Emirates pumps up capacity as trade grows IN THE space of two years Emirates has pumped up frequency on the SA - Dubai route from twice weekly to daily (from July 1).
While escalating trade with Dubai is partly the reason, Dubai's transhipment capabilities are an even greater motivation.
According to Ram Menen, Emirates senior g.m. cargo, 60% of the airline's SA uplift is transhipment and re-export cargo.
Dubai is the gateway to a large consumer market which extends from the Indian subcontinent to East Africa, West Africa and the CIS.
And because it's not fully mature yet, as we put on additional capacity so it gets taken up more and more. Traffic between South Africa and Dubai has increased 36% over last year, according to Menen.
With us going daily, capacity will double, which opens more room for trade to happen. He believes that lack of capacity has held back trade in the past.
Greater capacity coupled with the region's very attractive transhipment lures, is the magic mix for trade growth.
There are three principles which apply in Dubai - free trade, free skies and free seas.
This means that competition is fierce, profit margins are volume-based, and a large segment of the traffic that comes in by air or sea is re-exported. Dubai's most popular hub markets for SA cargo are Kuwait, Muscat, Jeddah, Beirut and Saudi.
The reason for this is its enviable transhipment record, says Emirates cargo manager Southern Africa, Kum Naicker. A 30-45 minute transhipment switch is the norm.
We are the only people who publish performance statistics of the hub, says Menen.
Our infrastructure is geared for ease of movement. Sea to air transhipments take four hours from the time the ship docks to take-off for its next destination.
That gives us as Emirates confidence to take time-sensitive traffic. The hub is controlled by a sister company which benchmarks and monitors every process.
In terms of commodities, the airline is beginning to see a lot more perishables on its manifests, and Menen is confident that equipment and machinery will begin to feature more prominently in the future.
