Time-sensitive telecoms industry opts for air - hub being set up in Entebbe

ALAN PEAT FOR THE last five years Africa has been a boom market for mining and telecommunication networks, according to Claire Clark, sales and marketing director of Intraspeed. “Suppliers to the two industries have seen huge growth in their exports from SA,” she told FTW. “Also, there have been major developments in every African country, from the introduction of innovative products and services to global expansion – and many new market opportunities have opened-up within the continent.” “The telecommunication industry utilises mainly sea and road freight into Africa,” Clark added. These modes of transport are reliable and cost-effective for the suppliers who already have an established supply chain and production system in place. “But, having said that, due to their large turnover revenue, cellular towers are often airfreighted – especially to Nigeria, where port congestion and slow clearing hampers lead times in a time-sensitive industry.” The mining sector, however, has an even greater dependency on air transport. According to Clark, mining exploration companies make extensive use of airfreight for replacement parts – and often even airfreight complete drill rigs to new and existing sites. “One of these routes serviced is Entebbe in Uganda,” she said, “where a hub is being set up. “Cargo is airfreighted on Boeing 747 freighters, and then the mines’ own aircraft collect this transit freight and distribute it directly to the smaller landing strips at mines in the likes of the DRC, Central African Republic, Tanzania, Sudan, Eritrea, Gabon, Ivory Coast, Mali and Senegal.” A critical phrase in both industries is “down-time” – an event which incurs huge revenue losses. “For these SA exporters to achieve the maximum return on their investments,” said Clark, “partnerships within the supply chain need to be built on reliability, integrity, and communication – and there needs to be a combined working relationship understood by everyone within the logistical network.” But growth within Africa is not entirely limited to the mining and telecom industries. Intraspeed records also show major export growth in health care, fast-moving consumer goods, the motor industry, project cargo, construction and the hotel industry. For all these products, shippers have the alternatives of sea, air or road freight. “It all depends on lead times and the location of the destination site,” said Clark. “So, when times are tight, and/or it’s a remote destination, airfreight comes into its own.”