Creecy outlines SA air cargo expansion plans

Government plans to expand South Africa’s air cargo capacity through new infrastructure and regulatory reforms, Transport Minister Barbara Creecy says. 

The minister outlined opportunities for South Africa’s aviation and air cargo sector at the Board of Airline Representatives of South Africa (Barsa) Aviation Summit in Zimbali, KwaZulu-Natal.

Construction will begin in the next financial year on a R5.7 billion midfield cargo terminal at OR Tambo International Airport, which will “significantly increase our air freight handling capacity”, she said.

The project forms part of broader aviation infrastructure upgrades under way at Airports Company South Africa (Acsa) facilities.

Terminal expansion and upgrade projects began in the 2024/25 financial year at three Acsa-operated airports, including Cape Town International Airport.

Creecy said South Africa’s geographic position at the southern tip of the continent created structural aviation constraints. Located at the end of major global air corridors, the country faced longer flight distances, higher fuel consumption and greater exposure to currency volatility. However, she said South Africa also had significant cargo and logistics potential, including cold chain capacity to support time-sensitive exports.

Integrated passenger and cargo route planning could enhance hub viability and strengthen South Africa’s position as a regional logistics gateway, she said.

“These measures will boost the contribution of the aviation sector to tourism, economic development and job creation,” Creecy said, noting government targets of 1.2 million tonnes of air freight during the current administration.

Licensing reforms

Creecy also outlined developments in South Africa’s aviation regulatory system, including reforms to licensing and permitting processes affecting airline operations.

Historical backlogs in air services licences and foreign operator permits have been cleared and a new licensing council has been appointed for a three-year term, selected for its aviation, legal, financial and transport economics expertise.

“Automation of processes is under way,” she said.

A diagnostic review of the entire foreign operator permit (FOP) value chain has also been commissioned in consultation with industry to identify structural and administrative inefficiencies.

The aim is to develop a digitised system based on what Creecy described as “the correct operational fundamentals”, with industry input through Barsa.

Addressing the broader aviation environment, Creecy said Africa must move beyond policy commitments and begin implementing the Single African Air Transport Market (SAATM) if the continent was to improve connectivity and compete globally.

Africa accounted for about 18% of the world’s population but less than 3% of global air traffic, she said.

Gulf carriers and major European network airlines continue expanding across Africa, operating within highly integrated ecosystems backed by deep capital and alliance strength.

“The question before us is not whether competition will intensify. The question is whether Africa will compete collectively or remain fragmented,” Creecy said.