/ 9 December 2016

​Benefits of airports economy largely untapped

Polowane's airports are central in the plan to develop the province's economy
Polowane's airports are central in the plan to develop the province's economy

Polokwane International Airport, formerly known as the Pietersburg Gateway International Airport, is a strategic catalyst for economic development for Limpopo and the entire Southern African Development Community region, according to Oupa Mamabolo, executive manager: Business Development at the Gateway Airports Authority Limited (GAAL).

“We are a strategic partner for growth and prosperity in the region,” Mamabolo told the Mail & Guardian on the sidelines of the Limpopo International Investment Conference at the Carousel, Hammanskraal.

“Limpopo itself is the biggest exporter of citrus fruits, avocados and tomatoes from ZZ2 and most companies are currently migrating towards the Limpopo Province’s Musina-Makhado Special Economic Zones, which is now referred to as the gateway into Africa. Burgersfort region, on the other hand, is also an emerging market. As a result of these massive opportunities, we are in the process of establishing small connecting airports in Musina, Tubatse, Giyani, Thoho-ya-Ndou, and Lephalale because of the Medupi Power Station. We are creating an aerotropolis, which will yield endless business and economic opportunities.”

Mamabolo said GAAL and the Limpopo provincial government should tap into the dormant wealth embedded in the airports economy. He said currently Limpopo Province was losing revenue because most of the agro-processing of raw materials was taking place outside the province.

“There are more than 20 trucks daily which transport farming produce to Johannesburg and Durban for processing. If we could use the land that we have here and build a cold storage right at the airport, we could create an agro-processing hub for raw materials and create a lot of economic opportunities in Limpopo province,” said Mamabolo.

“We must be perceived to be more than an airport. It is about time our brand positioning changes. We have roped in Brand SA to assist with brand positioning of the Polokwane International Airport.”

Mamabolo said it could be seen from data that over 80% of air cargo at Polokwane Airport is imports, with export accounting for only about 17% of all the cargo. This is a very consistent picture for most airports in South Africa with the exception of Cape Town International Airport, which has more exports than imports.

“This is a sign of a deficiency within an economic system and the way to solve this problem in Limpopo [is] with high-tech companies that can harness the bulk raw minerals (e.g. platinum) being produced in the province, by adding value to them through ingenious products that can benefit humankind,” said Mamabolo.

“Between May and December 2010, a total of 35 897kg of import cargo arrived at Polokwane airport at an average of 4 487kg per month. In the same period a total of 7 385kg of export cargo left the airport at an average of 923kg per month.”

Through the department of agriculture, GAAL’s airport management has received a commitment from the province’s prominent farmers to establish an agricultural hub next to the airport for direct exports. “We just need an airline partner for cargo transportation,” said Mamabolo.

He said the airports authority was currently procuring the services of Kenya Airways to assist the province in transporting cargo to the East African market. “We have an ambidextrous responsibility as a taxi rank for aircrafts — both for passengers and cargo.”

GAAL is the provincial state-owned entity that runs the Polokwane International Airport, or the PTG. Polokwane International Airport is located within the Capricorn district and it currently offers three scheduled daily flights to OR Tambo International Airport through Airlink.

Polokwane, a province known for its wildlife and bush, is the largest city in South Africa north of Johannesburg. Leveraging air travel market in Limpopo, Airlink flies daily between Polokwane and Johannesburg, with a flight time of less than one hour.

The Limpopo province has eight border posts linking South Africa to Botswana, Zimbabwe, and Mozambique. Out of the eight border posts, only two have freight movement — Beit Bridge Border Post linking South Africa to Zimbabwe, and Grobler’s Bridge Border Post linking South Africa to Botswana.

Phalaborwa (Kruger Park Gateway) Airport, located within Mopani district, offers daily scheduled flights to Johannesburg through Airlink.

Hoedspruit Airport, also located within Mopani district, offers scheduled daily flights to Johannesburg and Cape Town through SA Express. Although there are airfields distributed throughout the province, air transportation to most parts of the province remain a challenge, as the majority of the airfields are operated by the local aviation community, offering mainly chartered flights and flying lessons.

Lephalale Airport, though currently unlicensed and run by the Limpopo department of transport, offers daily flights to Johannesburg, mainly due to demand arising from industrial users. As from the 2017/18 financial year, this airport will be managed by GAAL.