Inland Rail studies uncover new investment opportunities
Two new Inland Rail studies have found prospective investment opportunities that could…
12 February 2020
Melbourne Airport rail has been given another push with an extra $2bn from a private consortium to assist with the rail project. Taking the offer to $7bn after a $5bn initial proposal in 2018.
The super fund, IFM Investors, as part of the AirRail consortium is proposing to build a 6-kilometre tunnel between Melbourne CBD and Sunshine. IFM is calling for a new rail tunnel in a letter sent to Victorian Premier, Daniel Andrews and Prime Minister, Scott Morrison.
In May 2019, a Victorian government spokesperson said that part of the budget also includes additional tracks between Sunshine and the CBD. According to the Vic Gov Spokesperson, other airport rail options being assessed include Sunshine being connected to Geelong, Ballarat and Bendigo services.
The AirRail consortium that also includes Metro Trains, Southern Cross Station and Melbourne Airport requested in the letter that the State Government is charged a toll every time a Metro or V/Line train runs through the new rail tunnel. This toll will cover the operating and maintenance costs and to recoup the appropriate capital costs of building the tunnel.
AirRail Melbourne has been waiting to start construction on the project since 2019 and IFM is waiting for the go-ahead to start building. Australian rail supplied has also contacted IFM to offer their interest as potential contractors for the project.
Business cases will be delivered by 2020 for assessment and procurement options as well as value capture, create opportunities and economic analysis of the recommended solution.