Melbourne Airport is set to embark on a major $4 billion expansion project as it looks to accommodate rising passenger numbers. The expansion follows a record-breaking December, which saw over 1.14 million international passengers pass through the airport.
The project, expected to be completed by 2026, will include the expansion of the international check-in and baggage claim halls, as well as the construction of additional gates and facilities. The airport will also introduce an upgraded international satellite, providing more space for lounges, retail outlets, and waiting areas.
A significant aspect of the expansion is the $500 million overhaul of the airport’s international baggage system, which is currently underway. The new, state-of-the-art system will increase capacity and allow for more flexible check-in and early baggage storage. Melbourne Airport CEO Lorie Argus highlighted the importance of the baggage system upgrade as the first step in a broader terminal overhaul, which will also include new gates and parking stands.
Argus emphasized that these upgrades, combined with the planned construction of a third runway, will improve capacity during peak periods, benefiting both travelers and Victorian exporters. “We hope to have plans formalized by mid-year so we can begin work as soon as infrastructure projects are completed,” Argus said in a statement.
This expansion is part of Melbourne Airport’s ongoing efforts to stay ahead of demand. The last major upgrade to the international terminal was in 2011, adding 41,000 square meters of space and five new gates. With 36.5 million passengers passing through Melbourne Airport in the 2023/24 financial year, this new expansion is critical for future growth.
Owned by a consortium that includes Dexus (27.32%), IFM Investors (25.17%), and the Future Fund (20.34%), Melbourne Airport is Australia’s second-busiest airport after Sydney.
Sources:
- Melbourne Airport Media Release
- Reuters
