China Southern Airlines is planning to build and operate Shenzhen International Airport's biggest cargo centre with a handling capacity of 250,000 tonnes, intensifying the competition with Hong Kong for Guangdong's burgeoning exports.
The cargo centre, expected to begin operations next year, would more than double Shenzhen airport's annual handling capacity to 450,000 tonnes.
The move forms part of China Southern's strategy to boost cargo operations before the mainland's accession to the World Trade Organisation - using Shenzhen as its international hub.
The carrier's existing cargo services from Shenzhen to the United States are operating at almost 100 per cent capacity, and it is expecting demand growth to accelerate in the coming years.
President Yan Zhiqin said the airline would build a dedicated cargo fleet by acquiring three more Boeing 747-400 freighters over the next two years.
Cargo accounts for only 8 per cent of the Guangzhou-based airline's revenues.