Assessment of SA’s e-freight readiness under way

The magic moment for the introduction of e-freight in SA is moving closer – with e-freight a global exercise that will save the international airfreight industry the billions of reams of paper required each year for the soon-to-beobsolete paper-based system. According to the basic thinking at the International Air Transport Association (Iata) – the body that conceived the e-freight concept and is currently supervising its introduction – there are 40-million individual air cargo shipments each year. An average of 38 documents is required per shipment – and Iata estimates that the paper presently used in processing shipments every year could fill 39 Boeing 747- 400 “jumbo” freighters. In setting the e-freight scene in SA, three bodies are most apparent in the current investigation and planning of the all-electronic airfreight environment – supervisors Iata; the forwarding community’s SA Association of Freight Forwarders (Saaff); and the domestic airline major, SAA Cargo (SAAC). And, Iata’s Lorne Riley told FTW: “A detailed level assessment (DLA) is under way to determine SA’s suitability for e-freight. “That is – has it the legal, regulatory and business environment to support e-freight? We hope to have the results in the near future.” According to SAAC’s spokeswoman, Thola Nzuza, airlines and freight forwarders in SA are keen to participate in the Iata e-freight project. “As a result,” she said, “an e-freight committee was formed of which SAAC is a member.” The latest news she could release to FTW on the project is that “there needs to be further investigation regarding compliance and alignment of Iata’s processes to that of the SA Revenue Service (Sars) in order to ensure their processes and security systems are not compromised.” SAAC is also highly involved in the practical procedures necessary to test and support the e-freight introduction in SA. Said Nzuza: “As aviation has developed into an electronically advanced business – and with the advancements towards a paperless environment as advocated by Iata – SAAC has implemented an electronic air waybill system for the domestic market. “This system offers customers a fast lane for cargo check-in – which expedites the lodging process and provides customers with an added benefit of receiving real-time information.” SAAC’s intention is that the system will be expanded from the present domestic usage to include regional and international routes as the time progresses. “We are also introducing a new integrated web-based system,” Nzuza added, “which will bring SAAC up-to-date with technological developments within the cargo environment. “This project kicked off on December 3 last year, and we are busy with the ‘fit-and-gap’ analysis on our current system.” The main issue of the moment is bringing Sars on-board, Charles Speed- Andrews, sales manager of Safcor Panalpina and airfreight director for Saaff, told FTW. “It certainly supports the tax authority’s long-term objectives,” he said. According to Speed- Andrews, the project plan that Iata has put forward is fairly rigid – and Sars is currently adjusting its internal systems to comply. “They may find it a bit difficult to meet some of the interim targets,” he said, “but they are relatively positive that they can achieve the overall project target date – which is presently datelined for 2010.” Others in the air cargo supply chain are also out with their electronic tuning forks, also aiming at hitting the right key in the e-freight project. “There is a pilot project,” said Speed-Andrews, “with certain selected parties involved – customs, an airline, a ground handler and a freight forwarder. “These represent all the groups relevant to the process.”