The increased focus on the continent to grow intra-African trade bodes well for cross-border operations, which by their very nature remain complex and competitive. Roy Solomons, the chief commercial officer for BidAir Cargo (BAC), says South Africa remains the hub in southern Africa, while Dar es Salaam in Tanzania has fast evolved into the East African hub. He is extremely positive about the cross-border market, saying the potential for growth is big. BAC operates branches in South Africa, Zambia, Zimbabwe, Uganda and Tanzania, fulfilling the needs of logistics and supply chain industries by assisting them
to move consignments to the different African destinations. The company does this by integrating and utilising various airline networks. “Our ability to connect smaller airline networks with the larger airlines allows for very competitive growth in moving small to medium-sized parcels quickly, safely and efficiently. This has given clients the flexibility to send smaller volumes on a more consistent basis,” says Solomons. “The cross-border market will always remain complex and competitive, with plenty of competition for large
volumes and project cargo. However, BAC works with all stakeholders to add value and flexibility in fulfilling the smaller client’s needs, with their urgent cargo.” According to Thokozani Hlubi, BAC’s regional key accounts manager, the biggest cross-border competitor remains road freight. “It is cheaper,” says Hlubi, “but it has inordinate delays, especially at the border posts. Add to these security issues such as hijacking and robberies, and bad road infrastructure that can lead to
vehicle damage, and you have hidden costs for the shipper. “Another challenge is the fact that the various political climates within Africa influence trade and the economies hugely, which ultimately affect the volumes and rates in the market.” For the most part, says Solomons, consistent service remains the critical factor when choosing a service provider. But, he adds, there is often still a bias towards using the larger and older carriers, which are often trusted brands and therefore used extensively. “Representing newer airlines, based in Africa, becomes a challenge for us, as the clients would rather send goods with a large airline into the European Union or the United Arab Emirates and
then back into Africa, instead of directly with an African carrier. “This, however, is changing slowly with trust being earned by the carriers.” Another big challenge, says Solomons, are fluctuating exchange rates not only in South Africa, but also in Zimbabwe, Tanzania and Zambia. “Most cross-border routes are charged in US dollars, which makes it much more difficult for clients to manage costs. Also challenging for us in particular are larger consignments as we mostly represent airlines that have narrow-body aircraft.” Despite these challenges, says Hlubi, the crossborder market is constantly growing as new markets and opportunities are identified.
Consistent service remains the critical factor when choosing a service provider. – Roy Solomons
