Completion date for Melbourne Airport Rail Link up in the air amid deadlock over compensation

The finish date for the long-awaited Melbourne Airport Rail Link remains unclear despite the federal government promising an extra $2 billion for the project, amid a “deadlock” with the airport over compensation.

The completion date for the long-awaited Melbourne Airport Rail Link is up in the air amid a “deadlock” with the airport over compensation.

But federal Infrastructure Minister Catherine King has sought to allay fears the stalled rail line will never be built, with the Albanese government this week unveiling an extra $2bn for a vital upgrade to Sunshine station that will help turbocharge early works on the project.

Airport rail was due to be completed by 2029 but is unlikely to start taking passengers until 2033, following a dispute over the station location and the Victorian government prioritising the first stage of Suburban Rail Loop.

Ms King said timelines would not be finalised until the airport, state and federal governments reached an agreement about the “impact” of an above-ground station at Tullamarine.

“We’ve got a little way to go just in terms of settling some of the stuff with the airport. But I am very confident that this will now happen,” she said.

“We’re all on the same page to try and get this settled … we’re keen to get it done. Let’s try and break the deadlock as best we can.

“It’s time for Melbourne to have an airport rail.”

Federal Infrastructure Minister Catherine King has sought to allay fears the stalled rail line will never be built. Picture: Roy VanDerVegt

Melbourne Airport, which leases its land from the Commonwealth, spent years pushing for an underground station before agreeing to support the cheaper, elevated option after a mediator was brought in to resolve the stalemate with the state government.

Asked if the airport wanted money, Ms King said: “They may well do”.

“We are starting the work to make sure that we’ve got everyone on the same page in terms of where it’s going to finish at the airport,” she said.

“We’ll have timelines when we’ve got all of that agreed, and we’ll make those public when we can.

“Victorians are a bit sick of the wait.”

Renders of the Melbourne Airport Rail link project. Picture: Supplied

Melbourne Airport did not respond when asked what was causing the deadlock, if it was seeking financial compensation, and how much.

Instead, a spokesperson said: “We welcome Wednesday’s announcement and we are working constructively with the state and federal governments to help make airport rail a reality.”

Ms King rejected the assertion that the federal government’s $3bn cash injection into Victorian road and rail projects this week was in response to a protest vote against the state Labor Party at the Werribee by-election.

“This has been in discussion literally since the middle of last year,” she said.

Originally published as Completion date for Melbourne Airport Rail Link up in the air amid deadlock over compensation