The government of Australia has approved construction of a third runway for Melbourne Airport, which freight forwarders and shippers say will create new opportunities for exporters and logistics providers.
The new runway is expected to be operational by 2031. The new north-south runway will increase capacity by allowing simultaneous takeoffs and landings, reducing delays, and improved service levels.
The federal government estimates Melbourne will become Australia’s largest city next decade with just over 6 million people, resulting in increased freight demand.
The Freight & Trade Alliance and the Australian Peak Shippers Association expressed excitement about the future infrastructure upgrade at Melbourne Airport.
Located in the state of Victoria and near major industrial areas, Melbourne is a key airfreight gateway that handles more than 40% of the nation’s air exports, including $1.2 billion in locally produced goods annually, according to an airport fact sheet. It also is a hub for agricultural markets across the state, South Australia and Tasmania. Melbourne Airport will process about 248 million tons of cargo this year, estimates Australia’s Bureau of Infrastructure, Transport and Regional Economics.
Eighty-five percent of international freight moving through Melbourne travels in the lower hold of passenger aircraft. Primary commodities flown include manufactured goods, fish, dairy, meat, spare parts and pharmaceuticals, as well as online shopping orders.
In 2022, animal and vegetable products accounted for 75% of the total volume of freight in and out of Melbourne Airport. Melbourne and Sydney airports handled almost three-quarters of the export of perishables bound for Asian and Middle East markets, as well as 90% of pharmaceutical exports, the majority going to New Zealand, China and the U.S.
The absence of curfews gives airlines, shippers and forwarders flexibility to operate overnight, which the airport considers a strategic advantage. The estimated value of the airport’s curfew-free status is more than $4.4 billion per year and 58,100 jobs.
The third runway will help support growing freight demand, including for e-commerce. New direct routes to key markets like China, Japan, India, Vietnam and Canada expected in the near future will further boost opportunities for Victorian exporters. Melbourne also supports six of the 10 busiest domestic flight routes in Australia.
All-cargo operators that serve Melbourne Airport include Qantas Freight, DHL Express, Australia Post, Tasman Cargo, Qatar Airways, Cathay Pacific and Singapore Airlines.
“An extra runway means we can move more freight and better compete with other major Australian airports,” the airport said in its fact sheet.
Project approval from the federal government paves the way for detailed design and construction to start.
The minister for Infrastructure, Transport, Regional Development and Local Government imposed certain conditions on the runway project to minimize and spread out noise impacts.
Click here for more FreightWaves/American Shipper articles by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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