Shun Fung Holdings Company Ltd (SF Express) announced its wholly owned subsidiary Shenzhen SF Tyson Holdings has signed a cooperation agreement with the Hubei Provincial Government to build the freight-focused Ezhou Hub Airport.
In the announcement, SF said it would build an “multi-modal transport hub and international logistics base” in Ezhou.
The Ezhou Airport is expected to have a throughput of 2.45 million tonnes of cargo and one million passengers by 2025. In 2045, it is expected to handle 7.65 million tonnes of cargo and 15 million passengers. The Ezhou Airport will begin construction in the near future, and will be completed around 2020.
The agreement specifies that the three partners – Hubei Traffic Investment Group, Shun Feng (SF) and Shenzhen Nongyinkonggang Investment – will establish a joint venture company with the share holding distributed at 49 per cent, 46 per cent and 5.0 per cent. The joint venture company is registered in Ezhou, Hubei province, with CNY5.0 billion of capital of which SF has invested CNY2.3 billion.
SF said that when the airport management institution receives a Civil Airport Use License from by the Civil Aviation Administration, SF Tyson will become the controlling shareholder of the joint adventure. SF Tyson will directly or indirectly hold more than 50 per cent of the equity by one or multiple transfers from Nongyin Investment.
SF Express owns 40 freighters and recently bought another two ex-Jade Cargo B747s online. In the first half of the year, SF Express’ total air cargo volume reached 514,000 tonnes, comprising more than 20 per cent of domestic China cargo movements.
Ezhou is located in the geographic centre of China, less than 100 kilometers from Wuhan. The location was also chosen. Because available land is plentiful in Ezhou and its airspace is not as congested as first- or second-tier cities. Ezhou is also located beside the Yangtze River where there are multiple high-speed rail lines passing through the city.