The Airport Authority of Hong Kong has received inquiries from Sun Hung Kai Properties and Cathay Pacific Airways about contracts to build the city's third air cargo terminal, according to a report in The Standard of Hong Kong.

The Airport Authority would only say "it was pleased and satisfied with the number of applications received during the pre-qualification process," which ended on February 2.

Cathay Pacific has confirmed it applied, and a source told The Standard newspaper that Sun Hung Kai was also in the running. Hong Kong Air Cargo Terminals and Singapore-based Asia Airfreight Terminal control about 90 per cent of air cargo movements through the city's airport.

Hong Kong Economic Development Secretary Stephen Ip Shu-kwan said the terminal will lead to lower cargo costs and increased competition between the terminal operators. Air cargo throughput was four million tonnes last year, with the authority estimating demand could double to eight million by 2025.