Tanzania's Swissport says prospects seem bright

Swissport Tanzania, the leading provider of ground and cargo handling services, is bullish on growth prospects this year in Tanzania and looks particularly at the new terminal at the Julius Nyerere International Airport (JNIA) as a springboard for further growth.

Buoyed by 78 per cent net profit gain last year, the company says it is encouraged by on-going construction of the new terminal at JNIA and is set to capitalize on growth in the aviation industry.

“It is gratifying to see construction of terminal three is in top gear as the new terminal will not only reduce pressure at the existing facility at JNIA but will also stimulate further growth of the aviation industry,” the Chief Executive Officer, Mr Gaudence Temu, said.

Swissport Tanzania, a subsidiary of Swissport International, provides services at JNIA, Kilimanjaro International Airport, Mtwara Airport and Songwe Airport in Mbeya Region.

The company which is listed at the Dar es Salaam Stock Exchange (DSE) earned a net profit of 13.31bn/- in 2014 up from 7.48bn/- of 2013.

It attributes the robust performance to increased traffic, use of wide body aircraft by airlines and more important -- enhanced operational efficiency and strict cost control.

“The prospect of the local aviation market indicates a slight increase in the number of flights while the volumes of cargo are expected to remain constant at best,” the company said earlier in a statement.

Mr Temu said ground handling business in Tanzania was poised to grow in line with the rapid expanding economy providing grounds for much anticipation for growth in the activities of the company.

He however mentioned inadequate infrastructure related to passenger processing as the main challenge. “Ground handling business in Tanzania is poised to grow in line with the overall economic growth.

The main challenge at the moment is inadequate infrastructure especially those related to passenger processing due to lack of timely investments to cope with growth,” he said.

He said despite the challenge, the company was well prepared to meet the needs and challenges of the rapidly growing aviation industry with a focus to increase investments in critical areas.

“Primarily our company is continuously improving service through various strategies such as investment in ground support equipment, construction of a new warehouse and of course recruitment and staff training.

“We also monitor growth in other upcoming airports for possible extension of our services to those airports,” he said.
Source: Daily News, reported from Dar es Salaam, Tanzania
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