Billions more set in train for contentious rail project
Australian taxpayers will fork out billions more in the federal budget to help fund Victoria’s controversial Commuter Rail Loop.
Finance Minister Jim Chalmers’ fifth fiscal plan will include an extra $3.8 billion for the massive infrastructure project, with preparation work starting in 2023.
Premier Anthony Albanese said the Eastern Suburban Rail Loop, which will link train lines in the suburbs of Cheltenham, Glen Waverly, Box Hill and Clayton, would make Melbourne’s economy more productive and improve connectivity.
The cash splash brings the Commonwealth’s spending on the project to $6 billion; That’s still $5.5 billion short of what the Victorian government is asking its federal counterpart for the rail line.
“Ensuring Victorians can travel into greater Melbourne and through the suburbs rather than having to drive into the CBD and then return helps speed up travel times, takes cars off the road and helps increase job opportunities in Melbourne’s east,” Mr Albanese said.
Tunneling for the project is expected to begin at the end of 2026, and the project is planned to be operational by 2035.
However, the railway line has been highly criticized for the $34.5 billion price tag of the first stage.
The Victorian government argues the spending is worthwhile because it will reshape the way people travel around Melbourne, create new hubs in the suburbs and create thousands of jobs.
Despite the criticism, the cost per kilometer is estimated to be similar to comparable projects such as Sydney’s Parramatta-CBD Metro, which is under construction.
Victorian Premier Jacinta Allan praised her federal counterparts, saying they were “a partner in Canberra meeting the needs of our growing state”.
“The Commuter Rail Loop will reduce travel times and eliminate congestion for busy families,” he said.
The government angered farmers and regional leaders this week when it announced that a major freight rail line aimed at connecting Melbourne and Brisbane would be cut short due to cost overruns.
The budget will include plans to cut the Inland Rail project and instead finish it at Parkes in central NSW after analysis showed the cost rose from $16.4 billion to $45 billion.
The federal budget will be announced on Tuesday.
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