The airport has argued the underground station would better provide for the airport’s growth. The stalemate has been blamed for the project being delayed, including in the state budget, where it was forecast to be at least four years late.
The report also recommended refreshed modelling on the capacity of the Tullamarine Freeway, which will be led by the federal Transport Department.
Scales also called for both levels of government to push ahead with upgrades at Sunshine Station to turn it into a major transport hub.
“The Commonwealth will commence discussions with the Victorian government on the proposal to upgrade capacity at Sunshine Station, with funding to be formally considered once costs and scope are finalised,” King said.
A Melbourne Airport spokesperson said an underground station was the “right solution for the traveller, the airport and the city” and flagged further analysis could be prepared as part of planning for Tullamarine’s growth in passengers.
“Melbourne Airport was working in good faith with the Victorian government on its preferred above ground station until it abandoned negotiations in April 2023 and referred the project to the Federal Infrastructure Review,” they said.
An artist’s image of the kind of underground rail terminal Melbourne Airport would like to build.Credit: Melbourne Airport
“We look forward to working with the Commonwealth and state governments to leverage existing business cases that resulted in world-class underground stations, including at Western Sydney Airport.
“That is work we are prepared to revisit in anticipation of an approval of Melbourne Airport’s third runway.”
Victorian Transport Infrastructure Minister Danny Pearson said the state government would work with the Commonwealth on the recommendations.
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“The report makes clear what we have said from the start – Melbourne Airport’s demand for an underground station does not stack up,” he said.
“It will involve greater disruption, take almost two years longer to deliver and cost taxpayers billions more.”
Federal opposition transport spokeswoman Bridget McKenzie called on the Albanese government to release the full report because questions remained about whether the process was a true mediation.
In legal settings, mediators do not usually make findings or produce reports and instead focus on encouraging discussions between two sides. The Commonwealth has at times referred to Scales as a “negotiator” instead.
“Federal Labor has failed to stand up to the premier for the much-needed airport link against the discredited Suburban Rail Loop,” McKenzie said.
Federal opposition transport spokeswoman Bridget McKenzie.Credit: Peter Rae
This month, The Age revealed that Scales had also been a consultant for the state-run Suburban Rail Loop Authority.
He declared this work and both the federal and state governments insisted there was no conflict of interest because Airport Rail was managed by a different government agency.