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State govt vows to do large-scale interchange project despite funding let-down

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Deputy Premier Jarrod Bleijie says the Queensland government is committed to ensure a huge interchange project is completed by 2032, despite a lack of federal funding and questions from the Opposition.

Mr Bleijie said the Mooloolah River Interchange Upgrade will be delivered before the Brisbane Games, after the project was excluded from the 2026 Infrastructure Australia Priority List and after Labor pushed for more details.

“Unfortunately, it hasn’t been added (to the list),” he said.

“But guess who’s getting on with the job and building it? The Crisafulli Government.

“It’s a huge project and, if you drive at the end of Nicklin Way or Mountain Creek or the (Sunshine) Motorway, you will see the action that’s happening there at the moment.  The interchange is being built.

“We would have loved the federal government to fund some of it. We still invite them to the part. But if they’re not, we’re getting on with the job. It has to be done.”

An impression of the Mooloolah River Interchange Upgrade.

His comments came after Labor Shadow Treasure Shannon Fentiman called for more information on the project.

“Jarrod Bleijie has prioritised his (planned) bus network over the Mooloolah River Interchange, meaning Sunshine Coast motorists are destined for years of gridlock,” she said.

“He should explain who much the interchange will cost, who will fund it, who will build it and when it will be complete,” she said.

The MRIU is expected to improve travel in the heart of the Sunshine Coast. It’s part of the three-stage multibillion-dollar public transport initiative dubbed The Wave.

Stages 1 and 2 will include a new rail line from Beerwah to Birtinya. Stage 1 has $2.25 billion of federal backing while Stage 2 is on the priority list.

Stage 3 includes a metro vehicle system from Birtinya to Sunshine Coast Airport, and the MRIU.

“All stages – one, two and three – will be delivered on the Sunshine Coast before 2032,” Mr Bleijie said.

“They’re interconnected so they all have to happen at the same time.”

Stage 1 of the MRIU and potential future stages of the MRIU.

Federal funding for the interchange was pulled in 2023 and it was revealed that it could cost significantly more than anticipated in 2024.

But the state government announced it had not given up on the project later that year, and then pledged funding for it  in 2025, without providing precise details.

It’s still unclear how much it will cost or how it will be paid for, but Mr Bleijie was optimistic the federal government could lend a hand.

“We would love 50 per cent funding from the feds,” he said.

“We did a deal with the federal government on the Bruce Highway funding.”

“(And) I would hope that we can do a deal with the federal government like we did with stage 1 (of The Wave), with 50-50 funding.”

Stage 1 of the MRIU will include a: new road overpass to provide a more direct and efficient connection from Nicklin Way to Brisbane Road at Mooloolaba; a new local road connection between Karawatha Drive at Mountain Creek and Brisbane Road at Mooloolaba; new signalised intersection linking Brisbane Road and the new connection to Karawatha Drive, and provision of a two-way service road; new active transport provisions for pedestrians and bike riders, connecting Mountain Creek and Mooloolaba; and local traffic separated from high-speed motorway traffic. Properties are likely to be impacted.

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One of the clearings at the site of the MRIU. Picture: Steele Taylor.

The state government committed funding to progress early works activities for Stage 1 as part of the 2025-2026 budget. The cost of Stage 1 was expected to be refined during the tender process for the main construction works.

Possible future stages of the MRIU could include multiple changes, including additional lanes, overpasses, crossings and connections.

Sunshine Coast News has reached out to Infrastructure Australia for comment.

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