Progress in Lagos

The Nigerian Aviation Handling Company (nahco aviance) has completed its new cargo warehouse modernisation project. The initiative was conceived more than five years ago by nahco aviance management as a proactive approach to maintaining a competitive edge, sustainable revenue growth and profitability of the cargo handling business while exceeding customer expectations. The conceptualisation and design of the project seeks to upgrade the physical infrastructure by incorporating specific com – ponents of cargo handling automation.

Astra Aviation and Realog Consulting GmbH assisted by observing other warehousing processes, both old and new, and integrating them into the new nahco aviance project.

Alhaji Suleiman Yahyah, Vice Chairman of nahco aviance, outlines the progress of the scheme: “Under the chairmanship and leadership of Ambassador Patrick Dele Cole, we embarked on aggressive restructuring of our balance sheet, improvement of our working environment, human capital and envisioned a new infra – structure with modern equipment.”

The physical state of the old warehouse could no longer sustain the desired revenue growth of the organisation. Bottlenecks posed serious operational constraints to the efficiency, safety and security of the cargo operations. The warehouse kept up with nahco aviance cargo handling business for more than three decades and has, in the process, been subjected to heavy physical wear due to intensive cargo operations without any significant effort at physical infrastructure renewal.

This modernisation project places nahco aviance at the vantage position of sustaining its leadership position for the coming years. In order to be able to harness the opportunities presented by the changes in the competitive business landscape now and in the future, the semi-automation aspect of this warehouse project incorporates a mechanical conveying system and a frictionless raised platform (castor mat area), in addition to the re-construction of the access road and working floor areas, to enhance the speed and efficiency of the cargo handling processes.

Alhaji Suleiman Yahyah describes the benefits of the facility: “Our ultra-modern warehouse is one of the fruits of our transformation programme, the first of its kind in sub-Sahara Africa. It is designed to handle 230,000 tonnes of cargo with cold storage, freezers, hazardous goods facilities, bomb and explosive detectors, CCTV cameras, export terminal and highly automated facilities including offices for the Nigerian customs service, security agencies and various stakeholders.”

The installation of new Euro-pallet racks and oversize storage racks has enhanced the warehousing capacities of the sheds. Revenue collection has also been maximised as more consignments can be stored; specifically from Collection on Arrival (COA) and special goods such as special purpose consignments, which are stored in the open by the airside.

Additionally, empty air pallet and container racks enable the storage of the airlines’ pallets and containers on racks, as is the standard industry practice, which also reduces the chances of damage to these very expensive pieces of equipment. The installation of modern cold-room equipment would increase the revenue generation capacities of the import and export warehouses.

The issues of crowd control and security of the warehouse is addressed by the installation of a computerised access control system and intelligent closed circuit television (CCTV). This will reduce the amount of missing cargo whilst eliminating associated consignee claims.

Safety compliance, a regulatory requirement, has been ensured by the installation of an auto – matic fire detection system in the warehouses which would not only ensure fire protection but also reduce the insurance premium.

Furthermore, nahco aviance personnel welfare has been taken care of by improving the internal working conditions of the warehouse. The old stuffy warehouse conditions have been eliminated by introducing roof vents in the roof replacement works and mechanical heat extractors, which will improve internal air circulation. Suitable rest rooms have also been constructed meaning that the safety, morale and productivity of the staff has been boosted altogether.

It is a positive time for the company and the Vice Chairman is looking to the future: “We are ready to embark on an Africa expansion programme to support the government initiative on power privatisation. We have the right governance and have identified 11 Africa opportunities that we are focusing on. We will go outside Nigeria to replicate our cargo warehouse and passenger handling experience starting from this year (2012) through to 2014,” Mr. Suleiman Yahyah said.

The introduction of the new warehouse and the positive impact of the semi-automation, enhanced storage capacities and operational efficiencies is expected to increase the cargo volume and revenue margin by 15 per cent annually for the first two years, reducing to 10 per cent from the third year from the current levels. This will increase the annual cargo throughput to 200,000 tonnes and 60,000 tonnes of imports and exports respectively.

About nahco aviance

The Nigerian Aviation Handling Company Plc (nahco aviance) was incorporated as a Limited Liability Company on 6 December, 1979 under the Nigerian Enterprises Promotion Decree. It actually started operations in April 1979 with the commissioning of the Murtala Muhammed International Airport, Lagos. The Federal Government, through the Federal Airports Authority of Nigeria (FAAN), was vested with 60 per cent equity holding while four foreign airlines held the remaining 40 per cent in the following proportion: Air France (12.5 per cent), British Airways (12.5 per cent), Sabena (8 per cent) and Lufthansa (7 per cent).

The company is now a fully privatised public concern owned by about 80,000 individual shareholders, three foreign airlines and Rosehill Group Nigeria Limited. Its current share ownership structure is as follows: British Airways (10.7 per cent), Lufthansa (6.0 per cent), Air France: (5.8 per cent), Rosehill Group Nigeria Limited (9.5 per cent), Nigerian Public (68 per cent).

The company offers integrated ground support services covering passenger, aircraft and cargo handling to more than 30 airlines in seven airports in the country.