Third Hong Kong cargo terminal in jeopardy

CATHAY Pacific Airways may stall the construction of its HK$4.8 billion Hong Kong air cargo terminal, the third for the city. Construction was started in September this year and was scheduled for completion in the latter half of 2011. However, a sharp downturn in cargo demand and the global economic problems have given the airline cause to rethink their plans.

“Cathay Pacific has made it clear that in the face of the global economic downturn it is considering a number of options to ensure that it maintains a strong balance sheet,” said Cathay Pacific spokeswoman Carolyn Leung. “The timing of all capital expenditure is therefore under scrutiny.”

She said the airline “remains fully committed to building and operating the terminal” but as yet has no clear idea of when it will be completed.