Cathay Pacific Airways recently held the groundbreaking for a massive new hub cargo terminal at Hong Kong International Airport (HKIA).

Earlier this year, the Hong Kong airport authority had awarded the airline’s wholly-owned subsidiary, Cathay Pacific Services Ltd (CPSL), a franchise to invest in, design, construct and operate the new air cargo terminal at HKIA under a 20-year agreement. The airline said it would invest a total development cost of approximately HK$4.8 billion (US$615 million) into the facility, which would occupy a site of around 10 hectares in the airport’s cargo area.

“The new terminal will be completed by the second half of 2011 with a designed annual air cargo throughput capacity of 2.6 million tonnes,” said the airline. “The terminal will be a common-use facility open to all airline customers.”

It added that the extra air cargo handling capacity and facilities provided by the new terminal would help to further reinforce HKIA’s position “as the world’s premier international air freight hub”.

Speaking at the groundbreaking ceremony, Cathay Pacific chief executive Tony Tyler said Hong Kong’s status as the number one air freight hub was vital to the city’s economic future. However, he pointed out, Hong Kong was facing increasing competition from other fast-growing airports in Asia as well as from within the Pearl River Delta region itself.

“Without a concerted effort to improve our capacity and our competitiveness, our hub would face serious challenges.The need for more capacity is clear – and we will get that capacity when the CathayPacific Cargo Terminal begins operation,”he added.