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Melbourne Airport Rail Link under contention

The Victorian treasurer has indicated the government may not accept a proposal for the Melbourne Airport Rail Link which would see the line privately owned and operated, despite pressure from the federal government.

Treasurer Tim Pallas, at a business event late last week, discussed a cheaper, above-ground route in complete contrast to the high-speed multibillion-dollar airport rail tunnel federal government would like built.

Despite an initial $5 billion commitment from the Victorian government, Pallas said the government might delay building the twin rail tunnels between the CBD and Sunshine, due to potentially rising project costs.

The Victorian government says it has not ruled out the airport tunnel option, according to The Age.

Private consortium AirRail recently offered $5 billion towards the airport tunnel project in return for owning and operating it.

The federal government, in turn, says that the 7-kilometre tunnels are crucial for the Geelong fast rail project, towards which it has committed $2 billion.

Federal Minister for Population, Cities and Urban Infrastructure, Alan Tudge, said the federal government wanted a high-speed airport rail service, and was working  with the state government towards this, according to The Age.

“We want to see the Melbourne Airport Rail Link built as soon as possible.”