Articles: Brisbane road tunnels

[ozbob]

Fools paradise,  and still they cannot see ...

BrisConnections, predicts an average of 135,885 vehicles a day will use all or part of the route after it opens next year ...

================
From the Brisbanetimes click here!

Private interest in toll projects 'to dry up'

Private interest in toll projects 'to dry up'
Daniel Hurst
February 25, 2011 - 5:18PM

The private sector will be more reluctant to invest in major new toll road projects after the failure of Brisbane's Clem 7 operator and companies behind similar tunnel projects in Sydney.

Queensland Treasurer Andrew Fraser today made the prediction following news RiverCity Motorway had been placed in receivership.

The company behind the Clem7 tunnel suffered from lower than expected traffic volumes and was unable to win support from all of its lenders to delay interest repayments until the adjoining Airport Link tunnel opened in 2012.

Mr Fraser said it would be an incorrect "leap of logic" to assume the Clem7's failure meant the state government-backed Airport Link tunnel or Brisbane City Council's Legacy Way tunnel would suffer the same fate.

"We need to not conflate one tunnel's destiny with the destiny of every other toll road," he told reporters in Brisbane this afternoon.

"Airport Link is a matter that will be seen into the future, but I do think that it's important to emphasise that the Queensland taxpayer has no exposure regardless of what happens with Airport Link into the future."

Airport Link is a public-private partnership tunnel project that will connect Bowen Hills to Kedron to Toombul, near the Brisbane Airport.

The consortium awarded the contract to build the tunnel, BrisConnections, predicts an average of 135,885 vehicles a day will use all or part of the route after it opens next year.

These average figures include nearly 68,000 trips between Bowen Hills and Kedron, nearly 47,000 trips between Bowen Hills and Toombul, and more than 21,000 trips between Kedron and Toombul.

Forecasts provided by traffic modelling company Arup, and included in the 2008 product disclosure statement, suggest total daily trips will rise to 186,117 a full year after Airport Link's opening and to 195,378 three months after that.

Cars using the entire tunnel are set to be tolled $4.76 in mid-2012, or $3.57 just to use the Kedron-to-Toombul section.

Mr Fraser played down concerns over the traffic forecasts for Airport Link, saying the project was important and would appeal to motorists as it provided a link to a specific destination, the airport.

He also dismissed concern over Brisbane City Council's Legacy Way project, formerly known as Northern Link, saying it had "very different" traffic calculations from the Clem7 and Airport Link.

However, Mr Fraser said he believed there would be less private sector appetite in the future to invest early in such projects, following the Clem7 and Sydney toll tunnel troubles.

He said the private sector would be less likely to invest in new toll road projects from the beginning. Instead, governments would have to shoulder more of the initial burden and private firms would seek more of a role once actual traffic data was known.

"The model that you see in the Gateway and Logan motorways, where governments established them and certainly put in place the critical infrastructure in the first place, and then established the traffic profile before then looking at options for private sector participation, is a model that can work into the future," Mr Fraser.

The state government's investment arm, the Queensland Investment Corporation, is currently in the process of negotiating the transfer of the Gateway and Logan motorways from the government.

The government had intended to privatise the Queensland Motorways Limited, which runs the toll roads, but announced in November it would instead transfer it to QIC.

There is some speculation within industry circles that QIC could be a potential buyer of the Clem7 tunnel if it was offloaded by new receivers Korda Mentha.

A spokesman for QIC said it had received a few phone calls along similar lines, but it was not its policy to respond to market speculation.

The QIC is the state government's investment arm although it runs independent of the state government.

Mr Fraser said the state government itself was not interested in buying the Clem7 tunnel.

"No, I think that's a matter that the financiers of Clem7 will deal with over the coming weeks and months," he told reporters.

