Beijing Int'l Airport gets FTZ, to strengthen logistics competitiveness

30 Dec '05

3 min read

Ministry of Commerce of the People's Republic of China informed that the Beijing's Capital International Airport (CAH) gets Free Rrade Zone (FTZ).

China is building its first airport free trade zone within the Beijing Capital International Airport, a move that is expected to strengthen the country's logistics competitiveness in Northeast Asia.

Liu Zhiqiang, said Director of Capital Airports Holding Co (CAH)'s Department of Planning and Development said they have launched the design of the bonded area and the first phase will be put into service in 2008.

The first phase of the free trade zone will cover 2 square kilometres. The whole zone, expected to span 6 square kilometres, will be completed in 2010, Liu said.

A free trade zone, or bonded zone, allows companies to ship various types of merchandise into the country without going through formal customs entry procedures or paying import duties. The zone is appealing to importers who can defer paying dues and thus increase profits.

Liu declined to disclose the total investment amount needed, but said CAH is trying to attract private and international capital to help finance the project.

Liu included that they want to attract the world's best logistics companies. They will also try to get foreign bank loans for this project. Liu made the remarks on the sidelines of CAH's annual work conference.

CAH is China's largest airport group. It controls and holds stakes in morethan 20 Chinese airports. Beijing Capital International Airport, fully owned by CAH, is China's busiest airport. Its annual passenger traffic exceeded 40 million last Thursday, making it the world's 20th largest airport in terms of passenger traffic capacity.

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