Japan Air Lines seeks approval for $50 million cargo terminal at LAX.

Japan Air Lines Co. Ltd., aiming to expand its No. 1 position among cargo handlers in the Southland, has proposed a new $50 million, 240,000-square-foot freight terminal on 16 acres at Los Angeles International Airport.

Land is precious at LAX and applications for expansion have been filed by nearly a dozen rival airlines.

The city's Department of Airports staff has agreed to negotiate exclusively with the Japan-based cargo service, which currently handles cargo at a smaller, 1960s-era facility at LAX. Authorization to begin talks for a new 30-year lease, however, is needed from the ruling Board of Airport Commissioners. The board is expected to schedule a final vote this month.

"JAL needs more warehouse space, more processing space and more ramp to park their aircraft," said Rick Wells, LAX assistant chief for aviation planning. "It's a carrier with good financial backing, has a good growth rate over the years, so we're confident they'll use that additional capacity," he said, which is at least 35 percent larger than the present facilities, according to a JAL source.

Airport officials, being landlords to cargo operators, want successful tenants that ensure a steady flow of rent on their land. More cargo also can mean more economic benefits to Los Angeles, according to airport staff, which estimates $9,243 in local economic benefits per ton handled.

Asia is a safe bet. Cargo bound for the Far East or originating there has risen 8 percent in the first eight months this year compared with 1990. That trend is expected to continue, said Wells. Meanwhile, international tonnage from other continents averages 2 percent below last year's levels.

JAL's timing also played well, said Manager of Airport Properties Glen Kroh. "Their request was one of the first that we received," he said.

Big expansion projects at the airport have caused concern among some City Council members and drawn strident opposition from nearby homeowners. The JAL project could be opposed by City Councilwoman Ruth Galanter, said her chief deputy and airport issues guru, Betty Fisher.

"We're against anything that increases the airport's capacity . . . anything that puts more cars and trucks on the street, diminishes air quality and makes life unbearable for our people out there," said the deputy of Galanter, who represents the surrounding neighborhoods. Galanter's office is pushing for growth instead at the Palmdale airport.

JAL carries more tonnage than any other carrier in the world, according to the International Air Transport Association. It already runs the largest cargo operation at LAX, with 187,000 square feet of warehouse and office space which it would vacate. JAL's proposal seeks a 240,000-square-foot complex with new automation equipment, allowing for much greater capacity and handling speed.

City planning officials have been wary of supporting building proposals on the 127 acres of vacant land at the airport until a new master plan, governing all land use at LAX, is ratified by the City Council. The "LAX 2000 Master Plan," however, still faces several years of study and hearings.

Meanwhile, JAL's project has a fair chance of securing the necessary building permits, say sources, because its proposed site on the northwest corner of Imperial Highway and Sepulveda Boulevard is home to a cargo terminal vacated by Federal Express. Such rehabilitation projects have enjoyed a better reception from city planners. The old 68,000-square-foot FedEx terminal would have to be demolished.

Under the airport staff's recommendation, JAL's construction would be held to two years or less. And annual rent, beginning at $40,000 per acre, could be adjusted every five years.

Other potential knock-down structures include Cargo City, the 98-acre terminal that is 30 years old and lacks modern automation, said Wells.

The second-largest cargo operator at LAX is Korean Air Lines, with 138,000 square feet.