Turner-FlatironDragados Complete Major Phase of $3 Billion San Diego Airport Terminal Transformation

The completion of Phase 1 of San Diego International Airport’s new Terminal 1 represents a significant milestone in one of the largest Airports infrastructure projects in United States history, with the Turner-FlatironDragados joint venture successfully delivering a modern 19-gate facility that replaces a decades-old terminal struggling to accommodate growing passenger volumes. This $3 billion progressive design-build project, which opened in September 2025, demonstrates the aviation industry’s commitment to enhancing passenger experience while addressing capacity constraints at one of the nation’s busiest single-runway airports. The project’s completion comes as San Diego International Airport recorded its busiest year ever in 2024 with over 25.2 million passengers, highlighting the critical timing of this infrastructure investment.

Beyond its immediate operational benefits, the new terminal showcases innovative Sustainability features, addresses complex seismic engineering challenges, and sets new industry standards for airport design and construction delivery methods. The project is part of a broader $3.8 billion Terminal 1 replacement and campus transformation aimed at modernizing facilities, improving ground transportation, and supporting San Diego’s continued economic growth.

Background and Historical Context of San Diego International Airport

San Diego International Airport, originally established as Lindbergh Field in 1928, has evolved from a modest two-runway facility into one of the most strategically important aviation hubs on the West Coast. Named in honor of Charles Lindbergh, the airport has maintained its historical significance while adapting to the demands of modern commercial aviation. Its unique position as the busiest single-runway commercial airport in the United States reflects both the geographic constraints of its urban location and the remarkable efficiency achieved through decades of operational refinement.

The airport’s transformation during World War II laid the foundation for its current configuration and operational capacity. Improvements made to handle heavy bomber production included the construction of an 8,750-foot runway, making the airport “jet-ready” long before commercial jet service became standard. This infrastructure development established the airport’s capability to handle modern aircraft operations despite its single-runway limitation.

The evolution of terminal facilities at San Diego International Airport mirrors the growth of commercial aviation. The original Terminal 1, opened in 1967, was designed for 2.5 million annual passengers, a figure quickly surpassed as volumes grew. By recent years, the terminal was serving over 12 million passengers annually, leading to cramped conditions and outdated amenities that highlighted the need for comprehensive modernization. The decision to replace, rather than renovate, Terminal 1 aligned with industry trends toward comprehensive terminal replacements that could accommodate modern security, enhanced passenger amenities, and improved operational efficiency.

The Terminal 1 Replacement Project: Scope and Scale

The Terminal 1 replacement project is one of the most ambitious infrastructure undertakings in San Diego’s history, with a total investment approaching $3.8 billion when including all associated improvements. The project’s scope extends beyond terminal construction to encompass a transformation of landside facilities, airfield operations, and ground transportation systems. The new terminal expands from the original 336,000 square feet to approximately one million square feet, nearly tripling the available space for passenger processing and amenities.

The phased construction approach reflects sophisticated project management principles. Phase 1, which opened in September 2025, delivered 19 new gates, five miles of new roadways, elevated departures and arrivals lanes, and a 5,200-space parking plaza. This phase, representing a $2.6 billion investment, includes a fully automated baggage handling system, enhanced security checkpoints with 13 lanes, and modern passenger amenities. Phase 2, scheduled to begin construction in late 2025, will add 11 more gates and complete the transformation by early 2028, bringing the total gate count to 30.

Infrastructure improvements address longstanding challenges with ground access and traffic management. The new roadway system includes nine bridges, enhanced pedestrian and bicycle pathways, and provisions for future public transit connections. These improvements are designed to alleviate chronic congestion and support the region’s broader sustainability and mobility goals.

Construction Delivery and Project Management Approach

The selection of progressive design-build delivery for Terminal 1 reflects evolving best practices in large-scale infrastructure development. The San Diego County Regional Airport Authority chose this method to create single-point accountability and align contractor and owner interests. Progressive design-build promotes enhanced collaboration between stakeholders and provides greater cost control and risk management capabilities.

The Turner-FlatironDragados joint venture was selected in 2020 for its extensive experience in complex airport terminal construction and civil infrastructure. This team had previously collaborated on the airport’s Terminal 2 Expansion, providing valuable institutional knowledge and established working relationships. The progressive design-build approach enabled the team to address complex technical challenges, including seismic risks from the nearby Rose Canyon Fault Zone and the need to maintain continuous airport operations throughout construction.

Project execution required sophisticated coordination, with the joint venture placing approximately $60 million of work per month and maintaining upwards of 1,200 workers on site daily. Advanced project management technologies, such as building information modeling, total stations, laser scanning, and mobile technologies, enabled real-time coordination and quality control. These tools were critical for maintaining the rigorous Safety and operational standards required for airport construction.

“The phased approach and progressive design-build method have allowed us to deliver a transformational project while maintaining uninterrupted airport operations and upholding the highest standards of safety and quality.”

— Turner-FlatironDragados Project Team

Recent Milestone: Phase 1 Completion and Opening

The September 2025 opening of Terminal 1’s Phase 1 marks a transformational moment for San Diego International Airport. The new terminal addresses decades of capacity constraints and passenger service challenges, and its Delivery is particularly noteworthy given the complexity of the project and various challenges encountered, including supply chain disruptions and seismic engineering requirements.