- with Tony Moore

[SteelPan]

Thank God, this wonderful piece of infrastructure has finally hit the financial wall, all we have to do now is stop "Brissy" people using the wheel, get rid of "Brissy" having first world treated drinking water and above all - stop that e-e-e-lec-trik-icity stuff, that powers them there "Brissy" lights and we'll have the "Brissy" obviously so many people really do desire. For the record - generations ago, our grand-parents dreamt bigger than we do - they had the Indooroopilly Toll Bridge, the Story Bridge had a toll, the Hornibrook Highway had a toll - still, the Gateways do, the Sydney Harbour Bridge and Tunnel do - and a whole bunch of others!

Like shopping in a Woolworths, catching a train or a bus or even getting paid for your job - there's a cost and people pay!

Alot of "Brissy" folks should jump on one of 'em big new flyin machines and take a spin around the world...see em toll roads - WITH TUNNELS - are pretty old hat really in ALOT of places!

What a sad day for BRISBANE, destined it seems to be forever a "Brissy"...mmmaaattteeee......      

[ozbob]

They still don't get it ..

Brisbanetimes --> Poor marketing led to Clem7 demise

[ozbob]

Media release 26th February 2011

SEQ: Clem 7 a financial and congestion-busting failure

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has said that the Clem 7 road tunnel being placed into administration clearly demonstrates that toll road and tunnels are not only financially non-viable but they have no congestion-busting capabilities either.

Robert Dow, Spokesman for RAIL Back On Track said:

"Clem 7's financial collapse is just the latest in a long list of tunnel or toll road failures in Australia.  The private sector will be never be keen to invest in a major new toll road project again.  Local and State Governments had turned to the private sector in a final attempt to out-build traffic congestion to learn not only were these projects financially non-viable, but they have no congestion-busting capabilities what so ever.  Claiming such road projects are congestion-busting is stubbornly denying the reality accepted around the world that building more road space in cities only increases congestion."

"RAIL Back On Track has highlighted from before the first sod was turned on Clem 7 that today's traffic congestion is actually the result of the road infrastructure built over the last 40 years and not because of the latest missing link, no new bypass or not enough upgrades.  Claiming more roads will reduce congestion is like smoking more cigarettes expecting it to cure lung cancer.  The only outcome of building more freeways and tunnels is worse congestion and slower traffic speeds and horrendous escalating costs associated with environmental emissions, road trauma and the cost of congestion itself (1,2)."

"If 20 years ago we had followed the lead of cities such as Vancouver, Vienna, Berlin or Copenhagen our city would have a truly 'world-class' public and active transport network rather than the mess we have today.  RAIL Back On Track predicts that unless a complete about face in transport policy is adopted, South East Queensland will continue towards a very unsustainable future and a major transport crisis. Some may well argue the 'crisis' has already arrived!  Peak oil and oil price rise impacts cannot be continually ignored either."

RAIL Back On Track calls on all levels of Government to take off their 'road-coloured glasses' and accept that the only solution to our traffic woes is to:

1. Halt the construction of any new motorway or tunnel road capacity immediately;

2. Establish meaningful sustainable transport mode targets in Connecting SEQ 2031 for people and freight of 60-70% of all trips made by rail freight and public/active transport and invest accordingly; and

3. Implement the recommendations/ideas of the Transport Minister's Sustainable Transport Forum (3)."

References:

1. 6 Nov 2010: SEQ: Zero time left to can congestion  http://railbotforum.org/mbs/index.php?topic=4794.0

2. 4 Oct 2010: SEQ: 'I will be late, stuck in traffic gridlock'   http://railbotforum.org/mbs/index.php?topic=4568.0

3. 5 Nov 2010: Queensland's sustainable transport future  http://www.cabinet.qld.gov.au/mms/StatementDisplaySingle.aspx?id=72447

Contact:

Robert Dow
Administration
admin@backontrack.org

[Stillwater]

So, let's get this straight.  There was an imperative for the Clem 7 to be marketed, and that was its failure.  Yet it is not important to market 15 minute frequency on rail between Central and Darra.

[ozbob]

For the past week or so I have had occasion to travel on the Ipswich Highway against the peak from Granard Road to Darra around 6.45 - 7am.

It is an inbound car park!  Horrific and it is not going to change as a result of the billions spent on the Ipswich Highway either.  

