Hong Kong Air Cargo Terminals Ltd (Hactl) said its cargo traffic rose 1.6 percent in the first quarter from the same period a year ago and forecasts a slow economic recovery.

It handled a total of 643,912 tonnes of cargo in the January to March period, with exports falling 3.5 percent while imports and transshipments rose 1.3 percent and 12.7 percent, respectively, from a year earlier.

Hactl is a major air cargo player in Hong Kong, which is a re-export centre for trade between Asia and the rest of the world. It handles about 70 percent of the cargo traffic of Hong Kong's international airport.

"February has always been a traditional slower month due to the extended Chinese New Year holiday. After adjusting for the seasonal factor, the overall first-quarter figures were satisfactory. Looking into the second quarter, we expect that it will be at best flat compared to 2012 as slow economic recovery persists," Hactl's Chief Executive Mark Whitehead said in a statement.

Hactl's shareholders are Jardine, Matheson & Co Ltd, Hutchison Whampoa Ltd's unit Hutchison Port Holdings Ltd, the Wharf (Holdings) Ltd and China National Aviation Corporation (Group) Ltd. (Reuters)