Australia plasn to build second Sydney airport

Sydney Airport Says Won't Develop, Operate Second Hub for City

A second global airport in Sydney would be built by the Australian government at the world heritage site Badgerys Creek, 50km west of the city's centre.

Prime Minister Malcolm Turnbull said the government would instead take on the project, with details set to be revealed in next week's federal budget.

They said the government had been planning for either the acceptance or rejection by the Sydney Airport Group, and was "well positioned to move forward".

The new airport is likely to be operational by late-2026, and is expected to cater to around 10 million passengers annually within a few years of opening.

"Importantly, additional aviation capacity in the Sydney basin will ensure that NSW continues to compete both nationally and internationally for the highly valuable business, visitor and tourism economy".

"The risks associated with the development and operation of WSA are considerable and endure for many decades without commensurate returns for our investors", Sydney Airport Managing Director Kerrie Mather said in a statement.

The "first right of refusal" to build such an airport was a sweetener in the $5.6 billion sale of the existing Sydney Airport in 2002.

Labor on Tuesday reiterated its view that rail links to the new airport, situated 60km from the CBD, needed to be operating "from day one".

That right potentially gave the owners of Sydney Airport a long term lease base monopoly on the setting of airport user charges on airlines, their passengers, and terminal retailing prices including auto parking fees over the entire Sydney basin until early in the 22nd century.

The current airport in Sydney has felt increasing pressure due to a rise in demand in recent years.

The federal urban infrastructure minister, Paul Fletcher, warned in December that the government had "no intention" of letting negotiations drag out.

"It is expected to deliver 9000 new jobs to western Sydney by the early 2030s, and 60,000 in the long-term".

In an announcement to the ASX this morning, Sydney Airport Holdings updated shareholders on its offer to develop and operate the proposed WSA.



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