THE CONTINUED assault on the cost of
airfreight as a result of increases in the price of
oil has had a major impact not only on imports,
but also on export airfreight. (There had been a
50% increase in the price of JetA1 within two
weeks at time of writing).
The perishable export industry in Zambia
is therefore in a crisis situation. Even big
corporate size projects, which could until now
sustain the increases absorbed since the cost
of oil exploded, are struggling to remain viable.
Already 80% of all vegetable exports are moved
by road to South Africa and then exported by air
from there.
And Colin Rhoda, managing director of Zega
Limited, expects this trend to continue. “This will
nullify the need for perishable export facilities at
LIA (Lusaka International Airport), putting many
jobs in the industry in peril,” he said.
"The tourist industry is also likely to suffer
with reported costs in airfares rising as much
as 40%."
Zega Limited commenced operations in
1984 to facilitate the handling of perishable
exports by air from Zambia. Originally the
project was set up by members of the Zambia
Export Growers' Association to kick-start the
anticipated growth of the floricultural and
horticultural industry in Zambia.
Unfortunately the company could not survive
solely on income generated from the handling
of perishable exports, and operations were
expanded through diversification. Zega Limited
now specialises in cargo handling, customs
clearing and freight forwarding and serves as
aircraft handling agent for British Airways, TAAG
Angolan Airline, South African Airways, MK Stabo
Air, Cargolux and Zambian Airways.
As a result of the diversification, Zega Limited
is able to offer perishable exporters the lowest
handling rates in the region. Last year it handled
around 3 600 tons of import cargo while export
perishables handled exceeded 11 000 tons. This
comprised some 6 500 tons of exotic vegetables
and 4 500 tons of cut flowers, the majority of
which were exported to Europe.
Perishable exporters struggle in face of escalating airfreight costs
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