SINGAPORE, 17 January 2011 – Changi Airport Group (CAG) today announced that it has signed the land lease agreement for the development of the Air Cargo Express (ACE) Hub at Changi Airport, a unique first-of-its-kind air cargo express facility in the region.

The lease agreement was signed with HSBC Institutional Trust Services (Singapore), the Trustee of Ascendas Real Estate Investment Trust (A-REIT). A-REIT will build and develop the facility, which is located beside the Airport Logistics Park of Singapore and within Changi Airport’s free trade zone. The facility will be operated by a leading cargo carrier which already has major operations in Singapore.

The ACE Hub will significantly enhance Changi’s express cargo handling capabilities and reinforce its leading position as a key cargo hub in Asia Pacific. With direct access to Changi’s airfield and road access to the rest of Singapore via major expressways, the ACE Hub will facilitate the cargo operator’s regional distribution activities and express courier services.

The cargo operator will be able to consolidate its Singapore activities within the facility, improving operational efficiencies and competitiveness. The new facility, which is expected to have a gross floor area of 26,277 sqm, will also have special on-site facilitation by the Immigration and Checkpoints Authority and Singapore Customs for efficient cargo clearance.

To support the ACE Hub, CAG will invest more than S$25 million to construct new airside infrastructure. This includes two new aircraft parking bays which will enable the operator to have convenient access to its freighter aircraft. The ACE Hub is expected to be
operational in the first half of 2012.

CAG’s Chief Executive Officer, Mr Lee Seow Hiang, said, “The ACE Hub will enhance Changi Airport’s competitiveness in the air cargo space. The project reflects our commitment to work with our partners to grow their business at Changi as well as invest in innovative ideas to grow Changi as a global aviation hub. The ACE Hub facility will enable our air cargo partner to cater for its future expansion in Singapore and capitalise on long-term growth opportunities from increasing intra-Asia trade growth.”

This announcement comes on the back of strong cargo growth in Singapore. Airfreight movements for the first 11 months of 2010 grew 11.7% to 1.66 million tonnes, compared to the same period the year before. Strengthening its cargo hub status, Changi Airport welcomed three new all-cargo carriers last year – Transmile Air, Tri-MG Airlines and China Cargo Airlines – and just last week, Hong Kong Airlines commenced four weekly freight services to Hong Kong.

For the 12 months ended September 2010, Changi was the world’s seventh busiest airport in terms of international freight traffic handled.1