Victorian Premier Jacinta Allan has sealed a $453 million deal with Chinese industry leaders to supply four massive tunnel boring machines (TBMs) for Melbourne’s Suburban Rail Loop, the state’s most expensive transport project to date.
Today, during the final day of her official China visit, Ms Allan will shake hands with executives at a construction site in Deyang, near Chengdu, locking in the critical machines to carve twin tunnels between Glen Waverley and Box Hill.
The TBMs will be built in Zhengzhou and are expected to arrive in Melbourne in 2026. Two will launch from Burwood heading south to Glen Waverley, while two will tunnel north towards Box Hill. The purchase forms part of a $1.7bn contract awarded to global consortium Terra Verde (Webuild, GS Engineering & Construction, and Bouygues Construction Australia). In total, contracts exceeding $5.5bn have been signed, despite the project facing an estimated $20bn funding gap.
“Chinese companies are investing in the SRL, and Victorian workers are building it,” Allan said, adding, “Why shouldn’t we aspire to a public transport system like China’s? They have fast trains and rail loops everywhere.” Earlier this week in Beijing, Allan sidestepped questions about Chinese funding for the project, promising “more to say over the course of the week.” On Thursday in Shanghai, she declined to comment on Chinese state media warnings that Australia was “two-faced” for benefiting from trade with China while supporting U.S.-led security alliances like AUKUS.
Allan unveiled her “China Strategy” during the trip, aiming to make Victoria the first choice for Chinese investment in public transport and renewable energy. However, Victoria’s aggressive tax regime—introduced to counter a looming $194bn debt by 2029—has prompted some investors to favour Sydney or Brisbane. Analysts also warn the SRL could further pressure the state’s credit rating, which has already been downgraded twice.
In Shanghai, Allan posed for photos with Chinese singer-actor Wu Chun, newly appointed Visit Victoria ambassador, in a push to nearly double annual Chinese visitors from 411,000 to 800,000 by 2029. Additionally, RMIT University and Shanghai University of International Business and Economics formally began steps to establish a Joint Institute offering Australian-accredited programs to Chinese students.
