Hong Kong has earmarked HK$5 billion (US$642 million) in its 2020-2021 budget for the redevelopment of the Air Mail Center at Hong Kong International Airport (HKIA).

The redevelopment of the center is a key part of Hong Kong's plan to further enhance its express cargo capability and “to reinforce its leading position in airfreight logistics” — after earlier disruptions caused by the Hong Kong protests and currently, the outbreak of the coronavirus disease (Covid-19).

"As announced in the Budget, the Government is taking forward the plan to redevelop the Air Mail Centre at HKIA. The redevelopment of the Air Mail Centre is a key part of HKIA’s plan to further enhance its express cargo capability," the Airport Authority Hong Kong (AA) said in a statement.

Investment in premium logistics

"In parallel, the AA is actively expanding the existing express air cargo terminal, developing a premium logistics centre and enhancing HKIA’s capability in handling high-value cargo, including temperature-controlled products such as pharmaceuticals and perishable goods. These developments will help secure HKIA’s leadership as the world’s busiest cargo airport as well as Hong Kong’s position as an international aviation hub," it added.

The AA also welcomed the government’s measures to promote Hong Kong’s tourism and trade, as well as the convention and exhibition sectors.

Financial Secretary Paul Chan earlier said the initial preparations for the airmail center redevelopment plan have already been completed and the funding application is expected for submission to Hong Kong's Legislative Council within the year for approval.

The 2020-2021 budget also included a US$44 million subsidy pilot program, allowing third-party logistics providers to receive subsidies for the launch of up to four projects. 

The AA also said it is pleased that the government continues to provide resources to support the training of talent for the aviation industry.