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Tag: Cargo airport

  • Ekiti International Cargo Airport: exemplar or eccentric?

    Ekiti International Cargo Airport: exemplar or eccentric?

    • By John Moyo Ekundayo

    Our interconnectedness on the planet is the dominating truth of the 21st century ….” – Jeffrey D. Sachs, in the treatise: “End of Poverty: Economic Possibilities of our time.”

    Ekiti State is located in the southwestern part of Nigeria. It is a unique homogenous entity with every town and village ending with Ekiti. Hence, as one traverses the length and breadth of Ekiti, one cannot but be seeing on signposts or hearing from residents such names as Ijero Ekiti, Aramoko Ekiti, Ido Ekiti, Ikole Ekiti, Iyin Ekiti, Ire Ekiti, Ikere Ekiti, Efon Alaaye Ekiti, Omuo Ekiti, Ikogosi Ekiti, Ilawe Ekiti, Otun Ekiti, Isan Ekiti, Oye Ekiti, etc. The population of Ekiti State, by projection, is estimated at 3,592, 200, by 2022, according a source; albeit the 2006 national population census attributed a figure of 2,384,212 to Ekiti. Ekiti is typically agrarian and most people live in semi-urban and rural areas. In essence, agriculture is the main occupation of the people. Ekiti is branded in local parlance: “Ile Iyi, Ile Eye”, meaning: Land of Honour. The state is tucked within Ondo, Osun, Kwara and Kogi. In essence, the beautiful hilly terrain interspersed with varying, undulating valleys, some laced with ponds, streams and rivers, is landlocked! Plainly stated, Ekiti has no rail line connecting it to other states, no seaport in vicinity and presently no functioning airport. Saliently and succinctly stated, Ekiti could only be accessed by road, unlike states such as Ondo, Ogun, Lagos, Rivers, Cross River, Oyo, Kano, Kaduna, etc.

    Ekiti International Cargo Airport: Displaying Eccentricity?

    It was not a cheering news of recent when the Managing Director of the Federal Airport Authority of Nigeria (FAAN), Mrs Olubunmi Kuku, stated that 19 out of the total of 22 airports in Nigeria are unviable. According to her, as we speak, some states in the north and south are still embarking on airport projects. Is it economically and/or politically in sync with reality for such states? Equally and seemingly irksome, is the recent declaration by the erstwhile Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, that only 4 of the nation’s airport are economically sustainable. Namely, according to him, are: Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport, Abuja; Mallam Aminu Kano International Airport, Kano; and Port Harcourt International Airport, Port Harcourt.

    On the heels of the foregoing, one curious or analytical mind may begin to inquire: does it really worth it for a state like Ekiti to want to commission for public use another airport in Ado Ekiti? There are myriads of questions that may be asked such as, but not limited to the following: Is Akure Airport not near enough for usage by willing air travellers in Ekiti? What is the present flying population of Ekiti to justify possessing an airport? Can a state government successfully and sustainably operate an airport? How many airlines will be willing to fly the route? What are the unique features of the airport in Ado Ekiti differentiating it from other acclaimed unviable airports? Can Ekiti State Government turn things around in the operation of the airport?

    Ekiti International Cargo Airport: Exemplar in the pack?

    “Economic development works. It can be successful. It tends to build on itself. But it must get started.” – Jeffrey D. Sachs, in the treatise: “End of Poverty: Economic Possibilities of our time.”

    This writer did his doctoral research in Malaysia and can attest to popularity and preference for air travel by citizens and residents; this is in spite of Malaysia, at a particular time, possessing the largest road network globally. What is the secret of Malaysia’s penchant for developing up to 63 airports (39 in East Malaysia and 24 in Peninsula Malaysia)? The Federal Civil Aviation Authority (FCAA), Federal Airport Authority of Nigeria (FAAN), and airlines operating in Nigeria need to glean and learn from Malaysia. It is possible to turn the existing 22 airports in Nigeria to profitable and sustainable ventures if the country’s operators are intentional, conscientious, adaptable, ambitious and audacious.

