Cathay bags third air cargo terminal
20 Mar 2008
After winning a bid to build and operate a third terminal in Hong Kong, Cathay Pacific Airways said that it plans to invest $615.38 million in the project. The deal with Airport Authority Hong Kong allows Cathay to operate the new cargo terminal for a period of 20 years.
Airport Authority Hong Kong runs the city's international airport.
The new terminal will have an annual handling capacity of 2.6 million metric tonnes and is scheduled to become operational in the second half of 2011.
The deal also ensures that Cathay Pacific offloads its 10 per cent stake in Hong Kong Air Cargo Terminals Ltd (Hactl), which operates the airport's biggest air cargo terminal, processing about 90 per cent of the city's air cargo.
Cathay Pacific has said that a new cargo terminal for its sole use would help it avoid high handling costs at Hactl, of which it is the largest customer.
