Tanzania service picks up pace

BidAir Cargo’s daily
service to Tanzania
is picking up pace
for express cargo –
especially from the FMCG
and pharmaceutical sectors
moving goods to meet
demand in East Africa.
BidAir Cargo chief
commercial officer Roy
Solomons said the company’s
daily flights on the SA to
Namibia and Zimbabwe
routes were similarly
expected to grow in demand.
“With fastjet and Mango
servicing Zanzibar and
Tanzania, we find it is fairly
consistent with a demand
mostly for perishable
FMCGs and also for some
repair and return of spares
and electronic devices.”
Solomons said demand
into
Mozambique
was also
expected to
grow with
the proposed
construction
of the new
gas pipeline
from Rovuma
Basin to
Gauteng.
Risks
related to
the safe
movement
of lithium
ion batteries were a major
challenge at present, as
were high import tariffs
and VAT charges
as governments
sought additional
sources of revenue,
he said.
“There are so
many challenges
facing the sector and there
are the unknowns that we
don’t have control of – such
as the rate of
exchange and
the fluctuating
fuel prices
which play
havoc with
costing.
“The
Tanzanian
shilling
depreciated
42% last
year, which is
another reality
you don’t
have control
over, but
they have a huge impact on
everyone. It is difficult to
keep track of costs when
you have unknowns of this
magnitude. Every cost that
comes through is passed on
to the man in the street and
sometimes we take knocks
on certain routes, because of
these fluctuations,” he said.
Express airfreight
demand on the domestic
and regional front remained
“erratic” as businesses
were cutting airfreight
expenses and turning to
roadfreight as the cheaper
option, without taking into
consideration the inherent
hidden costs, he added.
“Most of the bigger
courier and freight
companies are swallowing
up the smaller ones because
it is a numbers game with
tight margins, and the
smaller guys are falling off
the bus because they don’t
have the network reach.
“There is always growth
and opportunity but it’s
about being flexible and
innovative,” he said.
The company is about to
open a new pet lounge at
George airport, while it’s PE
lounge is now operational,
allowing pets in transit to
be held away from noisy
cargo handling facilities.
INSERT
Demand into
Mozambique is also
expected to grow
with the proposed
construction of the
new gas pipeline.
– Roy Solomons