Birmingham Airport confirms £300m investment plan

Image courtesy BHX 
 
Already in its most ambitious year for capital investment, a further £75 million will be spent each year between now and 2029. Alongside this, the airport has also confirmed it has started a process which will deliver its next Masterplan looking at the airport and its demand, up to 2040.  
 
Major projects in the making include further retail and hospitality offerings over the next three years including a multimillion-pound refurbishment from WDF, alongside three NEW food and beverage outlets to be unveiled within the departure lounge.  Outside of the terminal will see significant spend on the airfield, including reconstructing parts of the taxiways, new stands, lighting replacement and runway works totalling £40 million.   
 
Baggage capacity for inbound and outbound passengers will also undergo an overhaul, with a further £40 million invested in self-service drop off, baggage sortation systems and greater handling capabilities. An ongoing focus on passenger experience at both ends of the journey, will see, for the first time ever, e-Gates unveiled in the south terminal for next summer. This is alongside an ongoing investment programme in security lane efficiencies and customer facility upgrades in arrivals and departures. 
 
The new business plan has a continual focus on responsible growth. Thanks to a rolling programme of around £50 million, colleagues and customers will benefit from a comprehensive heating and cooling system in the terminal, meaning that temperatures and air quality are better controlled and managed by sustainable programmes all year round. Alongside that, millions have been earmarked for ongoing electricity metering, replacement of gas assets and a rolling programme of fleet (airside vehicles and passenger buses) electrification and replacement. Following the success of its solar farm, responsible for off grid operations during this year’s hot summer, the airport is also looking at additional solar opportunities in and around the site.  
 
Nick Barton, CEO of Birmingham Airport said: “We are currently in our most successful year ever at the airport and we are confident this growth is set to continue. We have already made significant investment in the airport this year, having delivered new departure gates, lounges on the international pier, additional security lanes, new retail offerings and baggage capacity to name only a few projects. 
 
“But we need to go further as we can see more growth coming, however we need to do this in a responsible way for the airport, its colleagues and local communities. We need to make sure all areas are fit for the future including check in, immigration, security, retail and our airfield. Our plan for the next three to four years shows how we are on our way to delivering more choice for our passengers and enhanced service, whilst continuing the journey to Net Zero." 
 
This announcement also included confirmation the airport is looking to update its Masterplan and will announce its chosen partner in coming weeks. This will look at what the airport will look and feel like beyond 2040.  
 
Commenting on the announcement, Richard Parker, West Midlands Mayor said: “Every year, millions of visitors first set foot in our region at Birmingham Airport. And it’s the workplace of thousands of our residents. Now the airport is backing the West Midlands even more with a £300 million investment. That means more passengers, more freight and more opportunities to link the region to the world. By strengthening these international routes, we make trade and travel easier, helping to drive economic growth across the West Midlands and the whole of the UK.” 
 
With multiple projects underway at the airport, construction areas are visible but limited and planned carefully to cause the least disruption. Overnight works are prioritised and in any given 24-hour period, some 250 people are delivering capital projects as quickly and efficiently as possible.  
 
The airport caveats the investment however as being dependent on a stable and reasonable taxation environment in the upcoming budget. With airports in line for a doubling in Business Rates, Birmingham Airport is clear that this investment is subject to a cap of no more than 40% being placed on the increase. Failure to keep it within this 40% threshold could see Birmingham (and other airports) revisiting investment commitments to ensure that reasonable returns can be provided to those wanting to invest so heavily in airports and the Government’s growth agenda.