(Bloomberg) --

New Zealand’s busiest airport will start a new phase of expansion when construction of a transport hub begins next month.

Auckland International Airport will invest NZ$300 million ($189 million) in the project, which will allow undercover pick-up and drop-off for cars and buses adjacent to the existing international terminal, Chief Executive Officer Carrie Hurihanganui said Wednesday. Adjoining land has been set aside for any future shift to mass rapid transport.

Auckland Airport put several key components of its expansion plan on hold after the South Pacific nation closed its border in 2020, but it is now ready to advance some, including plans to combine its domestic and international terminals, as international travel resumes. The timing of the NZ$1 billion terminal project will be guided by the pace of recovery in aviation, the airport said. Plans to add a second runway remain on hold.

“The Transport Hub is a critical step in our building program,” said Hurihanganui. “It is an initial step in enabling delivery of the future new combined domestic and international terminal.” 

The company has also set aside NZ$185 million for enabling work for the combined terminal, and next month will demolish the eastern baggage hall to make way for a new baggage handling system. The individual carrier system allows for real-time tracking of baggage carrier trays, it said.

©2022 Bloomberg L.P.