Rail Boom

[ozbob]

http://www.abc.net.au/rn/saturdayextra/stories/2008/2321738.htm

Podcast available

Rail has for many years now been the poor cousin to the road when it comes to the business of moving goods from A to B.

For most products, with the possible exception of coal and iron ore, rail simply can't compete with the lower costs associated with trucking.

But has the wheel started to turn? In the face of spiralling fuel costs, rail is making something of a comeback, and nowhere is this happening faster that in the United States.

Guests

Anthony Hatch
Principle, ABH Consulting

Tim Fischer
Former Deputy Prime Minister, Director Asia Pacific Transport Freightlink

[#Metro]

An interesting article today in the Age:
http://business.theage.com.au/business/drivers-desert-eastlink-as-rail-network-overflows-20080807-3rsn.html

Drivers desert EastLink as rail network overflows

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    * Mathew Murphy and Jason Dowling
    * August 8, 2008
    * Page 1 of 2

THE future of private toll roads in Australia has been called into question after traffic on EastLink slumped dramatically in the first week of tolling.

- EastLink traffic below projections
- Some trains over official capacity
- 'Not the end of toll roads': expert

Investors yesterday dumped shares in the tollway owner, ConnectEast, after the company said traffic volumes had fallen to 28% below its projections.

The numbers - and the corresponding scenes of sparsely occupied traffic lanes along the 37-kilometre route - present a stark contrast to what has been happening on the rail network.

On the same day that EastLink's lacklustre traffic figures were released, a new report detailed massive overcrowding on Melbourne trains, with some carrying more than 1000 passengers - way over their official capacity of just under 800.

The trends were seized on by a prominent tollway critic, who declared more people were choosing to use public transport.

But ConnectEast said it was too early to draw conclusions. "It will take some time for motorists to factor EastLink into their everyday travel patterns," said spokesman James Tonkin. "We believe many drivers will return to EastLink to continue benefiting from the travel time and fuel savings it delivers."

In the first week of tolling - July 27 to August 2 - the average number of daily trips on EastLink plummeted more than 50%, from 270,868 during the toll-free first month to 133,722. The news sent ConnectEast shares into a spiral on a day when the broader market went up. The shares were off as much as 23% before ending off almost 15% at 85 cents.

The developments continue a run of bad news for tollway projects, including Sydney's Cross City Tunnel, which was placed in receivership, and the Lane Cove Tunnel, which is reported to be at risk of defaulting on $1.1 billion in debt after traffic fell for a third consecutive month.

But Peter Block, an infrastructure expert at Minter Ellison, said toll roads would continue to be built despite the recent poor performances.

"It is not the end of them," he said. "Ultimately the people that suffer are the investors, and maybe the banks, which may become less keen on them."

But Bus Association Victoria spokesman Chris Loader said the results showed more people were using public transport. He said if they held strong, the figures could have serious implications for the viability of future toll road projects