IBERIA, the Spanish carrier that merged with BRITISH AIRWAYS last year, has announced plans to build a new 100million euro cargo terminal in Madrid.

Airline chairman Antonio Vazquez signed an agreement to build the new facility with Juan Ignacio Lema, the head of Spain’s national airport and traffic control authority, Aena.

The cargo terminal will make Madrid-Barajas airport Europe’s largest hub for air cargo to and from Latin America.

Iberia will pay 60m euros towards the project with Aena contributing the other 40million euros.

A spokesman for the carrier said: “The 39,000sqm terminal will stand on a 92,000sqm site between runways 15 and 33 and near the apron of the T4 satellite building that is used for most Latin American flights.

“The new feasibility will substantially reduce aircraft loading and unloading times, while boosting the efficiency and quality of Iberia’s air cargo handling services at the airport.”

In 2010 the Madrid-Barajas cargo terminal handled more that 373,000 tonnes of freight, a 23.3 per cent increase from the previous year, with Iberia shipping 47 per cent of the total.

The new terminal is expected to lead to strong growth in Iberia’s cargo handling business in the 2015-2030 period, tripling the 175,000 tonnes in 2010 to some 650,000 tonnes by 2030.

The commissioning of the new terminal in 2015 is expected to create 400 direct jobs and up to another 1,000 indirect ones in services such as customs, security services, hospitality, and retail.