Cathay to build cargo terminal in HK

Hong Kong - Cathay Pacific Services Limited will be developing and operating a new cargo terminal worth HK$4.8 billion (US$618 million) at the Hong Kong International Airport (HKIA) by 2011.

The new cargo terminal is expected to shorten delivery times, provide faster trans-shipment connections, reduce cut-off times for export cargo and shorten truck queue times.

Tony Tyler, chief executive of Cathay Pacific said the new terminal would be open to all airline customers.

The new terminal is also said to give HKIA a boost in its competition with other airports in the region with the additional air cargo handling capacity and facilities.

According to the International Air Transport Association (IATA), international air freight traffic increased 4.3% in 2007 with an industry forecast of 4% to 4.5% for this year. The overall growth in the HKIA cargo throughput in 2007 was 4.5% to 3.74 million tonnes and a 6.4% growth in air traffic movements for cargo.

Tyler believes that the long-term growth prospects remain good despite the sluggish growth in air cargo tonnage growth worldwide. "Air cargo is a cyclical business: 2008 and 2009 are likely to be challenging but we expect a pick-up in growth during 2010-2012," he said.

Cathay Pacific has a total of 18 freighters due to deliver over the next four years including six Boeing 747-400ERF Extended Range Freighters. By 2012, Cathay Pacific would have 30 freighters in its fleet.