Treasurer Tim Pallas threatens to invest in Avalon if Airport Rail Link stoush continues
The boss of Avalon Airport says a rail link into Melbourne could be taking passengers within two years after Tim Pallas warned Melbourne Airport risked losing state government investment to Avalon if it didn’t end its rail stoush.
Victoria
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The boss of Avalon Airport says a rail link into Melbourne could be taking passengers within two years and put an end to the ongoing stoush about a train line from Melbourne Airport.
Avalon Airport chief executive Tony Brun said he welcomed renewed discussions about an Avalon Airport Rail proposal, after Treasurer Tim Pallas fired a warning shot to Melbourne Airport, demanding they end the Airport Rail stalemate or risk government investment going to Avalon Airport.
It was revealed in this week’s state budget that the long-awaited $10bn Melbourne Airport Rail Link is set to be delayed by “at least four years” because of the ongoing bitter stoush with airport operators.
Melbourne Airport wants to build an underground station but the state government is pushing for a cheaper and quicker above-ground station.
Mr Pallas on Wednesday flagged that the government would look at investing in Avalon Airport near Geelong if Melbourne Airport was unwilling to resolve the long-running dispute.
Avalon is Victoria’s second largest airport and is owned by trucking magnate Lindsay Fox’s company, Linfox.
“Either they sort out this problem and they make it a priority to sort it out, or the government is going to have to look at better provisioning for airport passenger transport than what is available from Melbourne Airport because at the moment it’s all road transport and car parks,” Mr Pallas said.
“I’m getting increasingly concerned about whether or not as a state we shouldn’t be putting an each way bet around Avalon and starting to think about what they can do in terms of provisioning for our transport needs going forward.”
In a statement to the Herald Sun, Mr Brun said with 80 per cent of all passenger trips in and out of Melbourne, an Avalon rail link will create “increased choice and competition in airport transportation” and be delivered at a cost in the hundreds of millions.
The state and federal governments have stumped up $5bn each towards the Melbourne Airport Rail Link.
Mr Brun said: “What is important to note and in contrast to those at Tullamarine, the owners of Melbourne Avalon Airport are prepared to help fund this project …. Bring it on.”
Mr Pallas on Wednesday said the government will build the Airport Rail Link project on its own terms, calling on Melbourne Airport to “stump up and demonstrate that you’re prepared to look after the interests of the Victorian public”.
“I’m not seeing the taxpayer actually held to ransom by a concessionaire that basically wants to embellish the value of their asset at the taxpayer’s expense,” he said.
In 2019, Melbourne Airport was part of a consortium that offered up to $7 billion towards an underground airport station and express tracks from Sunshine to Southern Cross.
“The state government rejected this,” a Melbourne Airport spokesman said.
“We remain available to meet with the Treasurer should he wish.”
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