The upgrade of the T2 taxi rank commences this week as part of a program to improve ground transport arrangements in Sydney Airport's domestic precinct.

T2 is the domestic terminal used by Jetstar, Virgin, Tiger Airways, QantasLink and other regional airlines.

Sydney Airport CEO Kerrie Mather, said the US$1.5 million upgrade will see the capacity of the T2 taxi rank increase from 10 to 15 vehicle spaces.

"The increased capacity will provide an improved service for passengers and drivers and help reduce the time people spend at the rank."

"The aim of the upgrade is to reduce traffic congestion and make it easier for taxis to access the ranks at both T2 and T3."

"Passengers have a range of transport choices to consider when they travel to and from the airport. Taxis are an important travel option and the upgrade will provide improved facilities for taxi users," Mather said.

The first change will be the relocation of the pre-booked taxi area to allow a significant increase in capacity from six to 20 taxis. From Thursday September 29 the pre-booked taxi area will be located off Fourth St adjacent to the existing public pick-up area. Signs will direct passengers to the new location.

The upgrade is scheduled to be completed in December and will also involve:

• Construction of a new undercover walkway from T2 to the public pick-up area to protect passengers from wet weather.

• Relocation of the bus stop for the P bus service to the long-term car park, and the T bus service to T1, to separate taxis and buses. Separating large vehicles from the taxi traffic stream will provide a more efficient traffic flow and reduce waiting times for passengers.

• A new entrance to the 10 minute free public pick-up area.

• Associated civil and supporting works, such as changes to kerbs, footpaths and additional signage.

To minimise any inconvenience, most of the construction will be undertaken after 11:00 p.m. There is no change to the ground transport fees that apply to taxis, pre-booked taxis, limousines or buses.

Improvements to ground transport arrangements are needed to meet the travel needs of the increasing number of passengers using Sydney Airport, the company says. In 2005, a total of 28.3 million passengers travelled through the airport -- a daily average of 77,501. By 2010 this had increased to 35.6 million passengers -- a daily average of 97,430.