Bermuda’s airport needs either a new or upgraded cargo facility, in a separate job from the proposed new terminal, according to a Ministry of Finance spokesman.

Aecon, the Canadian contractor for the development at L.F. Wade International Airport, has begun examining the cargo operation and facilities, “with a view to defining project scope and identifying viable options for future renovation or replacement of the existing facility”.

Unlike operations in the passenger terminal, cargo is contracted to third-party operators, as is jet fuel and executive aviation. Problems with the air cargo shed were among the issues cited in the Government’s justification for rebuilding, including leaks in the roof, soaring summer temperatures and a lack of any refrigeration for perishable goods such as medically sensitive cargo.

The spokesman said the need for an upgrade had been identified “very early in the first phase of due diligence for this project, with input from the Government, the airlines and their customers”.

Details for the upgrade will be made public once Aecon completes its assessment, he added, with the cost of renovating the existing cargo area — or building a new one — to be covered by “revenues generated from the cargo business itself and/or from investment by a third-party developer/operator”.