Major issue threatens to derail airport link

A spat between the federal and state governments over one crucial aspect of the planned airport rail link is threatening to derail the $10bn project.

A dispute over where to put a new Tullamarine station for the $10bn airport rail link is threatening to send the project off the rails.

The Sunday Herald Sun can reveal that the Andrews Government is digging in about building an elevated structure, while the Morrison government and airport had favoured a tunnel.

The push for a cheaper “sky rail” station began last year, and had been blamed for delays in releasing a business case for the long-awaited project.

Several packages of work have been released to the market for the rail link, which will be built in stages via Sunshine, with Laing O’Rourke the preferred contractor for early works.

Insiders briefed on negotiations said those backing an underground station argued it would future-proof the site for another rail link to the north.

A business case for the project has still not been released, with state transport chiefs only handing over the document to the Commonwealth in December – almost a year after it was expected to be delivered.

It is understood the business case investigated a range of options for stations, including sky rail options and tunnels below terminals.

A dispute over whether to build a tunnel or sky rail is threatening to delay the airport rail link project.

But concerns have been raised about elevated rail construction requiring the shutdown of key airport roads, with cheaper build costs potentially offset by commuter chaos.

The airport, tipped to more than double its annual passenger figures to 76 million by 2042, has spent millions upgrading roads and parking around the terminal to tackle congestion and had voiced concerns about an above-ground station impacting those investments – sparking discussions about compensation.

Infrastructure Australia is now considering the business case, and will then refer the project to a joint steering committee with state and federal experts involved.

Several packages of works have already been released for the major project, which will be joint funded by Victorian and Commonwealth taxpayers with the Morrison and Andrews governments pledging up to $5bn.

The airport construction poses the most headaches for planning, with the facility required to submit a major development plan as part of the process – once an alignment and construction method is selected.

Representatives of federal and state governments declined to discuss their preference for the design of the station, but said they were working cooperatively on the project.

A federal spokeswoman said it was “a large and complex project that the Australian Government has committed $5bn towards”.

“The Australian Government separately provided $30m towards the business case for the rail link, which is currently being assessed by Infrastructure Australia.”

A spokeswoman for the Victorian government said: “The business case has been with the Commonwealth since 2021, and we look forward to jointly releasing it as soon as possible.”

Previous master plans for the airport have also sought to keep options available for future rail connections other than one to the city.

This could include a route to the north or a future high-speed rail connection to the city.