No need for rail to the airport, according to airport executives

Melbourne Airport bosses have twice raised concerns about the $10bn rail project, claiming it will be of little benefit.

Secret documents have revealed airport bosses have cast doubt over the need for a dedicated airport rail link warning it would be of little benefit.

The Herald Sun can reveal senior airport executives have twice raised concerns about the $10bn project.

They have also actively blocked attempts by the state government to negotiate details of the project in a move that could delay further works.

In a September 2021 letter to Jacinta Allan then Melbourne Airport chief Lyell Strambi cast doubt over the project.

Melbourne Airport bosses have actively blocked attempts by the state government to negotiate details of the project.

“The assertion that the provision of a train service will support material growth of our passenger throughput is not supported by our analysis, which found that it would only influence the decisions of time sensitive, short distance travellers such as those taking single day business travel, beyond 2040,” he said.

Jai McDermott, the airport’s chief of Ground Transport, Property & Retail, doubled down on the claim two months later.

“While some passenger uplift for some traveller segments may occur beyond 2040, the actual benefits to passenger growth are marginal,” he said in a separate letter to Ms Allan.

“Indeed, there are examples of airports around the world (such as LAX) where higher passenger throughput has been achieved without a rail service.

Airport executives wrote to Jacinta Allan to claim the rail link would only provide marginal benefit to passenger growth. Picture: Luis Enrique Ascui

“The benefits to passengers from greater choice of transport mode and broader decongestion benefits across Melbourne’s roads network are far more significant than any value airport rail might unlock for Melbourne Airport two decades from now.”

The government subsequently engaged Arnold Bloch Leibler to negotiate with airport executives on its behalf.

However in an April letter to ABL’s Leon Zwier, lawyers for the airport demanded he make no further contact with airport executives, shareholders or board members.

“(Australia Pacific Airports (Melbourne)) does not consent to you or any member of your firm directly communicating with APAM including any member of its board,” it said.

The state government engaged Arnold Bloch Leibler to negotiate with airport executives on its behalf.

The revelations come amid an escalating stand-off between Melbourne Airport and the government about how to proceed with the project.

The issue of whether the station at the airport will be underground or elevated has emerged as a key sticking point in recent negotiations.

A Melbourne Airport spokesperson said while the proposed airport rail would provide “little commercial benefit”, it would deliver significant benefit to travellers.

“This is why we have been a vocal advocate for a rail link to the city,” he said.

“Our preference has always been, and remains, for an underground station. The state believed a key benefit of its elevated solution was that it could be delivered faster.

“Having opted to delay the project, the state government has demonstrated a willingness to work to a longer timeline and as such, we would encourage the state to work constructively with Melbourne Airport to properly explore an underground option.

“Melbourne Airport remains willing to meet whenever the Minister is available.”

Transport Infrastructure Minister Danny Pearson said negotiations had been ongoing for more than three years.

“The airport’s proposed underground option provides no extra passenger benefits, costs twice as much and will add two years to construction and disruption around the airport,” he said

“It’s nothing but a smokescreen from Melbourne Airport, who don’t seem to want the convenience of a train to their doorstep at all.

“We welcome the Commonwealth government’s involvement in negotiations with its tenant at the airport.

“We can build a rail line to the airport fence, but we need the Commonwealth’s powers and the airport’s co-operation to take it to the front door.”

Originally published as No need for rail to the airport, according to airport executives