Newcastle Airport is embarking on a significant expansion plan, in partnership with Commonwealth Bank of Australia (CBA), which is acting as sole financier.
The A$240 million (US$159.93 million) deal includes the expansion of Newcastle Airport to enhance domestic capacity and develop a new international terminal. It will also help finance the construction of the first Astra Aerolab commercial office building, subject to current development applications.
As the second busiest airport in New South Wales (NSW), Newcastle Airport generates around A$1.2 billion in economic activity a year and supports around 5,600 jobs. It currently services 12 domestic routes with six domestic airlines, catering for around 1.3 million passengers a year.
In addition, the airport expansion will address capacity for forecast growth to around 2.3 million passengers a year by fiscal 2028.
Paul Fowler, executive general manager, regional and agribusiness banking, CBA, said: “The airport’s expansion and modernisation will significantly increase its capacity and improve connectivity across Newcastle, the Hunter Valley and the Central Coast, driving new business and employment opportunities that add to the region’s prosperity.”
With the Hunter Valley population expected to increase to around 950,000 people by 2041, Paul Cragg, executive manager, regional and agribusiness banking NSW Newcastle and Hunter Valley, CBA, explained that the bank has expanded its “business banking and customer support teams on the ground to assist the growth of diverse sectors including tourism, defence, manufacturing, health, energy, agriculture, education, property and transport”.
“We’re looking forward to helping more businesses in Newcastle and beyond take advantage of new possibilities as the economy transitions,” added Cragg.
Commenting on the partnership, Peter Cock, CEO of Newcastle Airport, said: “Driving greater economic and social benefits by broadening our domestic and international destinations and contributing to Newcastle’s transformation from a major regional hub into an international destination and a significant second international gateway to NSW, is key to our purpose.”
Newcastle Airport will also commit to reducing its environmental footprint across the airport, with the expanded terminal building and Astra Aerolab being designed and built to target a five-star Green Star rating accreditation, as well as the under construction solar-powered covered car park powering more than 30 per cent of the airport.