Leaders of Can Tho and Vietnam Airlines discuss solutions to build an aviation logistics centre in Can Tho City. — VNA/VNS Photo

The southern city of Can Tho will earmark 27ha of land for Vietnam Airlines to build an aviation logistics centre, said Deputy Chairman of People’s Committee Truong Quang Hoai Nam on Thursday.

In a meeting with leaders of Vietnam Airlines in Can Tho City, Nam said the site was next to the Can Tho International Airport.

“After the project is approved, the city will complete procedures to give land to the carrier. We will create the most favourable conditions to support Vietnam Airlines to build the logistics centre here.”

Deputy CEO of Vietnam Airlines Trinh Hong Quang said the aviation logistics centre project had an estimated investment capital of US$82.9 million. It would be divided into three phases from this year to 2024, playing the role of cargo terminal, leasing space for services and distribution of goods.

Together with the construction of the centre, Quang said the carrier would open more routes from Can Tho to other destinations in Viet Nam and foreign countries.

Quang said Can Tho was the economic driving force of the Mekong Delta, having a favourable position connected to HCM City and localities in the southwest region.

“While the demand for e-commerce is growing dramatically, Vietnam Airlines believes that investment in building an aviation logistics centre in Can Tho would not only promote the development of logistics services for the whole region, but also contribute to reducing overload for Tan Son Nhat and Long Thanh international airports in the future,” Quang said.

According to Director of Can Tho Industry and Trade Department Nguyen Minh Toai, the aviation logistics centre would help boost the sales of local agro-products and seafood in other areas of Viet Nam, meeting the demand of many businesses.

Statistics showed that the region’s export volume is nearly 18 million tonnes per year, of which 70-80 per cent is transported to HCM City and the southeast provinces before being shipped to other places. Can Tho City has an annual export volume of about 800,000 tonnes of rice and about 170,000 tonnes of aquatic products. — VNS