[SINGAPORE] Sats inked a memorandum of understanding (MOU) with Vietnam Airlines on Thursday (Mar 13) to build and operate an air cargo terminal at the new Long Thanh International Airport in Vietnam.
The partnership aims to expand the state-owned carrier’s cargo handling capabilities, Sats said on Friday.
It also seeks to deepen the existing cooperation between both organisations in ground and cargo handling services across Vietnam airlines’ international network.
This will include efforts to jointly develop airfreight and logistics solutions, such as trucking and middle-mile services.
The two companies will also share best practices, productivity indicators and technologies with each other, to improve operational efficiency and quality of service across those areas, the ground handling company said.
It will also combine Sats air logistics expertise and global network with Vietnam Airlines’ plans to launch the country’s first all-freighter airline and contribute to its growing airfreight and logistics sector.
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The air cargo terminal, located at Vietnam’s new Long Thanh International Airport, is currently under construction.
The site is 35 km from Ho Chi Minh City, and is due to commence operations in phases, starting from the second half of 2026.
The new airport will have the capacity to handle up to 25 million passengers and 1.2 million tonnes of cargo a year. This is set to eventually expand to a full handling capacity of 100 million passengers and 5 million tonnes of cargo by 2050.
In its third quarter ended December 2024, Sats posted year-on-year growth for net profit, up 123.5 per cent at S$70.4 million.
Its revenue for the period climbed 12.5 per cent to S$1.5 billion.
The improved earnings were due to operating leverage derived from higher business volumes and rate increases from customers, it said in a business update on Feb 21.
Shares of Sats ended up 0.3 per cent or S$0.01 at S$3.03 on Friday, after the announcement.
