Premier Jacinta Allen says Melbourne Airport Rail Link won’t launch in the next decade

Premier Jacinta Allan has shot down any hope that Victorians could be boarding a train to Melbourne Airport by 2030 despite airport bosses putting an end to the long-running dispute.

Premier Jacinta Allan has shot down any hope that Victorians could be boarding a train to Melbourne Airport by 2030 despite an apparent compromise by the airport boss.

Ms Allan on Monday failed to guarantee the long-awaited train line will built in the next decade, claiming the airport’s “unreasonable demands” about its terminal station over four years had caused immeasurable delays.

It comes after Melbourne Airport chief executive, Lorie Argus, confirmed it would back down from its preference to build the station underground.

“This is a project that has been delayed by four years because of those frustrating negotiations that pretty much stalled last year,” she said.

“The construction timeline we outlined back in 2019 was a very aggressive one … (and) the completion date there was 2029.

“Here we are in 2024 with years of delay caused by the airport’s ongoing insistence for a more costly … underground station solution.”

Ms Allan also flagged that it was unlikely the original $10 billion budget for the project would be enough.

“With delay does come cost and so this will be something the Commonwealth government will need to work through,” she said.

There are hopes the rail link will get back on track.

The Premier said Ms Argus sent her a message late last night to let her know about the change in position before sending her a formal email this morning.

Ms Allan said further negotiations were needed between the state and federal government and Melbourne Airport to kickstart the project.

Ms Argus said she was prepared to compromise and accept an elevated station because it was time to get on with building the vital project.

“Victorians have waited long enough for an airport rail line,” she said.

“We will work with the Victorian Government to deliver their preferred above-ground station at the airport so the rail line can become reality.”

Ms Argus said passenger numbers were set to soar at Tullamarine this decade, in the lead up to a third runway being added to the site by 2030, and more transport options were needed.

“With an estimated 45 million travellers a year predicted to be using our airport when the third runway opens, the rail link will support a massive increase in passenger numbers and billions of dollars in additional economic activity for Victoria,” she said.

Melbourne Airport chief executive Lorie Argus says she would love to see the rail link ready to use by 2030. Picture: Nicki Connolly

“We want to get this (rail link) back on track and get back to the table with the State Government when they’re ready.

“We would ultimately love to have this public transport solution in place for the opening of the runway in 2030.”

The dispute over whether to put a terminal station underground, which was the airport’s preference, erupted last year, after former premier Daniel Andrews paused the project during a review of federal infrastructure funding.

The State Government wants an elevated station at Tullamarine, which would be cheaper and quicker to build.

A mediator was installed by the Albanese Government to try to resolve the saga, and its report recommended the airport do its own business case on an underground station, if it wanted to pursue that option further.

Ms Argus said the airport had decided to park its advocacy for an underground station, however, in order to get the rail link built quicker.

“While Melbourne Airport has consistently advocated for an underground station, we are prepared to compromise on our position to ensure we have more transport options in place for the millions of new passengers that will visit Victoria and the airport precinct’s expanding workforce,” Ms Argus said.

The airport had previously pushed for an underground station.

Treasurer Tim Pallas removed funding for the airport rail link from his tenth budget released in May, saying he expected delays of four years due to the simmering feud.

This would have pushed the opening date back from 2029 to 2033.

However, he flagged that if the airport owners were to “see reason” and shelve its demands then “perhaps we might be able to move those things forward”.

Discussions between the Government and Airport had been ongoing early last year on the design of the terminal station, as well as over the timing of construction works, and land acquisitions for building elevated tracks to the station.

Deputy Premier Ben Carroll and Transport Infrastructure Minister Danny Pearson — who both hold seats that would benefit from the link — last week announced the Government had bought land needed to build a Keilor East station as part of the project.

More than $1bn has also been spent on early works to prepare for major construction.

Mr Pearson recently said although the State wanted to build the link “we can’t get this deal done unless the airport gives consent to do the deal”.

Opposition spokesman for transport infrastructure David Southwick told Ms Allan to “get your skates on” and forge ahead with Airport Rail.

“The dispute is settled. We now know where the actual station is going to be,” he said.

“No more excuses, no more delays, let’s get on and build the Airport Rail.”

The Albanese government welcomed the decision by Melbourne Airport and reaffirmed its support for the long-awaited project.

“The report from the Commonwealth-appointed independent mediator, Neil Scales, made it clear the project was viable and necessary, and that there was unanimous support for it,” a spokesperson said.

“We have encouraged the parties to work to resolve the station location and we are pleased to see progress on this front.”