Boost for €12m cargo project
The signing today in Dublin comes two years after the two sides entered a memorandum of understanding to explore the feasibility of developing the cargo hub at Shannon.
Today’s announcement confirms the DAA’s commitment to the project that involves the construction of a 200,000 sq ft international cargo facility at Shannon and brings the establishment of the cargo hub at Shannon much closer.
The Irish Exporters’ Association said last night that the hub could lead to the generation of new value-added industry around Shannon Airport.
In its initial proposal, the US-based Lynxs group proposed that the DAA contribute €7m to the project for the hub toestablish at Shannon.
Last year, the Department of Transport received the DAA’s evaluation of the business case for theproject.
It is believed that the project has the backing of Transport Minister, Leo Varadkar, though his office yesterday declined to comment on today’s expected announcement.
It is understood that Lynxs will now subject the heads of agreement to due diligence that is expected to take 12 months tocomplete.
The viability of aShannon cargo hub is boosted with 80% of Ireland’s air cargo travelling by road overseas to foreign airports, while the industrial hinterland around Shannon where over 6,000 people are employed in the Shannon Free Zone is also seen as a positive to the project.
According to Shannon Development, the Shannon Free Zone last year recorded €3 billion in sales with 92% of the goods for export markets.
Last night, chief executive of the Irish Exporters’ Association, John Whelan, said that the establishment of the cargo hub at Shannon “could generate valued-added industry in the environs of Shannon Airport”.
Mr Whelan said that the hub “will add substantially to the attractiveness of securing new airlines at Shannon”.
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