Cargojet to move into new $12M airport facility

The new $12-million cargo terminal at Hamilton's airport has found an anchor tenant.

Cargojet, an overnight air cargo service, will take up about half of the 77,000-square foot facility, which is due to open in April 2015.

The service and airport officials announced the deal for the Air Cargo Logistics Facility on Wednesday.Construction is set to begin this spring.

• READ MORE: Airport considers moving planned cargo terminal

The John C. Munro Hamilton International Airport is already the third busiest cargo airport in Canada in terms of volume.The Cargojet partnership isa "significant opportunity" to build on that, said Frank Scremin, president and CEO of the airport.

Having secured the proper infrastructure and a partnership with Cargojet, Canadas Cargo Airline, puts us in a great position to realize this," he said.

Two-thirds of the terminal's$12-million price tagis from the provincial and federal governments, and the agreement dictates the terminal be completed by April 2015.

The new terminal will include a 60,000-square-foot cross dock facility with truck docking stations and refrigeration for flowers, fresh produce and pharmaceutical products.

Its construction will create about 50 jobs. The facility itself will create as many as 400 direct and indirect spin-off jobs, the airport says.

Cargojet already has a presence at the airport. The company has recently signed new contracts with Canada Post and Purolator that could double the size of its business, saidAjay K.Virmani, president & CEO ofCargojet.

Six Airport Road residents wrote the city last year asking to sell their land because of the close proximity to the cargo terminal. But the terminal's location has changed so it no longer abuts their land, alleviatingthe need to purchase it, Guy Paparella, the city's director of growth planning, told CBC earlier this month.

He plans to bring a report to council this spring.