The Shanghai-listed Guangzhou Baiyun International Airport Co Ltd will issue transferable bonds to raise funds of 2.8 billion yuan (US$345.25 million) next year.

The funds raised will be used as part of the capital input for the building of two runways, the expansion project of the initial-phase terminal building and the construction of a cargo terminal, all of which are set for completion in 2006, said Cui Jianguo, managing director of the company, at a press conference yesterday.

Founded in September 2000, the Guangzhou Baiyun International Airport Co Ltd listed at the Shanghai Stock Exchange in April 2004, and has been one of the numerable blue-chip stocks at the Shanghai Stock Exchange ever since. The company is responsible for the operation and management of the Guangzhou Baiyun International Airport.

Cui said that his company would buy the two runways from the Guangdong Airport Management Group. The runways will be big enough for the take-off and landing of A380 aircraft, the world's largest aircraft at present.

He said that his company would spend about 2.35 billion yuan (US$289.4 million) on the runways, which will in turn increase the company's business turnover of about 147.31 million yuan (US$18.16 million) and profits of about 88.94 million yuan (US$10.97 million) annually.

The company will also invest about 948 million yuan (US$116.89 million) to expand the first phase project of the terminal building by 950,000 square metres.

The expansion project will enhance the passenger handling capacity of the terminal building by 40 per cent to 35 million passenger-times, and add 25 gate positions to the current 76.

He said the company would pool capital of 420 million yuan (US$51.79) for a cargo terminal project, which is expected to cover a space of 80,800 square metres and be capable of handling cargo of 520,000 tons annually.

Guangzhou Baiyun has joined forces with China Southern, a Guangzhou-based leading airline in China, to set up a cargo terminal, the stock of which is dominated by the latter.

Another plan in motion is an investment of about 300 million yuan (US$36.99 million) for the improvement of the "electronic airport", the automatic management and operation of the airport over the next two of years, he said.

The company has invested about 700 million yuan (US$86.31 million) in the "electronic airport" project, which began operating in August 2004, making the new airport one of the most advanced and state-of-the-art in China.

Cui said that new investments are expected to further accommodate the rapidly growing business of the airport due to the increasing number of domestic and foreign flights and the logistics businesses of FedEx and UPS.

(China Daily September 20, 2005)