Swedavia and Nordic Investment Bank (NIB) have signed a loan agreement of SEK2 billion ($245 million) for the construction of a new pier at Stockholm Arlanda Airport. The 10-year maturity loan will help finance the airport expansion.

Swedavia, which operates 10 airports in the Scandinavian nation, said the number of passengers traveling through Arlanda is expected to grow 2.3% annually from 2016 until 2050.

The new pier will be constructed in Arlanda’s Terminal 5 and will add new aircraft stands capable of handling larger airliners. The new pier is part of a large investment program for improving the infrastructure, levels of service and capacity for larger traffic volumes at several of Swedavia’s airports.

“The loan supports our continued work in building the airports of the future,” Swedavia president and CEO Jonas Abrahamsson said. “Through NIB we diversify our funding sources and receive cost-effective borrowing with longer maturities.”

NIB president and CEO Henrik Norman added, “Swedavia is a strong and long-term player with extensive knowledge and environmental awareness in building and developing the airports of the future.”

Construction of the new pier will begin in 2020 and is scheduled for completion in 2025.

Arlanda’s passenger throughput has been expanding steadily. In the week before Christmas, it handled its 26 millionth passenger of 2017. Since 2010, passenger numbers at the Swedish capital’s main airport have increased by 62.5%, from 17 to 26 million travelers.

More than 100,000 travelers passed through the airport on May 24, 2017.

“At the same time as passenger growth is at an incredible rate, it is also important that we continue the work of our extensive development projects to ensure good accessibility, sustainable and efficient airports in the coming years,” Abrahamsson said.

Further development at Arlanda will add more shops and restaurants, as well as increased hotel and congress facilities.

Alan Dron alandron@adepteditorial.com