A fast-rail link from Geelong to Melbourne has hit a dead end as a multi-billion-dollar train line to Victoria's major airport survives the axe.
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Geelong Fast Rail was among 12 Victorian projects cut after a federal infrastructure review that blew out from 90 days to almost 200.
Former Liberal prime minister Scott Morrison pledged $2 billion to build Geelong Fast Rail before the 2019 federal election, but that relied on a matching commitment from Victoria.
After initially labelling it a fantasy, the Victorian government pledged to match the funding in a major about-face the following year.
Construction was slated to begin in 2023, with the line to slash the commute time for passengers from about 75 minutes to 50 minutes.
Victorian Transport Infrastructure Minister Danny Pearson on Thursday described the project as a thought bubble.
"(It) really didn't stack up," he told reporters at state parliament.
The cancellation of the fast-rail line is a bitter blow for the growing region, Greater Geelong Mayor Trent Sullivan said.
"Our rail service is under extreme pressure and a high-speed rail is long overdue," he said.
"Commuters are tired of disrupted timetables, long journeys and overcrowding."
Other projects dumped as part of the review include upgrades of the Western, Calder, Mornington Peninsula freeways, the Frankston to Baxter Rail upgrade and a business case into an intermodal terminal for inland rail in Melbourne.
Premier Jacinta Allan said all the previously allocated federal cash must be redirected to other state infrastructure projects.
"Every single dollar," she said.
Melbourne Airport Rail was not on the review's hit list, which was unveiled by Infrastructure Minister Catherine King in Canberra.
The Victorian and federal governments previously each committed to contributing $5 billion towards the project, which is expected to cost between $8 billion and $13 billion.
The rail line to connect Melbourne to Tullamarine was originally due to be completed by 2029, with new stations and a sky rail bridge.
But talks between the governments and Melbourne Airport have ground to a halt because of the review and a push by airport's lease holders to include an underground station at Tullamarine.
"Negotiations have been frustrating for three years," Ms Allan said.
"The stalling tactics from the airport have caused delays to that project."
Mr Pearson indicated the Victorian government wouldn't budge on its preference for a cheaper, elevated station at the airport.
"We've offered to give them a car and they're saying we want a Lambo. Well no, sorry" he said.
Melbourne Airport's land is leased by the Commonwealth to the Australia Pacific Airports Corporation Limited under a 50-year deal.
Mr Pearson suggested the federal government could use the arrangement to force the airport's hand.
A Melbourne Airport spokesman said it was important to get the rail link right, with the owners standing firm on the need for an underground station.
"The airport station must be fit for purpose and future proof," he said in a statement.
FULL LIST OF AXED VICTORIAN INFRASTRUCTURE PROJECTS:
* Business case for Melbourne Inland Rail Intermodal Terminal
* Calder Freeway - Gap Road to the M80 Ring Road
* Camberwell Road / Monteath Avenue / Redfern Road intersection upgrade
* Frankston to Baxter rail upgrade
* Geelong Fast Rail
* Goulburn Valley Highway - Shepparton bypass stage one
* Improving connectivity to Port of Melbourne business case
* McKoy Street - Hume Freeway intersection upgrade
* Mornington Peninsula Freeway upgrade
* Rutherglen heavy vehicle alternative route
* Victorian faster rail corridor investigations
* Western Freeway upgrade - M80 Ring Road to Ferris Road
Australian Associated Press
