Hobart Airport: Work formally begins on ‘transformational’ $200m terminal upgrade

A massive $200m upgrade is set to double the size of the terminal at Hobart Airport and the ‘transformational’ project ‘could not come a day too soon’, according to CEO Norris Carter.

A concept design of the baggage reclaim at the Hobart Airport terminal upgrade. Picture: Supplied

A massive $200m upgrade to the Hobart Airport terminal is formally under way, with Australia’s largest private building firm being tapped to carry out the project.

Work on the expanded terminal is expected to be completed by early 2027 and will see further seating capacity and queuing space for domestic and international flights added to the facility, as well as two new departure gates (bringing the total number to seven), a third security screening lane, and a third baggage carousel.

Hutchinson Builders has been awarded the contract for the three-year project, which is set to double the size of the terminal.

Hobart Airport CEO Norris Carter said the upgrade would be “transformational” and “could not come a day too soon”.

A concept design of the Hobart Airport terminal upgrade. Picture: Supplied

He said the revamped terminal would “provide a more comfortable experience” for travellers and would add four new food outlets and six new retail stores.

The project will create about 450 direct and indirect jobs in the construction phase and “hundreds” of further jobs once the upgrade is finished, according to Mr Carter.

Hutchinson Builders chief operating officer Paul Hart said the company was thrilled to be awarded the contract to undertake the airport works.

“We welcome the opportunity to partner the airport on this exciting redevelopment and look forward to making a start in the coming months,” he said.

Hobart Airport CEO Norris Carter. Picture: Chris Kidd

Hobart Airport is the ninth busiest airport in the country and in its current form has capacity to accommodate 1.5m passengers per year. However, it is currently significantly exceeding this limit and is handling 2.6m people.

Passenger numbers are expected to balloon to 3.5m people by 2030.

By 2042, the number of travellers coming and going through the airport is projected to increase to 5.5m.

The upgraded terminal will seek to address this problem by doubling its size from 12,000 to 23,000 square metres.

The airport drove $415m in economic activity in Tasmania in 2019 – prior to the pandemic – and Mr Carter has said this is expected to increase to $412m by 2042.

A concept design of the forecourt of the Hobart Airport terminal upgrade. Picture: Supplied

The federal government has committed $60m towards a runway upgrade at the airport, which will enable it to take wide-body, long-haul aircraft and therefore attract additional passenger and freight services from New Zealand, Asia, Antarctica, and the rest of Australia.

It’s hoped the runway upgrade will help to consolidate Hobart’s role as the global gateway to Antarctica.

In 2019, Hobart Airport was purchased by a consortium of Australian and global businesses, with 70 per cent of equity interest jointly acquired by asset manager QIC Ltd and Dutch airport operator Royal Schiphol Group. The remaining 30 per cent equity interest is held by Tasmanian superannuation fund Spirit Super.

Originally published as Hobart Airport: Work formally begins on ‘transformational’ $200m terminal upgrade