First major tunnelling contract for Suburban Rail Loop has been awarded

Major tunnelling works can begin in 2026 on the Suburban Rail Loop (SRL) following the award of the first tunnelling contract for SRL East. This milestone is another big step towards the transformation of Victoria’s public transport network. 

The $3.6 billion Tunnels South contract has been awarded to a consortium comprised of global tunnelling experts. The consortium includes CPB Contractors, Ghella and ACCIONA Construction. 

“Our business has been successfully developing, delivering, constructing, and maintaining major complex projects for over 100 years in Australia. We are proud to be playing our part, alongside CPB Contractors and Ghella, to continue to enhance the loves of Victorians through sustainable infrastructure solutions,” ACCIONA Chief Executive Officer Australia & New Zealand Bede Noonan said. 

The Tunnels South contract will not only delivery the 16-kilometre twin tunnels between Cheltenham and Glen Waverley, but it will also include several industry-leading innovation and environmental initiatives that will help make SRL East one of the most sustainable projects in the history of Australia. 

The four tunnel boring machines (TBMs) that will be used for this project will be fully powered by renewable electricity and total emissions from the construction of SRL East is estimated to be 20 per cent below industry standard. 

“We are full steam ahead with the Suburban Rail Loop – by 2026, tunnel boring machines will be in the ground and Victorians will be hard at work delivering a project that will slash travel times and transform our transport system,” Premier Jacinta Allan said. 

SRL East alone is expected to create up to 8,000 direct jobs during the construction of the tunnels and the six new underground stations between Cheltenham and Box Hill. This section of the Suburban Rail Loop development will also deliver benefits to skilled workers and training with about 12 per cent of work hours to be carried out by trainees, apprentices and cadets. 

“SRL East equals 8,000 direct jobs and thousands more across the supply chain,” Minister for Suburban Rail Loop Danny Pearson said. 

Several works are progressing across the SRL East corridor including the delivery of the TBM launch site at Burwood. 

The tunnelling contract will also involve building 55 safety cross passages between the tunnels, station boxes at Clayton and Monash and the construction of tunnel entry and exit portals at the stabling facility. 

To reduce impacts on residents as well as schools and roads, most of the ground preparation works needed to excavate these safety cross passages between the twin tunnels will be managed underground. 

With the first major tunnelling contract awarded, the two remaining bidders will now compete for the second tunnelling package that will deliver the section of twin tunnels between Glen Waverley and Box Hill. The second tunnelling contract is due to be awarded in 2024. 

In a separate package of works, two consortia have been shortlisted to deliver the high-tech SRL train fleet, signalling system as well as operation and maintenance of the SRL East network. The Linewide Alliance contract is expected to be awarded in 2025. 

“We’re getting on with the project Victorians voted for – making it easier to move around Melbourne and connecting people to the great jobs, education and housing our area has to offer,” Member for Ashwood Matt Fregon said. 

Suburban Rail Loop map (source: Victoria's Big Build)

The Suburban Rail Loop development will deliver a 90-kilometre rail line that links every major train service from the Frankston Line to the Werribee Line via Melbourne Airport. 

The project is going to be built in four sections: 

• SRL East – Cheltenham to Box Hill 
• SRL North – Box Hill to Melbourne Airport 
• SRL Airport – Melbourne Airport to Sunshine 
• SRL West – Sunshine to Werribee 

Three transport superhubs will also be built at Clayton, Broadmeadows and Sunshine to connect regional services, enabling passengers outside Melbourne to travel to employment, hospitals and universities in the suburbs without passing through the CBD. 

Approximately 24,000 jobs will be supported through the delivery of the Suburban Rail Loop from Cheltenham to Melbourne Airport. 

Source: Premier of Victoria – Media Centre; Victoria’s Big Build – Suburban Rail Loop (1, 2, 3); ACCIONA Australia