Shannon Development yesterday unveiled plans to create a multi-modal hub for air commerce at Shannon Airport, which according to its chief executive, Mr Kevin Thompstone has the potential to double jobs and exports in the midwest region by 2020.

At the launch of the agency's end of year statement, Mr Thompstone said that the creation of an "'agile logistics hub' at Shannon, where people, goods, information and services can be moved quickly between Ireland and global markets, could give the country a competitive edge in international commerce".

Mr Thompstone said the agency has already commissioned a study to explore the potential of Shannon Airport to act as a major international logistics hub for Europe and Ireland.

Pointing out Shannon has the capacity to accommodate additional traffic, he said: "Initial research suggests that it has the potential to become a major air cargo hub with an integrated air, road, rail and port transport system capable of delivering goods anywhere in Europe within 24/48 hours."

Mr Thompstone told a press briefing in Limerick yesterday: "In future, mobile international investment will seek out locations which provide fast flexible and efficient access to their global suppliers and customers. Traditional incentive packages will lessen in significance." The chief executive said such a hub would serve an "Atlantic Arc" from Donegal to Waterford and pointed out that air cargo is the fastest growing mode of the transport business.

He said: "Much work needs to be done, but I believe that, if implemented, the agile logistics hub at Shannon could become a magnet for global manufacturers, assemblers, and distributors."

Figures from the end of year statement show that the trend of job losses continued last year in the region, though Mr Thompstone claimed that the trend was "almost arrested".

The figures show that last year there was a net loss of 214 jobs - this compares to net losses of 734 in 2002 and 698 in 2001. Mr Thompstone said that he was "cautiously optimistic of further improvements in the economy in the midwest in 2004".

He said that there was a marginal net gain in jobs in the Shannon Free Zone where in total 499 jobs were created resulting in a net gain of two jobs, while in Irish enterprise throughout the Shannon Region, there was a net loss of 216 jobs.

Mr Thompstone also revealed he is seeking further reductions in the agency's costs base after only 15 people opted for a voluntary redundancy programme offered last year.

Employing 200 full-time people, Mr Thompstone said the company is seeking to reduce its costs by between 10 and 20 per cent.