Multiplex Construction has boosted its chances of winning a slice of a 1.65km rail tunnel as part of Perth’s US$791.9M southern rail project by negotiating an option over the former Myer building.

The structure is earmarked as the site of the main underground railway station in Perth’s central business district on the Perth to Mandurah rail project.

Perth City rail advisory committee recently recommended the city portion of the railway should be built in a 1.65km twin bore tunnel under the Swan River convention centre and William Street to connect with the existing central station. Two cut and cover stations are planned – one at the Esplanade and the other at the Myer building.

The state government has not released details of its tendering strategy for the railway but there has been speculation that the estimated US$113M tunnel and associated stations could be built as a privately financed scheme.

Contractors would be invited to build the rail tunnel in return for the rights to develop commercial property above the underground railway. Hence the interest in the Myer building.

Perth City rail advisory committee has also recommended extending the central district rail tunnel to Northbridge, although the government has yet to include this as part of its overall rail plan.

The committee has also suggested that a 600m section of highway which blocks the city from the foreshore should also be rebuilt in tunnel as part of the rail plans.

Planning and infrastructure minister Alannah MacTiernan has not commented on the committee’s recommendations until they have been discussed by the state government’s cabinet. But government ministers are known to generally support the committee’s findings.

A railway masterplan is due to be published this month.