The airport's current air cargo buildings are located more than a half mile away from the passenger terminal, which requires split operations and additional ground-handling for some cargo operators.

The new 63,000-square-foot facility, to be located just south of where the airport's two runways intersect, will be significantly closer to the airport's other operations.

"This project will improve Hilo Airport's operational efficiency by reducing the distance separating the passenger terminal and cargo facility," Lingle said in a news release. "It will also improve the customer experience for frequent shippers, including Big Island farmers and businesses."

In 1998, $1,240,000 was released for project design. Lingle's office said the project was deferred by the terrorist attacks of Sept. 11, 2001.

The project will also fund the construction of an airplane taxiway that will connect the cargo facility to the airfield, a new cargo apron and vehicle parking and loading area.