The contract envisages setting up of a joint venture company: Menzies Aviation (Hyderabad) Private Limited, for developing and managing the cargo warehouse. GHIAL will own 51 per cent of the equity of new JV, while Menzies Aviation Plc will account for the remaining.

The cargo terminal will be built in a plot size of 3.5 acres in the new international airport premises at an estimated cost of Rs.50 crore, which will be equipped to handle 100,000 metric tones of cargo per annum.

"We are happy with the tie-up with Menzies Aviation Plc for building the cargo handling facilities in the new international airport in Shamshabad. Our aim is to build them on the lines of those existing in Dubai and Singapore, keeping in view our long-term vision of making Hyderabad a major trans-shipment hub," said Mr.T.Srinagesh, Chief Operating Office, GHIAL.

Commenting on the formation of a JV with GHIAL, the regional director of Menzies Aviation Plc, Mr Paul Smith, said: "Menzies is delighted to conclude this deal with such a professional partner as GHIAL. We are really excited to have gained a foot-hold in a key aviation market for the future."

Currently, out-ward cargo from Hyderabad includes pharmaceuticals products (around 70 pc), perishable goods (around 14 pc) and manufactured goods (around 9 pc). As far as imported cargo account for mostly manufactured goods (about 50 pc), followed by perishable goods (30 pc) and pharmaceuticals (10 pc).

Features of new cargo warehouse

Scope of Menzies Aviation (Hyderabad) Private Limited will include the following:

GMR-HIAL is a joint venture company promoted by GMR Infrastructure (63 pc); Malaysian Airports Holding Berhad (11 pc), Airports Authority of India (13 pc) and Government of Andhra Pradesh (13 pc), which has been mandated to develop a world-class international airport in about 5,400 acres in Shamshabad. The airport is estimated to cost Rs 1,760 crore in the first-phase, which is expected to become operational by the first quarter of 2008.

The developer has awarded the Passenger Terminal Building (PTB) works to China State Construction Engineering (Hong Kong) Limited (CSCEHK). This particular contract is worth Rs 615 crore. The GHIAL has also given Air Traffic Control (ATC) tower and runway works to L&T, which are worth Rs 495 crore.

The work on these two important components of the airport is progressing at a very brisk space.

About Menzies Aviation Plc, UK

Menzies Aviation is one of the world's leading Ground and Cargo handling companies with headquarters in London. It operates in almost 100 locations spread right across all five continents around the world. Menzies has large operations in UK and Netherlands. In Asia it has presence in China and Philippines. In year 2005 it handled 1.1 million MT of cargo at all its locations around the world.

Menzies' customers comprise 500 airline and aviation companies including Alaska Airlines, EasyJet, British Airways, Emirates, Cathay Pacific, Singapore Airlines, Thai International Airlines, Qantas, Air France, Lufthansa, KLM, American, United, Delta, JAL and Korean.

Important milestones crossed so far