Changi Airport Group (CAG) and the Civil Aviation Authority of Singapore (CAAS) are to jointly develop an Air Cargo Express (ACE) Hub, which is expected to boost Singapore's status as a key cargo hub in the Asia-Pacific.
Under the Changi Airport Masterplan, CAAS has set aside 80,000 square metres for the ACE Hub and its supporting infrastructure, while CAG will invest more than S$25 million (US$19.4 million) in the ACE Hub, to be operational in the first half of 2012.
Ascendas Real Estate Investment Trust (A-Reit) will construct the facility - which will be located beside the Airport Logistics Park of Singapore and within Changi Airport's free trade zone.
The facility's operator will be a "leading cargo carrier which already has major operations in Singapore", CAG said.
The facility, which will be used by air express companies (AEC), will have direct airside access to enable the movement of cargo to and from aircraft, allowing AECs to reduce the time required to process time-sensitive shipments.
The facility is also expected to help expand the reach of AECs into markets of southeast Asia, south Asia and Oceania as well as improve operational efficiencies.
"The ACE Hub will enhance Singapore's competitive advantage in harnessing the critical air express cargo business and strengthen Singapore's position as a leading air cargo hub," said CAAS director-general Yap Ong Heng.
For the 12 months ended September 2010, Changi Airport came in as the world's seventh busiest airport in terms of international freight traffic handled.
CAG chief executive Lee Seow Hiang added: "The ACE Hub will enable our air cargo partner to cater for its future expansion in Singapore and capitalise on long-term growth opportunities from increasing intra-Asia trade growth."
Last year, Singapore registered strong cargo growth, with airfreight movements climbing nearly 12 per cent year-on-year to 1.66 million tonnes for the first 11 months of 2010.