[ozbob]

So, let's get this straight.  There was an imperative for the Clem 7 to be marketed, and that was its failure.  Yet it is not important to market 15 minute frequency on rail between Central and Darra.

This would have to be one of the weakest spin reactions (the poor 'marketing' excuse) to the failure of the road ever.  They are really struggling to defend the indefensible ...

As far as not properly highlighting the rail frequency ramp up between Darra and CBD post Richlands, well at least we can stand tall.  
Others should hang their heads in shame ...

[mufreight]

So, let's get this straight.  There was an imperative for the Clem 7 to be marketed, and that was its failure.  Yet it is not important to market 15 minute frequency on rail between Central and Darra.

This would have to be one of the weakest spin reactions (the poor 'marketing' excuse) to the failure of the road ever.  They are really struggling to defend the indefensible ...

As far as not properly highlighting the rail frequency ramp up between Darra and CBD post Richlands, well at least we can stand tall.  
Others should hang their heads in shame ...

The standard of the spin (read excuse) is on par with the supposed "Marketing Failure"

For anyone growing roses Lord Mayor Newman is distributing more free Bullsh*t for use as fertiliser.
Another pathetic attempt to justify and defend the indefensible.   

[frereOP]

From a Brisbane engineer who worked on the SMRT between Chinatown and Dhoby Ghaut and who now works for Abi Group here in Brisbane, the only tunnels that make money are rail tunnels.  They have a guaranteed income stream because of their captive audience.

Just imagine, 6km of Clem 7 dual two lane tunnels could have built 12km of dual line rail tunnel (give or take) - an excellent start to a Brisbane Metro!

[#Metro]

Oh look, Campbell built half the Cross River Rail tunnel...

[somebody]

From a Brisbane engineer who worked on the SMRT between Chinatown and Dhoby Ghaut and who now works for Abi Group here in Brisbane, the only tunnels that make money are rail tunnels.  They have a guaranteed income stream because of their captive audience.

Just imagine, 6km of Clem 7 dual two lane tunnels could have built 12km of dual line rail tunnel (give or take) - an excellent start to a Brisbane Metro!

I think you should tell that to the investors in the Sydney Airport line!

[ozbob]

Media release 26 February 2011

SEQ: Car Rapid Transit money better spent on Real Rapid Transit

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters calls for the total abandonment of 'balanced transport' policies and a shift to 'rebalanced transport' based around walking, cycling, buses, ferries and rail. "Car Rapid Transit" is a low capacity, high-pollution, expensive-to-construct, high user cost rapid transit mode and it doesn't seem to be working.

Robert Dow, Spokesman for RAIL Back On Track said:

"The Clem 7 tunnel has now been placed into receivership (1). $770 million dollars public money (almost equivalent to one Gold Coast Light Rail System) has been sunk into that tunnel(2,3). While we welcome the construction of the Northern Busway as part of Airport Link, the combination of incentives to drive plus incentives to catch public transport (e.g. Airtrain) are likely to work against each other. Is there a purpose in shifting people from cars to public transport and then back again?"

"We note that the Gateway Motorway allegedly carries around 100,000 vehicles daily, and the Airport Link forecasts allegedly predict up to 195,378 trips per day, apparently more than that reported for the Gateway Motorway (4,5)"

"Kingsford Smith Drive upgrades will range from multi-millions to multi-billions (6). The most expensive option is $3.2 billion dollars, equivalent to three brand new Gold Coast Light Rail projects, and will duplicate the 'busway on steel wheels' Doomben Line, which is a congestion-free alignment all the way to the CBD. It could be upgraded to allow trains every 15 minutes at a fraction of the cost. Any potential public transport option is likely to come mandatorily pre-packaged and inseparable from what is actually a logically separate road upgrade (7)."

"The extreme cost of so-called road 'solutions' must be questioned when a greater number of people can be moved more efficiently on a fully coordinated high frequency rapid rail and bus network."

