New air cargo carrier set to intensify competition
Dar es Salaam. Competition for the air cargo business in Tanzania is set to intensify, with a new player looking to launch the first scheduled cargo-only flights from the country in mid-September.
The new entrant will join a crowded field of both foreign and local players such as national carrier (ATCL) and Precision Air who recently announced they were reconfigurating some of their fleet to tap into cargo transportation domestically and regionally.
The aviation industry around the globe has taken a heavy knock from grounding of flights since early 2020 owing to the coronavirus pandemic. But skies are now gradually reopening but airlines have since trained their eye on cargo traffic, as analysts predict that it will take up to two years or more from today for the full resumption of passenger flights.
By launching the first scheduled cargo flight, the newly registered company, Warnercom Tanzania Limited, is hoping to cash in on customers in need of speedy, predictable and adequate cargo airlifting service.
The operator will trade as ‘W-Cargo Airlines’ - and received a one-year licence from Tanzania Civil Aviation Authority (TCAA) in June this year.
The company has allocated $10 million (Sh23bn) to start the business with deployment of a medium-range Boeing 737-400F aircraft with a capacity of 21 tonnes.
The company’s managing director, John Buyamba, told The Citizen in a telephone interview that they were excited to start operations. He revealed that the Romania-based Darmah Greens SRL consulting company provided financial systems support.
He said they will serve both the domestic and international routes. Mr Buyamba said they hoped to add a 5.5 tonne-capacity Fokker F-27 for the domestic market by March 2021. “This will help on short haul routes to Kenya and the Comoros,” he said.
Local routes targeted are Kilimanjaro, Mwanza and Songwe, according to TCAA’s licence information posted on its website. International flights include Doha (Qatar), Sharjah (UAE), Hahaya (Comoro), Medina (Saudi Arabia), Netherlands, Mumbai, Johannesburg, Nairobi, Kampala, Kigali and DRC.
The new cargo operator will, however, operate the international routes on a case-by-case basis based on a Bilateral Air Services Agreements between Tanzania and respective countries, TCAA noted.
Currently, there was no local cargo-only flights operating from Tanzania, with exporters having to rely on passenger aircraft as well as flying extra cargos via the Jomo Kenyatta International Airport (JKIA) in Nairobi.
TAA indicates in its annual reports for 2017 and 2018 that cargo airlifted from Tanzania totalled 20,389 tonnes and 19,467 tonnes respectively.
Players welcomed the new company, with the logistics firm, Taha Fresh Handling Ltd general manager, Mr Aman Temu, saying it was a welcome option in the market, especially for perishable cargo dealers.
“JKIA accounts for up to 45 percent of the total exports of horticulture products during high season - and 15 per cent during normal season. This is unacceptable,” Mr Temu noted in a telephone interview yesterday.
“During the high season of April, May, June and July, cargo space is constrained because tourism tends to be at its low peak during the same period, forcing airlines to either cut flight frequencies or shift to smaller aircraft.”
Mr Temu said the new airline will boost exports and cut down on transportation costs and time.
An aviation sector specialist with 29 years’ experience, Mr Juma Fimbo, said the coming of the airline specifically for cargo will stimulate cargo business. “As it is, passenger aircraft don’t have sufficient cargo capacity to meet demand,” said Mr Fimbo.
Ex-Swissport Tanzania Chief Executive Officer Gaudence Temu and former Tanzania Business Community chairman Jonson Minja both said such a service was long overdue in Tanzania.
