Airport considering nearly $140M upgrade to baggage handling system
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Airport officials are close to moving forward with the development and installation of a new luggage system at Indianapolis International Airport as part of an ongoing effort to enhance the facility’s security and efficiency.
The new system, which has a preliminary estimated cost of $138.5 million for design, installation and testing, would modernize the airport’s existing baggage operations into a more centralized system for scanning and movement to and from planes. The current system, which uses what is known as a distributed model, has been in place since the building opened in 2008.
Jarod Klaas, senior director of planning and development for Indianapolis Airport Authority, said implementation of such a project wouldn’t start until at least 2026, if ultimately given board approval. From there, it would take about two to three years to complete in its entirety, including the installation of the new system followed by removal of the current infrastructure.
Last year, the airport received federal funding for a Transportation Security Administration-mandated upgrade to the explosive detection machines in its check baggage systems. The roughly $10 million replacement project will occur over the next year.
And late last year, the airport completed installation of about one dozen new baggage scanners in the passenger-facing TSA security checkpoints for the terminal areas.
Klaas said he anticipates the all-in cost for the baggage systems will be in line with current estimates, but added airport officials are pursuing federal grants to reduce the facility’s obligations. The project would be paid for using airport-backed bonds and would increase the airport’s baggage capacity and be designed to work seamlessly with the new scanning technology.
“The cost may seem high … but if we did not address the rest of the system outside of these explosive detection scanning machines, that would be short-sighted from the standpoint of ensuring we have enough capacity in the system to continue growing air service at the airport,” Klaas said.
Klaas said the new system would provide “operational redundancy” and enhanced security, while also enabling travelers to do self-service bag drops. However, everything associated with implementing the new system will be done in the back-of-house areas, unseen by the public.
He said the expected cost is in line with what other airports of a similar size to Indianapolis are looking at for their own systems, and because the cost is commensurate with the size of the system, larger airports are facing even steeper project costs.
“It’s part of the infrastructure integral to airports, and it is core to what we do every day,” he said. “And we’re going to make sure that we we keep up with the safest of equipment and processes, [but] do it in a way that enhances the customer experience and provides for additional flights and air service as those come along.”
The airport has already applied multiple times for the federal grants that could be used for the baggage system project, but has so far not been approved. For now, the project is expected to be covered entirely through debt funding, Klaas said.
We are continuing to look for opportunities to reapply [for grants] and we will exhaust all opportunities that we see to bring in grant money to offset costs, but our ability to go forward on this is in no way tied to receiving grants,” he said.
The board last week approved a construction management contract for Cincinnati-based Messer Construction Co., which is expected to work directly with design firms and consultants to determine an accurate cost for the project. Klaas said Messer is expected to provide the airport board a guaranteed maximum price for the project by the first quarter of 2026.