THE DUBLIN Airport Authority (DAA) will today announce that it has signed a “heads of agreement” with international cargo group Lynx that could lead to a multimillion euro investment in an air freight hub at Shannon Airport.
The agreement is not legally binding but could result in an investment of about €16 million in a modern cargo hub at Shannon. This represents positive news for the airport at a time when passenger numbers have been under pressure due to falling demand for air travel and Ryanair’s decision to scale back its operations there.
Lynx is expected to market the facility to potential customers and sources indicated yesterday that it could be up to 12 months before a binding agreement is signed. The two sides have been exploring the feasibility of developing the cargo hub at Shannon for about two years.
The project could involve the construction of a 200,000sq ft international cargo facility at Shannon. It would represent a joint investment by Lynx and the DAA, which would transfer its existing cargo customers at Shannon to the new hub.
It is understood that Minister for Transport Leo Varadkar supports the proposal to establish an air cargo hub at Shannon. No comment was available yesterday from either the DAA or the Department of Transport.
Last night chief executive of the Irish Exporters’ Association, John Whelan said the establishment of the cargo hub at Shannon “could generate valued added industry in the environs of Shannon airport”.
He said the hub would “add substantially to the attractiveness of securing new airlines at Shannon” and noted that Ireland was “well behind the curve” in terms of air freight access.
“We need to invest very significantly in this and the Lynxs project is a very important initial step,” he added.
The DAA owns Shannon Airport although this position could change as the Minister is reviewing the separation of the Dublin, Cork and Shannon airports.
The Irish Timesrevealed this month that the Shannon Airport Authority had submitted a proposal to Mr Varadkar suggesting that the airport should be removed from the control of the DAA and leased to a private entity for between 15 and 35 years.