Session 3: Funding and Financing of Air Cargo Infrastructure Chris Welsh MBE Secretary General Global Shippers’ Forum cwelsh@globalshippersforum.com www:globalshippersforum.com

Session 3: Funding of Air Cargo Infrastructure A shipper’s perspective on Air Cargo Infrastructure Remember, shippers are takers, not givers, but.. Infrastructure investment is a vital ingredient for successful aviation in Africa For shippers’ and industry investment in airport capacity and cargo facilities is essential for connectivity and access to intra-African and global markets Generally, investment in air cargo infrastructure is over-looked

Financing air Cargo Infrastructure Africa has high airport infrastructure costs 1. Lower taxes, fees and charges for airport infrastructure This can be done by individual countries – does not need grand regional or multilateral agreements. Looking at passenger charges as proxy for infrastructure costs, we see that Africa’s airports are far too expensive Part of this is because some airports have yet to realize full economies of scale but their ability to do so is held back by their own policies that impose high charges More focused approach is needed to give oversight and planning to ensure the right infrastructure is in place, delivered efficiency and users don’t get overcharged. In some cases there needs to be a more holistic approach that included development planning – that require synchronized investments across different parts of the economy IATA Economics www.iata.org/economics

Financing Air Cargo Infrastructure Market-led financing Follow international guidelines on investment-IATA, for example Adhere to international best practice in order to ensure the right investment at the right cost Over investment can be crippling and drive up airport costs and charges, resulting in a loss of competitiveness for exporters and importers

Financing Air Cargo Infrastructure How to determine the right mix of facilities inline with demand, providing the right level of world-class quality and service, at the right price for shippers and industry? Establish cargo investment working groups involving shippers & their representative bodies (Ghana SC) To establish suitable warehousing and automated systems Scanning facilities Road/rail/hinterland infrastructure requirements Investment in cool facilities Phama and fresh food Customs modernisation (e-freight, WCO, FTA’s etc)

Thank You for Your Attention Chris Welsh MBE Secretary General Global Shippers’ Forum cwelsh@globalshippersforum.com www:globalshippersforum.com