(Not) stopping all stations? Metro Tunnel delays spark secret talks on station skipping

The new Metro Tunnel is due to open this year, but how much will it actually cost, and will it be stopping all stations?

Construction delays on the $15bn Metro Tunnel have sparked secret talks on whether trains may need to bypass city stations when the new line opens later this year.

The Herald Sun can reveal that an extended deadline for finishing construction of Town Hall and State Library stations by April 30 was missed by builders, triggering penalty payments and raising questions about whether the city-shaping project will open this year as promised.

Delays have already triggered talks on “contingencies” for if stations are not fully fitted out and signed off for use by the end of the year, when they are due to take passengers.
Among several options discussed were whether stations could open with limited entrance points, and if trains could run express through some stations.
One senior source downplayed the prospect of station skipping, but said “you literally plan for everything”.
The missed April 30 deadline – after which a lengthy process of testing and assessment by operators and regulators should have begun – was already pushed back following a contract alteration inked between builders and the Government late last year.

An artist impression of Town Hall Station. Picture: Victorias Big Build

That deal saw taxpayers cough up an extra $838m to help pay for blowouts, with builders supposed to fork out a “similar” amount.

But in a staggering example of state secrecy, the Allan Government is refusing to reveal the amount the builders – John Holland, Lendlease and Bouygues under the banner of Cross Yarra Partnerships – were expected to pay.

This means the total cost of the public sector project, which could be as much as $15.7bn, is shrouded in mystery, and taxpayers are in the dark about the proportion of the blowouts bill they paid.

Last year’s settlement of extra costs was the second for the project, after builders and the Government inked a deal in 2021 to each pay half of a $2.74bn blowout bill.

Budget papers show taxpayers have now sunk $13.48bn into the project, but not what the total cost will be once builder contributions are added.

This is in contrast to the West Gate Tunnel, which was listed as $10.2bn and includes about $2bn forked out by tolling giant Transurban.

Three Metro stations have been completed, at Arden, Parkville, and the Shrine.

An artist impression of Town Hall Station. Picture: Victorias Big Build

Project sources said the complexity of the construction of the two CBD stations, which are up to 40 metres underground, had caused ongoing issues.

Town Hall station, which will connect to City Square, Federation Square, and Flinders Street Station, is the furthest behind, while the State Library is closer to handover.

The Allan Government is adamant the new line will open this year, and says train testing along the 9km tunnel has been progressing well.

A “live” trial of trains that run along the Cranbourne, Pakenham and Sunbury lines before entering the tunnel without passengers, is set to be held on June 21.

A spokesperson for the Government said the project was scheduled to open this year with all five stations operational.

The Herald Sun has asked the Government, the CYP consortium, and individual builders involved in the project how recent extra costs were shared, and what the project now costs.

All refused to provide a total figure for the blowouts, or a project budget.

The stunning secrecy has raised questions about whether further pain for taxpayers is coming down the track, with industry figures warning it could also set a precedent for other private consortia building major projects in Victoria.

Parkville Station at Melbourne University. Picture: Metro Tunnel

Last year, then-Transport Infrastructure Minister Danny Pearson held a press conference following the settlement, and said builders although would pay “a similar amount” to taxpayers he was “not sure what the precise quantum is”.

While the companies have remained tight-lipped on their extra costs, John Holland released a financial report to regulators this year which blamed overall annual losses on “project delivery issues” at Metro Tunnel and West Gate Tunnel.

Industry and government sources have since told the Herald Sun the contribution from builders, while still likely to be several hundreds of millions of dollars, would be lower than that coughed up by taxpayers.

One insider said John Holland’s purported financial struggles played out alongside the legal dispute, and there was a point at which Governments have to decide “do you stay in court fighting, or finish the job?”

Parkville Station at Melbourne University. Picture: Metro Tunnel

A spokesperson for CYP said: “Our Project team are working hard to complete the construction of the Metro Tunnel Project, and each company adheres to its reporting requirements”.

If builder contributions for blowouts were similar to taxpayers contributions, it could take the total project to as much as $15.7bn.

This would be $4.8bn higher than initially budgeted – a 44 per cent blowout.

Opposition major projects spokesman, Evan Mulholland, said “Victorians are being taken for a ride, and not on the Metro Tunnel”.

“Victorians are being forced to fork out an extra $838m, yet the Labor Government won’t even admit how much the project is actually blowing out by. That’s not just incompetent, it’s dishonest,” he said.

Originally published as (Not) stopping all stations? Metro Tunnel delays spark secret talks on station skipping