Artist's impression: Melbourne Airport's new terminal extension. Source: Supplied
A NEW domestic terminal at Melbourne Airport will ease congestion and help drive economic growth, the federal government says.
The terminal, capable of handling up to 10 million passengers a year, is part of the $400 million first stage development of the airport's long-term southern precinct project.
The project, due to open in mid-2015, will include 17 new aircraft parking bays, extra car parking, ground transport facilities and road upgrades.
Approving the development on Tuesday, federal Infrastructure and Transport Minister Anthony Albanese said expanding airports is necessary to connect Australia to the world and drive economic growth.
He said increasing capacity will help the airport deal with an expected doubling of its annual number of passengers to 64 million by 2033.
"What that means is jobs and economic growth and positioning Australia in the Asian century," he told reporters in Melbourne.
Melbourne Airport chief executive Chris Woodruff said the development will create jobs and provide a boost to the Victorian economy.
He said the expansion was driven by strong domestic passenger demand and will provide for further growth.
The works will focus on the area south of terminal 3 and around terminal 4.
