MIA expansion costs up $1 billion

MIA expansion costs up $1 billion Faced with escalating costs for materials and labor, cost estimates for the expansion of Miami International Airport are $1 billion higher than the current budget for the work, Miami-Dade County aviation director Jos' Abreu said Thursday.
   Abreu told the county commissioners that the cost of expansion'which is highlighted by the North Terminal being built for primary tenant American Airlines and its partners'will be $6.2 billion, according to a report in the Miami Herald.
   American has said it needs the expansion if it is to continue to grow its Latin American and Caribbean hub operations. As the airport's largest carrier, it would pay most of the cost through per passenger payments that apply to all airlines using the airport.
   The current per passenger cost is just over $17, and Abreu has proposed an increase to around $35 or $36 by 2015. Those numbers were proposed to the county and have not been endorsed by any air carriers.
   Abreu has proposed an amended plan for the expansion that would eliminate an atrium and other architectural features and reduce total construction time by two years, with a new completion schedule of 2010.
   The higher costs have been attributed to the cost of materials such as cement and steel, and the rising market for construction labor that has escalated with the building boom in South Florida. In addition, there has been an average of only 1.3 bids for each element of the expansion, meaning bidding competition has not been fierce.
   The mile-long terminal will include new gates, an automated people mover, a new baggage system, and a large federal inspection area, as well as other amenities.
   The new plan will face a vote before the regional transportation committee in November, and then go to the county commissioners after that.
   Commissioner Carlos Gimenez told the Herald: 'We really have to take out time to make the right decision. (The airport) is the number one economic generator of Miami-Dade County, and we have to make sure it remains a viable airport.'