Airport
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A mediator appointed by the federal government has favored an above-ground train to the Melbourne airport, citing it as a cheaper option compared with the costlier underground project.

The government mediator Neil Scales argued that the $10 billion project remained "viable and necessary," but supported an above ground train project, ABC News reported.

The federal government appointed Scales to mediate between Victoria state and Australia Pacific Airports Melbourne that owned and operated Melbourne airport to settle the long-running standoff between the two stakeholders.

The train project was delayed after the Victoria government approved an above-ground train as opposed to the underground option demanded by the airport, according to The Guardian report.

The Victoria government will be funding the project along with the federal government.

Responding to the report submitted by Scales that "recommended against further commonwealth and state consideration of an underground option at this time," a spokesperson for the airport stated they will continue to fight for an underground train.

Scales' report, however, allows airport owners to present their business case so that the government can examine the details. But, the airport spokesperson said they will stress on the same plan instead of commissioning a new one.

"We remain consistent in our view that an underground station at the airport is the right solution for the traveler, the airport and the city," the spokesperson said.

The airport and the Victorian government were negotiating on an above-ground station till 2023, when the state referred the project to the Federal Infrastructure Review. According to insiders, the state move could be aimed at delaying the construction to improve its budget outlay.

Melbourne with its five million residents lacks a rail link to the airport. The train project is the third major recommendation in Scales' report, in addition to continuing the Sunshine Station works and reevaluating the Tullamarine Freeway's capacity over time.

Supporting the report, Victorian Minister for Transport Infrastructure Danny Pearson said he favored an above-ground station.

"The report makes clear what we have said from the start — Melbourne Airport's demand for an underground station does not stack up," Pearson said. "It will involve greater disruption, take almost two years longer to deliver and cost taxpayers billions more."