China Southern Airlines plans to launch a cargo carrier this year, following in the footsteps of Air China and China Eastern Airlines. CZ didn't reveal the operating base of its new cargo carrier but it is widely believed to be in Shanghai, the biggest and most lucrative cargo market in China.

The Guangzhou-based carrier was scheduled to launch a cargo joint venture with Air France-KLM in 2008, but owing to that year's global financial crisis, both carriers broke off their cooperation.

Last year CZ shifted its cargo base from CAN to Shanghai, where it operates a freighter fleet of seven aircraft, comprising two Boeing 747Fs and five 777Fs, on international routes to Los Angeles, Chicago O'Hare, Amsterdam, Vienna and Frankfurt. It is expected to accelerate its expansion plans after reaching an agreement last month with Boeing to buy six 777 freighters.

CZ's new cargo entity will likely face fierce competition from the newly formed China Cargo Airlines, which was relaunched last month by CEA, finalizing the integration of its cargo unit with Shanghai Airlines' airfreight subsidiary. CA and Cathay Pacific Airways formally launched their SHA-based cargo joint venture in May.