B.C. Premier Gordon Campbell was on hand at the Nanaimo Airport Saturday for the ground breaking of a 480-metre runway extension that will allow bigger planes to fly in and out of the city.

The new construction will expand the range of aircraft using the airport to Hawaii and Central America, and increase flight reliability.

Campbell says the three-stage upgrade, which will include a new terminal and parking lot, will drive more people to visit the city.

"Nanaimo is seizing new opportunities to diversify and to grow and we are proud to form partnerships and work co-operatively to accomplish this important project," he said.

"Investing in an expanded airport will help build on Nanaimo's growing role as a destination city, and create new economic opportunities and benefits for the residents of central Vancouver Island."

Nanaimo-Parksville MLA Ron Cantelon says the expansion will improve the economy of the entire Island.

"This expansion is an important step forward for the economy of Nanaimo and the entire Central Island," said Cantelon.

"Combined with the new Port of Nanaimo Centre, the upcoming cruise ship terminal and the establishment of Vancouver Island University, Nanaimo is becoming a major hub for trade, tourism and education on the Island."

The provincial government is contributing $6 million to the $16.4 million project. The Island Coastal Economic Trust has committed $5 million, with the balance of funding provided by the Nanaimo Airport Commission.

The majority of construction will be completed by 2011.