CATHAY Pacific Services Limited (CPSL), the Cathay unit set up to design, build and operate the new HK$5.9 billion (US$761 million) cargo terminal at Hong Kong International Airport, is now conducting trials ahead of the February 21 opening.

The terminal will open in stages. Stage one will involve handling valuable cargo, transit civil mail and interface transfer transshipments for the Cathay Pacific and Dragonair alone.

This summer, stage two operations will commence for all transshipments, import cargo and empty unit load devices (ULD). And finally, the terminal will achieve full operations in the latter half of the year.

"We are to open one of the largest, most sophisticated air cargo terminals in the world," said Cathay Pacific Services CEO Algernon Yau, whose facility will add an annual capacity of 2.6 million tonnes to Hong Kong's present capacity of 7.4 million.

"This facility is designed to offer airlines the advantage of extended cut-off times, last-minute cargo acceptance and reduced connection handling time for transshipments due to a strategic mix of just-in-time operations and advanced technology," Mr Yau said.

Said Cathay cargo chief Nick Rhodes said: "Cathay Pacific will serve as a launch customer, but of equal importance, is our helping CPSL to fine tune processes so that it is ready when it begins accepting new customers."

Already, cargo handling equipment, operating procedures and the tailored warehouse operating system, are being put through an eight-week trial with business partners and government bodies involved in testing all their procedures. Stage one trials were completed successfully in mid-December.

When fully operational, more than 1,800 jobs will be created, said the Cathay Pacific Services statement, though its impact on employment on today's No 1 airport ground handler, Hongkong Air Cargo Terminal Limited (Hactl), and on its smaller rival, Asia Airfreight Terminal (AAT), is unknown.

Cathay Pacific Services Limited is a wholly owned subsidiary of Cathay Pacific Airways Limited. The company was formed in January 2008 and awarded a 20-year franchise by Airport Authority Hong Kong in March 2008 to design, build and operate the new cargo terminal.