of companies switching from South African hubs to competing hubs elsewhere, such as Nairobi or Dubai.

    “These findings prove how important it is for industry stakeholders to work together on using air freight as part of a national strategy to revive trade,” he affirmed. “In its 2025 Airfreight Strategy, local [sic] government recognised the key role that aviation plays in international trade, transporting goods that may not be high in volume but account for a significant portion of trade value. This is a call to action for us all.”

    South Africa has three main international air cargo hubs – Johannesburg’s OR Tambo International Airport, Cape Town International Airport and Durban’s King Shaka International Airport. All had shown strong economic recovery in recent years, and all had opened up new cargo connections. But, across the sector, there was a need for further economic investment, infrastructural development and technological implementation.

    Reliable, efficient and timeous air cargo infrastructure and operations were especially important for two sectors of the economy in particular, he pointed out – agriculture and pharmaceuticals. Food – for example, fresh fruit from the Western Cape – and flowers were perishable, and needed reliable cold-chain logistics. For pharmaceuticals, unbreakable cold logistical chains were absolutely essential.

    Cutting the time cargo sat on the ground, or spent moving through a warehouse, and reducing the time taken to turnaround aircraft, could lead to important reductions in the cost of labour, equipment and storage. Reliable air cargo hubs also directly affected a country’s responsiveness to crises and emergencies. South Africa had the opportunity the leader in air cargo logistics in Africa and become a gateway to the rest of the continent.

    “We’ve seen first-hand how efficient air freight systems can enable local businesses to scale, open up access to new markets, and allow businesses to compete for global market share,” noted Teixeria. “The long-term benefits are better supply chain resilience, particularly in times of economic uncertainty, as well as an improved ability to attract foreign investment.”

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