ACSA to set up one-stop, duty-free trade centre Targeting bulk shoppers from Africa

28 Apr 2000 - By Staff reporter

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ACSA to set up one-stop, duty-free trade centre Targeting bulk shoppers from Africa Anna Cox - Freight & Trading Weekly - 28 April 2000 edition -

- Freight & Trading Weekly

28 April 2000 edition

ACSA to set up one-stop, duty-free trade centre Targeting bulk shoppers from Africa

Anna Cox

BULK SHOPPING from African countries has grown at an alarming rate over the past six years. Goods to the value of
R5 billion are being shipped through Johannesburg International Airport annually.
Statistics show that the African passenger bulk buying market was at R4,7 billion in 1998 and will grow to R5 billion this year.
The Airports Company of South Africa is now looking at constructing a R 30 million bulk duty-free shopping terminal to cater to this market because projections are that this purchasing trend will grow substantially in years to come.
The proposed bulk shopping terminal will be designed to provide one-stop-shopping. It will bring together under one roof, manufacturers, suppliers, wholesalers, retailers, freight agents and customs agents, enabling buyers to conduct all their business at one facility, at VAT exempt and duty free prices.
"This is a new concept which has huge potential for development in the region around the airport. It is an exciting new market and it shows that Johannesburg has become a hub for travel and business and is the centre of trade for wholesalers and retailers on the sub-Saharan African continent," said spokesman for the bulk duty free shopping terminal, Bongani Maseko.
The facility would be a one-stop shop for traders who would save themselves accommodation and transport costs, he said. Traders would have VAT and duty free prices, a captive market, proximity to the airport and a discount on freight handling charges.
Customers would arrive through the land-side or air-side entrance, view merchandise in the showroom, purchase their goods and make shipping arrangements and the products would be transported directly from the bonded warehouse to the aircraft.
Main products purchased are clothing at 26%, durables at 23%, personal care products at 19%, others at 13%, groceries at 9% and computers and motor at 5% each.