The Los Angeles City Council has approved a $2bn contract with L.A. Gateway Partners (LAGP) for a consolidated car rental facility at Los Angeles International Airport (LAX) in the US.

LAGP, which is a consortium of 11 companies, will design, build, finance, operate and maintain the Consolidated Rent-A-Car (ConRAC) Facility at the airport for a period of 28 years.

The consortium for the ConRAC is led by PCL Construction Services as the general contractor. Design firm A.C. Martin Partners is a local partner.

Located two miles east of LAX near Interstate 405, the ConRAC facility will span across 5.3 million square feet and combine many car rental operations spread around the area.

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“This facility will highlight the future of mobility and we look forward to our partnership with L.A. Gateway Partners.”

Scheduled to open in 2023, it is a major component of the Landside Access Modernization Program (LAMP) to improve access to the airport.

The LAMP also includes the APM system, Intermodal Transportation Facilities (East/West) and associated roadway improvements.

The facility will include around 6,600 ready/return parking stalls, 10,000 idle vehicle storage and 1,100 rental car employee parking spaces.

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It will be connected to the APM to help rental car shuttles to avoid accessing the terminal loop. With the removal of rental car shuttles, LAX will witness reduced vehicular congestion and passengers waiting to board curbside at the airport.

Los Angeles World Airports CEO Deborah Flint said: “We are pleased to have received unanimous approval from both the Los Angeles City Council and the Board of Airport Commissioners (BOAC) for this final, integral piece of the Landside Access Modernization Program.

“This facility will highlight the future of mobility and we look forward to our partnership with L.A. Gateway Partners as we elevate LAX to a world-class airport.”