Shanghai Airport Group, the operator of the city's two major airports, and a state-owned builder in nearby Nantong have established a joint venture to invest in, build, and operate a new airport project, dubbed the 'Third Airport' in Shanghai's global aviation hub.

Shanghai-Jiangsu Nantong New Airport Construction Investment was set up with a registered capital of CNY1 billion (USD139.2 million) on Aug. 15, according to data on corporate information platform Tianyancha. Shanghai Airport holds a 51 percent stake, while Nantong Urban Construction Group owns the rest.

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

Shanghai Airport and the government of Nantong inked a deal to establish the new airport in 2020 to promote the national strategy of integrated development of the Yangtze River Delta region, which has seven major airports, each with an annual passenger throughput of over 10 million, including Shanghai's Hongqiao International Airport and Pudong International Airport.

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, which will reach 80 million in the future. Located 120 kilometers away from Shanghai, it will have two long-distance runways.

China Eastern Airlines, China Southern Airlines, and Air China, the nation's three major state‑owned carriers, have all unveiled plans 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 railroad connecting Pudong and Nantong is expected to be completed in 2027, facilitating passenger turnover between the three airports.