Federal Transport Minister Catherine King, alongside her Victorian counterpart, on Wednesday unveiled a $4.1 billion joint investment to build a transport "superhub" in Melbourne's west as the city's Airport Rail project gets under way.
Prime Minister Anthony Albanese has also thrown his support behind a fast rail connection between Melbourne and Sydney.
Mr Albanese told the Future Victoria Summit he intends to be the leader who launches the project, adding he envisioned travelling from Sydney to Melbourne in "under three hours".
"I accept that I will not be the prime minister when high-speed rail is finished," he said.
"But I am determined to be the prime minister who starts it."
Mr Albanese told the crowd he strongly backed the airport rail link, with construction imminent in the city's west.
Works will include six kilometres of new track, two rail bridges, a longer concourse, and two new regional platforms, creating space for the airport rail link as well as existing passenger and regional services.
"It is a really complex and big project and it's basically building the Southern Cross station in Sunshine," Ms King told reporters on Wednesday.
"It is untangling the rail network that then opens up the capacity for us to build the line out to Melbourne Airport."
Construction was paused in 2023 after Melbourne Airport Rail became entangled in a protracted federal infrastructure review.
When the review finally gave it the green light to continue, the airport and state government were at loggerheads over whether the planned station at Tullamarine should be underground or elevated.
Mediator Neil Scales was hired to end the dispute and found the underground station should no longer be an option, prompting the airport to relent.
Melbourne Airport chief executive Lorie Argus said there was no set completion date for the rail project.
"We know we need it," she told reporters on Wednesday.
Construction at Sunshine will be the most complex part of the project, the government has previously said.
The station will be designated a Suburban Rail Loop precinct to allow higher-density housing to be built around it.
This planned 90km orbital rail loop is designed to run from Melbourne's southeast to the outer west via the airport at Tullamarine.
The funding announcement comes as Melbourne Airport unveiled plans for its $4.5 billion expansion, set to transform the international terminal.
Five new gates will be added to terminals, while a new pick up and drop off zone will be created.
Ms Argus said the expansion would provide an improved passenger experience and complement the airport's third runway, when opened in 2031.
23°C