The express cargo terminal to be built at Chek Lap Kok will host a fleet of mid-range freighter aircraft co-owned by Cathay Pacific Airways and express carrier DHL International.
According to a source close to the companies, Cathay and DHL intend to start a dedicated regional express cargo joint-venture that could be ready by the end of the year. The new venture depends on DHL's successful tender for the new terminal.
However, as DHL is the only bidder for the terminal and since the Airport Authority (AA) has made the express-cargo sector a priority, it is thought success of its tender is a virtual fait accompli.
Cathay and DHL are negotiating a new three-year agreement that would expand an existing venture that puts DHL cargo in the belly-hold of overnight Cathay passenger flights to Osaka, Seoul, Taipei and Singapore. The old venture, signed in 2000, is due to expire in March next year.
The source said the deal would require the purchase of eight freighter aircraft, probably either the Airbus A-300 or Boeing B-757F, each of which cost an estimated US$100 million to US$125 million new. The agreement may also give Cathay financial support from DHL for the aircraft purchase.
The new terminal will serve as the hub for the fleet, which is to be painted in Cathay colours. The cargo-only aircraft would be used to fly express mail between the region's key business cities, including the potentially vibrant China market. The new venture will feed cargo into Cathay's international long-haul network.
Onward access through Hong Kong to the mainland was already being discussed with China Southern Airlines, for the south, and China Eastern Airlines for Shanghai-linked volume, the source said.
