Allan said the latest cost estimate for above-ground rail, and who would bear any costs above $10 billion, was yet to be worked through.
“There are still other … issues that need to be resolved, including the airport’s demand for compensation from governments for land that is leased to them for their private operation. With delay does come cost.”
The comments are a change to those Treasurer Tim Pallas made in May when first announcing the expected four-year delay. He had said that the full impact on the project’s timing was not clear while the airport refused to budge on its underground preference.
“We’ve had to take an assessment of how long. Therefore, we think that delays the project. Nobody knows for certain,” he said in May.
“But given that we can’t control it, we’ve taken the, I think, not unreasonable expectation that it could take four years.
“Of course, were the airport operator to see reason and maybe become a good corporate citizen at some point, instead of a really good car park operator, then perhaps we might be able to move those things forward.”
Melbourne Airport chief executive Lorie Argus told The Age the airport expected to receive redress for the use of part of its land, leased from the federal government, which would be acquired by the state.
“We are genuinely empathetic to the challenges that the state is facing. So we want to do that as cost effectively as possible. We’re definitely not going to be difficult in this process,” Argus said.
A spokesperson for the Albanese government welcomed Melbourne Airport’s new stance on above-ground rail.
“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,” the spokesperson said.
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“We have encouraged the parties to work to resolve the station location and we are pleased to see progress on this front.”
The Victorian government is for now focused on building the eastern section of the Suburban Rail Loop, which runs through seats Labor has won from the Liberals – rather than the airport link, which runs through traditionally safe Labor seats.
Allan on Tuesday announced a global consortium of tunnelling businesses including WeBuild S.p.A, GS Engineering and Construction Australia, and Bouygues Construction Australia – Terra Verde – would be responsible for constructing the 10-kilometre northern twin tunnels between Glen Waverley and Box Hill following contract negotiations.
Suburban Connect was awarded the $3.6 billion contract in late 2023 to complete the 16-kilometre southern twin tunnel between Cheltenham and Glen Waverley. Site investigations and preparatory work are currently making way for tunnel boring machines (TBMs) to begin work in 2026.
Opposition transport infrastructure spokesman David Southwick said airport rail should no longer be delayed.
“Victorians have had enough. They just want an airport rail and they want it done,” he said.
Those comments were echoed by Labor-aligned Moonee Valley mayor Pierce Tyson, who released a two-sentence statement on Monday morning.
“About bloody time,” he said. “Let’s get on with it.”