State Reveals Who It Wants to Dig Northern Rail Tunnels

Who the Victorian Government wants to dig the second set of tunnel for Melboure’s Suburban Rail Loop has been revealed.

It comes hot on the heels of the Airport Rail Link project finally moving ahead.

The consortium of WeBuild S.p.A, GS Engineering and Construction Australia, and Bouygues Construction Australia—named Terra Verde—has been selected as the contractor to underake the second tunnel stage.

It comprises a set of northern twin tunnels stretching about 10km from Melbourne’s Box Hill to Glen Waverley.

The $3.6-billion contract for the first underground section—16km southern twin tunnels between Cheltenham and Glen Waverley— was awarded to Suburban Connect late last year,

A work start date for the second stage of tunnelling has not been revealed as contract negotiations continue.

Victorian premier Jacinta Allan told media the contract for the northern tunnels would be awarded later this year.

“I'm not going to speculate on the contract award value, given those negotiations are under way,” Allan said.

“We were very pleased with the outcome from the first tunneling contract, and we expect a similarly pleasing result from this one.”

Tunnel-boring machines are expected to begin work on the southern tunnels in 2026 with site investigations and preparatory work already begun. 

Another package, to build the high-tech train fleet, fit out the tunnels, install signalling and operate and maintain the rail loop, will be awarded in 2025, followed by two contracts to build six new underground stations. 

▲ A map of the Suburban Rail Loop East section.

By 2026, more than 4000 people will be working directly on the Suburban Rail Loop project. 

SRL East will include train stations at Deakin and Monash universities, connect four major rail corridors, and create a hub for Gippsland passengers at Clayton, according to Allan.

“This suburban rail loop corridor from Cheltenham to Box Hill will connect Monash University to a train line for the first time, and Deakin Burwood University to a train line for the first time,” Allan said.

The Victorian Government also wants to use the project to build 70,000 new homes and create 230,000 new jobs within surrounding precincts. The first trains are scheduled to run in 2035. 

Up to 8000 construction jobs are expected to be created during the project’s first stage. Ot currently supports more than 1200 workers across all six station sites. 

Victorian transport minister Danny Pearson said it was an opportunity to create a diverse skilled workforce.

“Exactly 12 per cent of all hours worked on this part of the project, the tunnels north, will be for trainees, cadets and apprentices,” Pearson said.

“We'll also ensure that 2.5 per cent of the hours worked will be done by indigenous Victorians, with another 3.5 per cent being for those priority job seekers.”

SRL East will deliver train stations at Deakin and Monash universities, the connection of four major rail corridors—including a hub for Gippsland passengers at Clayton, 70,000 new homes and 230,000 new job opportunities throughout the surrounding precincts—with trains expected to be running by 2035.

The Victorian Government has provided $11.8 billion in funding alongside an investment of $2.2 billion from the Federal Government. 

It is expected to cost at least $35 billion to build the SRL East project along, but Allan expects that the Federal Government may choose to provide more funding later on given the decade-long timeline.

“There will be plenty of opportunities for the Commonwealth Government to provide funding for this project, because it just stacks up,” Allan said.

A Victorian Parliamentary Budget Office report released earlier this year estimated that building and operating the North and East sections from 2019-2084 will cost a total of $216.7 billion.