Airport Capitulation Ends Melbourne Rail Link Impasse

A four-year delay to a rail line linking Melbourne airport with the city is over after the airport finally relented to its sticking point.

On Monday morning, Melbourne Airport chief executive Lorie Argus said the airport was agreeing to the State’s plan to build an an above ground station at the airport to get the project moving.

The Airport Rail Link project, which is expected to link up to the Suburban Rail Loop project, was on hold while the Victorian Government and the Melbourne Airport were at loggerheads on the location of the airport station.

Melbourne Airport argued that it should be underground while the State said the cost of building such a station was prohibitive.

Mediator Neil Scales was appointed to help sort it out and a decision announced last month, when Scales “recommended against further commonwealth and state consideration of an underground option at this time”.

Argus said many were waiting for a railway line and were depending on the decision.

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

A third runway is also planned for the airport at Tullamarine, adding to the need for the rail link.

It is currently before the Federal Government for planning approval.

“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,” Argus said.

The number of predicted incoming tourists was a key part of the airport agreeing, according to Argus.

“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,” she said.

“The third runway project will allow for the growth of our existing airlines as well as attracting new carriers.

“There will be fewer delays with an additional runway and more flight options for travellers, putting downward pressure on air fares.”

Victorian Premier Jacinta Allan told media it had led to a lot of wasted time.

“I certainly welcome the acknowledgement overnight and this morning by the airport, that their unreasonable demands, the unreasonable demands that they’ve held for a number of years now to pursue an underground station have do not stack up,” Allan said.

“But the consequence of the unreasonable position that has been taken for a number of years now is that this project has been delayed by four years.” 

Rail connections for the Melbourne Airport Rail Link

Discussions over the design of the station, the staging of construction and concerns around the land needed will now move ahead.

Allan also acknowledged the Melbourne Airport’s request around compensation.

“This morning has added another unresolved issue into the mix, being the desire for them to receive government compensation for leasing government land to construct government funded infrastructure,” Allan said.

“So that’s still an issue to be worked through, and we’ll work through that cooperatively with with the Commonwealth and the airport.”

Allan also said a new timeline for finishing the project could not yet be determined till more discussions were had. 

Scales’ report also suggested advancing the transformation of Sunshine station into a transport hub and using the early works created for the Airport Rail Link project.

Melbourne Airport is currently the largest employment hub outside the CBD with 100,000 passengers arriving daily.

More than 210,000 daily passengers are expected in less than 20 years and expanding the airport is expected to add $5.9 billion to the economy with 51,000 jobs.

Current runway works will cost $3 billion.