Dubai based JV invests US $18m in Pakistan air cargo
Gerry’s dnata, a Dubai-based joint venture that handles cargo and luggage for some 12 international airlines at Pakistan’s airports, is investing US $18 million to double its working capacity by December 2017.
“We have placed Pakistan’s biggest order for ground service equipment worth US $7 million and are investing another US $11 million to double storage capacity of our warehouse at Karachi airport,” Syed Haris Raza, Gerry’s dnata vice president Pakistan told The Express Tribune.
Around 10% of Pakistan’s total cargo trade is transported by air, according to Razan, who estimates that around 500,000 tonnes is transported by air freight per year into and out of the country.
He added that the China-Pakistan Economic Corridor (CPEC) would contribute greatly to ongoing growth in Pakistan’s air cargo sector.
Raza said the ground service equipment would arrive in Pakistan in the next five to six months from different countries including France, Belgium, the UK, Canada, Dubai and China.
“Investment for expansion at the Karachi warehouse will double its storage capacity from the current 120,000 tons per year,” Raza said. The expansion of the warehouse is expected to be complete by the last quarter of 2017.
The investment initiatives were undertaken after Saudi Arabian Airlines, which operates over 40 flights a week to and from Pakistan, outsourced its ground handling services to Gerry’s dnata.
Gerry’s dnata’s other ground handling clients include Pakistan International Airlines, Airblue, Shaheen International Airlines and Air Indus.
The Dubai-based joint venture provides cargo handling services to international airlines such as Emirates, Turkish Airlines, Fly Dubai and DHL at seven airports in Pakistan.
The company claims to have a 60% market share in handling cargo to and from international destinations.