MELBOURNE AIRPORT: New AU$500m baggage system — fewer lost bags & faster check-in

Melbourne Airport says it’s about to drag its international baggage handling into the 21st century, with testing now underway on a half-billion-dollar, German-built, fully automated baggage system that promises faster processing, real-time bag tracking, and fewer bags going AWOL between check-in and carousel.

The system, built by logistics heavyweight Beumer Group, is scheduled to launch in March 2026. It will more than double the airport’s outbound international baggage capacity, lifting throughput capacity from 1,800 bags per hour to over 4,000.

For travellers, this means your luggage should have a much better chance of reaching the same destination as you and arriving at roughly the same time.

Installation while airport still operates

The new system required the installation of more than 3.6 km of baggage lines — roughly the length of Melbourne Airport’s longest runway, all while the airport continued operating. Melbourne Airport’s Chief of Aviation, Jim Parashos, likened the process to “doing open heart surgery while running a marathon,” which only holds if you can mentally juggle healthcare with engineering.

Central to the upgrade is a modern, tote-based transport system. Bags will ride individually in assigned totes, scanned and tracked continuously, then sorted into an early bag store capable of holding 1,400 bags at once. From there, bags are automatically dispatched in precise flight order. Less human intervention, more automation, and far fewer misdirections.

Real-time tracking

the system will allow airline access to end-to-end bag tracking, which will allow passengers to see where their bags are. From the moment a bag is dropped at check-in, airlines will have visibility right through to aircraft loading. The system will reduce lost bags and support better on-time performance. For passengers, it should mean fewer frantic baggage desk conversations and more confidence that their bag didn’t detour to Mildura.

According to Parashos, the upgrade will allow passengers to check in much earlier for international flights. Although I am sure the airport is excited about this, as it gives travellers more time to shop in the expensive airport outlets, I’m not sure passengers will see it as an advantage. However, the promised eventual delivery of true anytime check-in would be genuinely transformative for long-haul travel through Melbourne.

Why Melbourne needs the upgrade now

The baggage overhaul is arriving just in time. Melbourne Airport recorded its busiest October ever for international travel, with 1,032,448 international passengers — a 5.9% increase over October 2024. Domestic numbers also rose 4.2% year-on-year.

Three new airlines are due to start flying into Melbourne next month, adding further pressure on the existing system, which Parashos diplomatically described as “really testing” this summer.

2PAXfly Takeout

Melbourne Airport’s new baggage system won’t make the queues any shorter or immigration any friendlier, but it should make one part of the travel experience far more predictable. Faster processing, earlier check-in windows, fewer lost bags, and real-time tracking all count as real improvements for passengers.