Tunnelling works are set to begin in 2026. Credit: Acciona.

Australia’s Victorian Government has awarded a $3.6bn contract to the Suburban Connect consortium to deliver the first major tunnelling package of the Suburban Rail Loop (SRL) East project.

The Suburban Connect consortium, which was chosen as the preferred bidder for the award in August 2023, comprises CPB Contractors, Ghella, and Acciona Construction.

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Under the contract, the consortium will be responsible for the construction of a 16km section of the 26km twin tunnels of the SRL East project, and the tunnels between Cheltenham and Glen Waverley.

The scope of the contract also includes the construction of two new underground station boxes and works at the Southern Stabling Yard.

Major tunnelling works are planned to begin in 2026.

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The SRL East project involves six new underground stations between Cheltenham and Box Hill, and is expected to create 8,000 direct jobs.

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As part of the contract, most ground preparation works required to excavate safety cross passages between the twin tunnels are planned to be managed underground. This will help reduce impacts on residents, schools, and roads.

Victoria Premier Jacinta Allan said: “We are full steam ahead with the Suburban Rail Loop – by 2026, tunnel boring machines will be in the ground and Victorians will be hard at work delivering a project that will slash travel times and transform our transport system.”

Furthermore, two other undisclosed bidders will now compete for the second tunnelling package between Glen Waverley and Box Hill. The contract is planned to be awarded in 2024.