Cathay Pacific to build a cargo terminal in HK airport

Cathay Pacific Airways Ltd<293>, Hong Kong's largest carrier, will build a cargo terminal at the city's airport by investing HK$4.8 billion (US$618 million) to cater to China's rising exports demands.

The facility, scheduled to start operation in the second half of 2011, will be able to handle 2.6 million tons of cargo a year, the company said in a statement, adding that it will sell its 10% stake in Hong Kong Air Cargo Terminals Ltd, the city's biggest air-freight handler.

With the building of the terminal, the annual freight capacity of Hong Kong airport, the busiest international cargo airport in the world will be boosted to 7.4 million tons, airport authority said.

Cathay aims to cut down their costs by building its own cargo terminal, company CEO Tony Tyler said, and the move will strengthen Hong Kong’s position as Asia's air transportation center amid increasing competitions from other airports in the region.