LAX breaks ground on $1.6B concourse

Dive Brief:

City and airport officials broke ground Monday on a new $1.6 billion, five-story concourse at Los Angeles International Airport, according to ABC 7.
The new Midfield Satellite Concourse will connect travelers to the airport's main terminal via an underground tunnel and moving walkway and will include retail, restaurants and 12 new gates — two of which will be able to accommodate jumbo airliners.
The Midfield building, which is expected to open in 2019, is part of a wider $14 billion airport overhaul and has increased in cost from its original $1 billion price tag due to the additional features.

Dive Insight:

Funding for the Midfield addition was approved in November 2016 and will include cash and revenue bonds backed by income items like passenger charges and terminal fees. The joint venture of Turner Construction and PCL Construction was awarded the contract back in 2014.

Another project planned for the airport is a $5 billion transportation upgrade. Airport officials solicited public comments in September regarding the environmental review for the project, which will include two offsite transfer stations, a rental car facility and a $2.7 billion, 2.25-mile elevated people mover to help reduce traffic on the airport grounds. The people mover portion will be carried out under a public-private partnership (P3) with one of five potential design-build teams.

Across the country, cities are undertaking major airport renovations and expansions. Construction is underway at New York City's LaGuardia Airport, also under a P3 contract. The $4 billion terminal addition was designed by the Skanska-led LaGuardia Gateway Partners, which will also operate and maintain the new facility once construction is complete. Skanska said the airport marks the company's largest project ever, which will include the terminal and a central hall.

President Donald Trump's administration has previously tagged P3s as a potential vehicle to help finance his massive infrastructure plan. The administration notes that P3s would allow public agencies to make use of private sector money while leveraging limited cash across a greater number of projects.