"The Car Rapid Transit era is now showing signs of drawing to a close (8,9,10,11). Should we spend continue to spend billions on Car Rapid Transit - a mode that has the lowest capacity, extreme upfront capital costs, highest pollution and high user costs? (12)"

Contact:

Robert Dow
Administration
admin@backontrack.org

References and notes:

1. Clem7 toll failure is no surprise: RACQ http://finance.ninemsn.com.au/newsbusiness/aap/8216595/clem7-toll-failure-is-no-surprise-racq

2. Clem7 operators lose $470 for each vehicle through the tunnel http://www.couriermail.com.au/business/clem7-operators-lose-470-for-each-vehicle-through-the-tunnel/story-e6freqmx-1225912533108

3. Gold Coast Rapid Transit: Fast facts http://www.goldcoast.com.au/article/2009/07/07/95891_about-gold-coast.html

4. Queensland Motorways Freaky Facts http://www.qldmotorways.com.au/childrensactivities/freakyfacts.aspx

5. Private interest in toll projects 'to dry up' http://www.brisbanetimes.com.au/business/private-interest-in-toll-projects-to-dry-up-20110225-1b8ea.html

6. Kingsford Smith Drive Upgrade http://www.brisbane.qld.gov.au/traffic-transport/plans-projects/transport-projects/Kingsford-Smith-Drive-Upgrade/index.htm

7. Why not just build better public transport in this area (A public transport ONLY option?) A public transport project could be pursued in its own right, and does not necessarily require packaging with a logically separate road project to proceed. A busway on Kingsford Smith would eventually require the bus to exit the busway and run on bus lanes (Class B) or congested streets (Class C) in the CBD and Fortitude Valley.

The rail option's advantage is two-fold:

  a. It is an exclusive right of way (Class A, absolute and total priority, no stopping for anything), separate from cars and their congestion for the entire length of its journey, all the way to Central Station; and

  b. it already exists now.

8. Why are young people driving less? Trends in licence-holding and travel behaviour Tim Raimond and Frank Milthorpe, NSW Bureau of Transport Statistics http://www.bts.nsw.gov.au/ArticleDocuments/82/CP2010-4-Why-are-young-people-driving-less.pdf.aspx

9. Car makers fight to win back young drivers http://theage.drive.com.au/motor-news/car-makers-fight-to-win-back-young-drivers-20110217-1ax9g.html

10. Why is Gen Y Driving Less? http://melbourneurbanist.wordpress.com/2010/06/28/why-is-gen-y-driving-less/

11. Carmakers' next problem: Generation Y http://www.msnbc.msn.com/id/39970363/ns/business-autos/

12. Buying the vehicle, Petrol, rego etc.

13. For interest: Space, time, economics and asphalt An investigation of induced traffic growth caused by urban motorway expansion and the implications it has for the sustainability of cities Dr Michelle Zeibots, UTS, Sydney http://utsescholarship.lib.uts.edu.au/dspace/handle/2100/609

14. "Car Rapid Transit": A low capacity, high cost rapid transit mode that attempts to speed up traffic by separating cars from general traffic and building more roads.

[ozbob]

Courier Mail --> BrisConnections expects 136,000 cars daily on Airport Link despite Clem7 tunnel woes

We are having two minute train frequency shortly as well,   oh look, a flying pig!!

[Jonno]

It is just amazing that they continue with exactly the same claims as Clem 7 and just expect us all to believe it is all ok.  Anyone who thinks this project will not follow Clem 7 straight to receivership is in living in a whole world of denial. Recievership? What receivership?

[ozbob]

Courier Mail --> Banks face huge Clem7 losses

[awotam]

"It is expected to generate up to 1400 construction jobs and 85 operational jobs."
I've just been reading an old copy of Can Do Premier in Waiting Campbell's "Living in Brisbane" propaganda junk mail leaflets which claims, in a piece headlined "New tunnel to create jobs and ease congestion"  that the Legacy Way will create more than 5000 jobs as well as $10.5 billion in economic benefits. So where did the extra 3600 jobs come from? 

