(Yicai Global) Feb. 15 -- Shanghai Airport Authority, the state-owned operator of the city’s two major airports, is planning to construct a civilian airport in Nantong, eastern Jiangsu province together with a construction company owned by the local government there which would form the ‘Third Airport’ in Shanghai’s global aviation hub.

Shanghai Airport and Nantong City Construction Development will set up a joint venture to invest, build and operate the airport, according to data released by Shanghai’s market regulators at the end of last month. Although public information does not specify which airport they will build, insiders have confirmed to Yicai Global that it is the new airport in Nantong. Shanghai Airport will hold a 51 percent stake in the JV and Nantong City Construction the rest.

The airport, which will be situated just 120 kilometers away from Shanghai, will have an annual throughput of 40 million passengers and two long-distance runways. It is due to start construction this November pending approval from the country’s National Development and Reform Commission, Yicai Global has learned from people with knowledge of the matter.

The airport will handle the spillover from Shanghai’s Hongqiao and Pudong International Airports. The distance between the new airport and the Pudong and Hongqiao airports is equal at nearly 100 km. Nantong is home to the Xingdong International Airport but it belongs to a different operator.

If the new Nantong airport is to become an important part of Shanghai’s civil aviation cluster, synergy with the two cities’ transport networks is very important.

Already the first phase of the Shanghai-Suzhou-Nantong railway line is in operation. The second phase will extend to Pudong airport and the Shanghai East Railway Station in Pudong New Area. The National Development and Reform Commission is also looking into studying the feasibility of building a high-speed rail from Shanghai to Hefei in eastern Anhui province, which would pass through Jiangsu province.

The Yangtze River Delta, which encompasses Shanghai and the surrounding region, has seven airports with an annual throughput of around 10 million travelers. While Jiangsu province, which has the most airports in the country, has nine airports with an annual throughput of 1 million passengers.

Editors: Liao Shumin, Kim Taylor