Africa a thriving global trade engine – Emirates Cargo VP

Globally, cargo is growing, with A-class airlines paying rapt attention to the emerging business. Emirates Airlines is also not taking a back seat in investing heavily in that arm of the business. In this interview, Badr Abbas, a senior vice president of the airline in charge of SkyCargo, leads OLASUNKANMI AKINLOTAN through developments achieved through cargo, especially as it concerns Africa’s contribution to their success story

Briefly introduce yourself and give your take on this meeting in Nairobi?

My name is Badr Abbas. I am the senior vice president of Emirates SkyCargo. I have been working for 25 years now with Emirates Airlines on the passenger side. Now I have moved to the cargo side of the business.

It is an honour to be here at Air Cargo Africa among industry leaders shaping the future of logistics on this dynamic continent. I think it’s been very fruitful these last two days and very well attended. So, we are happy to be part of this event. And we look forward to the next event as well.

What efforts has Emirates made concerning e-commerce, which is a major talking point at the meeting, and how do you see the future of e-commerce?

Well, I think e-commerce is one of the biggest trends reshaping the global economy, and we are enabling businesses to thrive in this fast-paced world. So, with our extensive network, frequent flights, and specialised infrastructure, we deliver speed and reliability to both our B2C and B2B customers. We are also building capabilities to support growing hubs like in the Middle East and South Asia.

The rise of e-commerce has shortened the product cycles and increased demand for fast fulfilment. Our growing fleet of additional freighters and the A350s, the new aircraft that we’ve received with the enhanced belly hold capacity, will ensure that we meet this demand head-on. Therefore, Emirates SkyCargo is empowering or powering e-commerce growth with innovation and efficiency.

What significant changes have taken place in cargo freighting since the outbreak of COVID-19 until now?

I think demand has grown over the years. We’ve seen good demand. During COVID-19 also, cargo was doing extremely well. There was no impact similar to what happened on the passenger side. So, cargo continued to remain strong and consistently high. And we noticed the same momentum going forward.

There are notable volume contributions from strong Chinese e-commerce traffic. Perishable demand is growing in pharmaceuticals and our tailored solutions. Additionally, our strong partnerships with longstanding and new customers have helped maintain this momentum.

With our innovative product portfolio, extensive global wide-body network, and world-class capabilities, our state-of-the-art facilities in Dubai, this momentum reaffirms our strategic vision and readiness to navigate emerging opportunities.

You did over 196,000 tonnes of goods across Africa last year. What is your projection for this year?

Well, for us, the cargo that we’ve carried is a reflection of our customers’ trust and our relentless pursuit for excellence. So, the tonnage is reaching 1.2 million tonnes. This is really that reflection. I cannot really speculate on numbers or figures. But our specialised products, wide-body fleet, and extensive global network have remained in demand throughout the year. So that is positive. Therefore, booming e-commerce, the demand for perishables, and our tailored solutions actually drive our success. In order for us to sustain this momentum, we will continue to innovate, work with our customers, expand, anticipate market needs, and ensure that Emirates SkyCargo remains the trusted partner for businesses worldwide.

How can Emirates SkyCargo leverage opportunities to help Africa realise the dream of the African Continental Free Trade Area?

I am not sure about what you said, but generally, I can tell you about Africa and what we are doing. I think Africa is a thriving engine of global trade, and Emirates SkyCargo is here to empower the continent’s businesses to reach the global markets. On average, we uplift 3,820 tonnes per week, which shows a high demand for this market. By combining our dedicated freighters with our wide-body passenger capacity, we offer unmatched flexibility to ensure that goods move seamlessly through Africa and beyond. This will also help complement the 172-passenger weekly flights that we have on the continent.

That complements our seven-weekly dedicated scheduled freighters. On top of that, our trucking network further enhances connectivity within Africa. For example, we move cargo from Johannesburg to Cape Town to Durban via trucks.

We are in Africa investing in infrastructure and fostering partnerships. For example, we signed an MOU today with Astral Aviation to have a better reach within the African continent, in areas where we don’t fly to. So that complements both airlines. I think we are enabling businesses in Africa and worldwide with precision and care.

