Final Suburban Rail Loop Tunnelling Contract Signed

A final contract for Melbourne’s city-shaping Suburban Rail Loop has been signed.

The contract is one of two for a significant infrastructure project the Victorian Government has awarded this month as the Suburban Rail Loop (SRL) and Eastern Freeway upgrade progress to their next phases.

The final tunnelling contract for the first stage of the SRL has been locked in with global consortium Terra Verde to construct the twin tunnels between Glen Waverley and Box Hill as part of the northern section.

The consortium, comprising Webuild, GS Engineering and Construction, and Bouyges Construction Australia, will deliver 10km of tunnelling works.

The Tunnels North package is the second major construction contract to be finalised. Suburban Connect was awarded the contract for the southern section of tunnels in 2023.

The project is expected to employ 4000 workers by 2026, with four tunnel-boring machines simultaneously operating on the twin tunnels.

The Government said the project would “deliver 70,000 more homes exactly where they’re needed, right next door to jobs, services and public transport”.

▲ A concept render of the Cheltenham station on the SRL.

The SRL East project is making progress with works under way at all six station sites and 1500 people working on the project.

The shortlist to build the six underground Suburban Rail Loop East stations was announced on November 11.

Place Alliance (John Holland, Arup Australia Projects and Kellogg Brown and Root), Eastern Stations Precinct Alliance (Lendlease and WSP Australia) and Connexus Alliance (CPB Contractors, Multiplex and GHD) will compete for two contracts, each covering three stations.

One will build stations at Glen Waverley, Burwood and Box Hill; the other at Cheltenham, Clayton and Monash.

The first stations contract will be awarded in 2026. Tunnelling starts in 2026, with trains scheduled to take passengers in 2035.

The SRL project has attracted three shortlisted bidders for the station construction contracts, split between northern and southern sections.

The consortia include established firms such as John Holland, Lendlease Construction, and CPB Contractors, partnering with various engineering consultancies.

For the rail project’s line-wide contract, which encompasses train making, tunnel fitout, and network operations, two bidders remain in contention.

The state said the SRL would accommodate 70,000 passengers daily upon completion.

Meanwhile, the Eastern Freeway upgrade has advanced with the appointment of two consortia as preferred bidders.

The Momentum consortium, led by John Holland, will manage upgrades between Hoddle Street and Burke Road, while the Synergy consortium, headed by CPB Contractors, will oversee works between Tram and Springvale roads.

Major Road Projects Victoria said it would now work with both bidders ahead of contracts being awarded next year.

▲ An artist’s impression of the proposed Eastern Freeway overhaul.

The Eastern Freeway will be upgraded from Hoddle Street to Springvale Road. The overhaul includes the addition of more than 45km of new lanes, which have been calculated to reduce travel times by up to 11 minutes.

Minister for Transport Infrastructure Danny Pearson said it would be the first major upgrade of the Eastern Freeway since it opened in 1977.

The project also includes Melbourne’s first dedicated busway, from Doncaster towards the city centre, which will connect the North East Link tunnels from Watsonia to Bulleen.

Construction is progressing on the North East Link element, with two tunnel-boring machines operating beneath Yallambie.

The Eastern Freeway upgrades and the North East Link tunnels are scheduled for completion in 2028, promising to remove 15,000 trucks from roads, saving commuters up to 35 minutes between the east and outer north. The project cost has been estimated at $26 billion.