The second phase of the expansion project of Shanghai's Pudong International Airport has been completed. The airport will officially open its new terminal, runway and cargo facility on March 26, a step toward its goal of becoming the cargo hub of Asia by 2010.

The terminal will more than double the number of passengers the airport can handle from the current 28 million to 60 million a year. And the cargo handling capacity at Pudong will rise to 3.7 million tons per year. The airport says one airline will operate within one terminal, and it will open shuttles between the two terminals.

The 480,000-square-meter new terminal adopted a three-layer model and each floor has a special function. Located near the seaside in Shanghai's new financial district, Pudong Airport has great market potential. The General Administration of Civil Aviation of China (CAAC) plans to expand the airport to be an international air hub. The aviation hub will also boost the local economy of the Yangtze River Delta.

Ruan Qing, Official of Shanghai Municipal Development & Reform Commission said, "It will benefit logistics and high-end manufacturers, which are based on the development of airports. It will also help improve the industrial structure in nearby areas."

The development of Shanghai's aviation industry will drive up the cargo capacity in the Yangtze River Delta and improve local competition as a whole.

Wu Nianzu, CEO of Shanghai Airport Authority said, "The operation of the air hub will raise the freight volume of nearby airports. The profit will be higher than that of a single airport. It can also create a positive impact on local economic development."

According to a recent report by the Centre for Asia Pacific Aviation, Pudong plans to complete a third passenger terminal, raising its capacity to 80 million passengers and 6.5 million tons of cargo a year by 2015.