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Melbourne tests new international bag handling system

written by Jake Nelson | November 17, 2025

Melbourne Airport says its new tote-based international baggage handling system will double its bag capacity. (Image: Melbourne Airport)

Melbourne Airport has begun testing on its new international baggage handling system.

The new $500 million baggage system, slated to be up and running in early 2026, will use totes, electronic sorting, and an early bag store capable of holding around 1,400 pieces of luggage at a time to increase capacity and enable real-time bag tracking from the moment of check-in.

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According to Melbourne Airport’s chief of aviation, Jim Parashos, the system will more than double the airport’s baggage handling capacity when it comes online next March, from around 1,800 to 4,000 bags per hour.

“Our international passenger numbers are at record levels, and with three new airlines touching down next month, it’s shaping up as a really testing summer for our old baggage infrastructure,” he said.

“Installing 3.6 kilometres of new baggage tracks while maintaining 24/7 operations has been challenging – it’s like doing open heart surgery while running a marathon.

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“The new system will mean fewer lost bags, with airlines able to track every bag in real-time from check-in to the aircraft, giving peace of mind to passengers while supporting on time performance.

“Having an automated bag store will allow us to let passengers check-in much earlier for their flights and in the future will enable true anytime check-in, which is exciting for both airlines and travellers.”

The airport earlier this year flagged a major expansion of its international terminal, including up to five new wide-body gates, as well as more room for shops, passenger waiting areas and airline lounges.

Melbourne in December 2023 was the first Australian airport to exceed pre-pandemic international capacity in a month that saw it break 1 million monthly international passengers for the first time since the pandemic.

Increased traffic is placing a strain on existing infrastructure, airport chief executive Lorie Argus said in January, with its international terminal having last been expanded in 2011.

“We’re setting new records for international passenger numbers and as Melbourne’s population grows, it’s important that our infrastructure grows too,” she said.

“During peak periods we are already experiencing regular congestion in the international arrivals area, so it’s obvious to us that our passengers and airlines need more space.”

Melbourne’s third runway, greenlit last year and built parallel to the existing north-south runway and 1.3 kilometres to the west, is planned to open in 2031 and will allow for simultaneous take-offs and landings.

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