    Obviously, many commentators and analysts are ignorant of the factors culminating in courageous decision of the Ekiti State Government, under the leadership of the erstwhile Governor, His Excellency, Dr. John Kayode Fayemi, to initiate the audacious move of establishing an international cargo airport, and choosing that location, in the context of a state like Ekiti. Firstly, the Ekiti International Cargo Airport, about to be fully commissioned for operations, is strategically designed, constructed and tucked within the Special Agro-Industrial Processing Zone (SAPZ) and the Ekiti Knowledge Zone (EKZ). Apart from the stark and bitter reality of Ekiti being landlocked, possessing an airport will ensure and enhance connectivity to other parts of the country, continent and the world at large. Speculatively, 60% of the air traffic to and from Akure Airport originated from indigenes, residents and students of Ekiti State. Ekiti and Osun states air travellers will be adequately served, while some parts of Kwara, Ondo and Kogi will equally not be left out. Overall, the state is opened up globally to business opportunities engendering the interests of potential investors and partners. In the same vein the famous Afe Babalola University, Ado Ekiti (ABUAD), inarguably the most rated university in Nigeria, with students from all over Nigeria and other countries, will be adequately served. No wonder, the elder statesman, Aare Afe Babalola, SAN, proprietor of the university, has been a pillar of support in ensuring speedy completion of the airport.

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    Secondly, the airport will facilitate agribusiness and industrialization in real terms, and is tandem with the ‘share prosperity’ mantra of the incumbent Governor Biodun Abayomi Oyebanji’s (BAO) administration. The Special Agro-Industrial Processing Zone (SAPZ), not far from the airport, was conceived to aid agricultural production, processing and manufacturing; a great move in igniting and eliciting audacious foreign direct investment (FDI) drive towards Ekiti. The whole acreage of SAPZ encompasses a land mass of 55,000 hectares. Added benefits of fully development of the zone include: food security, job creation, boosting of the state GDP, foreign exchange earning, enhancing personal income and quality of life of the indigenes, etc.

    Thirdly, it would be recalled that the state helmsman, His Excellency, Governor Biodun Abayomi Oyebanji (BAO) recently commissioned the Ekiti Startup Garage, a start-up techno hub to promote digital innovation among gifted minds in Ekiti. It is on record that his government created the Ministry of Innovation, Science and Digital Economy (MISDE) headed by a vibrant and cerebral mind, Mr. Seun Fakuade. To a discerning mind, this is the incubating ground for our own ‘Silicon Valley’ in Ekiti. It would be recalled that at the commissioning, myriads of innovations were displayed. A big leap is that the Ekiti Knowledge Zone (EKZ) located within the precinct of the airport is the icing on the cake. EKZ is a tripartite arrangement of the Federal Government, Ekiti State Government and the African Development Bank (AfDB). Succinctly and saliently stated on its website:

    “EKZ is a federal government-backed and state-led Special Economic Zone focused on promoting digital innovation and entrepreneurship in Ekiti State and its neighbouring areas. The African Development Bank Group has approved an $80 million loan for the EKZ project, with the Ekiti State government providing $14.8 million in counterpart funding. EKZ aims to attract private investment into the digital and knowledge economy sectors, generate jobs, and contribute to economic benefits in the region. EKZ will have a 20-hectare green technology park and essential services infrastructure such as roads, electricity, internet connectivity, water supply, and wastewater treatment facilities.”

    The takeaway from here is with the initiation and implementation of SAPZ, EKZ, the Ring Road encompassing Ado Ekiti, the state capital, an unintended Aerotropolis (airport city) is emerging that seemingly will take modern development away from the traditionally archaic Ado Ekiti metropolis engendering, but not limited to, the following: aggressive real estate, hospitality, education, health-care, tourism, manufacturing, processing, exportation, packaging, freighting, storage, logistics and transportation businesses.

     Shout Out To The Ekiti State Government!

