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Cargo firms: Africa to boom

Munich - Freight operators expect the African market to grow in coming years, though volumes from that continent will not surpass Asia anytime soon, cargo executives said at a logistics fair.

"There is a huge opportunity for Africa if they overcome their local problems. But we do not see this in the short term," said Monika Ribar, chief executive of Swiss logistics company Panalpina at the fair on Wednesday.

Manufacturers in African markets such as South Africa have been hit by the global downturn. And global trade chiefs have been urging countries like China, India and South Africa to do more to open their markets to secure global trade deals.

Over the years, though, the markets in Africa would pick up and become a source of volume growth for air cargo companies, some have said.

"In the next 10 years it's going to be a high-growth market," said Dubai-based Emirates' cargo head Ram Menen told Reuters in an interview.

But he also said the company was looking very closely to South America to expand its capacity. Airlines in the Middle East are among the few that are still growing amid the global economic crisis.

Lufthansa Cargo, Europe's No.2 air cargo company after Air France-KLM is more sceptical that cargo volumes will shift in the next few years.

"I don't see a big question as to who's driving global trade and global growth," said Lufthansa Cargo's management board member Andreas Otto.

He said he expected China's and India's economies to pick up again and drive future trade growth. European countries such as Germany would weather the crisis better than some others.

- Reuters

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