‘Worse than Covid’: How Suburban Rail Loop is killing businesses

Dozens of businesses across Melbourne’s southeast say they have been hung out to dry by the Allan government as “never-ending” SRL road closures and disruptions isolate them from customers.

Suburban Rail Loop construction chaos is costing local businesses tens of thousands of dollars in a financial hit they say is worse than the one they suffered through during Covid lockdowns.

Pubs, restaurants, hairdressers, and retailers in Clayton and Glen Waverley have revealed road closure extensions and poorly planned shutdowns around their properties have isolated them from customers for months at a time, describing compensation offered by the SRL as “cruel”.

Some say the financial toll has forced them to eat into life savings, while one broke down in tears while describing feeling “like ants that are being stomped on”.

Clayton Hotel owner Frank Golotta says the SRL people “never communicated the full extent of the disruptions” that have starved his 27-year-old pub of business since July last year.

“They shut down Haughton Road and removed all of the parking spaces for three months, then they shut down Clayton Road for two.

“Then they came in with the signs about the works, and people just started avoiding us like the plague,” Mr Golotta said.

Frank Golotta who owns the Clayton Hotel in Clayton is unhappy with Suburban Railway Loop works opposite his pub. Picture: Ian Currie

As vice president of the Clayton Traders Association, Mr Golotta said he witnessed first-hand how the road closures instantly “turned off the tap for 200 businesses in the area”.

“So many of them have closed down, especially when they shut down Dunstan Street with no notice,” he added.

As for his own business, Mr Golotta said his turnover has dropped 15-20% every month since July last year, which he describes as far worse than anything witnessed during Covid.

“It’s been the most stressful time of my entire business career, and I’ve owned this place since 2008,” he said.

Railway Parade North next to Glen Waverley train station as part of the suburban railway loop project. Picture: Ian Currie

Acknowledging the importance of the project, Mr Golotta said it’s the SRL’s failure to fairly compensate the businesses it is killing that’s angering traders.

“They say the point of this project is to create an activity centre for businesses and traders in ten years, but if they don’t start having more sympathy, there won’t be any of us left.”

Over in Glen Waverly, the SRL’s closure of Railway Parade North has isolated an entire block of traders, including restaurants, hairdressers, and grocery stores, from the commuters they were built to service.

Heavy equipment in Railway Parade North next to Glen Waverley train station as part of the suburban railway loop project. Picture: Ian Currie

Speaking to the Herald Sun, Tang restaurant owner Michael Qi says his business was thriving up until the road closed in August. Tang’s revenue then decreased by 21 thousand dollars or 15% over September before dipping further to 20% over each of the following five months.

Asked how he is staying afloat, Mr Qi said he’s burnt through over $100K of savings.

“Initially we were told it was only 3 months so we didn’t complain, but now they’ve extended another 7 months,” he added.

While Railway Parade North was meant to re-open in January, its traders say they were told only two weeks out that it would remain closed until “mid-year”, and still have not been given an exact date.

“They [SRL] offered us 15 thousand for that 7 months which is nothing compared to what we are losing,” Mr Qi said.

Unhappy Railway Parade North traders Brandon Li, Jenny Loh, Mila Metlenko, Michael Qi and Chris One. Picture: Ian Currie

It’s a similar story next door, where Yoon's Kitchen owner Anna Bae has had to lay off half of her staff due to monthly losses that are beginning to exceed $15K.

“We can’t even do Uber Eats because the drivers have nowhere to stop and can’t find their way to the front,” Ms Bae said.

Likewise, hairdresser Chris Ong said his losses over the last 6 months have exceeded $40K.

As the losses add up, the community of mostly immigrant business owners say they don’t know how much longer they can last, with some already forced to shut up shop.

Among those facing tough decisions is Mila Metlenko, who spent her life savings of $500k to build her Malaysian restaurant in 2019.

“We were becoming so successful until they came,” Ms Metlenko said.

Mila Metlenko inside her restaurant along Railway Parade North which is opposite Glen Waverley train station. Picture: Ian Currie

With weekly revenue declines of “three to four thousand dollars”, Ms Metlenko hasn’t paid herself a wage in months, and is now facing blood pressure issues because of the stress.

“My kids and my GP both beg me to stop. They tell me it’s gone, and that it’s over and I should apply for Centrelink,” she said while crying.

“No one will buy it like this, so I’ll have to turn off the lights and walk away with nothing.”

Asked what she would say to the government, Ms Metlenko said: “I would yell help me! Because we feel like ants that are being stomped on.”

A spokesman for the SRL said: “We’re working to minimise disruption as much as possible and our dedicated team is working directly with Glen Waverley and Clayton businesses to deliver tailored support including providing vouchers, advertising campaigns, and supporting local events.”

Construction on SRL East, which is a $34.5 billion rail line that will connect Cheltenham to Box Hill via a 26km tunnel, is in the early works stage, and is not due to open until 2035.