For Rwanda, a landlocked country with ambitious goals for economic development, embracing air cargo transport is not just an option; it is a necessity. It plays a crucial role in the global supply chain, responsible for the movement of high-value and time-sensitive goods.
Although it represents only a small percentage of global trade by volume, it accounts for over 35% of global trade by value, underscoring its importance for industries that depend on the rapid and reliable delivery of products.
Key sectors that rely on air cargo include pharmaceuticals, electronics, and perishable goods such as fresh produce, flowers, and seafood.
The need for speed in these industries is driven by the perishable nature of the products, the high costs associated with delays, and the necessity of maintaining product integrity during transit.
For many businesses, especially those operating in just-in-time supply chains, air cargo is the only viable option for ensuring that goods reach their destinations on time and in perfect condition.
Locally, air cargo transport is still in its infant stages. Many businesses and importers continue to rely on traditional shipping methods, such as using ports in Mombasa, Kenya, or Dar es Salaam, Tanzania, to bring in goods that are then transported over land across several borders to their final destinations.
Whilst this method has served Rwanda for many years, it is fraught with challenges, including delays, higher costs, and the risk of goods being damaged or spoilt during transit.
Companies like Heart of Africa Trading (HAT) Plc are leading the charge, recognizing the transformative potential of air cargo transport to redefine the nation's economic landscape.
HAT, a prominent logistics and freight services company based in Kigali, has been instrumental in promoting the benefits of air cargo transport in Rwanda.
With a robust presence both locally and internationally, including offices in Dubai and sea transport services across East Africa, it has become a key player in the country's logistics sector with efficiency and reliability, a preferred choice for businesses looking to transport goods quickly and securely.
Shyaka Gakuba, the CEO at HAT explains the critical role of air cargo in supporting Rwanda's economic growth.
"Air cargo offers the speed and reliability that businesses need to stay competitive. It's not just about moving goods; it's about ensuring that products reach their markets in the best possible condition,' he says.
This is particularly important for perishable goods and high-value items, where any delay can lead to significant financial losses. Gakuba also highlights the broader impact of air cargo on the economy, noting that it enhances Rwanda's ability to compete in global markets.
"By embracing air cargo transport, Rwandan businesses can build stronger relationships with international partners and customers. This, in turn, can lead to increased exports, higher revenues, and greater economic stability for the country," he notes.
In addition to providing reliable transport services, HAT ensures that air cargo services are more accessible to Rwandan businesses, with a range of business incentives to encourage more traders to adopt air cargo transport.
One of the key incentives is providing cash advances to traders who may run out of funds while conducting transactions in foreign countries. This financial support can be a lifeline for businesses, enabling them to continue their operations without interruption and seize new opportunities in the global market.
"At HAT, we understand the challenges that businesses face when dealing with international logistics, that's why we go the extra mile to offer financial solutions that help our clients overcome these challenges. Our goal is to make air cargo transport not only efficient but also accessible and affordable for businesses of all sizes," he explains
The limitations of traditional shipping methods are particularly pronounced in industries where speed is essential. For instance, Rwanda's main exports to the United Arab Emirates, including fruits, flowers, and other perishable products, require rapid transport to maintain their freshness.
Similarly, pharmaceutical products such as vaccines and medicines are highly sensitive to environmental conditions and can lose their efficacy if subjected to the long transit times associated with sea or road transport.
This is where air cargo transport comes into play, offering a faster, more reliable alternative that ensures goods arrive at their destinations quickly and in optimal condition.
For Rwanda, this could mean the difference between maintaining and growing its export markets or falling behind in an increasingly competitive global marketplace.
RwandAir has played a pivotal role in promoting air cargo transport. Having been recognized this year for its exceptional service, ranked third among African air transport companies for customer care and operational efficiency, the national carrier is taking the air cargo business, even a notch higher.
The Cargo department is one of the key developing segments where much emphasis is put to empower handling capabilities and network development both regional and across long haul routes. Currently RwandAir cargo departments is divided into two sub-units.
Cargo commercial section which handles sales and marketing activities, network planning, pricing and revenue Management while the Operations section overlooks all operational activities which include acceptance, tallying, warehouse operations, and handling for both imports and exports, as well as transiting cargo to and from customers.
Currently RwandAir, operates 7 dedicated cargo freighter destinations using 737 SF cargo freighter with a capacity to carry up to 21 tons depending the nature of cargo. These destinations include; Entebbe, Nairobi, Brazzaville, Bangui, Djibouti, Sharjah, Dubai World Centre and Kigali as the hub.
These are supplemented by other destinations served by RwandAir belly capacity. Some of the main destinations served by belly capacity include the United Kingdom, Belgium and France.
RwandAir Ltd. is undeniably steering a challenging environment in trying to capitalize on Rwanda's untapped potential through air cargo transport with many strategies despite the existing challenges.
Some of the strategies include infrastructure development such as establishing regional connectivity, construction of facilities for Pharma and dangerous goods strategic partnerships and alliances, adaptation to new technology and improving on the existing regulations.
Olivier Vano Ahayo, the communications officer at RwandAir explains that some of the challenges include capacity constraints where the limited number of cargo freighters/Aircraft, warehouse capacities which in turn restricts cargo volumes to be processed
'Rwanda cargo market is relatively small, with limited demand from local businesses. This makes make it difficult to achieve economies of scale,' he says.
Other challenges include competition from road transport, competition from other Airlines, high operational costs and limited Skilled Workforce: External Factors:
Vano admits that geopolitical instabilities in addition to the complex and inconsistent regulatory requirements slow down the development of air cargo services in Rwanda.
And as Rwanda continues to grow and develop, the importance of air cargo transport will only increase. The country is well-positioned to capitalize on the opportunities that air cargo presents, but this will require a shift in mindset and a willingness to invest in the future.
By embracing air cargo transport, Rwanda can ensure that it remains competitive, innovative, and prosperous in the global economy.
Sam K Nkurunziza
Source : https://en.igihe.com/economy/article/embracing-rwanda-s-untapped-potential-of-air-cargo-transport
