BUSINESS leaders and freight specialists have given a mixed reception to Sir Terry Matthews' idea of turning part of the Llanwern steelworks site into a Gwent cargo airport.

The billionaire owner of the Celtic Manor Resort thinks an airport based on freight could be built on land freed by the end of steelmaking at the giant Newport steelworks.

"I saw the Federal Express Airport facility in Kansas recently, and it employed a huge number of people," Sir Terry said. "One thing I feel Wales has lacked is an airport focused on freight."

While most of the reaction to his idea - revealed in an exclusive interview with the Argus on Monday - is positive, the economics are not favourable

His views were welcomed by Mike Lyneham, Newport-based chairman of chemical manufacturers Solutia UK and president of Newport and Gwent Chamber of Commerce and Industry (ngb2b).

He said the area could not compete with Cardiff and Bristol airports but it might be possible to find a niche locally.

"Something useful must be done to create work at that site," he said. "I am sure Sir Terry is absolutely right in saying there is no UK equivalent of the Kansas City operation. He is someone who has done a lot for this area and we must listen to him when he talks about things that would lead to improvements for the town, and hopefully the city, of Newport."

The Freight Transport Association said a freight-only airport was economically difficult to set up. Almost all were developed on the backs of passenger business and only one in Britain was viable - a relatively small operation in Kent.

The association's air cargo expert Neil Johnson said one of the problems was the huge growth in the UK's air transport industry, which had doubled every ten years since the war.

"It is difficult to see how this can be sustained in the future," he said. "If you are a South Wales manufacturer sending time-sensitive products to Hong Kong you have a choice of ten flights a day from Heathrow. If you only had one or two locally, and you missed them, it could pose a big problem."

Peter Charles-Greed, the Bath man behind plans for a multi-million pound Severnside Airport between Newport and Chepstow, which some economists claim could create 30,000 jobs, said he welcomed Sir Terry's interest in air freight. "Severnside is designed as an international airport which will incorporate hotels and other facilities of which Sir Terry is an expert," he said.