Freight handling facilities at airports have to be adapted and modernized to keep up with an increasing volume of freight being transported by air. A new system incorporating a lot of automation is currently being installed at Melbourne's Tullamarine Airport. The article describes the system's main features and operation. The system is designed around multiple levels of rack storage. A state-of-the-art computerized automation system will facilitate the placement, retrieval and recording of data. Freight will enter the system via a powered roller drive feeding directly from the trucks onto a weighing unit. Initiating data such as the destination and flight details will be keyed in at time of receival. The operator will be able to direct incoming cargo to the aircraft or to a breakdown/buildup area. Transfer vehicles will move cargo at high speeds between the storage units and the receival and dispatch areas.