Today, in fact, the only operational cargo air terminal in Ukraine is located in Boryspil MA. Its management, in order to develop this line of activity, intends to bet on the delivery of goods purchased via the Internet. Other interviewed experts agree that “East-West” transit will be the main vector of cargo delivery by air transport to Ukraine or through our territory to European countries. However, they emphasize that the domestic market should also consume goods delivered by airplanes.
Whose wings?
It is desirable that an “anchor” airline specializing in cargo air transportation be established at the airport. For example, the Ukrainian International Airlines of Ukraine (UAI) and the German DHL are currently actively operating in Boryspil.
Passenger planes of other airlines are used to transport small cargo and mail.
At the same time, UIA notes that the capacity of the country’s largest airport is unable to withstand the increase in load. “The share of the airline’s flights, which are not provided by the infrastructure resources of the airport’s cargo terminal, in the total turnover of daily departure flights has reached 25%,” the company notes.
However, cargo transportation for airlines is economically more attractive than passenger transportation. “International Airlines of Ukraine” notes that their profitability can reach 3-5% or more compared to 1.5-2% in passenger air transportation. “Depending on the express or economy transportation services provided, the general or special type of cargo,” the company’s press service clarifies.
The main competitors of UIA are international air carriers. However, without them, it makes no sense to develop this segment of transportation at domestic airports.
Ukrainian accent!
The development of cargo air transport should not only be in the mode of transit, but also ensure supply to the domestic market. Especially since Ukrainian consumers have mastered the purchase of goods directly in Asia and North America through electronic trading platforms.
The potential for the development of cargo transportation by air transport is huge. The market demands speed of delivery, and in the case of international transport, speed is air transport. Cargo hubs should be in every million-dollar city of Ukraine — this will allow for the development of express delivery between them.
Competitors
It should be remembered that neighboring countries are currently more successful in the segment of air cargo transportation. And you will have to compete with them somehow. First of all, these are the airports of Poland, Hungary and Turkey. We should also not forget about Belarus, which benefited from the war between Ukraine and Russia, and continues to develop the main airport – “Minsk”. All these countries are aware of the importance of fast delivery, especially in the context of the development of digital technologies and the needs of online shoppers.
UIA names Warsaw, Frankfurt and Istanbul among the main competitors of Ukraine. The structure of the Polish air cargo market is somewhat similar to the Ukrainian one — it is also dominated by one airport. According to the Civil Aviation Authority (Poland), in 2019 all Polish airports transported just under 107,000 tons of cargo (+12% year-on-year). Almost 80% go through Warsaw Airport. Chopin. However, judging by the feedback of market participants, the level of organization of processes in our western neighbors is much higher.
Construction and rules
At the expense of what will Ukraine be able to attract clientele from its neighbors?
“Undoubtedly, speed will be a competitive advantage, but for this the state needs to finally pay more attention to the development of the infrastructure for cargo transportation at the country’s main airport,” International Airlines of Ukraine emphasizes.
First of all, it is necessary to speed up the loading of the aircraft, reduce the number of intermediate inspections, and expand the number of personnel. Losing even 2-3 hours for express delivery is unacceptable, it can stretch for several days.
The majority of interviewed experts and market participants are rather cautious about the role of the state and, in particular, customs.
However, the desire and ability of large international companies to work with Ukraine depends on how quickly and clearly the customs posts at the airports will work. That is, we need clear, transparent rules of the game.
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