This would cost a lot less than the $200m Southern Cross Station are asking to build a middle concourse. Another surprise is that a similar project to build a second concourse at North Melbourne Station cost only $36m in 2006. Is this the rate of cost escalation in the industry, or because it is a PPP and the government is now no longer able to call competitive tenders?
While I have no doubt the factors you mention play a part, there's also the practicalities of building said third concourse. For a start, it's nearly three times as long. There's also the fact the station has a lid, meaning any crane use is going to be made very challenging. External access is also substantially more difficult than North Melbourne and would probably necessitate demolishing some part of the station exterior.