Schedule, contract price set for $2.6B San Diego Airport terminal project

Dive Brief:

On Oct. 7 the San Diego County Regional Airport Board of Directors approved the master project schedule and $2.6 billion maximum contract price for the design and construction of a new terminal at the San Diego International Airport, according to a press release. It will replace the existing Terminal 1, which was built in 1967.
The final step before construction can begin is the Federal Aviation Administration’s National Environmental Policy Act (NEPA) process. The county board expects the FAA to complete its NEPA review by the end of October, meaning construction could begin in November. The new terminal is expected to be completed by June 2028.
Airlines are still seeing a decline in bookings and increase in cancellations, according to reporting from CNN, in part due to the COVID-19 delta variant and last month's Hurricane Ida. Experts expect domestic air travel won’t return to 2019 levels until next summer, and international travel may rebound sometime between 2023 and 2024. Nonetheless, many formerly stopped airport projects are now moving ahead, including the new $1.4B Pittsburgh International terminal and the Jacksonville International Airport expansion.

Dive Insight:

The 1.2 million-square-foot project will be delivered by the New York City-based Turner and Broomfield, Colorado-based Flatiron joint venture. Both companies are subsidiaries of Germany-based HOCHTIEF, and have previously teamed up on airport projects in San Francisco, Oakland, Sacramento and Denver.

When completed, the new terminal will have 30 gates, updated concessions and more security checkpoint lanes. The new gates will be completed in two segments, with 19 of them scheduled to open in 2025 and the other 11 slated for 2027.

The project also includes improvements to the airport’s roadways system designed to make it easier for motor vehicle, bus, bike and pedestrian traffic to enter and exit, as well as a new parking plaza for ground transportation services.

According to the San Diego County Regional Airport Authority, the project is estimated to create between 15,000 to 20,000 jobs for local workers — 25% of the contract value will go to small businesses, 80% will go to local businesses and 3% are reserved for small enterprises that are veteran-owned.

"The airport is a major economic driver for the region and the New T1 will make our city more attractive to the millions of people who want to visit and also provide a better travel experience for San Diegans," Board Chair Gil Cabrera said in the press release.