19 May 2025
MEDIA RELEASE

Construction of Palmerston North Airport’s $43 million new terminal building will begin in late May, with LT McGuinness appointed as the main contractor for the project by the Palmerston North Airport Limited Board.  

This means from Tuesday 20 May, key airport services will shift into the custom temporary terminal space that has been completed over the last few months, allowing construction teams to move onsite to commence demolition of the western end of the existing terminal from the end of May.

Palmerston North Airport Chief Executive, David Lanham says this is an exciting milestone for the TDP project, Te Utanganui – The Central New Zealand Distribution hub, and the region.

“The terminal has served us well for over 30 years, however, we needed to address terminal resilience deficiencies. This includes seismic resilience and making sure that our facility is able to accommodate medium-term growth projections, including the potential for passenger and hold bag screening to become required by the Government.

“During the planned two-year construction period, we’re asking airport users to allow extra time when visiting the airport. Some services have been relocated due to construction. So, to assist airport users we’ve introduced refreshed wayfinding signage and our expanded airport team will be on hand to help ensure everyone has a smooth airport experience.  

“While the temporary terminal is smaller, it has been designed to accommodate all check-in, departures and arrivals functions. Visitors will still be able to get a coffee or a meal from our café, which has relocated to the ground floor, while Air New Zealand’s regional lounge remains in its current location on the second floor. Bathrooms are located within both the temporary departure and arrivals areas.”

With the new terminal design and pricing now finalised at $43 million, Lanham says that the Airport is pleased to partner with main contractor LT McGuinness for the project.

“LT McGuinness has delivered some of Manawatū’s most significant builds over the past five years, including the Police Station, Massey University’s iconic Refectory, and the hospital’s Mental Health Unit. The LT team shares our values around local contractors and people being involved in local projects, and this was an important factor for us.

“LT McGuinness has been involved in the early stages of the project since 2024, following a successful tender for the pre-construction engagement and the construction of the temporary terminal. Based on their performance to date we’re confident they’re the right team to lead the new terminal build.”

LT McGuinness Central Director, David Aldred, says the team is proud to keep supporting the Manawatū and wider region through the delivery of this important terminal upgrade, strengthening the region’s resilience and supporting long-term growth.

“Over the past six years, we’ve built strong local relationships across the Manawatū. Being involved from early works through to the full terminal build brings consistency, experience, and momentum to the project.

“This is the kind of job we’re set up to do – a technically demanding build that is locally delivered. We have an experienced team on the ground, and local subcontractors driving the delivery of a terminal the region can be proud of.

“Together, we’re focused on keeping this build moving and delivering a terminal that’s highly resilient and functional for the region.”

Site preparation for the construction on the western half of the new terminal (Milson Line end) will begin this week. Once completed in mid-2026, all terminal services will relocate to this finished half so that construction of the eastern end (Railway Road) can begin. The new terminal is set to open fully in mid-2027.

ENDS