Cargo Airport in Anambra: An economic panacea

 

ACHO ORABUCHI

Dallas, Texas

 

aorabuchi@netzero.net

 

Tuesday, June 26, 2007

 

Periodically I meet with fellow professionals to discuss current affairs, particularly economic and socio-political issues concerning Nigeria. A couple of weeks ago, I had a lunch meeting with a Nigerian professional with vast experience and knowledge in management in various technology and energy industries.

 

Well, our discussion centered on a wide-range of ways to help Nigeria achieve economic and social prominence considering our knowledge and experience in the United States. We touched on some of the ways the past governors could have utilized states’ resources to spark economic development in the southeastern region; they could have embarked on projects that would have had lasting economic benefits to the citizens of the states.

 

In the midst of our discussion, the issue of the proposed cargo airport in Anambra State precipitously came up and it dominated the rest of our conversation. This fellow had a different view of the import of the project. I earnestly seized the opportunity to educate him on the economic viability of the project if rigorous efforts were made before the construction of the airport. At the end of our discussion, he bought the idea that the project would economically and socially revitalize his state. Sometimes it is imperative for one to maintain a critical distance from the rages of politics to properly evaluate the economic benefits of proposed projects coming from the new governors in the zone. Once one’s frame of mind is clouded with emotions and politics, it is unfortunately difficult to see any good in what these chief executives are doing.

 

Cargo airport in any part of Southeast is a laudable venture any state government can embark on. Most importantly, it is a legacy or signature project that would stand the test of economic times when it finally becomes operable and of international standard. For the government of Anambra State to resuscitate the abandoned Oba-Onitsha Cargo Airport project which was conceived in 1993 Dr. Pius Ezeife’s administration, is commendable for various economic and social reasons.

 

The direct and indirect economic impacts of a well-thought out cargo airport are enormous, especially when the facility is well maintained and expanded as necessary. It is pertinent to note that a restrictive site that does not lend itself to expansion would have a short-term economic impact in the region, particularly in the state.

 

As a result, efficient Oba-Onitsha Cargo Airport venture would spur massive economic activities such as the concentration of forwarders, air cargo carriers, truckers, including the support and ancillary services that would in turn have huge multiplier effects.

 

Oba-Onitsha Cargo Airport would attract the location and expansion of shippers, distribution channels, manufacturing and suppliers in and around the airport to take advantage of multi-modal services accruing as result of the airport. The manufacturers and distributors would salivate to locate around the airport because of the ease to transport high-value goods.

 

Airports and related airport activities generate significant employment and income for the cities around the airports. The rise in employment and income of the region would in turn spark enormous economic growth and reduce poverty in the affected areas.

 

The Oba-Onitsha Cargo Airport would provide economic competitiveness through increased freight connectivity, efficiency, and easy access to various markets such as Onitsha, Nnewi, Enugu Asaba, Benin, Orlu Owerri, Umuahia Aba, Port Harcourt and other markets. The airport would have the potential to attract new businesses thereby providing economic competitive advantage to the State and the region. Governor Obi should seize this opportunity to complete this project.

 

Efficiently run Oba-Onitsha Cargo Airport would not only provide access and facilitate commerce, but also it would generate employment and wealth with its direct, indirect and induced impacts lasting for decades. It would have wider catalytic benefits to the entire Southeast region because of its potential to serve numerous large markets. Also it has the budding to bring capital investment to the affected or surrounding areas as its share of international trade increases.

 

However, a thorough feasibility studies have to be done in order to build a cargo airport that would achieve optimum economic impact in the region. Aviation-related activities and retail business would not be automatically optimized because an airport is built in a particular location. It is only through adequate study of the location that direct, indirect, and induced impacts could be crystallized.

 

Necessary factors such as capacity constraints, market growth potential, and ideal location, including network of roads, availability of warehouse space, ground handling, and distribution facilities must be considered in order for the airport to develop critical mass. It would also be critical to be able to project the initial volume of the air cargo with the types of potential freight and shippers within the area.

 

In any case, along a continuum of economic and social benefits that would come to the region as a result of Oba-Onitsha Cargo Airport are thus: high standard of living resulting from increased employment and high income, increased economic development, and skilled workforce. The region would welcome the reduction in poverty and increase in international trade/investment efficiently run Oba-Onitsha Cargo Airport would bring.

 

Interestingly, it is hard not to broach the economic reality that the southeast region would benefit from a single project like cargo airport that has all the characteristics of international standard. As a result, cooperation of other southeast governors would be greatly encouraged regardless of the site of the airport. Without a scruple, efficiently run cargo airport would be an economic bonanza that would hoist masses in the region from poverty.