The new terminal’s design features include an outdoor dining area with panoramic views, 15 concessionaires offering local and national brands, commissioned artwork, and the distinctive “luminous wave wall” that optimizes natural lighting. These elements reflect the terminal’s “sense of place” strategy, immersing travelers in San Diego’s cultural and artistic heritage while providing modern conveniences.

Enhanced capacity and improved passenger flow address operational challenges, with expanded gate areas, more security lanes, and improved baggage handling systems. Early feedback from passengers and airlines has been overwhelmingly positive, with travelers noting significant improvements in comfort and convenience. The concessions program, with a mix of local and national offerings, further enhances the passenger experience.

Sustainability and Environmental Innovation

The Terminal 1 project exemplifies the aviation industry’s growing commitment to environmental stewardship. The terminal operates on 100% carbon-free electricity, supported by renewable energy sourcing and efficiency measures projected to reduce energy consumption by 20% compared to conventional designs. This aligns with both airport authority sustainability goals and California’s climate action initiatives.

Water management systems include a 900,000-gallon underground cistern for stormwater capture and reuse, an additional 1.5 million-gallon rainwater cistern, and biofiltration basins. These systems are projected to reduce stormwater runoff into San Diego Bay by at least 80%, addressing both water conservation and marine environmental protection objectives.

The project is targeting multiple sustainability certifications, including LEED Silver for the terminal building and Parksmart Silver for the parking structure. Airfield improvements, such as new taxiway designs and an underground fuel delivery system, contribute to operational sustainability by reducing emissions and improving efficiency. The project recently earned an Envision Gold Award from the Institute for Sustainable Infrastructure.

“The new Terminal 1 sets a benchmark for sustainable airport development, with renewable energy, water conservation, and emissions reduction features that will benefit the region for decades.”

— San Diego County Regional Airport Authority

Challenges and Controversies During Construction

The Terminal 1 project faced significant challenges, including workplace safety incidents and complex seismic engineering requirements. In September 2023, hate-motivated graffiti at the construction site prompted an unprecedented temporary work stoppage by Turner Construction, demonstrating a strong commitment to maintaining an inclusive work environment. Mandatory anti-bias training was implemented for over 1,200 workers, and the company absorbed the costs and schedule impacts associated with these actions.

Seismic engineering challenges required innovative solutions due to the terminal’s proximity to the Rose Canyon Fault Zone. Deep foundation systems and specialized ground improvement techniques were implemented to address liquefaction risks and ensure long-term structural integrity.

Construction was further complicated by the need to maintain continuous airport operations. The project team successfully coordinated logistics, material deliveries, and workforce management to avoid disruptions, demonstrating advanced planning and adaptability under pressure.

Industry Context and Airport Infrastructure Trends

The San Diego Terminal 1 project reflects broader trends in U.S. airport infrastructure, where aging facilities are being comprehensively replaced to meet modern requirements. Similar billion-dollar airport projects are underway in cities like Tampa, Chicago, and Columbus, demonstrating the scale of investment needed to support projected aviation growth.

Progressive design-build methods are increasingly adopted for major airport projects, offering enhanced collaboration, risk management, and schedule certainty. These benefits are particularly valuable for complex projects with unique technical requirements and operational constraints.

Sustainability and passenger experience have become central to airport development decisions, with modern terminals incorporating local identity, diverse concessions, and amenities that reflect regional character. These enhancements respond to growing passenger expectations and competitive pressures among airports.

Economic Impact and Future Implications

The Terminal 1 project represents a substantial economic investment, with direct construction spending generating significant multiplier effects throughout the region. The project created thousands of construction-related jobs and supports nearly $12 billion in annual economic activity through the airport’s role as a gateway to domestic and international markets.

Long-term, the new terminal will support continued growth in passenger volumes, enhance the airport’s competitiveness for airline service, and catalyze additional development in surrounding areas. Infrastructure improvements, including new roadways and future transit connections, will further integrate the airport with the region’s economic and mobility networks.

Looking ahead, the project positions San Diego International Airport for continued growth and innovation. As Phase 2 construction begins and the airport prepares for future expansion, the Terminal 1 transformation will serve as a model for sustainable, efficient, and passenger-focused airport development nationwide.

FAQ

What is the total cost of the San Diego International Airport Terminal 1 replacement project?
The overall Investments is approximately $3.8 billion, including all associated improvements and infrastructure upgrades.

How many gates does the new Terminal 1 have after Phase 1?
Phase 1 delivered 19 new gates, with an additional 11 gates to be added in Phase 2 by early 2028, for a total of 30 gates.

What sustainability features are included in the new terminal?
The terminal operates on 100% carbon-free electricity, includes advanced stormwater capture and reuse systems, and is targeting multiple sustainability certifications such as LEED Silver and Parksmart Silver.

How did the project address seismic risks?
The terminal’s design incorporates deep foundation systems and ground improvement techniques to address risks from the nearby Rose Canyon Fault Zone.

What was the impact of the project on the regional economy?
The project generated thousands of construction jobs and supports nearly $12 billion in annual economic activity through the airport’s operations.

Sources:
Construction Dive