Pictured: Dube Cargo Terminal, picture credit Dube TradePort
Airports operated by Airports Company South Africa (ACSA) have shown resilience in challenging global economic conditions, reaching 99% of their 2019 levels, says Mpho Rambau, Acting Group Manager Traffic Development.
The recovery has come from ACSA’s biggest airports, OR Tambo International Airport in Johannesburg and Cape Town International Airport, which have achieved 98% and 118% recovery, respectively.
OR Tambo has 83% of South Africa’s air cargo traffic and Cape Town has a 13.6% share.
Rambau says, “While fluctuations in international demand and supply chain disruptions have impacted performance in some quarters, cargo volumes have generally remained stable, supported by South Africa’s strategic role as a gateway to the African continent.”
Across the ACSA network, air cargo has grown 17% year-on-year between August 2023 – July 2024 due to improved energy availability and reduced load shedding providing the manufacturing sector with a more consistent power supply.
The route networks at ACSA’s three international airports, OR Tambo, Cape Town and Durban’s King Shaka International Airport have grown, opening up new connections.
Rambau says, “The notable growth at Cape Town and King Shaka airports reflects the economic expansion within these regions, as well as a slight modal shift from sea to air cargo due to ongoing challenges at the seaports within these regions.”
Air cargo is vital for economic development and ACSA’s development plans include implementing a robust traffic development strategy to enhance connectivity and connecting South Africa to global markets, creating capacity for exports and trade.
ACSA is upgrading airport infrastructure with projects like the Midfield Cargo Terminal at OR Tambo, which will have digital tracking systems to streamline operations and expanded cold chain facilities to handle perishable goods.
Rambau says, “These projects aim to increase capacity, improve operational efficiency, and enhance service quality for customers across the logistics chain.”
Investments in infrastructure, forming strategic partnerships and promoting sustainable practices are designed to make South Africa a key logistics hub for Africa.
The vision for 2030 is for a more integrated cargo network, increased automation and expanded routes to connect South Africa to more global markets.
Limited infrastructure, inconsistent regulations between countries and high operational costs are the main challenges for Africa.
The biggest opportunities come from developing intra-African trade, streamlining processes through digitalisation and growth in specialised cargo such as pharmaceuticals, perishables and e-commerce.
Rambau says capitalising on South Africa’s established infrastructure to increase cargo movement, strengthen partnerships with neighbouring countries and support the African Continental Free Trade Agreement’s (AfCFTA) goals for African trade.
The Single African Air Transport Market (SAATM) is expected to help connectivity and air cargo.
“It will strengthen Africa’s economic integration, support the African Continental Free Trade Agreement (AfCFTA), and position Africa as a more competitive player in the global economy,” says Rambau.
Recovery in Durban
The airfreight industry in Durban is making strides to recover from the low volumes of 2021/2022, says Ricardo Isaac, Senior Manager Cargo Development and Operations at Dube Cargo Terminal.
The cargo terminal at King Shaka International Airport handled 14,424 tonnes of freight last year including over 900 tonnes of perishables exported to the Middle East and Europe.
Isaac says the return of passenger flights has increased belly capacity and made up for the lack of freighter services, commenting, “The growth we are experiencing indicates significant demand, which we aim to capitalise on to foster future growth in the sector.”
Durban’s airfreight is only at 60.7% of 2019/20’s levels with 8% year-on-year growth thanks to rebounding capacity, which has led cargo revenue at Dube Cargo Terminal returning to pre-pandemic levels. The expanding international and regional network has increased outbound cargo.
In the coming years, the expansion of BRICS and implementation of the African Continental Free Trade Area are expected to open new markets in member countries, increasing demand for airfreight.
Trade relationships with partners in Europe and the USA are being strengthened by agreements such as the Southern African Development Community (SADC) Economic Partnership Agreement with Europe to promote bilateral and regional trade between southern African countries and Europe.
South Africa is also benefiting from the USA’s Africa Growth and Opportunity Act (AGOA), which is providing South African exports with preferential trade terms.
