Asia Airfreight Terminal (AAT) will invest 1.75 billion Hong Kong dollars (224.4 million US dollars) in constructing a new terminal to triple its current design capacity in 2006, said the AAT Thursday in Hong Kong.

AAT is an international consortium which provides worldwide aircargo service. It comprises six significant shareholders which include Changi International Airport Services Pte. Ltd., Singapore Airport Terminal Services Ltd., China Merchants Holdings (International) Co. Ltd., Torres Investments Ltd., Keppel Telecommunications and Transportation Ltd. and Federal Express Corporation.

AAT is an international consortium comprising six significant shareholders. Each member makes a unique and invaluable contribution to our successful operation.

The new terminal will be completed by end 2006 with an annual handling capacity of 910,000 tonnes. It will feature a multi-storey warehouse design covering a gross floor area of 117,500 square meters. The new terminal will be equipped with advanced systems, including a state-of-the-art material handling system andpallet container handling system, according to the AAT.

Speaking at the signing ceremony for AAT Expansion, Chief Executive Officer of Airport Authority Hong Kong, David J Pang, welcomed AAT's support for Hong Kong's initiative to become a logistics service hub within the Pan-Pearl River Delta region.

Pang explained," Hong Kong is the key logistics centre for Southern China and we at Hong Kong International Airport play an important role in connecting this region and the world with our extensive aviation network."

Logistics is one of the four pillars that support the Hong Kongeconomy, with air cargo accounting over 30 per cent of Hong Kong'stotal trade value. In 2003, HKIA handled 2.64 million tonnes of air cargo, an increase of 6.6 percent compared with 2002.

Chief Executive Officer of AAT, Daniel Soh, said "The expansionplan demonstrates the company's confidence in Hong Kong as the premier air cargo hub of the region and underlines our long-term commitment to support its growth."

"With the added capacity and design capabilities of the new AATTerminal, AAT will be well positioned to meet the longterm cargo capacity demands of our present and future customer airlines and further improve the level of service delivery to the airfreight industry." Soh added.

The mainland international air cargo sector is projected to grow double-digit year on year. In Hong Kong, air cargo traffic isexpected to grow at 6 per cent per annum long term, with express cargo to grow at a rate of 13 per cent per annum.

Source: Xinhua