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The Victorian state government has confirmed that Melbourne’s airport rail link will be delayed by at least four years.
The state government and Melbourne Airport have been locked in a long-running dispute over the project, with the government wanting an elevated station and the airport wanting an underground station for the rail link, which was initially slated to open in 2029.
The federal government, seeking to mediate the dispute, last month sent in Neil Scales, director-general of the Queensland Department of Transport and Main Roads from 2012 to 2023, in an attempt to finally break the deadlock.
In his 2024–25 budget overview, released on Tuesday, Victorian Treasurer Tim Pallas said that the state government has a “huge amount of funding” tied up with the rail link project, and needs to be “realistic about the project and its timeline”.
“The Commonwealth Government has only recently appointed an independent mediator, and the Airport has not indicated it is prepared to drop its demands for compensation and an underground station,” said Pallas.
“We’ve made the sensible decision to acknowledge that the project is now at least four years delayed. This will allow us to crack on with delivering other projects.”
In a brief media statement, a spokesperson for Melbourne Airport once again laid blame at the feet of the state government.
“Melbourne Airport was part of a consortium that offered up to $7 billion towards an underground airport station and express tracks from Sunshine,” the spokesperson said.
“The state government rejected this. The timing of the project has always been a matter for government.”
The Transport Workers’ Union has slammed the continued delay, calling on the airport and the state government to put aside their differences and get on with the project.
In an exasperated media release, TWU branch secretary Mem Suleyman said the existing public transport links to Melbourne Airport do not serve the needs of its workers.
“Airline workers don’t care whether the station is above the ground or underground. They just want a station that gives them the same option as every other airline worker at major airports in Australia,” he said.
“Through today’s disappointing announcement, the only winners are Melbourne Airport because they continue to maintain the ludicrously overpriced parking fees from the public.
“Melbourne Airport charges airline workers and customers over $12 a day to park up to 30 minutes away from the terminal, and as much as $79 a day for closer parking. The TWU is tired of the excuses and urges the Melbourne Airport and the Victorian Government to get out of first gear and get on with delivering this project.”
Suleyman urged the Commonwealth to “play a positive role” in the project and “look at mature ways to help navigate the dispute”.
“The TWU will be holding an emergency forum to give local politicians the chance to hear firsthand from hardworking airline workers including those living in their electorates about the urgent need to step up and deliver an airport rail link,” he said.
“Airline workers within the airport and in the surrounding business precinct all support this project. The only obstruction is Melbourne Airport’s greed and lawmakers sleeping behind the wheel, it needs to end and we need to get on with building it.”
The airport in January called for the state government to put on more Public Transport Victoria buses to improve connections for staff and passengers.