Isaac says, “These partnerships are crucial for South Africa's import of economy, enabling the flow of goods, services, and investments between these regions. This trade in high-value exports of perishables and imports of commodities like fast fashion and critical components for manufacturing.”
For the peak season, e-commerce and shipments of retail goods are on the rise, particularly electronics and accessories for the festive season.
Perishables are proving popular with fruit and vegetables heading to the UK, UAE, Saudi Arabia and the Indian Ocean islands.
Isaac says, “Our team is preparing to handle this influx efficiently, ensuring that all cargo is processed swiftly and accurately to support our retail partners during this critical time.”
Airfreight means South African businesses can connect to global markets and multimodal connectivity improves supply chain efficiency and integration.
Dube TradePort is located near Durban’s seaport facilities, which integrates air, road and sea transport to reduce supply chain bottlenecks, improves transit times and lowers costs for importers and exporters.
“The Dube Cargo Terminal has had a multiplier effect on the economy of the province of KwaZulu-Natal and the country a whole, sustaining jobs in the manufacturing, logistics and retail sectors,” says Isaac.
To help expand Durban’s route network, Dube Cargo Terminal has partnered with Durban Direct, the route development committee for KwaZulu-Natal to improve the region’s connectivity and boost the terminal’s capabilities.
The primary focus is developing partnerships with airlines who will provide connections to key global markets in Europe, North America, southeast Asia and the Far East.
Intra-African links are also important with new routes across southern African destinations including Botswana, Namibia and Mauritius.
Isaac says, “By strengthening these regional connections, we aim to support economic integration and facilitate the movement of goods across the African continent, ultimately contributing to the growth of both the local and regional economies.”
Supplying industry leading services
African operations have posted robust growth in 2024 for Swissport, with cargo volumes growing 13.5% compared to 2023.
A spokesperson for Swissport says the product mix shifted slightly with a slight increase in import cargo.
Operations remained stable but challenges persist such as declining yields.
Demand for essential goods, perishables, general cargo and e-commerce remains strong, says the spokesperson.
Providing some regional insights, the spokesperson says cargo volumes in Ghana have stagnated due to economic challenges, currency devaluation and some freighter operators leaving the market.
Investments in technology and digitisation have made Swissport’s warehouses the best in the region, says the spokesperson.
Tanzania has been stable and consistent with strong demand for essential goods, perishables, general cargo and e-commerce shipments.
Swissport has invested in Africa by upgrading the Flower Corridor.
Investments were made in Nairobi and warehouses in Liege and Amsterdam with the spokesperson saying, “These enhancements ensure seamless operations from the moment flowers are picked and packaged to their final delivery to the consignee.”
In South Africa, the Swissport Pet Lounge was opened at OR Tambo International Airport and perishable export facilities were upgraded in Ghana with temperature control improvements, integrated weighing solutions and operations were made more sustainable with the transition to 100% electric forklifts.
The growth of e-commerce means Swissport will upgrade facilities, starting in South Africa from January.
The spokesperson adds that Swissport supports IATA’s Focus Africa initiative to foster connectivity, safety and sustainability.
Swissport’s vision is aligned with Focus Africa so it is investing in facilities to provide modern infrastructure that is technologically advanced to drive efficiency through automation and cutting-edge systems.
It is encouraging strategic partnerships through collaboration with airlines, freight forwarders and local authorities to foster sustainable growth, and it is tackling intra-continental trade barriers and expanding services to new sectors.
African aviation is expected to grow due to emerging hubs with connectivity in Addis Ababa, the Kenyan flower market, Kigali establishing itself, and northern and western Africa positioning themselves as alternatives to the Middle Eastern hubs for transit cargo.
E-commerce is growing and investments are being made in airports and local airlines.
“Swissport’s commitment to Africa is unwavering, as we continue to play a key role in driving the transformation and growth of the aviation sector, ensuring a brighter future for the continent,” says the spokesperson.
This article was published in the December 2024/January 2025 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.