MUMBAI (February 25, 2016) – Trade between India and Africa is growing and holds much potential for air freight, according to speakers at the Air Cargo India 2016 conference.
According to Dawit W. Michael Gebre-Ab, senior director of strategic planning at Air Djibouti, the airline, which launched its intra-Africa cargo operation in August 2015, is looking at Mumbai as one of the first destinations for its passenger services which are planned to start in June or July 2016.
“Trade between India and Africa is on the rise,” said Gebre-Ab. “It’s now US$70 billion per year, as opposed to US$200 billion per year between China and Africa, so there’s quite a bit of room for growth. We’d like to take advantage of that.”
Apart from Air Djibouti, Ethiopian Airlines also believes that the geographical location of its home base gives it a strategic advantage.
“We bring Africa to the world,” said Conrad Aranha, cargo manager for India at Ethiopian Airlines. “There has been a huge increase in our exports ex-Mumbai. Today we’re the sixth-largest export-uplifting airline ex-Mumbai. We’re growing currently around 10%. We hope to grow further. We’re strategically positioned at the horn of Africa to cater to all the five continents.”
Saudia Cargo, which flies to 19 African destinations, including seven that are served with freighters, is cautious of the difficulties currently affecting the continent, but is still hopeful.
“We’re facing some challenges in terms of the exchange rate and when it comes to the overall price development of resources which impacts income and buying power, but all in all, we are optimistic,” said Rainer Mueller, vice president of commercial at Saudia Cargo. “I definitely see a future. When it comes to ties between India and Africa, we see that they are increasing and we see strong development into certain markets like Kenya, South Africa and Nigeria.”
Mueller also noted the necessity for consolidation at hubs such as Djibouti or Nairobi because no single airline is in a position to cover the entirety of Africa.
[The full version of this story will be published in the March issue of Asia Cargo News.]
