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Sydney Airport advances major terminal expansion project

20 Aug, 2026
Sydney Airport advances major terminal expansion project


Sydney Airport has appointed Multiplex to deliver Early Contractor Involvement (ECI) works for Package 1 of its Eastern Expansion Program, a project valued at more than $3 billion that will reshape the airport’s domestic and international terminals into a single world-class precinct.

The appointment marks a significant step in Sydney Airport’s Master Plan 2045, described as the airport’s largest overhaul since the 2000 Sydney Olympics.

The expansion is designed to future-proof the airport and strengthen Australia’s global connectivity and long-term economic development as passenger numbers are forecast to climb from 42 million today to more than 72 million annually by 2045, an increase of around 75 per cent.

Freight volumes are also expected to surge, growing 133 per cent to more than 1.4 million tonnes a year by 2045.

Sydney Airport projects this growth will generate around $70 billion in total economic activity, a 56 per cent increase on current levels, while supporting an additional 1,500 jobs each year.

Package 1 of the project covers Terminals T2 and T3, aprons, and landside works including car parks and roads, along with associated enabling works.

The broader redevelopment will include upgrades to the baggage handling system, additional car parking infrastructure, new freight and logistics facilities, and new airside apron and taxiway infrastructure.

By unlocking international capacity within the domestic precinct, the project is expected to improve operational resilience and runway efficiency while enhancing the passenger experience.

Sydney Airport Group Executive, Planning and Delivery, Paul Willis, said the early involvement of a contractor with Multiplex’s experience would strengthen the project’s foundations.

“Multiplex has a strong track record delivering complex infrastructure and major projects, and we look forward to working together to progress a terminal development that supports Sydney Airport’s long-term growth and delivers a better experience for passengers and airlines,” Willis said.

Under the ECI arrangement, Multiplex will work with Sydney Airport, along with design consultants Grimshaw and Mott MacDonald, to progress integrated planning and design, identify opportunities, and manage risk ahead of construction in a live operational environment.

The collaboration is underpinned by a long-term Collaborative Contracting Framework Agreement covering the Construction and Civils component of works, structured to support early risk management and informed decision-making through a phased, performance-driven design and delivery model.

Pictured L to R 
Pouya Razavi – Commercial Director – Major Programmes, , Paul Willis – Group Executive, Planning and Delivery, Scott Charlton – Chief Executive Officer and Director of Sydney Airport Corporation Limited, John Flecker – CEO, David Ghannoum – RMD NSW, Manos Sartzetakis – Construction Manager, MPX

Multiplex has indicated that key construction challenges will include delivering the project within a fully operational airport and managing complex stakeholder relationships amid strict regulatory requirements.

This will require careful coordination of aviation operations, passenger movements, logistics, site access, safety, and security throughout construction.

The T2 to T3 terminal project is expected to deliver new terminal space and 12 swing gates capable of supporting both domestic and international operations, improving connectivity between terminals and unlocking additional capacity.

The appointment follows Sydney Airport’s earlier selection of Grimshaw as lead architectural designer and Mott MacDonald as lead engineering consultant for the project.

ECI works are set to commence in August 2026, with construction scheduled to begin in 2027 and completion expected in the early 2030s.

The T2 to T3 terminal project forms part of Sydney Airport’s broader $6 billion capital works program over the next five years, supporting the airport’s long term plan to accommodate forecast passenger growth to 72 million annually by 2045.

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