High and frequent exchange rate changes and fluctuations are major challenges to the aviation handling companies in Nigeria.
This was disclosed by the Managing Director/CEO of Mainstream Cargo Limited, Mr Seyi Adewale, during an interview.
He said, “Handling companies also need forex for purchase of new equipment and spare parts. This also affects their operations, cost, handling rates, and tariff to consumers.”
On his rating of the air cargo business in Nigeria, he rated the sub-sector 6 out of 10.
He said, “I will rate the industry 6/10. The reason is that there are high points in some aspects and low points in other aspects within the air cargo value chain. For example, our airport storage regarding temperature-sensitive and controlled system for items or commodities is still below standard whereas we do well on air cargo safety and security.
“The time to move shipment from sterile holding areas to destination is still slow (as per turnaround or duration) compared to some major destinations such as the United States of America. It takes up to two weeks to move consignment most times.
“There are no dedicated cargo flights to some of these major destinations and they are only shared with passenger flights. The plant quarantine office at the airport needs to be upgraded both in terms of infrastructure and ability to start and close every phytosanitary certification without going outside the airport area.
“The export sheds or warehouses of handling companies need to be remodelled and expanded. If current location space is no longer feasible for expansion, additional investment on airport land acquisition should be considered,” he added.