The Australian government has pledged £7 billion to fund the long-awaited Melbourne Airport Rail Link, aiming to improve transport connections between the airport, the city, and regional areas.
Sky News Australia reports that the funding will support the construction of the rail line, which has faced delays due to design disputes and funding challenges.
Announced by Prime Minister Anthony Albanese, the project includes upgrades to Sunshine Station and is expected to integrate with Melbourne’s Suburban Rail Loop, improving accessibility for commuters and travellers.
Government Commitment and Funding Breakdown
Speaking at the Herald Sun’s Future Victoria event, Albanese confirmed that the federal government will partner with the Victorian government to complete the rail link.
The funding includes an existing £5 billion contribution plus an additional £2 billion allocated for improvements at Sunshine Station, a key interchange for regional and metropolitan rail services.
Anthony Albanese emphasised that the project will benefit not only Melbourne but also regional areas, including Bendigo, Ballarat, and Geelong. The planned route will provide direct high-capacity metro train access between Melbourne Airport and the CBD, integrating with the broader Suburban Rail Loop initiative.
The total cost of the project is estimated to be as much as £13 billion, making it one of the most significant infrastructure investments in Victoria.
Long-Standing Debates and Design Disputes Delay Progress
The Melbourne Airport Rail Link has been under discussion for decades, with multiple proposals failing to materialise. In 2020, the state and federal governments each committed £5 billion to the project.
However, progress stalled due to disagreements between the Victorian government and Melbourne Airport over the design of the airport station. The airport favoured an underground station, while the government pushed for an above-ground “sky rail” model.
After a government-mediated resolution in July 2024, Melbourne Airport accepted the above-ground plan, clearing the way for development to proceed.
The federal government brought in mediator Neil Scales, who ultimately ruled in favour of the state government’s sky rail proposal. Despite this breakthrough, funding delays of at least four years have impacted the timeline.
Sunshine Station Upgrade and Broader Infrastructure Investment
Sunshine Station, which will serve as a key hub connecting the airport to Melbourne’s western and northern suburbs, is set to undergo significant upgrades.
These will include the addition of new platforms, the creation of dedicated lines for regional rail services, and improvements to tracks, bridges, and signalling systems.
The project will also support the future electrification of the Melton Line, enhancing rail connectivity in the region.
The Melbourne Airport Rail Link will feature three key stations : Sunshine Station, a new station at Keilor East, and the Melbourne Airport terminal. This direct connection will allow passengers to travel seamlessly between the airport and the city without requiring transfers.
In addition to the rail project, the prime minister announced a £1.2 billion investment in a suburban road improvement programme, focusing on key intersections in Carrum, Cranbourne West, and Beveridge to enhance traffic flow and accessibility.
Avalon Airport’s Alternative Rail Proposal
While attention is focused on the Melbourne Airport Rail Link, Avalon Airport has proposed a separate rapid shuttle rail service to connect with the Melbourne-Geelong line.
Avalon’s chief executive, Ari Suss, suggested that a Luton-style automated rail link could dramatically improve accessibility and competition between Victoria’s two major airports.
“Improved access to Avalon with a four-minute driverless rail shuttle connecting to the existing Melbourne-Geelong line will be a game changer,” Suss said.
“We’re not reinventing the wheel. This solution is up and running internationally – with London-Luton Airport now moving close to 20 million people annually and enabling more aviation gateway choices for passengers. We get this right and the public wins, with our two airports, not just offering up airline competition, but real airport competition too.”
Political and Economic Implications
The renewed focus on infrastructure investment in Victoria comes amid political shifts, with Labour facing electoral challenges in key Melbourne suburban seats.
Some state and federal MPs have pushed for funds to be reallocated from the Suburban Rail Loop to the airport rail project and other key transport links in Melbourne’s west and north.
Albanese dismissed speculation that the funding increase was politically motivated, stating that Victoria had been “abandoned” in previous federal budgets.
The opposition, however, has criticised the government’s handling of project delays and cost escalations.
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