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Almost $4bn more for Victoria’s contentious Suburban Rail Loop to be included in federal budget

Almost $4bn more for Victoria’s contentious Suburban Rail Loop to be included in federal budget

Summary

The federal government will add $3.8 billion to the funding for Melbourne’s Suburban Rail Loop, a 90-kilometer underground train project. This brings total federal support to over $6 billion as the state and federal governments prepare for the upcoming Victorian state election.

Key Facts

  • The Suburban Rail Loop is a large underground train line planned to run 90 kilometers across Melbourne, from Cheltenham to Werribee and stopping at Melbourne Airport.
  • The federal government will invest an additional $3.8 billion over four years in the project, raising total federal contributions above $6 billion.
  • The Victorian state government has committed about $11.8 billion for the first stage, SRL East, a 26 km tunnel section between Cheltenham and Box Hill.
  • Construction contracts worth around $13 billion are already signed, including two major tunnelling contracts with a consortium led by John Holland.
  • The project was first promised before the 2018 election and has faced criticism over its cost, planning, and the secrecy surrounding its development.
  • The 2021 business case estimated the eastern section would cost up to $34.5 billion and be completed by 2035, with around 71,000 daily passengers expected in 2036.
  • Victoria’s independent budget office estimated total costs for the first two stages could reach $125 billion by 2085.
  • The federal opposition has criticized the funding shift towards the Suburban Rail Loop, claiming it harms other projects like the inland rail.
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