AUSTRALIA. Australia Pacific Airports Corp (APAC) is planning a major redevelopment and expansion of Melbourne Airport’s international Terminal 2 and domestic Terminal 3, including the upgrading of retail and food & beverage facilities.
In June a redevelopment of retail operations begins in T3, the base for Virgin Blue and Rex flights. A re-allocation of retail space in the 550sq m landside mezzanine area, due for completion by Easter 2009, aims to provide a better quality of retail experience and a better mix.
This will begin a long-term period of modernisation of the airport’s infrastructure. APAC General Manager Retail & Car Parks Gilly Gray said: “APAC is at the point of needing to invest significantly over the next ten years to maintain its existing pace of growth.”
Key to that long-term investment is the redevelopment of the international T2 between now and 2011. Budgeted to cost A$330 million (US$307.5 million), construction began in January on a new baggage and processing facility.
This involves replacement of the main T2 food court by a security and Customs zone, although new F&B offers like Subway, Healthy Habits and Nando’s will compensate. An extension of the international pier will add three more gates, two of which will be capable of handling A380s.
The construction will also deliver some 2,500sq m of new retail space. Glass walls and ceilings four times higher those in the existing retail corridor will permit an opening out of views across the airport to Mount Macedon and beyond.
Once that is complete, in 2010, space occupied by the current F1RST Departures store and the corridor of stand-alone stores beyond will be redeveloped. “There will be a fashion offer after the main walkthrough duty free store. With the impact of LAGs regulations we need to develop categories that are not affected,” said Gray.
She added: “The bulk of the new space will come online towards the end of 2010, which is in line with the expiry of most of our retail contracts, including duty free. We will have a relatively flexible approach: if we feel that there is an outstanding operator offering a product that our customers want, we will have the freedom to negotiate with them. However, if we think there are a number of operators in the market who can satisfy that demand, then we will do a request for proposals.”
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