IAG Cargo to build new £55m facility to support supply chain growth
IAG Cargo to build new £55m facility to support supply chain growth
Supply chain leader IAG Cargo has announced plans to a build a new state-of-the-art freight facility at Heathrow Airport by 2018. The £55 million investment will deliver a “premium” temperature-controlled hub to accommodate “higher-yielding” goods such as seafood.
IAG Cargo has recognised an opportunity to meet the demand of a “growing middle class in China” that is particularly fond of the salmon and razor clams from the UK and Ireland. These sorts of priority perishable exports grew by 30 per cent last year, and the growth in demand shows no signs of abating.
Recently, IAG Cargo revealed that it had shipped an estimated 400 tonnes of Scottish razor clams to Asia in 2015. It has also been handling more imports of fresh vegetables and fruit, which rose by 4.3 per cent in 2015. To support these lucrative channels, the new facility will measure more than twice the size of its current Premia hub at 8,500 metres squared.
“IAG Cargo’s four airlines now carry more premium freight than at any point in their combined history,” chief executive Drew Crawley said. “With the continued growth of high-speed e-commerce and cool chain logistics in particular, as well as the ongoing expansion of the IAG family and network, we need facilities that are ready for the next generation of premium freight.”
The company will soon place a greater focus on cross-border e-commerce due to substantial growth in demand in the area. IAG Cargo is also ramping up its aircraft fleet in order to take advantage of new trade routes and provide greater capacity for the routes that it currently serves.
The new facility at Heathrow, which will support its growth plans and lift capacity significantly when it comes into service in two years’ time, will also feature a Constant Climate quality centre to store stocks of pharmaceutical products.