Does Emirates have the facilities to effectively move goods across Africa and Dubai, which is another good hub?

We do have some fifth freedom arrangements between different countries from Africa. However, it depends on the bilateral arrangements we also have with other countries. On top of that, we are working with partners to make that possible. Either through trucking or through air. These partnerships that we have with the African airlines could also help move cargo within the African countries. In addition to the fifth freedom agreement we have with certain countries, whether it is on the continent or beyond Africa. For example, we ship flowers from Kenya to Europe because we have that arrangement.

How do you intend to get those aeroplanes and equipment to advance or expand your regional energy amid the worldwide shortage of fleets?

In our 10-year strategy, we aim to add 20 new destinations to our freighter network. Currently, we have 38 freighter network destinations. In the next 10 years, we will add 20 new destinations to our global freighter network.

Copenhagen was the first, which we added last month, in January. In the next financial year, we will be receiving multiple aircraft. That will add more capacity.

The deliveries are coming from Boeing on the Boeing 777 freighter, which we ordered. After that, we’ll be receiving more aircraft in 2026. I think we aim to operate 21 freighters by December 2026.

This will double our capacity, expand destinations, whether in Africa or beyond, or add more capacity to certain African destinations. And it will cement our leadership in air logistics, which will facilitate global trade.

Talking about leadership in the transportation of cargo, which particular products do you move out of Nigeria mostly, and what percentage of the available cargo do you control as an airline?

In terms of tonnage, we have carried in the first six months of the financial year, 2024-25, 1.2 to 1.6 million tonnes of cargo. So that is what we have carried. And what IATA is projecting next year is 80 million tonnes.

So, a 5.8 per cent increase from 2024. But what cargo we will be carrying next year, I cannot speculate on those figures at the moment. But we carried 1.2 million tonnes of cargo in the first six months of the previous financial year, or the current financial year.

In terms of exports from Nigeria, it’s mainly perishables and kolanuts. These are the main exports from Nigeria. And some fruits and vegetables as well; that is what we carry out of Nigeria at the moment.

Do you think there could be a time when revenue from cargo freighting will come close to revenue from passengers?

Well, I don’t have a clear answer to that. But cargo is growing at a very fast pace, and we have very high hopes for the revenue of cargo to grow at a very fast pace. With, again, the e-commerce boom, with the demand for perishables, with the demand for pharmaceuticals. And people need these products to reach them as soon as possible. So, fast delivery is what people are looking for: efficiency and reliability. So, Emirates Sky Cargo is here to ensure that happens. We are expanding our capacity. I think that is a good story as well for cargo. And hopefully, that will grow our cargo year-on-year. And then we are also investing in a state-of-the-art facility in Dubai. Dubai is expanding the Al Maktoum International Airport into the world’s largest cargo hub. So, all those plans are big plans. And it should grow the cargo business.

Let’s start with a profile of your cargo business in Kenya. What profit margin are you achieving from that country?

Kenya is one of our key markets in Africa, and we have two weekly freighters in addition to the two daily passenger flights. Where we also carry cargo in the bellyhold capacity. So, it is a key market for us, one of our top routes. We also have 44 pharma corridors around the world, where we can carry pharma shipments to. Where they have the cold storage facilities and the cold dollies. And in Africa, we have four; Kenya is one of them. So that is a good story. Where we can support the pharma shipments in and out of Kenya, which again has a lot of potential. The exports out of Kenya are many and diversified. Flower is a big one. As I mentioned also, we carry flowers from Kenya directly into Europe, which is a regular support that we provide to the local exporters in the market.

And we are looking to expand that in the future. Once we have more capacity. Kenya has also diversified the products that we export. In terms of vegetables, meat, and fruits. So, it is a

combination of all that we export from Kenya. We are happy again to be here in Air Cargo Africa.

This shows our commitment and support to Kenya and Africa at the same time. We are looking to strengthen our partnerships in Kenya. Invest in infrastructure and facilities. And have more partnerships with local businesses and local airlines. And one of them was a recent MoU that we also signed with Astral Aviation to expand beyond Kenya and Africa.

SOURCE : PUNCH

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