Consortium set to get $9 billion to build part of rail loop, operate trains
Two sources told The Age that TransitLinX – a group of companies comprising John Holland, RATP Dev, Alstom, KBR and WSP – is the preferred bidder for the 'linewide' contract of the SRL East, a $34.5 billion underground rail line between Cheltenham and Box Hill.
The contract, under which the companies will be tasked with building the trains used on the line, operating and maintaining the network and fitting out the tunnels, is expected to be worth at least $8 billion to $9 billion.
TransitLinX will now begin the process of negotiating and finalising the details of the contract with the Allan government. The contract is to be signed by the end of this year.
The second group that was shortlisted in the process, UrbanLeap, included companies Gamuda Engineering, Keolis Downer, Siemens, AECOM, GHD, Hyundai Rotem and Downer Rail.
Two tunnelling contracts for the project have already been signed and are valued at $3.6 billion and $1.7 billion, respectively. Another two contracts to build stations along the railway line have not been awarded.
Moving ahead with the biggest contract on the project to date will reaffirm Premier Jacinta Allan's commitment to the project, despite opposition calls for her government to cancel, and uncertainty over whether new taxes and Commonwealth funding will be enough to pay for two-thirds of the project as expected.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Sydney Morning Herald
3 days ago
- Sydney Morning Herald
The suburbs set to be transformed by minister's sweeping powers
More than 70 major housing, energy and commercial projects have been approved by the Victorian government, bypassing local councils and sidestepping residents' objections. An analysis by The Age has found at least 40 more developments are in the pipeline for ministerial approval through the Development Facilitation Program, which allows Planning Minister Sonya Kilkenny to 'call in' and approve projects regardless of local opposition, including a proposed waste-to-energy-powered office tower in Cremorne. The property industry has lauded the bolstered ministerial powers as a critical way to accelerate housing supply and investment, but councils are demanding an urgent review and claim there is no evidence it has sped up the construction of new homes. Projects already approved under the program include an 18-storey, 400-home apartment building in Collingwood, which Yarra City Council had opposed. Property Council Victoria executive director Cath Evans said the DFP was a 'critically important' pathway to accelerate housing approvals and address blockages in development and construction. 'While this has been a positive initiative, there remain significant overall delays in planning approvals and red tape, such as the lengthy wait times many in the industry are facing on essential infrastructure delivery, such as water and power,' she said. According to the state government, its DFP pathway has approved 4802 homes since the launch of the Housing Statement in September 2023, when then-premier Daniel Andrews set a target of building 800,000 homes in Victoria over the next 10 years. The government can use the bolstered program to fast-track developments and bypass local councils based on several criteria, including a significant economic contribution, inclusion of affordable housing, or high-quality design and sustainability.

The Age
3 days ago
- The Age
The suburbs set to be transformed by minister's sweeping powers
More than 70 major housing, energy and commercial projects have been approved by the Victorian government, bypassing local councils and sidestepping residents' objections. An analysis by The Age has found at least 40 more developments are in the pipeline for ministerial approval through the Development Facilitation Program, which allows Planning Minister Sonya Kilkenny to 'call in' and approve projects regardless of local opposition, including a proposed waste-to-energy-powered office tower in Cremorne. The property industry has lauded the bolstered ministerial powers as a critical way to accelerate housing supply and investment, but councils are demanding an urgent review and claim there is no evidence it has sped up the construction of new homes. Projects already approved under the program include an 18-storey, 400-home apartment building in Collingwood, which Yarra City Council had opposed. Property Council Victoria executive director Cath Evans said the DFP was a 'critically important' pathway to accelerate housing approvals and address blockages in development and construction. 'While this has been a positive initiative, there remain significant overall delays in planning approvals and red tape, such as the lengthy wait times many in the industry are facing on essential infrastructure delivery, such as water and power,' she said. According to the state government, its DFP pathway has approved 4802 homes since the launch of the Housing Statement in September 2023, when then-premier Daniel Andrews set a target of building 800,000 homes in Victoria over the next 10 years. The government can use the bolstered program to fast-track developments and bypass local councils based on several criteria, including a significant economic contribution, inclusion of affordable housing, or high-quality design and sustainability.

Sydney Morning Herald
3 days ago
- Sydney Morning Herald
State school teachers demand 35 per cent pay rise, smaller classes, reduced workload
The state's 52,000 government school teachers have demanded pay rises totalling 35 per cent over three years, reduced workloads, smaller classes and more mental health support. In its log of claims for a new enterprise agreement covering 1570 schools across the state, the Australian Education Union wants a 15 per cent pay boost in the first year of a new deal followed by 10 per cent in each of the second and third years. The increases would be based on the initial salary figure, and not compounded each year. In addition to the large wage rise, the teachers want smaller class sizes, more allied health and classroom support for students, more flexible working options, workload reductions and lower administrative burdens. Rank-and-file teachers and principals are in a mutinous mood after years of underfunding to government schools, a workforce crisis and a pay deal three years ago that delivered annual pay rises of 2 per cent, just as the cost-of-living crisis began to bite. They remain the nation's lowest-paid state education workforce with Victorian graduate teachers earning $13,000 less than the best-paid graduates in the Northern Territory and $8700 less than those in NSW. A group of unionists running on a 'strike now' ticket pulled in 37 per cent of the vote in internal elections late last year, and the union's state branch president Justin Mullaly told The Age in April that strike action was not off the table as part of teachers' campaign for better pay. Several hundred unionised teachers rallied at the electorate office of Education Minister Ben Carroll in Melbourne's north-west last month to voice their determination to fight for more money and better conditions. But the state's capacity to pay may be in doubt, with Treasury grappling with debts set to hit $167 billion this year and the government looking to cut 1200 jobs in a bid to save $3 billion. The government also secretly stripped $2.4 billion from future school spending by delaying by some years, money due to be spent under the long-promised Gonski reforms.