Participants in Air Freight Business in Nigeria

Cargo airliners and handling companies are the major players in the industry. They are responsible for cargo operations and movement in and out of airport cargo terminals. Cargo airline operators can be categorized majorly into two:
a)     Combination carriers: These are airlines that operate passengers transport but provide cargo services at the lower deck as well (e.g; Lufthansa, Emirates, Air France, Qatar, British Airways..).
b)     All-cargo carriers: These group of operators are also called pure freighters. The airline carriers provide dedicated cargo services with specialized aircrafts (e.g; Cargolux, Nippon, Emirate cargo, Polar Express, Cargojet..). The airplanes have the capacity of transporting up to 130 tons of cargo.
Some airline operators offer cargo services to other airlines on a contract basis. They can be classified as Contract Freighters Operators. More so, the Integrators (e.g; DHL, FedEx and UPS..) combine air cargo aircraft operations with freight forwarder operations, road service, pick-up and delivery, and supply chain management. Some foreign cargo airliners are often represented at local terminals by cargo agents as General Sales Agents (GSA).
The major cargo handling companies (ground handlers) involved in cargo operations at the terminal include; Nigeria Handling Aviation Company (NAHCO) and Skyway Aviation Handling Company Limited (SAHCOL). Specific Operations of these ground handlers are cargo processing, cargo storage and cargo delivery in compliance with airlines specific standards. More so, they ensure proper documentation, safety and security of cargo. These companies also act as Ground Handling Agents (GHA) for foreign cargo airlines.

Freight forwarders are also key stakeholders in the industry. They consolidate air freight and broker the cargo demand to aircraft operators at competitive pricing but operate no aircraft. They also act as cargo agents to shippers, importers, exporters and sometimes as air cargo agents to foreign airliners. The global air cargo industry is characterized by an implicit alliance among a network of cargo-carrying airlines, freight forwarders, airport logistics handlers, ground handlers, and other parties (John et al., 2006). Air cargo capacity is determined by the aircraft type and the frequency of the flights. Air cargo demand is determined by the shippers, consumers, and global economics.

Government agencies also play vital roles in the industry.  The major government agency responsible for generating revenue (duties) is the Nigeria Customs Service (NCS). Customs import requirement includes: Registered e-Form ‘M’ submitted with Profoma Invoice, Insurance Certificate, Regulatory Certificate/Permits (e.g. NAFDAC, SONCAP Pharmaceutical Board of Nigeria, etc.), Confirmed letters of credit, Manufacturer’s Certificate, Airway bill, Packing list, Pre-Arrival Assessment Report (PAAR), Single Goods Declaration (SGD), Import Duty Payment receipt, etc.
For export operation, the following are the basic documentary requirements by customs: Nigeria Export Proceeds Form (NXP Form), Proforma invoice, Sales contract agreement, Nigerian Export Promotion Council (NEPC) registration certificate, relevant certificate of quality, Airway bill, etc.
Other relevant government agencies are Federal Airport Authorities of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA), Nigeria Export promotion council, and the likes...

Extract: [ Effect of Air Freight Industry on Economic Development in Nigeria ]

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