Having been overtaken by Shanghai Pudong International Airport with its 2.16 million tons of cargo handled in 2006 - against Singapore's 1.91 million - the Lion City is changing its tactics.

According to Yeo Kia Thye, cargo chief at the Civil Aviation Authority of Singapore (CAAS), the city state will implement a two-fold strategy to meet its rivals, said a report in The Star of Malaysia.

First, CAAS aims to invest in, or manage, airports on the Chinese mainland to tap into new growth opportunities there, as opposed to watching rivals chip away at its leading market position.

To this end, CAAS has started talks with mainland airport authorities and signed a Memorandum of Understanding to purchase a 40-45 per cent stake in Nanjing airport for CNY1.5 billion (US$192.6 million).

The second aspect of the Singapore strategy is to turn itself into a regional logistics hub for intra-Asia cargo flows, as the Airport Logistics Park of Singapore (ALPS) enjoys free trade zone status.

In the past, Singapore's Changi International Airport capitalised on its location and well-developed infrastructure, but the growing threat from rapidly rising airports on mainland China has forced the Lion City to look for new ways to maintain its lead in global airfreight.

Shanghai has come a long way since it ranked 14th in airfreight back in 2004. And Beijing and Guangzhou are catching up. While they lag behind Singapore's airport ranking, this is not expected to last long given that the two mainland rivals are located in massive manufacturing areas.