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. Last Updated: 07/27/2016

Hochtief to Upgrade Airport

Hochtief, Germany's biggest construction company, won a $300 million contract to upgrade a terminal at Sheremetyevo Airport, which is trying to revamp its Soviet-era design as passenger numbers increase.

Hochtief, based in Essen, Germany, was chosen Thursday from five bidders to upgrade Terminal 2 at what was once Russia's main airport, Sheremetyevo said Friday in an e-mailed statement. The other bidders were France's Vinci, South Korea's Lotte, Austria's Schtrabag and Turkey's IC, the statement said.

The reconstruction will enlarge the terminal's size to 240,000 square meters and will include a link to the future Sheremetyevo 3 terminal.

Sheremetyevo 2, built for the 1980 Olympic Games, has never had a major upgrade and has lost tenants, including British Airways, to Moscow rival Domodedovo. Domodedovo served 13.9 million passengers last year, 16 percent more than in 2004, surpassing state-owned Sheremetyevo.

"We need to upgrade Sheremetyevo 2 to attract new airlines and passengers, and we have prospects to develop as a hub,'' Sheremetyevo spokeswoman Anna Zakharenkova said by telephone, adding that the upgrade would not affect airlines or passengers.

Hochtief will begin work immediately and finish by the end of 2007, Zakharenkova said. The terminal will be able to serve 18 million passengers when the work is completed.

Foreign carriers had passenger volumes on their Russian routes surge 20 percent last year, according to government figures. Russian airlines carried 35.1 million passengers last year, up 3.9 percent.

(Bloomberg, AP)