[Stillwater]

Traffic planners sitting behind those screens trying to re-program the green light sequences to ease the traffic congestion.  The techos who fix the screens and the computers that drive them.  Tow-truck drivers.  Panel beaters to fix the damage caused by all those little crashes that bring the city to a halt whenever there is a nose-to-tail bingle somewhere. Police. etc...
 

[Jonno]

Courier Mail --> Banks face huge Clem7 losses

Unless the tunnels are stopped I predict the following headlines:

"BCC faces huge Legacy Way losses"
"Banks face huge Airport Link losses"
BCC face huge [insert Tunnel Name Here] losses"

[HappyTrainGuy]

http://www.couriermail.com.au/news/queensland/clem7-tunnel-toll-hike-leads-to-another-fall-in-traffic/story-e6freoof-1226034282575

Hmmm... they lost 9% of cars going through yet they nearly made a $20,000 profit.

27,803 cars x $3.00 = $83409.00
25,378 cars x $3.95 = $100243.10

Smart cookies right there.

[somebody]

Courier Mail --> Banks face huge Clem7 losses

Unless the tunnels are stopped I predict the following headlines:

"BCC faces huge Legacy Way losses"
"Banks face huge Airport Link losses"
BCC face huge [insert Tunnel Name Here] losses"

Disagree on the banks.  If the council is guaranteeing it, I predict:
Rate rises to pay for Legacy Way!

[Stillwater]

Somebody, maybe the headlines would read: 'Ratepayers slugged for tunnel losses' and 'Council cuts PT budget to pay for tunnel fiasco'

[ozbob]

Courier Mail --> Leighton Holdings braces for $4.2 billion airport tunnel project loss

[O_128]

Courier Mail --> Leighton Holdings braces for $4.2 billion airport tunnel project loss

LOL

[Stillwater]

Quote from C-M: "LEIGHTON Holdings has written $470 million off against its Airport Link toll tunnel project, and will make a large loss on the $4.2 billion project.  The big construction company said yesterday problems with airport link, including vastly underestimated design costs and materials, would slash its overall net profit by $329 million."

My bet with Gazza of a good bottle of wine over the projected cost of CRR is looking safer by the day.  The official figure is $8.3 billion, Gazza's is around $6 biliion and my guestimate is $10 billion (in 2011 dollars) and rising.  I have underlined where the extra costs are occurring in major new pieces of infrastructure.

What the Leightons experience tells us is that the private sector will want to build a lot of fat into the CRR bid price, and have the public sector (that's you and me) wear the cost of any blowouts.  Privatise the profits, socialise the losses.

The upside of the cost blowout on Airport Link is that Leightons wears the damage, not the taxpayer.  Let's hope the bureaucrats negotiating CRR on our behalf negotiate a superior deal, based on the business case investigation, which is ongoing. 

[#Metro]

I agree with you Stillwater. As much as I want CRR.... my completely unsubstantiated, gut feeling, evidence-free suspicion would be that the actual cost of Cross River Rail is looking at $10 billion big ones. Still the amount of money poured into roads in the last 5 years with Go Between Bridge, Airport Link , Kingsford Smith Drive, Northern Link tunnel, Gateway Bridge duplication etc... AND the fact that the benefits calculated in the ICRCS come at approximately three times higher than the initial costs (which is good).

That 1970's alignment (Wilbur Smith) with the bridge coming off at Wooloongabba and diving into a tunnel
in the botanical gardens (as ugly and soul destroying as it might look) is looking more and more reasonable by the day.

$10 Billion. I've never head of a project so unbelievably expensive. I'm not questioning the need, but it is so huge.

Wilbur Smith 1970 alignment ---> http://railbotforum.org/mbs/index.php?topic=3304.0

[ozbob]

Courier Mail --> Brisbane City Council faces multimillion-dollar lawsuit by Leighton Holdings over Airport Link loss

[Jonno]

Courier Mail --> Brisbane City Council faces multimillion-dollar lawsuit by Leighton Holdings over Airport Link loss

This is going to get really ugly and this is the private operated tunnels.  Wait till the owner is the BCC then the mud (word modified for general public viewing) will start flying!