Durban's air cargo business is taking off

cargo

Increased international air connectivity and Special Economic Zone (SEZ) status being conferred on Dube TradePort is proving a business boon for Dube Cargo Terminal, with air cargo throughput growing at some 30% per annum.

Commenting, Mr Ricardo Isaac, Manager, Dube Cargo Terminal said: "With seven international carriers, supplemented by local airlines, flying directly from Durban, coupled with exceptional business development in Dube TradeZone, the volume of air cargo handled by Dube Cargo Terminal is showing unprecedented growth, in spite of prevailing economic conditions. Without question, the impact of the SEZ, coupled with increased direct air connectivity into international markets, is proving to have a phenomenal impact on cargo growth."

In 2010 the facility handled on average of 5 000 tons of international cargo pre month. Today that figure stands at around 15 200 tons, an over 200% increase.

Since achieving Special Economic Zone status, Dube TradePort has attracted considerable investor interest, filling Dube TradeZone 1 and prompting the development of Dube TradeZone 2. Investors, representing a spectrum of industry-types and matching with targeted priority sectors, are eagerly  basing themselves adjacent to King Shaka International Airport, ensuring speed to market, while benefiting from an incentives package, including preferential corporate tax, import duty rebates, VAT exemption.

"Businesses are increasingly basing themselves here because it's cost-effective, they can maximise business efficiencies and - with available direct international air connectivity  - they can move product directly from source to market from within a customs-controlled area. It's about speed to market," Mr Isaac said.

Business growth in Dube TradePort has also contributed to a swing in imports versus exports. At inception in 2010, imports reflected 75% of the cargo terminal's business. Today, 60% of cargo throughput is based on imports, while exports top 40%, from a base of 25%.

Companies establishing here, such as Samsung, Yangtze Optics Africa (YOA) Cable (Pty) Ltd and Endless Summer, are increasingly exporting product to a number of destinations abroad. And it's not just Dube TradePort-based businesses contributing to export growth.

"We transport containers of apparel from a large fashion retailer's from their Hammarsdale distribution point, via Dube AiRoad, to the Cargo Terminal, which are flown out. A major supermarket chain also uses our facility to export product to the Seychelles, whilst a local flower producer, with bases in the Midlands and Zululand, utilises our central location to export flowers to European markets. And this is just the tip of the iceberg," said Mr Isaac.    

He added: "The flattening import/export split and overall increase in airfreight is indicative of KwaZulu-Natal's hitherto largely untapped market potential for the uplift of airfreight and reflects the province's emergence as an active participant in the global economy. Our forecast indicates continued growth going forward as local businesses, shippers and freight forwarders continue utilising more of the available capacity airlines offer."

As KwaZulu-Natal is home to South Africa's second largest manufacturing sector - and has the second highest export propensity - Dube Cargo Terminal's geographic location is massively strategic.

"We are ideally positioned as a springboard for exporting locally-manufactured goods, from across the province, into Africa and beyond. We also focus on driving efficiencies and maintaining high service levels to airlines and customers. We're proud to have maintained a service rating of 97% with our customer airlines and have an enviable reputation, based on consistent professional performance, Mr Isaac stressed."

The state-of-the-art Dube Cargo Terminal is also equipped to world-class standards, offering exceptional facilities - and the requisite capacity - to handle any airfreight for commercial airlines and the charter freighter service environment alike.

                                                        

"We have worked in the charter arena most successfully, evidenced by recent logistical support we provided the US Airforce, which saw repeated flights, using a C-130 Hercules, airlifting over 200 tons of food aid to cyclone-hit Mozambique. This is a business sector in which we excel and we are intent on further promoting our charter abilities," Mr Isaac said.

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