Sydney Airport to upgrade T2 in major overhaul in security, passenger services

Australia’s busiest domestic terminal is set to be upgraded for the first time in more than 30 years, in a multimillion-dollar project.

Sydney Airport will upgrade the T2 domestic terminal with plans for a major overhaul of Australia’s busiest domestic terminal for the first time in more than 30 years.

The $200m design will aim to provide more efficient travel experience for the 17 million passengers that use T2 every year.

Once completed, airport management expect 95 per cent of passengers will travel from the kerbside to airside in less than 15 minutes in the terminal with the assistance of more self-service kiosk and upgraded bag drop technology.

Virgin Airlines, Jetstar and regional airlines use the T2 domestic terminal, with more than 17 million passengers every year. The terminal was built in the 1990s to accommodate eight million passengers.

Sydney Airport is expected to upgrade its T2 by 2026. Picture: Supplied

Sydney Airport chief executive officer Scott Charlton said the upgrade would boost bag processing capacity to 1800 bags per hour by 2026.

“We are excited to announce our design vision for the T2 domestic terminal,” Mr Charlton said.

“We believe these changes will make the T2 experience one of the fastest and most efficient in Australia which is a great outcome for passengers and our airline partners.

“These upgrades will not only transform security performance but will also support future demand, ensuring that Australia’s busiest airport terminal can accommodate the significant growth in passenger numbers we’re forecasting.”

Work has already been undertaken at T2 over the past 12 months, including the opening of the first Australian domestic airport department store last December, and new food, beverage and retail offerings.

But Sydney Airport is warning there will be disruption.

“We’re working hard to minimise any inconvenience and ensure the terminal remains operational throughout the process.”

The T2 Domestic departures terminal at Sydney Airport is well overdue for an upgrade. Picture: NewsWire / Damian Shaw

These new systems are expected to process 500 passengers per hour through each of the 15 new security screening lanes, increasing screening capacity by nearly 30 per cent.

The upgrades will allow passengers to leave items like laptops and liquids in their carry-on luggage while moving through security, while also featuring dedicated lanes for family and assistance.

The new screening lanes will feature advanced CT scanning technology introduced by late 2025.