Latest news with #SRLEast
AU Financial Review
12-06-2025
- Business
- AU Financial Review
Allan's SRL funding plan contradicts housing promise: property industry
The property industry says it is not financially viable to build new apartments under the Victorian government's Suburban Rail Loop plan because its funding model discourages property development, despite Premier Jacinta Allan insisting it is a housing project. Victoria has committed $12 billion of its own funds for the first stage of the SRL, known as SRL East, and is relying on the federal government to finance a third. The Allan government claims the remainder will be raised via value capture, using funds raised by increased stamp duty on commercial properties and levies on developers and residential car parking.
Sydney Morning Herald
03-06-2025
- Business
- Sydney Morning Herald
Premier concedes soaring costs a risk to Suburban Rail Loop
Surging construction costs pose a risk to the first stage of the Suburban Rail Loop, Victorian Premier Jacinta Allan has acknowledged. Speaking at Victorian budget estimates on Tuesday, the premier faced questions about a 2024 meeting of an SRL East committee made up of the heads of multiple departments that discussed managing the project's $34.5 billion cost envelope. Minutes from the meeting, released to the state opposition through freedom of information rules, show the committee discussed 'the importance of keeping the program on track while resolving cost issues'. When asked what these issues were, Allan said the discussion was focused on the fact that since 2021 Australia had recorded a 22 per cent increase in the cost of construction. Loading The $34.5 billion cost for SRL East was announced in 2021 with the release of the project's business and investment case, prompting questions from Liberal MP Richard Welch about whether this figure was still accurate given soaring building prices. Allan said no project was immune to these pressures, but the government had to deliver the rail loop within the range already announced. 'That is the task of the interdepartmental committee, the minister responsible for the project and the authority delivering that project,' she said. About $2.37 billion will be spent on early works alone, which Allan said were included in the project's total price tag.
The Age
03-06-2025
- Business
- The Age
Premier concedes soaring costs a risk to Suburban Rail Loop
Surging construction costs pose a risk to the first stage of the Suburban Rail Loop, Victorian Premier Jacinta Allan has acknowledged. Speaking at Victorian budget estimates on Tuesday, the premier faced questions about a 2024 meeting of an SRL East committee made up of the heads of multiple departments that discussed managing the project's $34.5 billion cost envelope. Minutes from the meeting, released to the state opposition through freedom of information rules, show the committee discussed 'the importance of keeping the program on track while resolving cost issues'. When asked what these issues were, Allan said the discussion was focused on the fact that since 2021 Australia had recorded a 22 per cent increase in the cost of construction. Loading The $34.5 billion cost for SRL East was announced in 2021 with the release of the project's business and investment case, prompting questions from Liberal MP Richard Welch about whether this figure was still accurate given soaring building prices. Allan said no project was immune to these pressures, but the government had to deliver the rail loop within the range already announced. 'That is the task of the interdepartmental committee, the minister responsible for the project and the authority delivering that project,' she said. About $2.37 billion will be spent on early works alone, which Allan said were included in the project's total price tag.
Sydney Morning Herald
17-05-2025
- Business
- Sydney Morning Herald
Consortium set to get $9 billion to build part of rail loop, operate trains
A $9 billion contract for building part of the Suburban Rail Loop and operating the train line is set to be awarded to a consortium including construction giant John Holland, in what would be the largest deal of its kind for the project yet. Two sources told The Age that TransitLinX – a group of companies comprising John Holland, RATP Dev, Alstom, KBR and WSP – is the preferred bidder for the 'linewide' contract of the SRL East, a $34.5 billion underground rail line between Cheltenham and Box Hill. The contract, under which the companies will be tasked with building the trains used on the line, operating and maintaining the network and fitting out the tunnels, is expected to be worth at least $8 billion to $9 billion. TransitLinX will now begin the process of negotiating and finalising the details of the contract with the Allan government. The contract is to be signed by the end of this year. The second group that was shortlisted in the process, UrbanLeap, included companies Gamuda Engineering, Keolis Downer, Siemens, AECOM, GHD, Hyundai Rotem and Downer Rail. Two tunnelling contracts for the project have already been signed and are valued at $3.6 billion and $1.7 billion, respectively. Another two contracts to build stations along the railway line have not been awarded. Moving ahead with the biggest contract on the project to date will reaffirm Premier Jacinta Allan's commitment to the project, despite opposition calls for her government to cancel, and uncertainty over whether new taxes and Commonwealth funding will be enough to pay for two-thirds of the project as expected.
The Age
17-05-2025
- Business
- The Age
Consortium set to get $9 billion to build part of rail loop, operate trains
A $9 billion contract for building part of the Suburban Rail Loop and operating the train line is set to be awarded to a consortium including construction giant John Holland, in what would be the largest deal of its kind for the project yet. Two sources told The Age that TransitLinX – a group of companies comprising John Holland, RATP Dev, Alstom, KBR and WSP – is the preferred bidder for the 'linewide' contract of the SRL East, a $34.5 billion underground rail line between Cheltenham and Box Hill. The contract, under which the companies will be tasked with building the trains used on the line, operating and maintaining the network and fitting out the tunnels, is expected to be worth at least $8 billion to $9 billion. TransitLinX will now begin the process of negotiating and finalising the details of the contract with the Allan government. The contract is to be signed by the end of this year. The second group that was shortlisted in the process, UrbanLeap, included companies Gamuda Engineering, Keolis Downer, Siemens, AECOM, GHD, Hyundai Rotem and Downer Rail. Two tunnelling contracts for the project have already been signed and are valued at $3.6 billion and $1.7 billion, respectively. Another two contracts to build stations along the railway line have not been awarded. Moving ahead with the biggest contract on the project to date will reaffirm Premier Jacinta Allan's commitment to the project, despite opposition calls for her government to cancel, and uncertainty over whether new taxes and Commonwealth funding will be enough to pay for two-thirds of the project as expected. After the federal election, Allan sought to tie the Suburban Rail Loop to Labor's success in Victoria and insisted the project had community support.
