HONG KONG (XFN-ASIA) - Cathay Pacific Airways Ltd is unable to proceed with its plan to construct the world's largest international cargo terminal because the government has yet to decide on whether or not a third general freight terminal is to be built at the Hong Kong airport, South China Morning Post reported, citing a Cathay official.
Cathay Pacific director Ron Mathison said the airline wants to build its own cargo terminal, with annual handling capacity of up to 5 mln tons, to enable it to have a better grip on costs of its freight-handling needs.
It currently outsources this service to Hongkong Air Cargo Terminals at a cost described by Mathison to be as much as three times what it pays elsewhere.
However, Cathay Pacific's cargo terminal plan is dependent on the government making a decision on whether to tender the contract for a third general freight terminal or whether the project is to be built at all.
Mathison urged the government to make a decision on the freight terminal so Cathay can proceed with its plan to build its own cargo terminal.
jun.concepcion@xfn.com
jc/mas
© 2006 AFX News
