THE Hong Kong Association of Freight Forwarding Agents (Haffa) has confirmed it will build a multi-billion dollar freight forwarding terminal to provide cheaper storage than the territory's new airport.
The terminal, which is expected to charge 30 per cent less for its handling and storage than Chek Lap Kok airport, is likely to start operating next year.
The Provisional Airport Authority (PAA) had awarded a contract to a Sun Hung Kai Properties-led consortium to finance, operate and develop a new $1.9 billion freight forwarding centre at Chek Lap Kok in September.
Sun Hung Kai Properties had said rents for its air freight-forwarding centre would be low enough to stem calls from freight forwarders for a separate centre.
Haffa vice-chairman Sam Chung said he was optimistic there would be sufficient demand to sustain a second complex.
'The freight forwarding centre at the new airport will not be sufficient to cater for the needs of all of Hong Kong's freight forwarders,' he said. The association has raised concerns that high construction costs at the airport would filter through to higher fees for its members.