The gloves have come off. Shenzhen Airport Authority and Shenzhen Airlines have unveiled plans to grab as much of the air cargo market as possible in the Pearl River Delta in southern China, in direct competition with Hong Kong International Airport, sweeping aside all the past diplomatic talk about one airport complementing the other.

Shenzhen Airport Authority plans to increase freighter services at Shenzhen airport by 50 per cent in 2010 as opposed to a 3 per cent increase in passengertraffic next year, a speaker at the China (Shenzhen) International Logistics andTransportation Fair 2009 said recently.

Speaking at one of the event’s seminar sessions, Shenzhen Airlines Cargo director Jacobsen Hsieh, said: “Shenzhen airline will make use of all the night slots available at the Shenzhen airport to boost its air cargo business in the near future as all the day slots are fully taken up.”

Hsieh said Shenzhen Airlines planned to upgrade its fleet with medium-sized freighters and enhance its own feeder functions in and out of Shenzhen in the future, including flying to destinations in Japan, South Korea, Cambodia and India.

Currently, about 70 to 80 per cent of high value goods are transported as airfreight from Shenzhen airport to other parts of the world, he said, adding that Shenzhen airport will grow in importance as more airlines and integrators use its facilities.

UPS is moving its intra-Asia air hub to Shenzhen from its current location in the Philippines. The new hub will begin operations in January 2010 and involve an estimated investment of US$180 million. UPS will have 81 new flights from Shenzhen to cities in Southeast Asia, North Asia, Europe and USA.

Hsieh said Jade Cargo, which is 51 per cent owned by Shenzhen Airlines and 49 per cent owned by Lufthansa, will also launch more cargo flights from Shenzhen to Europe, India, Middle East, Turkey and Africa next year.

Shenzhen Airlines also plans to tap the direct air services across the Taiwan Strait that came into effect from 31 August 2009, Hsieh said.

More opportunities for Shenzhen Airlines would become available from the Free Trade Agreements inked between ASEAN countries and China from 2010. He added that the airline would use all its available slots to meet the demand between ASEAN countries.

Hsieh said Shenzhen Airlines would also focus on developing its strong domestic network in China, using its belly-hold cargo capacity as the airline flies to most major cities in the Mainland.