Preferred builder for the Suburban Rail Loop’s largest package of works revealed

The most expensive rail contract in Victoria’s history will go to a global consortium as part of the first stage of the Suburban Rail Loop.

Thousands of smaller and lower maintenance properties such as apartments and townhouses are set to be built across middle Melbourne as part of the $125 billion Suburban Rail Loop.

Plans are being drafted to restructure six major suburban precincts for the first stage of the SRL, which will open in 2035, and residents have been asked to tell urban designers what matters to them.

The Andrews Government released a discussion paper on Tuesday that looks at current strengths of each precinct – in Cheltenham, Clayton, Monash, Glen Waverley, Burwood and Box Hill – and what they could look like in the future.

Suburban Rail Loop East. Picture: Supplied

Some of the station hubs could get new “town centres” with businesses and housing linked to transport, while others will leverage off existing education or medical industries.

The document says all SRL precincts will need to “deliver a more diverse mix of homes, improving housing choices now and into the future”.

This includes for downsizers and younger people who want to remain in the suburbs they grew up in but can’t afford existing homes, with a focus to be on “a greater choice of smaller, easier to maintain properties”.

“Housing diversity helps new and established residents who would like to call these areas home,” it says.

“Good planning will provide new housing options, providing more townhouses, semi-detached dwellings and apartments for people to live in locations close to transport, stations and services.”

Property Council Victorian executive director, Cath Evans, said the “potential housing supply that can be delivered through increased density around SRL station precincts is significant”. But she warned that construction of a 26km tunnel would put “serious pressures” on the availability of construction materials and labour across the sector.

She said this must be addressed to allow for developers to build the urban environment required for the new precincts and to ensure “that the projects financially stack up”.

A preferred bidder to build the largest section of SRL East, which will include a 16km tunnel and connections to four stations and a train stabling yard in Heatherton, was announced on Tuesday.

Minister for the Suburban Rail Loop, Jacinta Allan, inspects early works of the SRL in Clayton. Picture: Wayne Taylor

Deputy Premier Jacinta Allan said the consortium of Suburban Connect, which includes Cimic Group’s CPB Contractors, Italian tunnelling firm Ghella, and Spanish railway giant Acciona, would negotiate with the government on their bid’s “finer details”, ahead of a deal being inked.

Once finalised, the contract is likely to be the most expensive rail project in Victoria’s history.

Early cost estimates for the entire 26km SRL East project, from Cheltenham to Box Hill, were set at $30-34.5bn.

Ms Allan said the project would create 8000 jobs, with 10 tunnel boring machines to be launched from Monash, Burwood and Heatherton when construction starts in 2026.