    In concluding this piece, it will be a disservice not to acknowledge the great input of the incumbent Governor Biodun Abayomi Oyebanji (BAO), working along the trajectory of continuity, in ensuring the completion and commissioning of the Ekiti International Cargo Airport. The runway of the airport is one of the widest and longest in Nigeria; can accommodate large aircraft, taking off and landing. However, getting the facility successfully and sustainably running should be the goal. In essence, eggheads within and outside the government should be engaged to come up with plans to make the airport uniquely functioning and sustainable. It should be added that such ad-hoc entity should holistically and objectively assess the content and context of the airport before making its submission. Moreover, it should operate with open mindset leveraging and learning from other sub-nationals and nations like Akwa Ibom State and Malaysia. The former owns and runs a profitable airline, Ibom Air, whilst the later, owns myriads of airports (63 in number), littered all over Malaysia – East Malaysia and Peninsula Malaysia. This writer opines that ideas rule the world, and Ekiti International Cargo Airport can stand out if there is strong will emanating from the incumbent government in this direction. This is imperative if the huge investments of both administrations of His Excellency, Dr. John Kayode Fayemi (erstwhile Governor) and the incumbent Governor Biodun Abayomi Oyebanji (BAO) will not go down the drain like others in other States of Nigeria.

    –       Engr. (Dr.) John Moyo Ekundayo, is the Special Adviser/Director General, Office of Transformation and Service Delivery (OTSD), Oke Bareke, Ado Ekiti; can be reached at: jekundayo@ekitistate.gov.ng, or via sms: 08155262360.

  • Bayelsa to complete Cargo Airport by August

    The Bayelsa Government wants to complete the ongoing multi-billion naira Cargo Airport Project in Amassoma within the next two months.

    Mrs. Josphine Akpama, the Director of the State Airlines, said during an inspection tour of facilities at the airport by the elders from Amassoma Community in Southern-Ijaw local government area of the state that the project was part of the state government’s efforts to reposition it for a stronger economy.

    She said that the contractors were working hard to ensure that they met with the completion date of the project by August.

    Some of the airport facilities that were inspected include the 3.5km runway, the apron, the fire bay, the control tower, the terminal building and the power station, among others.

    King Oweipa Jones-Ere, the Ebenanaowei of Ogboin Clan, in Southern-Ijaw Area described the project as heart warming and pledged to support and protect the facilities.

    Jones-Ere said that the economic importance of the airport to the people could not be over-emphasised.

    “I am happy that this project is sited in our community and I believe it will empower our people when it is completed because there will be jobs for the youths.

    “I urge the youths to desist from disturbance and support the progress work in the project,” he said.

    Mr Joseph Douyie, the youth president in the area said he would mobilise his people to maintain peace and tranquillity in the area.

    “The youths are ready to work with the government to protect and preserve the airport facilities; we, the entire youths commend our dear governor, Seriake Dickson on this project,” Douyie said.

     

     

  • Reactions as Yobe sign contract for over N11 billion cargo airport  

    Reactions as Yobe sign contract for over N11 billion cargo airport  

    Yobe State Government Friday signed an agreement with JM & AS Enterprises Limited for the construction of the over N11 billion cargo airport to be located in Damaturu, the state capital, the first of its kind in the entire northern Nigeria.

    The signing ceremony which was held at the office of the commissioner of Works Transport and Energy had in attendance the commissioner of Works, Transport and Energy, Alh. Lawan Shettima, and other top officials of the ministry and representative of the contractor.

    The works commissioner, Lawan Shettima in his address informed that the contractor to stick strictly with the specifications of the contract term to avoid compromising the quality of the work.

    The Nation reports that on Wednesday, 13/09/2017, Yobe State Executive Council rose from her weekly Executive Council meeting where it approved among other projects the construction of a cargo airport in Damaturu at the total  cost of 11,327,120,487.24.

    But news of the airport project was received with mixed feelings among the people in the state as many Yobeans took to the social media to criticized government action for the approval of such a huge sum of money for the project.

    Our correspondent who monitored the social media noticed that many were of the opinion that the money should have been invested in other meaning ventures that would impact directly on the lives of the ordinary people in the state.

    While others described the project as a ‘terrible calculative  development error’ for the state, some see it as a complete misplacement of priority from the Gov. Gaidam led administration to embark on such a project wondering the economic viability and how it can impact of the lives of the teaming common people of Yobe State.

    Some of the people observed that  the project is completely out of the Yobe State Economic Reform Agenda (YOSERA) which is more of  a guiding document for the economic development of the state, adding that neighboring states like Jigawa and  Bauchi made the same mistake which   they are regretting at the . “How can you have an airport that you cannot maintain”, one of them asked.

    Some people are of the opinion that the project will not see the light of the day.  Their opinion is that it will amount to a waste of resource for the state just like the billions of naira Late Mamman Ali sank in the boarding primary schools.

