Delayed Melbourne Airport Rail Link Gains Steam With Government MOU

melbourne airport
Credit: Melbourne Airport

The Melbourne Airport (MEL) rail link project, which has been discussed and delayed for decades, gained steam with a memorandum of understanding (MOU) signed by the Australian federal government, the Victoria state government and Australia Pacific Airports, which runs MEL.

The MOU to “progress this project” states that the three entities are “committed to work together to commence delivery” of the MEL rail link. It comes after Australian Prime Minister Anthony Albanese last month pledged A$2 billion ($1.3 billion) for related rail improvements.

The aim of the project is to connect MEL to Victoria’s regional and metropolitan train network, including rail transit to Melbourne’s central business district in 30 min. MEL is only accessible via road transport.

The airport is currently engaged in roadway construction to ease congestion. The rail project would include building a train station at MEL.

The MOU establishes a steering committee to be composed of officials from the federal government, state government and Australia Pacific Airports. The committee “will work collectively, in good faith, to finalize the path to construction and deliver this important project for all Victorians,” says Catherine King, Australia’s federal minister for infrastructure, transport, regional development and local government.

Albanese in late February pledged A$2 billion to revamp Sunshine Station—a major stop that would be close to the airport station and serve as a key transfer point—"as part of our commitment to build the Melbourne Airport Rail.”

The MOU does not spell out an end date for the project or a total cost, leaving the steering committee to work out details.

“Many Victorians have spent a lifetime hearing of a rail link to the airport, and today we are telling them that we will work together in good faith to get it done,” King said at the March 20 signing of the MOU. “We want to keep this project moving.”

Victoria Transport Minister Gabrielle Williams said the state is already moving forward with “reconfiguring freight, regional and suburban tracks,” which she described as “the first stage of Melbourne Airport Rail.”

The push to build the MEL rail link comes as the airport’s traffic continues to increase. MEL said it handled 3.4 million passengers in January, up 8% year-over-year and the highest monthly number in the airport’s history.

The Australian Competition and Consumer Commission said in its March 17 Airport Monitoring Report that Melbourne Airport earned an operating profit of A$198.9 million (as measured by earnings before interest, taxes and amortization) from aeronautical revenue for the fiscal year ended June 30, 2024, up 64.1% year-over-year. MEL’s per-passenger aeronautical revenue rose 4.2% to A$17.88.
Aaron Karp

Aaron Karp is a Contributing Editor to the Aviation Week Network.