Sunshine Coast Council to Study New Light Rail Linking Hospital, Airport

The Sunshine Coast Council endorsed an update to its local infrastructure policy on 7 July 2026 that directs staff to complete stage two of the light rail feasibility study between the Sunshine Coast University Hospital and the Maroochydore airport precinct.

The decision follows the release of the council's 2026-27 budget papers, which list transport corridor protection among the top three capital priorities for the next four years. Council documents note that both the hospital expansion and the addition of international routes at the airport are scheduled to increase daily passenger movements by several thousand within the decade.

Daily travel for local workers

Staff at the hospital and airport employees living in areas such as Buderim, Sippy Downs and Mountain Creek currently rely on the existing bus network or private vehicles. The updated policy requires the feasibility team to model peak-hour travel times for shift workers who finish after 10 pm, when current services are limited. Local advocates note that reliable connections could reduce the need for second cars in households where one partner works at either site.

The policy also directs planners to examine how any future line would integrate with existing coastal development controls along the Nicklin Way corridor. This includes requirements that new stations be located within 400 metres of approved residential zones rather than greenfield sites.

Next steps in the process

Council officers will release a project scope and consultation timetable by the end of August 2026. The legislation governing the study requires that any preferred route option be placed on public exhibition for at least 60 days before a final recommendation returns to the chamber. The government says the policy will produce a business case suitable for state and federal funding applications in the 2028 budget cycle.