Malaysian government has approved the construction of an air cargo terminal off Labuan island, in the state of Sabah and on the north of the island of Borneo to support growing air cargo traffic increased by more than threefold in the last few years, according to Shipping Gazette.
The Labuan airport which services nine direct flights a week to and from Kuala Lumpur, Singapore, Hong Kong and soon to be Saigon, reached cargo tonnage of 10,000 tonnes in 2013, excluding passenger and chartered flights.
According to Labuan MP Rozman Isli the much-needed terminal will support air cargo traffic predicted to increase on the back of a burgeoning oil and gas industry, reported East Malaysia's Daily Express.
The industry's move into ultra deep drilling will require timely shipment by air of important parts with time more important than cost implications, he said.
"Moreover, direct shipping to Labuan is limited and this makes air freighting vital to the operations of oil companies," Mr Isli said of an island which sees itself as the third oil and gas hub after Malaysia's Teluk Ramunia and Perang.
Mr Isli, also Labuan Corporation chairman, fully supports the air cargo terminal, as yet without a location. This will be supported by government investment of MYR75 million (US$22.96 million) for a road link to support air cargo movements.
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