US embassy cable - 05PRETORIA3175

UNCLAS PRETORIA 003175 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PLEASE PASS TO OPIC (CCOWAN) 
 
E.O. 12958: N/A 
TAGS: EINV, EAIR, ECON, ZU, SF 
SUBJECT: SOUTH AFRICA: OPIC LOAN TO AFRA AIR CARGO 
 
REF: STATE 138148 
 
(U) This cable is Sensitive But Unclassified.  Not for 
Internet distribution. 
 
1. (SBU) Embassy Pretoria welcomes the prospect of Afra Air 
Cargo entering the South African and sub-Saharan Africa air 
cargo market.  The air cargo industry in southern Africa is 
biased toward Europe and slaps a hefty price tag on shipments 
to and from the United States.  Additional competition from a 
U.S. company has the potential to reduce transportation 
costs, increase efficiency, and facilitate bilateral trade. 
Reducing transportation costs and having more direct routes 
from southern Africa to the United States can only encourage 
trade between North America and Africa, and increase the 
developmental value of our African Growth and Opportunity Act 
(AGOA).  Regular direct air cargo shipments between the 
United States and Southern Africa could also reduce USG costs 
and improve the regional support services Embassy Pretoria 
provides for other U.S. Missions in Africa.  Currently, 
Fedex, UPS, and DHL operate package services in the region. 
Delta, United, American, and Northwest all have alliances 
with airlines that fly cargo to South Africa.  To our 
knowledge, Bax Global is the only U.S. transportation and 
logistics company with operations in South Africa. 
FRAZER