The Airport Authority will proceed with an open tender for a new cargo terminal facility to bolster the airport's competitiveness. Pre-qualification proposals will be invited by year's-end and the new facility will be operational in 2011.

The decision was made after consulting terminal operators on air cargo demand. It also considers competitive market dynamics. The tender process will complete in 2008.

The timely provision of adequate air cargo capacity will sustain Hong Kong's long-term development as a leading international air cargo hub.

The rolling air cargo throughput for the last 12 months was about 3.6 million tonnes, up 5% on the previous period. Last year the air cargo industry generated more than $1.57 trillion, representing over 34% of Hong Kong's total external trade values.