For the Middle East’s dominant air cargo terminal handler – Dnata Cargo – the dynamic growth of the region’s air cargo market has posed a happy challenge– keeping up with the demand.
“The development of air cargo in the region in general and Dubai in particular, has been vast,” said Jean Pierre L. De Pauw, senior VP Dnata Cargo.
“Most years double digit growth, some years even more than 30 per cent, we could have never predicted this kind of growth and we faced some challenges to keep pace with creating adequate and timely facilities and resources,” he said.
But Dnata clearly rose to the challenge is now recognised as the premier air cargo terminal handler in the region. It provides a wide range of products and services to more than 110 airlines operating through Dubai International Airport, serving more than1,000 cargo agents based in Dubai.
With the fl exibility of operating six terminals in Dubai, Dnata Cargo has the unique advantage of being able to cater to all its customers’ needs, irrespective of which section of the air cargo chain they represent. Dubai Airport currently handles more than 1.5 million tonnes of cargo per annum and is now ranked 17th inthe world.
Enjoying a strategic location at the centre of the growing economies of the Middle East, and providing easy access to a wider market extending from Africa to central Asia and from Europe to the Far East and Australia, Dubai has become the redistributiongateway for the Middle East.
Dubai is also at the centre of a steadily growing express market in the region. The market for express business is growing at approximately 15-20 percent annually, according to De Pauw.
Demand is high due to the favourable economic climate, driven by high oil prices and Dubai’s investment in non oil-related industry sectors. More multinational companies are being attracted to the Middle East, as it is the logical location to be based to access a number of emerging markets,he said.
And not content to rest on its laurels, Dnata is also eyeing new markets as it continues with its measured overseasexpansion.
“Dnata is actively seeking growth opportunities overseas and is in the process of evaluating a number of exciting opportunities,” De Pauw said without elaborating further.
“The key to any growth for Dnata International is that it must add value to the Dnata business commercially and operationally,” he added saying that Dnata’s aim is “not to be the biggest ground handler, but the best, offering service excellence to our customers.”
Meanwhile back in Dubai, Dnata is riding high on its customers’ rising cargo volumes. Markets experiencing rapid growth include Iran, the Gulf and Africa – all new markets in comparison to the traditional Far East– Europe trade through Dubai.“Africa is a market which has ahuge potential for growth and themovement to and from Dubai is growingby the month.
“Many new freighter operators are jumping into the fray, plus the Chinese investments in Africa have seen a lot of movement from China via Dubai into Africa.”
“The only downside for sustainable future growth is the constant change of local regulations which inhibit carriers from promoting this market,” he said.
Dnata is also seeing growth in the sea/air movement as this new form of intermodal transport becomes more common. Charter fl ights to Iraq and Afghanistan are also boostingthroughput volumes.
“Since Dubai is one of the few airports in the Gulf which has the capacity and infrastructure to grow, any growth can only be good for us,” said De Pauw.
As to whether the phenomenal growth will continue, De Pauw notes that forecasts suggest that with the buoyant and ever expanding city of Dubai and the booming region, air cargo will also continue growing, “and we are prepared for it.”
– Donald Urquhart