Infrastructure Australia says Andrews government’s business case on Airport rail link ‘needs more work’
Infrastructure Australia says an Andrews government business case on the Melbourne Airport rail link needs more work to show it was a worthy investment.
Victoria
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New congestion charges on busy Tullamarine freeways should be considered to encourage people to use a new $8bn-$10bn Airport Rail Link, the country’s independent infrastructure advisory body says.
In a new report released on Monday, Infrastructure Australia says a business case provided by the Andrews government needs more work to “improve certainty of the cost estimates”, and urges a review of the timing of construction to ensure it’s done at the best possible time.
“Further investigation is warranted on the timing of the proposal and to provide greater certainty of costs and maximise societal benefits,” the report says.
The Andrews government, which is partnering with the Commonwealth to build the long-awaited link, has rejected the IA recommendations.
The Albanese government declined to comment.
The IA report lists numerous benefits from the project, but questions whether there was sufficient rigour on the costs to show it was a worthy investment.
Early works have already begun on the airport link, which would run from Tullamarine to Sunshine where it would link to the metro train system and new Metro Tunnel.
Trips to the CBD would take about half an hour.
Infrastructure Australia says that it can’t yet progress the project to its next stage of assessment, and said there were things governments could do to ensure it had sufficient information.
“Taking the proposal forward, the proponent should consider measures that could prompt the behavioural change required to shift road users to Melbourne Airport Rail earlier, thereby capturing upside potential to maximise benefits and improve the economic case,” it says.
“This could include competitive rail fares, road user/ congestion charges and media campaigns. Upgrades to on-road priority for airport bus services would maximise the capacity, efficiency and reliability of the existing public transport connection until Melbourne Airport Rail is delivered.”
An Andrews Government spokesperson said “others have talked about a rail line to Melbourne Airport for decades” and it would get on and deliver it.
State and federal governments have pledged $5bn each for the rail link, but are hoping the budget will come in under $10bn.
Federal opposition infrastructure spokeswoman, Bridget McKenzie, said Melbourne Airport Rail was an important strategic project for all Victorians that “needs to happen”.
“At least this priority project has gone through an Infrastructure Australia assessment process, unlike the politicised Suburban Rail Loop project which received $2.2bn in the federal Labor budget just last week - a project with a scathing Victorian Auditor General’s report,” Senator McKenzie said.
Former Liberal PM Malcolm Turnbull committed to the project in 2018 with the state, and it has been supported by subsequent prime ministers and governments.
The state government says it disagrees the project is not a priority for Victoria, with 37 million passengers passing through the airport each year before the pandemic.
It also rejects the recommendation “that extra tolls and charges should be applied to roads leading to the airport in an attempt to force passengers on to the rail line”.
The evaluation of four other Victorian infrastructure project business cases were also released on Monday.
But the Dorset Rd extension, Napoleon Rd upgrade, Monash Roads upgrade were all scrapped by federal Labor in last week’s budget.
IA said evidence in the Pakenham Roads upgrade, which is still proceeding, did “not provide certainty” that the forecast benefits would be realised.
It also noted that several assumptions and costing approaches were not well substantiated.
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