A mediator appointed to help end the long-running dispute over the Melbourne Airport rail link has made a major call over the station location.
The Prime Minister has told Melbourne Airport to “get serious” about a major rail project.
Victoria’s latest state budget has delayed the Melbourne Airport rail link by a further four years.
Airport operators want a train station to go underground.
The state government claim the option is too expensive.
The Commonwealth has appointed a mediator to break the deadlock but so far no agreement has been reached.
A key reason for the project having stalled over the years has been a dispute over the station location, with the airport pushing to have trains underground in contrast to the state government which wants an above-ground station.
In a report released on Thursday, mediator Neil Scales determined no further government action on the underground option, however, a statement from Transport Minister Catherine King claimed he said “that it is possible to find a solution” to the station location issue.
Mr Scales also offered Melbourne Airport operators Australia Pacific Airports (Melbourne) the chance to further press its case for below-ground trains.
“The mediation process was undertaken to determine if a resolution is possible between the Victorian government and the operator of Melbourne Airport as to the location of the station,” Ms King said.
The Victorian government has outlined plans for an above-ground station at Melbourne Airport. Picture: Supplied
“The report recommended against further Commonwealth and state consideration of an underground option at this time.
“Should APAM wish to progress with the option of an underground station, it recommended that they produce a suitable and comprehensive business case, so that key stakeholders can examine the proposal in detail.”
Melbourne Airport said while it welcomed Mr Scales’ report, it still maintained an underground station was the best option.
“We remain consistent in our view that an underground station at the airport is the right solution for the traveller, the airport and the city,” a spokesperson said.
“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.
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The state government revealed designs for an above-ground station in September 2022. Picture: NCA NewsWire / Andrew Henshaw
“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. Airport Rail will support the enormous growth that Melbourne Airport’s Third Runway will unlock for travel, tourism, exports and jobs in this state.”
Ms King said two other main recommendations were made by Mr Scales in his report, in which he also concluded the rail link “remains viable and necessary”.
One of the other recommendations was for the Commonwealth and state government to embark on a “no regrets” approach to work at Sunshine station.
That work would “transform it into a major transport hub and capitalise on the early works already completed for the Melbourne Airport Rail Link”.
Transport Minister Catherine King says the Suburban Rail Loop is a “one in a generation” infrastructure project.
“The Suburban Rail Loop is a once in a generation infrastructure project that will transform the way in which people move about the state of Victoria and also reshape the way in which Victoria grows including where people live and the opportunities for people to live around public transport,” she said during Question Time on Wednesday.
“We have made a capped contribution of $2.2 billion towards the early works of Suburban Rail Loop East and release of that funding is contingent on the program meeting the conditions under the National Land Transport Act.”
“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,” Ms King said.
The plans in place for the airport rail link include having dedicated tracks between Sunshine and Airport West alongside the existing Albion-Jacana freight corridor.
Another recommendation is that “refreshed modelling work be undertaken on the timeline for capacity of Tullamarine Freeway”.
“I have instructed my Department to scope this work,” Ms King said.
She added the federal government encouraged both the airport and the Allan government “to consider the report recommendations and to work constructively together to determine next steps to progress this important project”.
The Victorian state budget handed down by Treasurer Tim Pallas in May specified the airport rail link was delayed by at least four years.
“We have a huge amount of funding tied up with the Melbourne Airport Rail project. We need to be realistic about the project and its timeline. We’ve made the sensible decision to acknowledge the project is now at least four years delayed,” Mr Pallas said in May.