The operator of Johor's Senai airport said today it has begun building a RM13 million airfreight facility as part of a one billion-ringgit push to become Asia's logistics hub.

Senai Airport Terminal Services (Sats), the country's only independent airport operator in Johor state bordering Singapore, said the interim facility was the first step to upgrade current cargo facilities to serve as a regional base for major cargo players.

"This interim freight facility will play a bridging role until a permanent cargo facility is completed and is able to match facilities and services offered by international airports in the region," director Mohamad Sidik Shaik Osman was quoted as saying in a statement.

The facility is expected to be fully operational by March, with a capacity to handle 40,000 tonnes a year or a full Boeing 747 freighter turnaround daily, including a small number of narrow bodied passenger services.

It will provide floor space of 3,600 square metres. Offices will also be constructed within and next to the freight facility to provide a further 1,500 square feet of office space for airline freighters and 1,300 square feet of space for cargo agents as well as counters for import and export documentation, it added.

Two million tonnes of cargo

The company aims to handle up to two million tonnes of cargo annually in 10 years' time, the statement said.

Mohamad Sidik said plans were afoot to boost services and improve turnaround time by developing strong sea and air cargo links through close cooperation with Johor ports.

"Sats is confident it will succeed in turning Johor into a logistics hub for unlike city-based airports, Johor's Senai has vast land area which can be developed to provide a range of aviation and logistics-related services, and operating costs which are comparatively low," he added.

Senai - which was recently bought by top tycoon Syed Mohtar Albukhary - is being developed into a regional logistics hub, that includes the airport, the Port of Tanjung Pelepas (PTP) and an industrial free zone park, to rival Singapore, prompting the island-state to take actions to boost its competitiveness.

Singapore, which lost Denmark's Maersk Sealand and Taiwan's Evergreen Marine to PTP last year, has overhauled its shipping strategy, including cutting handling fees and offering shipping lines the opportunity to run their own berths. - AFP