Group Managing Director, Nigerian Aviation Handling Company (NAHCO), Plc, Mr Indranil Gupta has canvassed the timely maintenance of infrastructure provided at the airports by aeronautical authorities, saying failure to fix such facilities is impacting the effective delivery of services by users.
Listing the facilities to include carousels, conveyor belts and scanning machines, the ground handling service provider said when such gaps were bridged, there would be improvement in the operating environment for players.
Speaking with The Nation recently, Gupta said frequent break down of facilities should engage the attention of the airport authorities as they recalibrate the template to scale up measures that would bring about improved safety procedures and enhanced policies for the industry.
Gupta said: “The market is becoming more competitive with the advent of technology and the evolution of of ground support equipment. The new tariffs have also made the market more attractive to new entrants.”
However, the industry is quite specialised with specific skills sets requirements, huge capital investments, and strict regulations which may be quite difficult for new entrants to meet.”
Speaking on strategies that will spur the growth of revenue, Gupta said NAHCO’s investment in setting up a new facility for packaging of perishable export at the Lagos Airport will create the needed push to attain efficiency and effectiveness in its operations.
On the prospects of cargo freighting as the new frontier for sustenance , Gupta said : “ We are quite optimistic that the cargo value chain would grow exponentially to contribute massive revenue for the country . That is why we are strategically positioning Nigeria as a player both in imports of cargo as well as exports. One of the ways to achieve this is a special intervention facility with sufficient equipment to manage the full value chain of packaging, processing as well as the establishment of strategic partnerships/ markets for Nigerian exports. It would also entails the establishment and strict adherence to standard packaging and processing of exports .”
On other strategic plans to consolidate performance, Gupta said NAHCO is currently embarking on on several undertaking , including the introduction of new businesses , the enhancement of its warehouses and other technology – related projects to improve its service delivery and clients satisfaction.
He said : “ We continue to strive to overcome challenges affecting the growth of the business, including scarcity of foreign exchange, the harsh operating environment. Strategically, we need to force improve on relationship management across stakeholders and clients.
“ We need to tap on deeper understanding of the operating environment, commitment to excellent service delivery and an aggressive outlook for the growth of business concerns.”
Meanwhile, the global Airport Ground Handling Systems Market size valued at $4,191.24 million in 2022 is expected to reach $ 7,450.20 million by 2028, growing at a Culmulative Annual Growth Rate (CAGR) of 13.33 percent during the forecast period – 2023-2028.
Global aviation ground handling suffered some setbacks a few years ago due to the slump in demand among travelers and the travel restrictions imposed by many countries due to the COVID-19 pandemic.
The impact of the pandemic affected airport ground handling systems market with notable increase in passenger traffic and aircraft movements in 2021.
With air travel gradually returning to pre-COVID levels, delivering new aircraft, introducing new routes, and increasing flight movements the ground handling value chain is witnessing some spike, which experts say is driving investments in new-generation ground support systems, which is reducing turnaround time for aircraft .
Experts say the construction of new airports, expansion of existing airports to increase passenger and cargo handling capacities, and privatization of airports are expected to drive the growth of the airport ground handling systems market during the forecast period.
The current plans of airports to decrease their carbon footprint has accelerated the deployment of electric ground handling equipment and the integration of advanced technologies like automation systems ramp and cargo handling operations.
Such green initiatives by airport operators are expected to accelerate the market’s growth in the coming years.
The aircraft ground handling systems include equipment used to offer services to an aircraft while it is on the ground and parked at a terminal gate.
The market is segmented by type and power source. Based on type, the market is segmented into aircraft handling, passenger handling, and cargo and baggage handling. Based on power sources, the market is divided into non-electric and electric.
The aircraft handling segment currently dominates the market and is expected to continue its dominance during the forecast period.
The segment includes refuelers, tugs and tractors, lavatory service vehicles, deicers, ground power units, pre-conditioned air units, fuel trucks, and other ground handling systems in airports.
An increase in expenditure in the aviation sector, construction of new airports, and rising spending on enhancing airport operations from various countries continue to drive the growth of the market. Following the pandemic, various airports around the world are robustly investing in the enhancement of their existing ground handling systems with the introduction of new equipment for their efficient operation.
The current trend of using Ground Support Equipment with low emissions rates and creating green airports has been gaining popularity over the years.
Experts say companies are working on developing new electric aircraft handling solutions that work efficiently with low emissions.
In October 2021, Toyota Material Handling, a subsidiary of Toyota Motor Corp, introduced a new all-electric towing tractor – 3TE25 – for airport operations that will replace the current heavy-duty range. The new towing EV , experts say has similar towing capabilities as the conventionally powered towing tractors, with a loading capacity of about 27,000 kg.
The development of new equipment, as well as investments in the procurement of aircraft handling equipment, is anticipated to propel the growth of the segment during the forecast period.
The North American region is expected to witness the highest growth during the forecast period.
This is due to the rapid recovery of the aviation industry from the COVID-19 pandemic impact along with investments of the civil aviation authority and airport operators in the region in the expansion of airports as well as the development of ground handling equipment modernization.
The Federal Aviation Administration (FAA) has provided various funds to the airports in the United States to introduce electric ground support vehicles in the coming years.
In October 2022, FAA, the largest United States transportation agency, awarded more than USD 27 million to help a dozen airports to purchase zero-emission buses, charging stations, and other equipment used to service planes at gates.
Also, in addition to the ground handling systems, the airports are investing in the development of infrastructure to ease the induction of electric ground vehicles.
As a part of the new terminal building project at Kansas City International Airport, the Kansas City Aviation Department announced its plan to invest in the first wireless vehicle charging system installed at the United States airport.
The technology is expected to extend the range of its electric buses without installing a charging station or taking buses out of service for charging.
. Such initiatives and growing demand for enhancing ground handling operations will drive market growth in the region during the forecast period.
