MEDFORD — Two new air freight terminals will be built at the airport as part of a plan to separate passenger traffic from cargo services.

MEDFORD — Two new air freight terminals will be built at the airport as part of a plan to separate passenger traffic from cargo services.

Each of the Sky Way Air Freight Terminal buildings will occupy 23,000 square feet, according to Carl Artner of the commercial construction firm of C.A. Artner Company of Central Point. The total construction cost will be about $2 million, Artner said.

Located south of the FedEx building on Terminal Spur Road, the buildings will become a critical part of moving cargo in and out of the airport, Artner said.

"Basically, our buildings are the gateway to the airport," said

The freight terminals will be built with private money, while new aprons for cargo aircraft will be constructed with a portion of $72.1 million in state lottery bond proceeds that have been dedicated to financing non-highway transportation projects around Oregon.

The new aprons in front of the freight terminals will cost about $1.5 million of the Medford airport's $4.76 million share of the "Connect Oregon" funds.

Artner said he doesn't have any tenants for the building yet, but he hopes to attract a company such as DHL or UPS because once the new apron is built, cargo planes will have to handle freight away from the passenger loading area.

He said construction could begin by November and be concluded by February or March. The ramp should be built by January.

The buildings, made of split-face block and steel, will be designed to have four warehouse units. At both ends of each building there will be two-story office space. The parking lot will be along Terminal Spur Road.

Geoffrey Hiatt, architect with Rogue Design Center, said the buildings are not modular construction but are designed specifically for the site.

"These are the custom Cadillacs of the metal building industry," he said.

Airport Director Bern Case said the terminal building and apron will be designed to handle small freight, such as shipments by Harry & David

"It's a good step in our evolution," he said.

While the new aircraft apron will be designed to handle large jets, Case said heavy freight shipments are processed on the east side of the airport.

The freight terminal buildings represent the latest stage in a major expansion and renovation at the airport. New hotels and business offices have also been built along nearby streets.

A new $6 million parking lot and entrance was completed in February.

Sometime in August work should begin on a new $35 million terminal. The old terminal will be torn down and plans are in the works to replace the control tower.

Reach reporter Damian Mann at 776-4476 or dmann@mailtribune.com.

Two air freight terminals will be built at the airport as part of the privately owned portion of a plan to separate passengers from private cargo services.

$4.76 million that is part of the $72.1 million in lottery bond proceeds to finance non-highway transportation projects around the state.

About $1.5 million of the Connect Oregon funds will pay for the new aprons in front of the freight terminal.