Newcastle Airport is embarking on a significant expansion plan, in partnership with Commonwealth Bank, which is acting as sole financier.
The $240 million deal includes the expansion of Newcastle Airport to enhance domestic capacity and develop a new international terminal and finance to accelerate the activation of Astra Aerolab including the construction of commercial A-grade office and industrial facilities subject to current development applications.
Executive General Manager, Commonwealth Bank Regional and Agribusiness Banking, Paul Fowler, said Newcastle Airport was strategically important infrastructure and a key driver of the regional economy.
“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,” Mr Fowler said. “CBA is proud to partner with Newcastle Airport on this exciting project.”
Executive Manager, Commonwealth Bank Regional and Agribusiness Banking NSW Newcastle and Hunter Valley, Paul Cragg said CBA supported the community and businesses across the Hunter region for more than 100 years.
“The Hunter population is expected to increase to around 950,000 people by 2041 with Newcastle as a centre for industry innovation,” Mr Cragg said.
“Being born in and having raised my family in Newcastle, I see this as an exciting time of change for Newcastle and the Hunter Region. This is why we’ve expanded our 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.”
Newcastle Airport CFO Allanna Ryan said the deal with CBA was a major step forward in enabling its promise to be the airport the region deserves.
“The biggest beneficiaries of the airport’s upgrade will be the people of Hunter region. We are delighted to partner with CBA on this critical development to support the growth and sustainability of our region,” Ms Ryan said.
Newcastle Airport CEO, Dr Peter Cock welcomes the partnership, highlighting the benefits this expansion has for the region.
“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.”
“We also thank the Federal Government for investing a total of $121 million in our region’s international growth.”
“Servicing Defence and defence industry participants are both vital to Australia and benefits the regional economy. Astra Aerolab has strong leasing interest and a number of buildings poised to start coming out of the ground. CBA’s funding partnership will help us accelerate this activity to meet client demands.”
Dr Cock said Newcastle Airport was committed to reducing its environmental footprint across the airport, with the expanded terminal building being designed and built to target a 5-star Green Star rating accreditation, the under construction solar-powered covered car park powering more than 30% of the airport and with the first Astra Aerolab commercial office building also registered for a 5-star Green Star rating accreditation.
The second busiest airport in NSW, Newcastle Airport generates around $1.2 billion in economic activity a year and supports around 5600 jobs. It currently services 12 domestic routes with six domestic airlines, catering for around 1.3 million passengers a year.
The expansion of Newcastle Airport will facilitate the introduction of new domestic and international routes and address capacity for forecast growth to around 2.3 million passengers a year by fiscal 2028.