Cathay Pacific unit to build terminal at Hong Kong International

Cathay Pacific unit to build terminal at Hong Kong International Cathay Pacific’s wholly owned subsidiary, Cathay Pacific Services Ltd. (CPSL), has been awarded a 20-year franchise to develop and operate a new common use cargo terminal at Hong Kong International Airport to start operations in the second half of 2011.
   Cathay said it will invest a total development cost of about HK$4.8 billion ($618 million) into the design, construction and equipment of the new cargo terminal, which will have a designed annual air cargo throughput capacity of 2.6 million tons. The facility, which will be built in the airport’s existing cargo area, will occupy a site area of about 10 hectares.

Artists impression of Cathay’s new cargo terminal at Hong Kong International Airport

   As part of the agreement signed today between CPSL and the Airport Authority of Hong Kong, Cathay Pacific has given an undertaking that it will dispose of its entire 10 percent interest in Hong Kong Air Cargo Terminals Ltd. before the operational start date of the new terminal.
   'The facility represents a significant investment and commitment by Cathay Pacific that will strengthen Hong Kong International Airport's position as the world's leading air cargo and logistics hub,” said Cathay Pacific Chief Executive Tony Tyler.
   'Despite a slowdown in air cargo tonnage growth worldwide, we believe 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.'