Perth Airport has disclosed a substantial increase in the cost of four major infrastructure upgrades, including its new runway and expanded terminal.
Perth Airport has disclosed a substantial increase in the cost of four major infrastructure upgrades, including its new runway and aexpanded terminal.
It has provided Business News with a detailed breakdown of the cost of its four planned projects, which collectively will cost an estimated $2.9 billion over the next decade.
That’s a 16 per cent increase from earlier estimates, with the airport attributing the increase to higher costs in the broader construction market.
The four projects include a new parallel runway, budgeted to cost $520 million.
This is pivotal to the airport’s future planning, as it is already close to capacity and anticipates substantial growth.
It recently recorded 530 aircraft movements in a 24-hour period, the largest number ever.
Chief executive Kevin Brown said the airport was awaiting final approval from the Department of Environment in Canberra for offsets before it could consider starting this project.
He explained that construction would be a lengthy process.
“If we pushed the button today, its four and a half years before we complete it,” Mr Brown said this week.
He emphasised that a decision was needed in the near future.
“The problem in the next five to six years, if we don’t have this in place, people will not be able to fly at the time they want to fly, and that includes the mining sector,” Mr Brown said.
“We are really at that crux at the moment, this is the time to be progressing, to ensure we can provide the slots for those that need them.”
In tandem with the new runway, the airport is budgeting to spend $565 million upgrading taxiways, aprons and associated infrastructure.
Mr Brown said this upgrade was a critical component that would allow consolidation of all commercial air services into the Airport Central precinct, around the current T1 terminal.
It is also planning to spend $370 million upgrading ground transport infrastructure, including the construction of multi-storey car parks.
Work on the first of these, adjacent to T1 terminal, is due to begin shortly.
The fourth and largest project in the works is for an expanded international terminal and a new terminal for Qantas.
This would allow Qantas to transfer its operations from the old T3 and T4 terminals to Airport Central.
However, this move remains subject to negotiations between the airport and its largest customer, with both parties having gone to court in recent years to try and resolve their differences.
Design work on the terminal project is under way.
“While the current heavy demand in the construction sector represents a challenge, the current estimate for this stage of works is around $1.5 billion,” an airport spokesperson said.
“Perth Airport will be working with our airline partners to value engineer this stage to ensure the most efficient design and price outcome.”
Mr Brown said Perth Airport has been working towards the consolidation of all commercial air services to a central location for more than 40 years.
