$1.7 Billion Tunnelling Contract Boosts Melbourne’s SRL East

The Victorian Government has taken a major step forward with the Suburban Rail Loop East (SRL East) by awarding the $1.7 billion Tunnels North contract to the Terra Verde consortium. Composed of Italian construction giant Webuild, GS Engineering and Construction from South Korea, and Bouygues Construction Australia—part of the global French company Bouygues Construction—this partnership signifies a powerful, diverse collaboration in infrastructure development.

The SRL East, slated to open in 2035, represents the first phase of Melbourne’s ambitious Suburban Rail Loop, a transformative 90-kilometre orbital rail line encircling the city’s middle suburbs. This major project will enhance connectivity across Melbourne, linking the southeast, east, northeast, north, northwest, west, and southwest areas. When fully operational, the rail loop is expected to serve over 70,000 passengers daily, providing an efficient and reliable public transport option that aims to reshape commuting in one of Australia’s fastest-growing cities.

The Tunnels North contract is the second and final tunnelling package for SRL East, complementing the initial contract awarded to the Suburban Connect consortium in 2023 for the section between Cheltenham and Glen Waverley. This new contract involves the construction of two 26-kilometre-long tunnels, extending from Glen Waverley to Box Hill, and covering six new stations. The launch of the tunnel boring machines is set to commence from Burwood in 2026.

Beyond tunnelling, SRL East includes the construction of state-of-the-art stations and the fitout of tunnels, which will integrate seamlessly with the new trains and overall network operations. To ensure smooth execution, the government has shortlisted three consortiums to compete for station-building contracts, divided into two major projects. One contract will cover the construction of stations at Glen Waverley, Burwood, and Box Hill, while the second will oversee stations at Cheltenham, Clayton, and Monash.

The scope of work extends to the crucial train, tunnel fitout, and operational components, with two bidders currently in the running for these vital contracts. This comprehensive approach ensures that every aspect of SRL East, from the underground infrastructure to the operational systems, is well-coordinated and optimised for performance and efficiency.

SRL East is more than just a transport initiative; it is an economic and employment powerhouse. By 2026, it is anticipated that up to 4,000 workers will be employed on various aspects of the project, offering significant opportunities within the construction sector and reinforcing Melbourne’s status as a leader in urban development. The project reflects the state’s commitment to long-term infrastructure investment that supports both job creation and sustainable city growth.

The Terra Verde consortium’s involvement underscores the value of international expertise converging on Australian soil, bringing innovative practices and reinforcing global partnerships. As SRL East moves forward, it stands as a beacon of progress, showcasing Melbourne’s drive to build for the future while supporting local industries and inspiring a new wave of infrastructure excellence.