Skip to main content

Private consortium to finance Melbourne's Peninsula Link highway

Not long after the recent completion of the successful EastLink project (a 39km motorway providing a vital connection for 1.5 million people in Melbourne, Australia) the Victorian Government has started work on another missing link in Melbourne's freeway network further south with the construction of Peninsula Link. Peninsula Link is a key project in the Victorian Government's AUD$38 billion (US$32 billion) Victorian Transport Plan. With a AUD$750 million (US$630 million) price tag, the project is expected
July 13, 2012 Read time: 4 mins

Not long after the recent completion of the successful EastLink project (a 39km motorway providing a vital connection for 1.5 million people in Melbourne, Australia) the Victorian Government has started work on another missing link in Melbourne's freeway network further south with the construction of Peninsula Link.

Peninsula Link is a key project in the Victorian Government's AUD$38 billion (US$32 billion) Victorian Transport Plan. With a AUD$750 million (US$630 million) price tag, the project is expected to provide commuters with numerous benefits including a slashing of 40 minutes on predicted travel times and a large local economic stimulus with over 4,000 jobs to be generated during construction.

Peninsula Link is a 25km freeway from the end of EastLink in Carrum Downs to the Mornington Peninsula Freeway in Mount Martha, servicing residents and visitors to the popular Mornington Peninsula in southern Victoria.

In an Australian first for a road project, Peninsula Link will be delivered as an Availability Public Private Partnership (PPP). Under this model a private company will finance, build, design, operate and maintain the 25km stretch of freeway. In return for its spending, the Victorian Government will make periodic payments to the successful consortium. Factors which influence the amount and frequency of payments include key performance indicators such as road maintenance, traffic availability and customer service.

Adopting this innovative delivery model for Peninsula Link will allow the road to remain toll-free for the Victorian community while harnessing the benefits of private sector involvement, making the Peninsula Link project like no other.

The appetite from the private sector is strong, indicating that companies are ready, willing and able to partner with governments on major infrastructure projects using the Availability model.

After an initial five expressions of interest in the project, three consortia have been shortlisted to continue into the interactive bidding phase for Peninsula Link. Final bids are due in late October with a contract to be awarded by the end of the year.
The three consortia vying for the contract are ConnectSouth (4755 John Holland, 6191 Fulton Hogan and 2378 Macquarie Bank); Southern Way (1362 Abigroup, 2516 Bilfinger and Berger and 6192 The Royal Bank of Scotland), and Connect 11 Partnership (2642 Thiess, McConnell Dowell and 881 Commonwealth Bank of Australia).

The award-winning EastLink project set a new benchmark for construction techniques, innovation and urban design. Peninsula Link will be no different and will not disappoint local and visiting motorists alike. The project will build on the success of EastLink to provide an outstanding result for the motoring public and residents living along the corridor.
The landscaping and design component will include iconic indigenous native plants, trees and shrubs coupled with high quality urban design.

Motorists will have the benefit of double lanes in each direction with continuous 100km/h freeway from Melbourne's Central Business District to Rosebud in southern Victoria.

Just to sweeten the deal, the freeway will bypass eight signalised intersections, one signalised rail crossing and five major roundabouts.

But motorists are not the only ones to receive some benefits from the new freeway. Provisions have been made for a cycle and footpath to accommodate those on two legs and two wheels of the non motored variety.

Peninsula Link is marked for completion by early 2013 and if Linking Melbourne Authority's previous history is anything to judge by with EastLink opening a staggering five months early, it won't come as a big surprise if this project follows suit.

The Linking Melbourne Authority (previously SEITA) was responsible for the delivery of EastLink and now manages it. Under the guidance of a highly experienced board and part of the broader Department of Transport, the Linking Melbourne Authority team uses its project management, engineering, commercial and communications capabilitites to facilitate major road project delivery on behalf of the Government.

Work started on the Peninsula Link in July with the turning of the first sod for an overpass, which will allow construction vehicles to travel under the new overpass to access the main site, taking heavy vehicles off local streets.

Related Content

  • Australian Institute of Landscape Architects (AILA) anger over East West Link
    August 6, 2013
    The Australian Institute of Landscape Architects (AILA) fear the design of the proposed multi-billion dollar East West Link highway in Melbourne will have a “substantial visual, environmental and amenity” impact on peoples quality of and the open spaces they enjoy. Kirsten Bauer, president of the AILA Victorian Chapter, has attacked the plans for the 18km tolled motorway, set to run from the western suburbs to the Eastern Freeway, after she and other Victorian AILA members had reviewed the “so called detai
  • Mersey Gateway shortlist revealed
    March 14, 2012
    The shortlist of three bidders for the US$942million (£600m) plus Mersey Gateway Project in North West England has been revealed.
  • Global credit squeeze impacts Australia's road construction
    July 13, 2012
    Roads Australia steps up in policy debate as road construction feels the pinch of the credit squeeze, as Mark Bowmer (RA media director) reports Like all markets around the world, Australia is feeling the effects of the global credit squeeze and its impact on the delivery of major infrastructure projects such as roads. In Sydney, for example, lack of funding (both from government and private sources) is seen as the major stumbling block to the construction of a much-needed eastern extension to Sydney's main
  • Partners win highway operation deal in New South Wales, Australia
    January 11, 2016
    Egis Projects and its partner Fulton Hogan Construction have won a major contract for the operation and maintenance of the WestConnex highway link in New South Wales Australia. The package was awarded by Sydney Motorway Corporation (SMC) to Fulton Hogan Egis O&M (FHEO&M). The partners hold equal 50% shares in the project. Egis has its share in the Australian project through its Australian subsidiary Egis Projects Asia Pacific.