Industry News

PSP Breaks Ground on $93.6 Million Baggage Handling System

Oct 21, 2026 | News

With more than 70% federal funding, major investment will nearly triple baggage processing capacity and support PSP’s continued growth

Pictured from left: Cynthia Bryant, Chief of Staff to California Assemblymember Greg Wallis; PSP Airport Commission Vice Chair Todd Burke; Palm Springs Mayor Pro Tem David Ready; U.S. Rep. Ken Calvert; PSP Interim Executive Director of Aviation Victoria Carpenter; PSP Airport Commission Chair Kevin Corcoran; Bobby Jennings, Vice President and Division Manager at Swinerton; and Ryan Evers, Associate Vice President, West Region Aviation at AECOM

Palm Springs International Airport (PSP) celebrated a major milestone Tuesday with the groundbreaking of its new $93.6 million outbound baggage handling system, a significant infrastructure investment that will modernize baggage screening, improve efficiency and prepare the airport for continued growth.

City, airport, federal, state and project leaders gathered for the ceremony. The project is supported by more than $66.5 million in federal funding, covering over 70% of the total cost.

“Palm Springs International Airport is one of our community’s greatest assets and an important economic engine for the entire Coachella Valley,” said Palm Springs Mayor Naomi Soto. “The replacement of the baggage handling system is an investment that will strengthen and increase the airport’s capacity, as well as ensure PSP remains a welcoming, convenient place to travel for generations to come.”

The new system will nearly triple baggage processing capacity, increasing from approximately 440 to 1,300 bags per hour. During peak periods, demand can reach 920 bags per hour, more than double the current system’s capacity. The project also includes approximately 10,000 square feet of additional space, modern screening technology and improvements to operational reliability and employee working conditions.

“Most passengers never see what happens to their luggage after check-in, but our baggage handling system is essential to keeping the airport moving,” said PSP Interim Executive Director Victoria Carpenter. “Our existing system was built for a much smaller airport. This project gives PSP the capacity and technology to meet today’s demand while preparing for the future.”

Federal investment has been instrumental in advancing the project, with funding secured through multiple Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) programs, including a $3 million federal earmark.

“Palm Springs International Airport is a vital transportation hub and economic driver for the Coachella Valley,” said U.S. Rep. Ken Calvert. “I’m proud to have supported federal funding for this project, which will modernize critical airport infrastructure, improve efficiency and ensure PSP can continue meeting the needs of residents and visitors alike.”

The remaining project costs will be covered by approximately $14.4 million in passenger facility charges and $12.6 million in airport funds, with no local taxpayer dollars used for the project.

To maintain normal airport operations and minimize disruptions to passengers during construction, PSP will transition baggage screening to a temporary facility while the permanent system is built. The project is expected to be completed in late 2028.

AECOM is serving as the project’s design firm and providing construction administration services, Swinerton Builders is the general contractor, and Mead & Hunt is providing construction management services.

The new baggage handling system is part of Progress PSP, the airport’s ongoing effort to modernize infrastructure, enhance the passenger experience and prepare for long-term growth under its 20-year Airport Master Plan.

For more information and construction updates, visit ProgressPSP.com.

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