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SRL East construction starts in Melbourne

Ghella-Acciona-CPB JV kick off major construction works on Suburban Rail Loop in Melbourne

Construction Front Team by Construction Front Team
May,2025
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Major construction activities are now underway on the Suburban Rail Loop (SRL), marking a significant milestone for one of Victoria’s most ambitious transport infrastructure projects. Current works are focused on developing a large-scale tunnel boring machine (TBM) launch site in Clarinda, which will be the starting point for tunnelling operations set to commence in 2026.

TBMs are expected to begin arriving on site later this year. Once assembled, they will commence excavation of the southern portion of the SRL East tunnels.

Suburban Rail Loop (SRL) - Project Details

The Suburban Rail Loop project is set to introduce a 90-kilometre orbital rail line that will link every major metropolitan train service—connecting the Frankston Line in the southeast to the Werribee Line in the west, via Melbourne Airport.

 This new line is designed to significantly improve connectivity across Greater Melbourne, enabling easier access to employment centres, retail hubs, universities, and healthcare facilities while promoting stronger community interaction.

The Victorian Government has adopted a staged delivery strategy, dividing the overall program into four major infrastructure packages:

  • SRL West – Connecting Werribee to Sunshine

  • SRL Airport – Running from Sunshine to Melbourne Airport

  • SRL North – Extending from Melbourne Airport to Box Hill

  • SRL East – Linking Box Hill to Cheltenham 

Suburban Rail Loop Packages
Details of the four major packages for SRL Project (source: bigbuild.vic.gov.au)

SRL East - Major Construction Works Kick off

The joint venture Acciona–CPB–Ghella consortium, (Suburban Connect) has been engaged to construct 16 kilometres of twin tunnels running between Cheltenham and Glen Waverley, . Meanwhile, Terra Verde JV (Webuild, GS Engineering and Construction, and Bouygues Construction Australia) will be responsible for delivering the tunnel sections from Glen Waverley through to Box Hill, completing the SRL East package. 

According to the Victoria Government, both tunnelling contract packages for SRL East are being delivered under  Incetivised Target Cost / Alliance Contracts. This contract model promotes collaborative delivery and includes risk-sharing mechanisms, whereby cost underruns and overruns are shared between the client and the delivery partners.

The Clarinda site will see the deployment of four TBMs—two heading north towards Glen Waverley and two heading south to Cheltenham. In parallel, work is progressing on a second TBM launch site in Burwood. This location will support tunnelling activities beginning in 2026, contributing to the delivery of SRL East infrastructure.

Australia’s First ‘Flying Launch’ TBM Operation

For the first time in Australia, the project will utilise a method known as a ‘flying launch’ to deploy TBMs. This technique allows tunnelling to begin while TBM assembly continues behind the excavation face. Each TBM will take approximately three months to be fully assembled, with the capacity to tunnel up to 90 metres per week.

Job Creation and Long-Term Benefits

Construction on SRL East is expected to generate up to 8,000 direct jobs. Currently, more than 3,000 workers are already engaged in various stages of the project.

Upon completion, SRL East trains are projected to commence operations in 2035. The new rail corridor aims to improve access to employment, education, and healthcare across Melbourne’s eastern and southeastern suburbs. It is also expected to catalyse the development of thousands of new homes in areas well-served by public transport and essential services.

Related Project and News – Rail Projects

  • Logan and Gold Coast Faster Rail Major Contract awarded to Acciona-CPB-UGL JV
  • Hochtief and Implenia JV Secure New Ostbahnhof Tunnel Contract with Deutsche Bahn
  • AECOM-Led Joint Venture to Modernize Amtrak’s Northeast Corridor
Source: bigbuild.vic.gov.au
Tags: allianceAustraliaAustralian & NZ market newsproject milestonerailTunnelVictoria
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