Abu Dhabi Airport considering spinning off cargo business

The report says the spin off plan includes allowing private companies to invest in and run the facilities, which are all housed at Abu Dhabi International Airport.

The current cargo centre is described in The National as "somewhat aged and with limited expansion abilities", quoting James Bennett, the chief executive of Adac.

"It is very difficult to attract new businesses when the business you are doing today is limited with space," he told the newspaper. "So we are trying to explore options to get a new cargo facility up and running in the most efficient way possible."

Last year, air cargo volumes grew by 16 per cent at the airport, to 438,000 tonnes, and the growth is expected to continue along similar levels because of aircraft deliveries to Etihad Airways.

Adac is considering spinning off the facilities to the private sector with a multi-year concession. However, it could decide to set up an agreement for Etihad to invest in new facilities, or take on the investment itself through its subsidiary, Abu Dhabi Cargo Company, Mr Bennett said.