World’s Busiest Airport Plans a $2.9B Upgrade Funded by a Saudi Arabian Wealth Fund

Home » Biggest projects » World’s Busiest Airport Plans a $2.9B Upgrade Funded by a Saudi Arabian Wealth Fund

The world’s busiest airport is set for a monumental revamp project to improve traffic flow. UK’s Heathrow Airport is set for a monumental revamp project that will see it increase the amount of passengers it can handle. The project is expected to entail improving baggage systems and resurfacing the northern runway. Moreover, it entails the use of 140 advanced security scanners to enable more liquids to be carried onboard planes.

The project was made possible by a private investment from a Saudi Arabian wealth fund. The nation bestowed the airport $2.9 billion, the biggest-ever capital investment in UK transport from the private sector. The upgrade project is expected to take a full thrust, with plans to build a third runway at Heathrow also on the horizon. The consent for this endeavour already gained Parliament’s approval in 2018. The slow progress is attributed to the Labor government’s forward-thinking approach to planning.

The Significance of the Upgrade Project on the World’s Busiest Airport

The upgrade project on the world’s busiest airport could potentially significantly increase the traffic it handles annually. According to estimates, a new runway could boost passenger capacity to 142 million a year. The increase could be a significant improvement from the 79 million passengers it recorded in 2023. Thomas Woldbye, the airport’s chief executive, noted that the scheme needs a “clear steer” from the government. He said that this would greatly facilitate the propagation of the project’s momentum.

World's busiest airport
The world’s busiest airport is set for a monumental revamp project to improve traffic flow.

“We will continue to invest more than £1 billion of private sector cash each year into the airport to deliver facilities our airlines and passengers want while boosting the UK economy and creating opportunities for businesses up and down the country,” he told The Telegraph. Progress on plans for a new runway could potentially see Heathrow’s aging third terminal demolished. Furthermore, this will double the size of terminal two and increase the satellite terminals between 2 and 5. The Department for Transport has noted that the expansion must demonstrate [a contribution] to economic growth.

Also read:

UK’s Top 10 Largest and Busiest Airports: London Dominates the Top Three

Other Upgrades on the Heathrow Airport

The world’s busiest airport has chosen Costain to deliver its new investment program, primarily focusing on upgrading Terminal 2 and improving overall asset efficiency. Costain is a delivery partner offering construction, consulting, and digital capabilities. Thus, it will collaborate with Heathrow over the next four years. Moreover, they will shape, create, and deliver asset renewal and construction projects procured through the H7 framework’s Terminal Asset Renewal Partner and Major Project Partner lots. Heathrow Airport intends to invest £3.6 billion in capital over the next five years. This will help the airport recover from the commercial impact of Covid. The project includes next-generation security scanners and a new baggage system in Terminal 2.

World's busiest airport
The upgrade project on the world’s busiest airport could potentially significantly increase the traffic it handles annually.

Consequently, they are expected to cost approximately £1.3 billion. Costain’s first commission as a delivery partner is early contractor participation in the £35 million design phase of the T2 baggage handling facility and system upgrade. “I am delighted that our construction, consulting, and digital experts have been selected to help Heathrow transform its performance,” said Sue Kershaw, managing director for Transportation at Costain. “Our integrated team will collaborate closely with Heathrow to address the challenges of recovering from Covid. This will help become a net-zero airport and attract new customers and airlines. Consequently, it will provide passengers with a world-class airport experience.”

Read Also: England to construct Europe’s largest lithium hydroxide refinery.

Upgrade works at Heathrow Airport.

Upgrades on the world’s busiest airport by the Costain Heathrow team entail work on projects throughout their lifecycle, including the following items:

  • Terminal 2 and adjacent facilities will be upgraded and improved.
  • Major projects. This include the construction of baggage handling facilities and the implementation of baggage systems.

Helen Elsby, Heathrow’s chief solutions officer, stated, “We have bold plans to improve Heathrow over the next four years. This will ensure journeys are smooth, safe, and dependable.”

“We are pleased to have chosen a number of excellent partners on the critical infrastructure upgrades that will underpin this. Consequently, we will continue to work with our regulator on a deal that supports this critical work.

We are delighted to welcome Costain back to Heathrow and to be working with them. This will lead to the upgrade of the airport’s passenger experience.”