Consortium named preferred bidder on A$30 billion Melbourne rail project

A consortium of contractors is in pole position to undertake the second tunnelling contract for the Suburban Rail Loop (SRL) East in Melbourne, Australia.

Digital render of a train running on the SRL East line in Melbourne Digital render of a train running on the SRL East line in Melbourne (Image: Aurecon)

The Terra Verde consortium, made up of Italy-based contractor WeBuild, GS Engineering and Construction Australia, and Bouygues Construction Australia, has been named preferred bidder to build 10km (6.2 miles) of twin tunnels between Glen Waverley and Box Hill.

Detailed negotiations are now underway, while more tunnelling contracts for the Tunnels North project are set to be awarded next year.

The Suburban Rail Loop is a group of new rapid transit railway lines totalling a distance of 90km (55.9 miles) in Melbourne.

It represents the largest investment in the history of the state of Victoria.

The first tunnelling contract on SRL East, worth A$3.6 billion (US$2.4 billion) was awarded to CPB Contractors, Acciona and Ghella earlier this year. That was for a 16km section of the line, with major tunnelling works commencing in 2026.

While it is not clear exactly what the value of the second SRL East tunnelling contract is, a report by the Victorian government’s Parliamentary Budget Office estimated the cost to build SRL East in full at between A$30 billion (US$20.3 billion) and A$34.5 billion (US$23.3 billion).

The Linewide package to fit out the tunnels, install signalling, and operate and maintain the network and build the fleet of SRL trains will be awarded next year. Two contracts to build the six new underground stations will be awarded from 2026.

Three contractors confirmed for US$2.4bn tunnelling work on Melbourne’s Suburban Rail Loop East A consortium of three contractors has been confirmed for an A$3.6 billion (US$2.4 billion) tunnelling package on the Suburban Rail Loop (SRL) East public transport project in Melbourne, Australia.


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