Stakeholders in the aviation industry have highlighted the benefits the country can derive from African Continental Free Trade Area (AfCFTA) and the opportunities that air cargo export would create if the right steps are deliberately taken
They said this at the just concluded 4th CHINET AviaCargo Conference and Awards held in Lagos.
Presenting a paper titled, “Strategies to Develop Domestic Air Cargo in Nigeria” the Chief Executive Officer of Centurion Security and former Airport Commandant Murtala Muhammed Airport, Grp. Capt. John Ojikutu(rtd) pointed out that “import air freight in the last 10 years is less than 300,000 tons yearly. Domestic air cargo is less than 50,000 tons annually and domestic air cargo should target a minimum of 5-10% of the available cargo in millions on roads and rails in the next 5 years and grow it up to 20% in the next 10 years.”
Speaking on the steps that must be taken Ojikutu advised that potential aircargo exporters must concentrate more on food/agricultural produce and drugs /pharmaceuticals to benefit from the Federal Government Intervention for Transportation / Distribution.
Speaking further, the Centurion CEO Government as a matter of urgency put a stop to food importation for 200 million Nigerians, instead the government should protect the local farmers to produce food locally to grow the economy for national security.
He also called for the identification of profitable Air Cargo Routes and have their designated operational base approved by the Nigerian Civil Aviation Authority(NCAA) while identifying the industrial airports and their states such as Ikeja (Lagos), Agbara/Ota (Ogun) Kano, Kakuri (Kaduna) Aba (Abia) Port Harcourt (Rivers) Jos (Plateau) Onitsha (Anambra) and Emene (Enugu).
Speaking, the former Airport Commandant, contended that choice of cargo aircraft should be limited to propeller/ double propeller engines with load capacity of 20-50 tons.
He advocated for the selection of three airports from each of the six geo-graphical zones of the federation and designate each as cargo terminals for food crops and drugs/pharmaceutical products, adding that only airlines if necessary, certified allied ground handling services should be allowed to open Cargo Terminals at the designated Domestic Cargo Airports not any cargo handling agent.
Ojikutu, who has been calling for the reduction in the number of agencies at airports, called on the Federal Government to restrict services of Custom, Plant Quarantine, National Drug Law Enforcement Agency(NDLEA) from these Domestic Cargo Terminals.
The domestic airlines, he opined, should target not less than a million tons in the next 2 years and 5 million tons in 5 years and 10 million in the next 10 years in domestic air cargo distribution.
On concession, Ojikutu said, “All navigational/airport charges should be free for the first 2 years (as it was for the domestic airlines involved in ECOMOG Operations (1992-1994). Review charges to 10 per cent of the normal charges after 2 years of operations, 20 per cent after 5 years. Not more than 25 per cent thereafter (Only for domestic food production drugs/pharmaceutical cargo delivery). Plan to lift about 1 million cargo in 1 year with 30 flights daily to 18 airports ( 3 in each of the 6 geographical zones). Each flight carrying about 50 tons daily or the 60 flights carrying 3000 tons daily or 900,000 tons in 18,000 flights annually. At an average of 50 tons per flight, government support for food security by air cargo will be N144 billion annually.
On his part, the Manager of Cargo Services,Skyway Aviation Handling Company(SAHCO) Plc, Mr. Donald Adekunle,while speaking at the gathering on the ground handling’s innovations as it concerns cargo handling, listed the challenges bedeviling the sector to include : infrastructural limitations, operational inefficiencies, regulatory and compliance issues and workforce shortage.
He disclosed that the handler’s deliberate innovations have reduced turnaround time, increased cargo throughput and reduced operational cost due to automation just as it gives the ground handling company competitive edge.
He urged the Federal Government to provide a conducive climate for companies and organisations to operate, reduction of tariffs, implementing a single tariff across government agencies, provision of fee incentives, waivers, and tax waivers.
Others are that the Federal Government should offer single-digit loans, providing foreign exchange at specialised rates for equipment purchases and allowing relevant government agencies to offer packaging training for cargo agents to meet international standards.
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