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Cross your fingers on Cross River Rail

By Ross Elliott - posted Monday, 13 March 2017


Earlier this year I wrote a story about the costs of Brisbane's cross river rail, relative to the number of people who might actually use it. A number of readers – some of whom are in positions to know – corrected me. I was off by several billion dollars on the costs. The true costs of this project are much more than I had realised.

The Cross River Rail is a proposed 10.2 kilometre new rail crossing under the Brisbane River. It will include five new stations and is, we are told, essential to avoid passenger and freight rail networks choking. The proposal first emerged under the Bligh Government. Back then we were told the choke point would come at 2016. It was amended under the Newman Government to include a bus tunnel. And then amended again under the Palaszczuk Government, without the bus tunnel. The choke point didn't arrive so the rail transit Armageddon date is being pushed back.

We are told the project will cost $5.4 billion, which is what I based my numbers in the last article on. Wrong. This does not include the cost of the five new stations. Nor the rolling stock, marshalling yards and other bits and pieces. Some of these stations are 60 metres below ground. They won't be cheap. In reality, the actual cost of the cross river rail project will be closer to $10 billion – and that's before the inevitable cost blow outs.

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To allay fears that this very expensive project might in some way be out of proportion to current use, we have now been promised that "SEQ rail commuters will double in 10 years: Government figures." This story contained parts of the business plan not released publicly but selectively shared with that media outlet. But a doubling of passengers in 10 years? Seriously? Is there anywhere in the known universe where public transit under similar circumstances has doubled in the space of 10 years?

This is little more than a prayer, not an evidence based projection. To find it repeated in the media without challenge is a sign of our times I guess. If the project feasibility is relying on this sort of faith based expectation, particularly given rail transit has been falling both in terms of its share of travel and the actual number of people using it, then some meaningful justification ought to come with it.

Recent experience with traffic projections should mean that heroic promises of this nature are immediately viewed with extreme caution. Look no further than the predicted vehicle traffic through tolled tunnels and bridges, detailed in this story. The heroic inaccuracies of the Clem 7 tunnel predictions sent investors broke on that one. And the Airport link tunnel opened with 56,000 vehicles against a predicted 194,000. It was still in 2016 sitting at 57,000 against a predicted 221,000. That's some margin for error.

Maybe we shouldn't start with much in the way of expectations. Queensland Rail happily cut the ribbon on the $1.2 billion Moreton Bay rail line but forgot to have enough drivers to drive the trains. You'd like to know how many people are using this new service but that information is not publicly available. Are we not to be trusted? I am told though that the actual number of users, relative to the cost, is horrifyingly small.

It also emergesQueensland Rail have ordered $4.4 billion worth of New Generation Rolling (NGR) rolling stock but oops… the new rolling stock won't work with existing platforms. Which means each of every 143 platforms that form part of the city train network will have to be upgraded before the new rolling stock can be used. And what will this cost? Dunno.

So let's do a quick tally. New rail link to Redcliffe $1.2 billion but a fiasco in the opening months. New $4.4 billion of rolling stock but woops, we now need to upgrade all the platforms. Proposed $5.4 billion cross river rail – "essential to avoid system collapse" we are told (as if it hasn't collapsed already thanks to mismanagement) – is actually closer to double that price. But trust us, we know what we're doing. Hardly confidence inspiring and outright worrying given that tally of projects comes to $15.6 billion.

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Project proponents will claim the cost of the cross river rail will be less because they will recover the cost of the stations through 'value capture' – which means a benefitted area levy that taxes property owners in the vicinity of the stations. These owners will be so happy with a new station that this won't be a problem. There are also proposed hikes to motor vehicle registration fees, a car park levy (because parking's so affordable already isn't it) and for good measure a public transport infrastructure levy that property owners will also pay, irrespective of whether they are near a station or not. But these are all just extra tax measures, designed to make the $10 billion project sound a lot more digestible. Like suggesting that train users will double in 10 years, it's very hard to believe.

There are some big corporate names earning massive fees to support this fantasy. How much would you think we taxpayers have spent so far on various consultants and seconded staff, reports, office space etc – all in the name of Cross River Rail? That figure, I've been reliably informed, is conservatively around $100 million. No wonder there are some people so keen to see the project proceed – this could be a cross river gravy train carrying consultant gold by the carriage load.

So back to our $15.6 billion in commuter rail investment – recent and proposed. Who benefits, other than the consultants? Based on the last Census and supported by QR figures, there are around 65,000 people using the trains. (That's people – not trips. It's a trick to multiple the number of people times the number of trips they make each day then multiple that by a weekly number and that number in turn by 52 to get an "annual trips" number. Once again, exaggerate use and underestimate costs seems to be the preferred model). Train travellers – again based on QR figures – are overwhelmingly inner city workers. The current six inner city stations account for 84% of all boardings and alightings. The inner city workforce of around 160,000 to 180,000 people (depending on how you want to define inner city) represents only one in ten of south east region workers.

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This article was first published on The Pulse.



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About the Author

Ross Elliott is an industry consultant and business advisor, currently working with property economists Macroplan and engineers Calibre, among others.

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