The interests in HACTL and HIHL are being purchased by existing HACTL and HIHL shareholders, namely Jardine Matheson & Co., Limited, The Wharf (Holdings) Limited, Mosgen Limited (a wholly owned subsidiary of Hutchison Whampoa Limited), Hutchison Port Holdings Limited and China National Aviation Corporation (Group) Limited. The sale is valued at HK$1.28 billion (US$164 million) for Swire Pacific and HK$640 million for Cathay Pacific. The sale of its interests in HACTL by Cathay Pacific fulfils an undertaking made to the Airport Authority Hong Kong in March 2008 when the company was awarded, through its subsidiary Cathay Pacific Services Limited, the franchise to invest in, design, construct and operate a new air cargo terminal at Hong Kong International Airport (HKIA).
Cathay Pacific has resumed work on the HK$5.5 billion air cargo terminal, having suspended development in January 2009 as a result of the severe economic downturn at that time. The airline recently awarded the HK$4.2 billion contract for the construction of the terminal to Gammon Construction Ltd in partnership with Hip Hing Construction Company Ltd and the facility is scheduled to begin operations in 2013.
“The new cargo terminal is an important investment not just for Cathay Pacific, but also for Hong Kong, and will boost the competitiveness of HKIA as a centre for international and regional air cargo traffic,†said Swire Pacific and Cathay Pacific chairman, Christopher Pratt. “The terminal is a key part of our strategy to develop Hong Kong as a prominent air cargo hub. We are continuing to look at ways to develop our network and freighter frequencies out of Hong Kong. From January next year we will begin taking delivery of 10 new-generation Boeing 747-8 freighters, which will increase our capacity in line with growing demand.â€Â