The Managing Director of the Nigerian Aviation Handling Company Plc (nahco aviance), Mr. Kayode Ojo, has explained that the company went to raise N5 billion bond to finance its transformation programmes.

These entailed expansion and modernisation of its warehouse, acquisition of state of the art equipment, expansion of services to some African countries, development of human resources, and upgrading of ICT infrastructure.

Ojo, said that the first tranche of N2 billion realised from the bond was being expended on acquisition of ground handling equipment to augment its operations.

“On the heels of the transformation, we also came up to the Bond issue this year (2011). Our Bond was N5 billion, the first tranche of N2 billion was specifically for acquisition of equipment, that is about $13 million.

“These equipment are coming on the first quarter of 2012 because they are not just what you order and get immediately. In 2010, we also spent about $7 million and a little bit above $6 million in 2009….These are not just to replace the old ones but to add new ones to cope with competitive pressure.”

On how to improve the infrastructure at the airport, Ojo said that nahco aviance was working with the Federal Airports Authority of Nigeria (FAAN) on this.

“It is an issue that affects us. Our approach is to work with FAAN because it is a collective responsibility. We are aware that FAAN has placed an order for new equipment. We are also aware that the date of delivery has been shifted to first quarter of 2012 and in fairness to them, they have carried us along because they provide infrastructure and we provide the software and the two have to work together.
“We would continue to work with them because it impacts on the public and I think there is joint responsibility on our part to make sure we deliver what is called seamless airport services,” Ojo added.

The nahco aviance boss further said that his organisation placed greater premium on security in its area of operation and that was why it had ordered sophisticated scanning machines for operations at its cargo warehouses.

“We placed an order for up-to-date equipment such as scanning machines for both the import and export goods and regulators have insisted that operators have right kind of equipment because it has international impact,” he said.

He added: “The new warehouse we are building comes with modern gadgets to ensure there is security: CCTV coverage, a lot of things, the use of automation as opposed to manual because it is much easier to detect with these things. We put that in place and we work closely with FAAN and NCAA because at the end of the day, it a collective responsibility and a national issue to make sure we are on top of our game in term of security.”

The nahco aviance helmsman said that another N2 billion was being used for the modernisation and expansion of its warehouse.
“We met a warehouse that was built sometime in the 80s. We have devoted time and money close to N2 billion to rebuild the warehouse, to modernise the warehouse and then extend the size a little bit.”

He said that when the warehouse would be completed, it would have expanded the capacity of the edifice to handle the annual throughput to 200,000 and 60,000 tonnes of imports and exports cargo respectively with modern facilities such as semi-automation aspect.

This incorporates mechanical conveying system and 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 and enhance security in the cargo area.

He said that the company was also planning to expand its business activities beyond the shores of the country and to achieve this, powerful team from the organisation had been sent abroad to explore business opportunities in some selected countries with a view to expand the business to those areas.

This is in addition to the electricity power distribution company being floated in partnership with other organisations in the country and abroad.

Nahco aviance also spent about N500 million in the training, retraining and development of its manpower in 2011 to kit them with modern day developments in the industry and make them relevant.

Shareholders of the company at the Extra Ordinary General Meeting held in August 2009 in Abuja authorised the Board to raise N5 billion bond to finance its business development and diversification projects.

In 2011, they also approved the proposals on the Management Support Agreement and the transfer of assets of the company to nahco FTZ, a subsidiary company that would operate in a Free Trade Zone.

Source: ThisDay/Chinedu Eze