S. Korea to expand air cargo handling with China

SEOUL, June 22 (Yonhap) -- South Korea plans to expand its air cargo handling infrastructure with China as part of its larger plan to build up its logistics industry, the government said Wednesday.
The Ministry of Land, Transport and Maritime Affairs said it will move to increase the number of cargo flights with its largest trading partner and expand the overall size of the air cargo terminal at Incheon International Airport.
The government will improve incentives given to private companies that invest in the logistics centers adjacent to the hub airport located about 70 kilometers west of downtown Seoul, it said.
The size of these logistics centers will be expanded by 533,000 square meters by 2012, with the government encouraging companies engaged in such areas as semiconductors, high-tech industrial parts and materials to set up cargo handling areas.
"Strengthening the South Korea-China air cargo handling is expected to fuel growth of the value-added industry that accounted for around 0.3 percent of the country's trade volume last year," the ministry said.
Although the size of cargo handled was small compared to freight ferried by ships, the combined value of shipments transported by air accounted for 25 percent of the total, it said.
The ministry said Seoul wants to increase the volume of air cargo from 2.72 million tons last year to 3.50 million tons in 2015.
On top of expanding the cargo handling infrastructure with China, similar measures will be taken to increase air cargo movement with the United States, Europe and the Middle East, it said.
yonngong@yna.co.kr