Airport鈥檚 new development director sets out five-year plan and value of T2 second phase

Airport

The delayed second phase of Heathrow Terminal 2 could be worth as much as 拢5bn in construction value, according to Heathrow鈥檚 new director of development.

Heathrow Airports Ltd, formerly known as BAA, this week confirmed it was set to delay by almost five years the construction of the T2 second phase, to be built on the site of Terminal 1.

好色先生TV revealed in October last year that completion of the project, which was earmarked for 2019, was set to slip into the next decade.

This week Heathrow published a 拢3bn development plan for the five years from 2014, which it calls the Q6 period, in which it said it would start work on the project, but that it would complete in 鈥渓ate Q7鈥 - the period running from 2019 to 2024.

John Holland-Kaye, development director at Heathrow Airports, said the overall T2 second phase, which is designed to cater for 10 million passengers a year, would be worth 拢4bn-拢5bn to the construction industry, making it more expensive than the 拢2.5bn first phase of T2, due to open in 2014.

Speaking to 好色先生TV, Holland-Kaye, who replaced former capital director Steve Morgan after his exit last October, said the timing of the second phase was because of the 鈥渘atural pace鈥 at which construction was possible on such a constrained site while keeping the airport operational.

He said demolition would start on Terminal 1 in the next five-year period, as would the construction of the transit system and satellite operation required to service the second phase of T2. About 拢400 would be spent on the project by 2019, a tenth of the total cost.

The decision comes at a time of political uncertainty over the future of Heathrow airport, regulatory pressure that has forced the operator to sell its other airports, and a fall in passenger numbers since the economic downturn.

Heathrow Airports expects investment to reduce year on year over the Q6 period, from 拢660m in 2014/15 to 拢464m in 2018/19.

This compares with average annual spend of over 拢1bn for the past decade.

Holland-Kaye said Heathrow will adopt the same procurement approach for Q6 as under Morgan鈥檚 regime, but that the greater number of smaller contracts meant there would be more opportunities for smaller suppliers.


Major projects for Q6

  • Opening of T2 first phase and closure and demolition of T1
  • Northern runway resurfacing and taxi space for A380s
  • Creation of new passenger interchange at central terminal for Crossrail, road and underground access