(Yicai) Aug. 18 -- Shanghai Airport Group, which runs the Chinese city's two major airports, and a state-owned contractor in nearby Nantong have set up a joint venture to invest in, build, and operate the third airport intended to serve the city.

Shanghai-Jiangsu Nantong New Airport Construction Investment was formed with a registered capital of CNY1 billion (USD139 million) on Aug. 15, according to data on corporate information platform Tianyancha. Shanghai Airport owns 51 percent and Nantong Urban Construction Group the rest.

Nantong New Airport Construction will focus on construction work, airport operations, air transport, aircraft maintenance, and general aviation services.

To advance the national strategy of integrated development in the Yangtze River Delta, Shanghai Airport and Nantong’s government inked a deal on the new airport in 2020. The region has seven major airports, including Shanghai's Hongqiao International Airport and Pudong International Airport, with each able to serve more than 10 million passengers a year.

According to a construction plan Shanghai Airport released in June last year, the new airport will have an initial annual throughput of 40 million passengers and reach 80 million in the future. Located 120 kilometers from Shanghai, it will have two runways capable of handling long-haul flights.

China Eastern Airlines, China Southern Airlines, and Air China, the nation's three major state‑owned carriers, all plan to set up bases at the new airport in Nantong.

In addition, the first phase of the Shanghai-Suzhou-Nantong railroad connecting Hongqiao and Nantong was launched in 2020, while the second phase of the high-speed link connecting Pudong and Nantong is expected to be completed in 2027, facilitating passenger turnover between the three airports.

Editors: Dou Shicong, Martin Kadiev