    The Nation also gathered from diverse opinions    that the airport project is one significant development that the state will witness since her creation 26 years ago.

    The proponents of the projects argue that the absence of airport has rubbed Yobe State of so many opportunities especially during the Boko Haram insurgency where visitors both local and international prefer to fly to Maiduguri and do their business leaving Yobe in the loop. Because of the absence of an airport in Damaturu, the President and Command in Chief before his election in 2015 could not visit Yobe for his nationwide campaign. This is one big embracement for us too many,” another person had argued.

    “Yobe is the only state in the north east without an airport and the state is losing seriously for this. A clear example is that Yobe has been left out in the scheme of things when it comes to visitors coming into the state for investment. Similarly during the insurgency, NGOs always visit state capitals with airport and some relevant decisions are often reached in support of host states. Borno and Adamawa states have often been placed on advantage for having airport ahead of Yobe. To add to it, during the 2015 general election, only Yobe state in the whole Federation did not host Mr. President because there is no airport. Only God knows what his coming would have benefited the state in their state capitals have been considered.”

    But the Commissioner of Works, Transport and Energy while defending the action of his governor for the project said, “Gov. Gaidam is in a hurry to develop Yobe. We cannot wait for development to come to us. This is the time for Yobe to take her rightful position in the comity of developed states in the country.

    “As for those who are criticizing this project on the social media, Mr. Gov. cannot shift his focus in delivering Yobe from the woods. For those that are doubting whether there is no money or whether the project would be abandoned, they will be disappointed because, the Governor has even said the state is in a very good financial capacity to pay the contractor 90%. As I speak with you now, Yobe is not owing workers or any form debt. Our gratuities and pension of workers are issues that Yobe does not have as other states.

    “For the economic benefit of the state, just be reminded that Yobe is the major producer of Gum Arabic in the country and we are looking at the future of the market with Europe, Asia and the United Arab Emirate with the coming of this airport. We also want to take advantage of the Federal Government policy in shifting from the oil to the non-oil sector and this airport will transform Yobe into a huge commercial hub for the country,” the Commissioner explained.

  • Yobe approves construction of cargo airport

    Yobe approves construction of cargo airport

    Yobe state government has approved the construction of a cargo airport in Damaturu at the total cost of 11,327,120,487.24.

    The state commissioner for Education Alh. Alamin Mohammed disclosed this to newsmen after the meeting of the state executive council in Damaturu on Wednesday 13/09/2017.

    Mohammed Alamin also informed that the state government has approved the procurement of two 1.8 Toyota Corola models for College of Nursing and Midwifery and College of Health Science at the cost of N99,900,000.00.

    Other approvals made as contained in the briefing include the purchase of tow Toyota Lexus Jeep as staff cars for the governor at the cost of N156, 000,000.00.

    The council also approved the furnishing of five secondary schools newly rehabilitated by the state government at the cost of N440, 274,022.40.

    Government has also approved the renovation of Bayamari Primary School at the cost of N238, 769292.84 which will be converted to Command College of the Nigerian Army.

  • ‘Cargo airport without complimentary infrastructure, a jamboree’

    ‘Cargo airport without complimentary infrastructure, a jamboree’

    Cargo business is globally known to be a highly rewarding venture, generating huge income for countries with well- coordinated cargo sector. But the reverse is the case in Nigeria. The managing director of Skyway Aviation Handling Company (SAHCOL), an aviation cargo firm, Mr. Rizwan Kadri, speaks on the country’s cargo sub-sector, its paltry contribution to the national income, and ways to improve the sub sector. He spoke with Kelvin Osa-Okunbor.

    Some states are now building cargo airports with the view to consciously promote agro-allied exports due to the dwindling oil fortunes. What should be done to ensure they succeed?

    Today, the cargo sub-sector is one of the most prominent, viable and promising of all the sectors in the aviation industry; most of the airlines earn a lot of revenue from this sector. Yes, it is a good idea but then, merely announcing cargo airports without adequate facilities will not work. So, whatever they are doing has to be planned. Building cargo airports where you have the farmers but without infrastructure such as good road network around them, cold room as well as other storage facilities, will be tantamount to mere jamboree.

    Government has announced plans to privatise some of her major airports. How should this be done to avoid the inefficiencies still being experienced in previously privatised entities?

