Will The City To Airport Rail Link Kill Car Parking Businesses At Tullamarine Airport ?

By Mitch Rice

Last year, the Deputy Premier of Victoria spoke at length about the issue of car parking at Melbourne’s Tullamarine Airport. There have been inordinate delays in the project, and the situation hasn’t been made easier by the dispute between the airport and the federal government. The tussle over  the airport rail link has reached a stalemate with the airport authorities pushing for a below ground solution while the government prefers what it sees as a more feasible option above ground. 

This is the main bone of contention that has delayed the project for years. 

What’s Better: Above or Below Ground? 

The $10 billion project that’s slated to be completed in 2029 involves several factors. The land that the airport stands on is owned by the Commonwealth and any structural plans that are proposed by the airport authorities have to be first vetted and cleared by the minister for federal infrastructure. 

Some sources report that the airport authorities may be deliberately creating a stalemate so that they can rake in the humongous profits generated by airport car parking on the premises. 

Airport spokespersons opine that there are several issues that make an above ground project not viable, including technical problems, safety issues, the need for complete weather-proofing, and difficulties in passenger access.

The government’s contention is that an above ground solution is much cheaper and faster to complete. Tunnel boring machines are already in use on other rail links nearby and it would be convenient to shift them, saving time and money. This is being countered by the Tulla authorities who say it is ugly and it would inconvenience passengers who have to traverse the windswept Tullamarine Airport grounds to reach their respective terminals. 

Successive governments have put the project on the back burner, recommending that it wait till there is adequate passenger demand. Currently, the return on investment is not enough to justify such a major expense. 

On the other hand, Tullamarine is now the second busiest airport in the country.  Perth, Sydney and Brisbane have their own rail links similar to other big cities across the world. In opposition, it must be noted that Victoria currently faces a massive debt problem, and this may not be the right time for big ticket infrastructure projects. Construction prices are at an all time high and it makes more economic sense to pull back on big spending right now till prices become more stable. 

Benefits of Rail Link

As Melbourne continues to expand and push existing boundaries, planning for the future is crucial. Sunshine station is proposed to be the transport hub that links other important rail, metro and regional train services. 

Enhanced station facilities, better connectivity with bus and road services, improved pavements, improvement in road and pedestrian access, open spaces for future developments and more are among the big benefits that are pegged to the city to airport rail link project.  

Travel time from the Central Business District in Melbourne can be reduced to under 30 minutes with no change of trains required midway. Connectivity across Melbourne will also be enhanced. Less cars will be used to get to the airport, resulting in less traffic congestion and vehicular pollution. 

The project could boost employment in the local area (an estimated 8000 jobs during construction) and offer more opportunities for commercial and residential real estate development. 

Airport Rail Link and Car Parking Businesses

It’s the car parking businesses that kept many airports functional and profitable during the Covid 19 pandemic. With aviation operations coming to an almost complete halt, car parking fees were one of the few sources of income for major airports across the country.

Airport parking has always been more attractive to travelers, especially international ones. Negotiating public transport with heavy luggage, children and seniors, or persons who use wheelchairs is not easy. Driving straight to the airport in the comfort of your own car, pre-booking your parking, and leaving your vehicle there in safe custody makes the travel experience hassle free and pleasant. 

Many off-site parking facilities around Tullamarine offer attractive rates and advanced security facilities. They also provide loyalty programs for frequent use of the parking and this helps to save money that you can use elsewhere on your travels. 

One of the sticking points in the project is the potential demise of the airport car parking business. Recent estimates show that the airport collects between $400,000 to $1 million a day from car parking fees. This figure far outstrips collections from any other airport in the country. 

Melbourne’s Tullamarine airport is the only international airport that does not have rail link services. There is widespread speculation that originally there was a master plan to include rail link infrastructure when the airport was first constructed. This information remains unconfirmed. 

Unfortunately, the rail link issue has turned into a political tinderbox over the decades, and no political party wants to take a firm stand on it. 

Advocates of the rail link cite reasons of the enormous reduction in vehicular pollution when the link becomes operational. However, they forget that a massive project such as this would create its own environmental pollution hazards. The cost of running such a major electrical network would also be huge, both in financial and economic terms. 

Many experts opine that the cost of the rail link may outweigh the benefits. Travelers may use it only a few times in a year, and this would make the whole exercise unviable. 

Currently thousands of car parks may be out of operation while a major road project begins this year and will be completed only in 2026. A large number of them will be re-purposed for pick up and drop off, while some would be removed from the value parking zone while construction is underway. 

As things stand, the rail link project could impact the car parking businesses at Tullamarine Airport like https://www.unitedairportparking.com.au, but it remains to be seen how much of a hit this will be. Rail links the world over have proved beneficial for some travelers but not all. If your flight timings don’t sync with the train timings, you would prefer to drive into the airport and park rather than risk missing your flight. Rail services usually have several stops en route, and that could increase travel time. The rail link service should be designed so that the coaches have adequate luggage stowing areas. The design must service multiple terminals to ensure quick and efficient movement of passengers. 

Melbourne’s rail network is not among the most efficient of public transportation services. Regional services are given higher priority than metropolitan ones, and this creates blocks that could increase your stress as you race to catch your flight at the airport. 

The car parking business is a mature and well-organized sector, but it will have to modify and evolve to face the undoubted impact if and when the airport rail link becomes a reality. 

Data and information are provided for informational purposes only, and are not intended for investment or other purposes.