The Victorian government has intensified its commitment to the Suburban Rail Loop (SRL) project by ordering four additional tunnel boring machines (TBMs) from China, pushing the initiative further toward a point of no return. Premier Jacinta Allan is scheduled to announce the new order during her visit to a construction site in Chengdu on Friday, effectively doubling the number of machines being sent to Melbourne for what is projected to be Victoria’s largest infrastructure undertaking.
These TBMs, set to arrive in early 2024, will facilitate the excavation of twin tunnels between Glen Waverley and Box Hill, with two machines launching from the Burwood site going in opposite directions. The cost associated with these machines is approximately $130 million, which falls within a broader $1.6 billion tunneling contract awarded to the Suburban Connect consortium in the previous year.
In addition to the newly ordered machines, four others are expected in Melbourne by the end of this year, which will commence work from the Clarinda launch site, heading north toward Burwood and south to Cheltenham. Collectively, these efforts contribute to the estimated $5 billion already invested by taxpayers in SRL East, the project’s initial phase. If completed, this ambitious project aims to encircle Greater Melbourne, connecting areas from Cheltenham to Werribee, though the total cost remains uncertain.
The Victorian government has committed to funding one-third of the anticipated $34.5 billion cost of SRL East and plans to secure another third through yet-to-be-specified investment capture methods. The federal government has allocated $2.2 billion but has indicated that no further funding will be provided until concerns regarding the project’s financial viability, raised by Infrastructure Australia, are adequately addressed.
While the tunneling contracts for SRL East are already in place, the terms stipulate that payments will only be made as costs are incurred by the construction and engineering consortia. In a notable shift, Brad Battin, the Leader of the Victorian Opposition, who previously promised to halt construction if elected, has now suggested a “pause and review” approach to the project.
If all eight machines are operational as planned, the financial commitments made will likely compel the completion of the first stage before the next state election in November 2026. The TBMs will be assembled by the China Railway Engineering Equipment Group in Zhengzhou. During her visit, Allan expressed admiration for China’s public transport system, stating, “Why shouldn’t we aspire to a public transport system like China’s?”
Allan’s engagement with Chinese officials marks her first trip to the People’s Republic as premier. She acknowledged that she did not address sensitive political matters during her meetings, positioning her role as one that does not intersect with foreign policy. The complex relationship between Australia and China, characterized by both economic interdependence and strategic challenges, was highlighted by a recent editorial in the China Daily. The publication praised Australia’s initiatives to enhance trade access while criticizing military collaborations with the US and the Philippines in the South China Sea.
In her discussions across Beijing, Nanjing, and Shanghai, Allan has emphasized the historical connections between Victoria and China, advocating for increased cultural understanding through educational exchanges. This theme aligns with her newly released China strategy, which seeks to attract more Chinese students to Victorian institutions and aims to double the number of Chinese tourists visiting Melbourne and Victoria by 2029.
Allan defended her approach toward China, asserting that it aligns with the federal government’s stance of “co-operate where we can, disagree where we must.” She underscored the importance of nurturing the relationship, stating, “It’s about respecting the relationship and supporting the friendship, strengthening the partnership because we know there is such a great benefit from bringing more jobs and greater understanding of culture back to Victoria and Australia.”
As her trip concludes in Chengdu, Allan will return to Melbourne on Saturday, having navigated a politically sensitive landscape while reinforcing Victoria’s commitment to significant infrastructure development.
