Increasing demand for air cargo services has led Cathay Pacific to build a new terminal, to be operational by 2011
	Cathay Pacific Chief Executive Tony Tyler says the new cargo terminal underscores the airline’s long-term confidence in Hong Kong

A new cargo terminal to be built at Hong Kong International Airport (HKIA) by 2011 will meet future needs, ensuring the city retains its status as the region's premier cargo and logistics hub.

HKIA has been the world's busiest international cargo airport for 11 consecutive years. Demand continues to increase, driven by the booming Chinese mainland economy and robust global trade.

The additional cargo terminal will set new standards in operational efficiency, environmental design and service levels. It will be designed, built and operated by Cathay Pacific Services Limited, a wholly owned subsidiary of Cathay Pacific Airways Limited.

Benefits include shorter delivery times, reduced cut-off times for export cargo, faster trans-shipment connections and shorter truck queue times.

More choice for all

Airport Authority Chief Executive Officer Stanley Hui said the new cargo terminal would reinforce the competitiveness of HKIA as a regional and international air cargo hub. "It will provide additional choices for airlines, shippers and freight forwarders. And it will bring substantial economic benefits, in the form of new jobs and business opportunities, to Hong Kong."

The terminal will be built at a cost of around HK$4.8 billion (US$618 million) and have an annual air cargo throughput capacity of 2.6 million tonnes.

Cathay Pacific Chief Executive Tony Tyler said the new facility would be open to all airline customers. The additional air cargo handling capacity and facilities provided by the new terminal will give HKIA a much-needed boost to contend with increasing competition from other airports in the region, he added.

"We will be giving the market an additional choice and a differentiated service proposition. This is an important investment not just for Cathay Pacific, but will also contribute to the competitiveness of HKIA as a centre of international and regional air cargo.

"The addition of new capacity and more competition will stimulate an increase in cargo flights to HKIA, which in turn will bring substantial economic benefit to Hong Kong. There will be new employment opportunities arising not only out of the construction and operation of the cargo terminal but also for the entire air cargo industry as it grows."

Confidence in Hong Kong

Mr Tyler added that Cathay Pacific's long-term confidence in Hong Kong as a major airfreight hub is underlined by the airline's investment in new freighters. The airline has a total of 18 freighters due for delivery over the next four years including 10 Boeing 747-8 Freighters, six Boeing 747-400ERF Extended Range Freighters, and two 747-400BCF Boeing Converted Freighters. There will be 30 freighters in the Cathay Pacific fleet by 2012.

Airport Authority Hong Kong statistics for 2007 indicated an overall 4.5 per cent growth in HKIA cargo throughput to 3.74 million tonnes, and a 6.4 per cent increase in air traffic movements for cargo. According to the International Air Transport Association (IATA), international air freight traffic grew 4.3 per cent in 2007 with an industry growth forecast of 4 to 4.5 per cent for 2008. 

Mr Tyler said that despite a slowdown in air cargo tonnage growth worldwide, Cathay Pacific believes that the long-term growth prospects remain good. "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. It is important that we plan and develop the additional handling capacity in time to meet future growth needs."

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Cathay Pacific Airways Limited