Why are US airlines selling so much cargo in Australia?

Posted March 04, 2019 14:06:00 As Australia prepares to open its second major international hub, the hub will bring a huge influx of cargo to the country, from the US and Europe.

The Federal Government has committed to bringing up to 200 million tonnes of cargo per annum to Australia over the next decade.

The new hub will be part of a larger, $9.8 billion international cargo facility in Adelaide, which will include 1,400 containers and 1,300 trucks.

It is expected to become Australia’s biggest international container hub, with its capacity estimated to be up to 30 per cent higher than the existing container hub at Port Hedland, which currently holds more than 1 million tonnes.

The Australian Government has set aside $20 million to expand the facility, but said it will be a “significant investment” for the country.

Its president and CEO, Bruce Mowbray, said the project would boost Australia’s position as a world hub for cargo.

“It’s going to help us be the leader in the global freight market,” he said.

“We’re going to get more people on the ground, we’re going see more goods moving through the ports, we have a lot of capacity to ship through the port.”

But Mr Mowtray said the Federal Government needed to “get serious about making sure this project is funded”.

He said the cost of the project was “a serious issue” and that the Government would be seeking private funding from overseas if it were to deliver the project.

Australia’s freight industry is set to reap $40 billion from its expanded port, with freight volumes expected to grow at a healthy 7.5 per cent a year.

Mr Mowbar said there were also “huge benefits” to Australia from the project, such as increased trade with Asia and increased economic activity, but added that the cost was an issue for some companies.

Topics:international-trade,international-aid-and-trade-organisations,business-economics-and

Posted March 04, 2019 14:06:00 As Australia prepares to open its second major international hub, the hub will bring a…