Heathrow announces largest ever investment programme

Hot on the heels of the UK government announcing its support for a third runway, which it wants to see built and operational by 2035, Heathrow today unveiled the largest investment programme in its history.

It claims that the plan, which involves expanding existing terminals 2 and 5 and adding a third runway, will upgrade and expand the ‘UK’s Gateway to Growth’ through 100% private funding .

In a major address delivered at British Steel Scunthorpe today, Heathrow CEO Thomas Woldbye, said: “This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year.

“Heathrow is proud to answer the Chancellor’s call to get Britain building.

“A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer.

“Ahead of then, as part of a phased expansion programme and supported by the government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.

“This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth”.

Passengers with luggage arriving at London Heathrow Airport Terminal 2.

Full details of the investment programme, phasing, and the pathway to a third runway will be part of Heathrow’s initial proposals submitted to government this summer, but plans confirmed today will include new investment in:

• Heathrow will work with airlines and the regulator to finalise plans to invest in the capacity of Terminal 2 and make changes to optimise and increase passenger capacity in Terminal 5.

• Reconfigure and improve the layout of the airfield, increasing the number of aircraft stands, to improve resilience and punctuality.

• The investment programme includes plans to further improve bus and coach connections to encourage sustainable and active travel options and benefit our local communities.

• New infrastructure will have improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy.

According to Heathrow, this privately funded programme to transform its current infrastructure, “with early tangible benefits felt this year”, will start with projects within the airport’s existing boundary and work towards a third runway.

It insists that the plans will help the airport become more efficient, more reliable and more sustainable for all passengers and airlines at Heathrow.

These new investments build on the £2.3 billion accelerated investment announced by Heathrow in December to improve service, resilience, passenger experience, and sustainability through multiple projects over the next two years.

What it calls “Heathrow’s once-in-a-generation phased investment programme” for airport modernisation and expansion, will, it insists, “create transformational opportunities for UK businesses and industries, during this Parliament and beyond”

As a sign of its commitment to ensuring positive benefits nationwide, Heathrow also signed the UK Steel Charter today at British Steel Scunthorpe. The charter aims to maximise supply chain opportunities for UK steel producers.

The UK’s Industry Minister, Sarah Jones, said: “This investment is the latest in a long line of wins which our Plan for Change has helped deliver, and not only supports thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this government’s Industrial Strategy.

“Driving demand for UK-made steel is a crucial part of our upcoming Steel Strategy, and by signing the Steel Charter Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”

According to the most recent study from Frontier Economics, a third runway could increase UK GDP by 0.43% by 2050. Over half, 60% of that boost, would go to areas outside London and the South-East.

To develop and finalise proposals to expand the UK’s only hub airport and largest port by value, Heathrow will now engage with key stakeholders including airlines and local communities.

In his address, as well as recognising the scale of the prize to be won, Woldbye committed that Heathrow’s plans will demonstrate that the project can deliver for the economy and the environment.

He said: “With strict environmental safeguards, expanding Heathrow will prove that the UK economy can be grown responsibly and deliver on commitments to future generations.

“This project can only go ahead if we meet the rules on noise, air quality and carbon that the government sets out in the Airports National Policy Statement – it’s as simple as that.

“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before.  I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”