Namibian transport sector and the African trade area

NAMIBIA is considered the gateway to Africa through the Walvis Bay harbour and the connecting routes managed by the Walvis Bay Corridor Group.

With the incoming African continental free trade area (AfCFTA), more could be achieved through the transport and logistics sector.

According to the Namibian Statistics Agency 2018 preliminary national accounts, the transport sector recorded two consecutive negative growth periods from 2017 to 2018 of 14% and 9%, respectively.

The 2018 negative growth in the sector was caused by freight transport by road, which posted negative growths in real value additin of 15,1% last year.

The decline in road fieight is attributed to the reduction of cargo transported during the period under review.

However, port services, post and courier and air transport are estimated to have recorded strong growths of 11,7%, 11,7% and 2,6% in real value added during 2018, accordingly.

Port services registered a strong growth of 11,7% in real value added during 2018, compared to a decline of 12,8% recorded in 2017.

The performance of the subsector is attributed to the increase of the cargo handled during the period under review.

Post, courier and air transport also posted growths of 11,7% and 2,6% in real value added in 2018, compared to 4,3% and a decline of 1,2% recorded in the preceding year, respectively.

The AfCFTA will be one of the largest free trade areas since the formation of the World Trade Organisation, given Africa’s current population of 1,2 billion people, which is expected to grow to 2,5 billion by 2050.

The AfCFTA is expected to be fully operational in June next year.

The free trade area will bring many entrepreneurial opportunities and enhance intra-trading among African countries, however, the potential presented will be up to the standard of the transport network within the continent.

The Namibian spoke to various players in the transport and logistics sector to provide an update on how ready the country is for the trade agreement.

Namibia Airport Company (NAC)

NAC is tasked to develop, manage and operate safe and secure airports in the country.

The NAC operates eight airports: Hosea Kutako International Airport (HKIA), Eros Airport, Walvis Bay International Airport, Aandimba Toivo yaToivo Airport, Katima Mulilo Airport, Keetmanshoop Airport, Lüderitz Airport and Rundu Airport.

The chairperson of the NAC board, Leake Hangala, talked to The Namibian last week on the preparedness of the company as the main player in the air transport subsector.

Hangala indicated that a modernised and upgraded HKIA will contribute to the movement of goods and services to and from Namibia and thereby make Namibia an efficient and reliable transport and logistics hub.

He stated that given the geographical area of Namibia with its population spread out, air transport offers the fastest, safest and most reliable mode of transport and it should be the first choice mode of transport.

“Our intention at NAC is to contribute to making air transport in Namibia affordable, accessible, safe and reliable,” he said.

However, to achieve their mandate, they require the cooperation of all stakeholders involved in the country’s aviation industry, Hangala explained.

He assured clients that once the upgrades at HKIA are done, the airport will have dedicated terminals for international and domestic passengers in line with international aviation security standards.

“In addition to modernising physical infrastructure, it is also our intention to introduce fast and reliable services, including the processing of passengers at immigration points,” he explained.

Hangala believes that with the current country transport hubs and those that are being built, the country is ready for enhanced trade with the rest of the continent. However, he believed that the country can do more.

“It is my considered opinion that Namibia is ready for AfCFTA, but we must do more to prepare for it,” he said.

NAC chief executive officer Bisey /­Uirab said the HKIA upgrades had come at the right time given the expected increase in air traffic as the takes off.

The airport has been rocked by threats of a shutdown and downgrade from both local and international aviation regulators as it falls short in security and safety issues. The airport structure was constructed in 1985 to accommodate about 250 000 passengers, but it currently caters for about one million passengers and with the expansion, double that capacity can be handled.

ICAO embarrassed the government in 2014 when it downgraded the Hosea Kutako International Airport after its inspection found that there were safety concerns, such as the lack of firefighting equipment. /Uirab said the project is envisaged to be completed by the end of September 2020, assuring that it will be done with minimal effect on the current airport operations and that business will continue as usual.

He explained that to reduce time spent at airports and boost efficiency, terminals will separate domestic and international passenger movements. The new arrivals extension will have more immigration officers, from the current eight to 17.