Melbourne Airport unveils $4.5 billion international terminal expansion
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Melbourne Airport has announced a $4.5 billion expansion to prepare for rising passenger numbers at Australia’s busiest 24-hour airport.
The upgrade will focus on the international terminal. Plans include larger check-in areas, expanded baggage halls, and five new aircraft stands. These will handle up to five widebody or eight narrowbody planes, giving airlines more flexibility to add routes and flight times.
The project will be delivered in stages over several years. Construction is complex, as work must continue while the airport remains fully operational. The expansion is privately funded and supported by new pick-up and drop-off zones opening at the T123 Transport Hub in September.
The announcement follows a record January, with more than 1.26 million international passengers passing through the airport in one month.
Airport CEO Lorie Argus said growing travel demand means major investment is essential. She noted that added capacity will give travellers and exporters more choice, while improving arrival and departure experiences.
The terminal expansion aligns with plans for a third runway, scheduled to open in 2031. The airport is also seeking federal support to upgrade border processing technology to further reduce wait times for international arrivals.
Assistant Minister Julian Hill welcomed the project, saying the improvements are urgently needed as both domestic and international travel continue to rise. He confirmed Australian Border Force will work with industry to modernise airport processing.
Preliminary construction will begin after the airport’s new road network opens in September.
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