Hong Kong needs a third general cargo terminal at the airport to boost competition among operators and defend its market-leading position against ambitious regional rivals, says a report commissioned by the Airport Authority.
A third terminal will be required by 2010 in addition to current expansion projects, said the framework for the logistics component of the soon to be released Master Plan 2025, Study on Competitiveness of HKIA as an International and Regional Air Cargo Hub.
The authority has been caught for the past few months in the middle of a growing dispute about whether and when a third general cargo terminal should be built. Cathay Pacific Airways, the Hong Kong International Airport's biggest freight carrier, in December applied to build its own terminal - ultimately capable of handling five million tonnes of cargo year - as soon as possible.
The terminal operators, led by Hongkong Air Cargo Terminals (Hactl), say present demand does not justify a third facility until 2016.
The report says cargo volumes in Hong Kong will grow at a compound annual rate of 5.8 per cent to 6.9 million tonnes by 2020. It predicts nine million tonnes by 2025 and says the third operator should be big enough to defend itself against the powerful incumbents.
The recommendation to build and the timing of the report's delivery are bound to raise a few eyebrows in the local airfreight industry, given that the authority just last week delayed a decision on a new terminal in favour of a three-month 'consultation' with Hactl and Asia Airfreight Terminals (AAT).