    It’s a good plan, but it has to be done well because private models have worked everywhere. One thing to avoid is selling these infrastructures to friends or people without the requisite capacity to operate them efficiently. Airports are not just for commercial interest, they are very sensitive facilities for the country; the airports must not only be good, they must be user-friendly as well. So, everything you do here must be well planned. When you privatise, government relaxes and the private operators take the ownership, put in their money and manage them to make profit; they will not like to have any undue interference because his money is involved. Private airports will really work if they are planned well.

    What are the effects of the present foreign exchange regime on the cargo handling sector?

    Forex has huge effects on the cargo business. Since Nigeria depends mainly on imports, the exchange rate problem also affects imports because what an importer spends on commodities before has now doubled. As a result of this, every item that comes into the country has become expensive since our international trade depends on the dollar. The airline business is now further compounded by the Central Bank of Nigeria’s new forex policy, which makes it very difficult or almost impossible for foreigners operating in the airline industry to repatriate their earnings. The exchange rate has led to a significant drop in the volume of imports into the country. Imports is paid for mainly in dollars; so if somebody bought a product last year and the same product is costing almost double this year, what will he do? And because the cost of importation has gone so high, the market is low, even some of the traders have stopped importing.

    Why is it that over the years the cargo sub-sector of the aviation has not been active in contributing meaningfully to the economy?

    You see, during the oil boom, people tended to neglect this sub-sector. However, due to the dwindling oil prices, coupled with the down turn in the country’s economy, exports have become one of the major factors and cargoes always play major economic role for any country. The link between getting the stuffs in and out of any country is cargo related, whether air freight or sea freight, you need the cargo operation to succeed. So, basically, cargo plays a very important role in aviation. My vision for cargo is to have a fantastic cargo operation that will play its expected role in the light of the current financial challenges Nigeria is facing.

    The International Air Transport Association (IATA) in its assessment of cargo trade volume last year said Africa ranked very low, particularly Nigeria. What is responsible for that and what should be done to improve on it?

    A lot of factors are responsible for it. Firstly, the government never promoted the cargo business. During the oil boom era, people made so much money from there but neglected other areas including the cargo sub-sector. Export has not really played its expected role before now because no serious and conscious efforts have been made in the past to promote it. What should have constituted the bulk of Nigeria’s export are agricultural produce, but like I said, conscious effort were not made in the past to promote it because of over dependence on petrol export.

    How can this imbalance be corrected?

    To correct the imbalance, basically, government should look out for more exports. It should motivate her people, who I see to be very hardworking. When a country has that, the country has an asset in that it has an industrious and rich population that could readily provide the needed labour. When this is done there would be more than enough to engage the cargo operation. Secondly, for exports to thrive there should be a lot of incentives given to the farmers so that they can produce more for export. The roads, transportation and connectivity is not so good to bring in goods to Lagos or the nearest airport; the storage facilities are not there; all these have to be put in place. Besides, a lot of backing from the government is required. We need a lot of government support for the aviation industry to grow; we have to do something about the custom duties that are very high; help the farmers out, have production within the country for export, identify key countries we want to export to. Above all, government has a lot of role to play in encouraging the cargo sub-sector of aviation to grow.

    The International Air Transport Association has raised concerns over high airport taces and charges in some African countries , including Nigeria, how is this affecting cargo and ground handling business?

    Interestingly, this observation has been on for a long time. It has been a huge area of concern for investors in the aviation sector. I think, IATA has passed the message across , the way the message should be couched that African countries need to  something about prohibitive chages and taxes. If government does not do something urgent about this, the negative impact on the industry is dire. I am convinced that the relevant agencies, have noted the concern and are doing something to address the situation .

    In Nigeria, I am reliably informed that a committee set up by government on airport charges and charges as it affects all operators is being looked into and I am sure the matter will be resolved to make the operating environment friendly. When charges are too high, it does not encourage cost recovery for any investor.

    In Nigeria, ground handling companies are already feeling the impact of high charges and taxes. The way to go for me, is that the relevant agencies of government should engage operations in line with global standards to fix charges  and taxes that would achieve a win win situation. That for me is the way to go. If the industry is feeling the impact of high taxes and charges, this has a huge effect on costs of running the business.