Strengthening its commercial and cargo business will be one of Airports Company South Africa’s (ACSA) three priorities over the next 18 months, alongside accelerating capital project delivery and addressing supply chain constraints affecting execution.
ACSA board chairperson Irvin Phenyane told Freight News that the company wanted to expand cargo capacity, improve existing facilities and attract new players to the market.
“Commercial and cargo is now being treated as a distinct priority within ACSA, with a dedicated programme management office established to focus on the three areas,” Phenyane said.
The renewed focus comes as ACSA prepares to implement a major infrastructure investment programme. Its cargo plans include refurbishing existing facilities, while the planned Midfield Cargo Complex at OR Tambo International Airport forms part of its longer-term capacity expansion.
Phenyane said ACSA wanted to grow the air cargo market, rather than simply redistribute existing business among current operators. “The cargo cake must grow,” he said.
Creating opportunities for new entrants and younger businesses, while exploring the potential of new technologies, will also form part of the company’s approach.
The board wants to change how ACSA approaches procurement, which Phenyane identified as one of the contributors to slow project execution.
Rather than managing thousands of individual tenders, ACSA plans to consolidate procurement into larger portfolios. Cargo would be among the areas considered for a more integrated approach, he said.
Phenyane said the organisation had sufficient professional expertise but needed to make better use of its existing skills.
“We have enough people here. The board is looking to redeploy personnel into areas where their expertise could accelerate delivery rather than simply increase headcount,” he said.
The cargo focus will coincide with Siphamandla Mthethwa taking office as ACSA’s new chief executive on November 1.
Mthethwa served as ACSA’s chief financial officer from 2020 to 2023, including during the Covid-19 crisis. Phenyane said the board expected the new CEO to help implement its priorities, including infrastructure delivery and stronger commercial performance.
The company also wanted to respond to growing competition from other African markets and strengthen South Africa’s position as an air cargo gateway, Phenyane said.
“If ACSA grows, South Africa grows,” he said.
