GENERAL SANTOS CITY (MindaNews / 17 January) – A Japanese company is eyeing to build a $1.2 billion (about P71.3 billion at current rates) state-of-the art global modern air cargo hub, which will employ artificial intelligence (AI), at this city’s international airport.

Mayor Lorelie Pacquiao said Friday that Kazuo Sato, CEO of Sato Investment SPC chief, paid a courtesy call at her office to discuss the potential investment seen to further enhance the local economy, boost its competitiveness and generate jobs in the city.

“We are thankful for the interest shown by the Japanese consulting firm to further develop the Gensan International Airport into a global air cargo hub,” she said in Filipino.

Passengers walk towards the departure area of the General Santos City International Airport. MindaNews file photo by Bong S. Sarmiento

Leonard Flores, City Economic Management and Cooperative Development Office, said that Tokushima Auction Market Co., Ltd. (TAM) has expressed interest to put up the facility.

In a statement on Friday, TAM said that its President & CEO Yoshihisa Arai has decided to jointly “redevelop” General Santos International Airport into one of the world’s leading global cargo airport hub, in collaboration with the Civil Aviation Authority of the Philippines (CAAP), the city government, and its affiliate Sato Investments SPC.

“We have decided to redevelop General Santos International Airport as one of the world’s leading global cargo airport hubs,” it said.

“Through the development of a next-generation air cargo hub utilizing AI and digital technologies, this project aims to revitalize the agriculture, forestry, and fisheries sectors, while fostering the creation of new industries and enhancing international logistics,” it added.

TAM revealed the key development concept includes “runways exceeding 3,200 meters and airport facilities capable of handling large cargo aircraft (A380, B747, B777), dome-shaped cargo handling facilities and aircraft maintenance services, aviation fuel supply and liquefied natural gas-based energy infrastructure, advanced navigation support systems (including ILS auto-landing and ground radar), ultra-low temperature frozen storage (−60°C, 2,000 tons class), and chilled warehouses (4,000 tons class).”

The total investment cost is US$1.2 billion, with US$650 million for construction of the facilities, the company said.

TAM projected the redevelopment project to generate 4,550 jobs in the city, which is touted as the “Tuna Capital of the Philippines.” The tuna industry is expected to benefit from the cold storage and warehouse facilities.

To date, the Philippines has lacked sufficient advanced cold-chain infrastructure, such as large-scale ultra-low temperature frozen storage facilities capable of −60°C (2,000 tons class) and chilled warehouses (4,000 tons class), TAM noted.

TAM said the project plans to establish an AI data center with AI servers at its core within the airport area.

“This AI data center will be utilized for cargo flow optimization, demand forecasting, quality control, and enhanced security, thereby dramatically improving overall airport operational efficiency and value creation,” it added.

The development project for the Gensan international airport would be pursued through a Public-Private Partnership (PPP) scheme, the company said.

TAM is a member of the Tokushima City Government Central Wholesale Market and was nominated by the Mayor of Tokushima City and received permission to do business, its website stated.

The Gensan airport, which is managed by the CAAP, started operations in 1996. Construction of the airport with a runway of 3,227 meters, which is capable of handling wide-bodied jets, was mostly funded by the United States Agency for International Development.

The Gensan airport, which is managed by the CAAP, was constructed with a design to accommodate wide-bodied planes. The United States government extended $37.5 million for the development of the airport, which started operations in 1996. (Bong S. Sarmiento / MindaNews)

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