The Melbourne Metro Tunnel project is on the verge of reshaping the city’s public transport landscape, with significant milestones reached in its development. This ambitious infrastructure initiative involves the construction of twin 9-kilometre rail tunnels connecting Kensington to South Yarra, designed to enhance capacity for trains servicing the Sunbury, Cranbourne, and Pakenham lines while alleviating congestion in the City Loop.
Key Features of the Melbourne Metro Tunnel
The project boasts five new underground stations, located at Arden, Parkville, State Library, Town Hall, and Anzac. Each station will feature platform screen doors and real-time information displays, providing passengers with details about train capacities. The design includes vital underground pedestrian links connecting Town Hall to Flinders Street and State Library to Melbourne Central, facilitating seamless interchanges for commuters.
A tram and train interchange will be established at Anzac Station, further integrating Melbourne’s diverse transport network. The project is set for a soft launch, with full operations commencing on February 1, 2026. During peak times, trains will run every three to four minutes, significantly improving travel efficiency. Notably, the entrance to Town Hall Station at Federation Square is expected to open later in 2026.
Timeline of Development and Challenges
The concept of an underground rail tunnel in Melbourne dates back to November 2005, when Graham Currie, Monash University’s chair of public transport, proposed a “north-south underground” rail solution to alleviate pressure on the city’s train and tram services. This proposal gained traction, leading to a recommendation by Sir Rod Eddington in a 2008 transport study commissioned by then-Premier John Brumby.
The project evolved over the years, with significant adjustments made by various governments. By December 2008, the Melbourne Metro rail tunnel was included in the Victorian Transport Plan, with construction slated to occur in two stages. The Liberal Baillieu government announced a review in 2011, resulting in modified project parameters aligning more closely with Eddington’s recommendations.
In February 2015, the newly elected Labor Andrews government confirmed its preferred alignment for the project, leading to site investigations in April 2015. The official business case for the Metro Tunnel was released in February 2016, initially estimated at $10.9 billion.
Construction officially began with early works in April 2017, and by August 2019, the first tunnel boring machine was launched at the Arden Station site. However, the project faced significant budgetary challenges, with costs rising by $2.74 billion in December 2020, which was shared between taxpayers and the project consortium.
The financial burden continued to escalate, with additional increases reported due to pandemic-related expenses, culminating in a further $837 million cost blowout in September 2024. This pushed the overall project cost to approximately $13.48 billion, with the total expenditure nearing $15 billion.
As of May 2025, major construction was completed on the last two of the five stations, paving the way for the anticipated opening. The project is expected to significantly enhance public transit in Melbourne, providing essential infrastructure that will benefit commuters for years to come.
The Melbourne Metro Tunnel is a testament to the city’s commitment to modernizing its transport network, and its successful implementation will mark a pivotal moment in Melbourne’s transit history.
