The first stage of the Melbourne Airport Rail is set to kick off as part of a $5.3 billion federal funding commitment to boost economic growth, improve connectivity and tackle congestion on suburban roads.
More than $3.3 billion will go to new road and rail projects in the state, including the Melbourne Airport Rail, which will provide new transport options for people in Melbourne’s west.
The Federal Government will also invest an additional $2 billion towards transforming Sunshine Station as part of its commitment to build the Melbourne Airport Rail – the next important step in Suburban Rail Loop.
The Federal Government said this funding is on top of its existing $5 billion to build the rail line to Tullamarine, taking its overall commitment to $7 billion.
The Victorian Government will also bring forward its Melbourne Airport Rail funding to enable the works at Sunshine Station.
The joint investment will transform Sunshine Station, including extra platforms and a dedicated spur line that will make Sunshine Station the hub for regional rail services connecting to Melbourne Airport.
The program of works will span more than 6km from West Footscray to Albion include three new rail bridges, new and upgraded tracks, new signaling technology and realigned passenger and freight lines to untangle this complex section of the rail network.
Design and planning work is well underway, with works expected to start in early 2026 and be complete in 2030.
The Victorian Government said the upgrade is the essential first step to connect Melbourne Airport to Victoria’s regional and metropolitan rail networks and pave the way for more train services for the growing communities of Melton and Wyndham Vale.
The Federal Government also said it’s a vital part of delivering better services for people in the west going to work, not just the airport.
It will mean passengers travelling from regional Victoria won’t have to catch a train all the way into Southern Cross and then back out to Tullamarine – they’ll be able to switch to a direct airport link as soon as the train gets to Sunshine.
Passengers travelling from the south-east will be able to make a straight-through trip via the new Metro Tunnel.
The Federal and Victorian governments are working together to deliver the projects Victoria needs to connect a growing population – including Melbourne Airport, North East Link and the Suburban Rail Loop.
In addition, the two governments will together invest $1.2 billion in a Suburban Road Blitz: a new package of works to increase capacity and improve efficiency in growth areas surrounding Melbourne.
The first tranche of projects to be delivered, with works to commence later this year, include:
- Old Sydney Road Upgrade, Wallan ($45 million)
- Evans Road Upgrade between Duff Street and Central Parkway in Cranbourne West ($30 million)
- McLeod Road and Station Street Intersection Upgrade, Carrum ($3 million)
The Federal Government said these will be transformative projects for the south-east and the north.
Additional projects will be decided in consultation with the Victorian Government.
The Federal Government will contribute $1 billion towards the Suburban Road Blitz with the Victorian Government contributing $200 million.
The Federal Government said it will continue to deliver the investment Victoria needs, including:
- $325 million towards the Melton line upgrade to increase the rail capacity by 50 per cent
- $20.5 million towards planning for Melbourne Western Suburbs Rail upgrades
- $7.05 million towards planning for Melbourne Northern Suburbs rail upgrades
- Partnering with the Victorian Government to deliver $44.7 million of upgrades to the Princes Highway Corridor, with the funding split 50:50 and works to commence later in 2025
- $10 million towards a business case to investigate upgrading key roads and structures across the High Productivity Freight Vehicle network, with the Victorian Government to deliver the other $10 million
Prime Minister, Anthony Albanese, said the Federal Government is building Australia’s future – and that means building Victoria’s future too.
“We want to make sure all Victorians have the services and the infrastructure they need now and into the future.
“We will partner with the Victorian Government to deliver rail upgrades, while also working to upgrade key roads to provide immediate congestion relief now.
“This is good for local jobs, good local businesses and good for commuters.”
Victorian Premier, Jacinta Allan, said, “We’re delighted to have a partner in Canberra who is investing in the infrastructure that Victorians need and delivering much needed projects for a growing population in the west, north and east.”
Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said delivering vital upgrades to Sunshine Station and road congestion hotspots will support Melbourne’s growing population by allowing them to move faster and more safely around the city and its suburbs.
“These projects will enhance the resilience and reliability of the transport network, better connecting people to where they live, work and play.”
Victorian Minister for Transport Infrastructure, Gabrielle Williams, said, “Reconfiguring Sunshine Station will not only create more capacity for more services, but also marks the first stage of works for Melbourne Airport Rail and paves the way for future upgrades to electrify the Melton Line.”
Federal Member for Fraser, Daniel Mulino, said Melbourne’s west is growing at a rapid rate and upgrading the Sunshine Station will help to accommodate this growth.
“The Federal Government is delivering the world-class infrastructure people in Melbourne’s west need and deserve.”
