Articles: Brisbane road tunnels

[Jon Bryant]

Maybe it was Clem 7 maybe people fouhd an alternative way.  Lord Mayor is hedging desperate. 

[#Metro]

Toll discount period extended to June 30.
http://www.clem7.com.au/page/Home

CA asked if direction and origin of motorists using the CLEM7 is known; AH advised there is a high number of people using the CLEM7 to travel from the south to get out to Kingsford Smith Drive and to the Airport,

From same website.

That area, kingsford smith and airport has the worst PT.

[Golliwog]

Isn't that somethign to do with the Airport line? Doesn't part of their contract with QR state something about no new PT in the area or something? Thats what I've heard anyway.

[#Metro]

Isn't that somethign to do with the Airport line? Doesn't part of their contract with QR state something about no new PT in the area or something? Thats what I've heard anyway.

If that is the case, that must be the most useless contract. They should have wrote "No new multi-billion dollar multi-lane freeway and tunnel connections nearby" (Airport Link) because that will be the real competition for them.

If Airtrain were smart, they would also run a bus like any other bus operator to the airport for a fee, in addition to the train.
Shuttle bus companies and taxis do it all the time. So there is money to be made there.

[ozbob]

From the Courier Mail click here!

Clem7 overcharges utility driver for 'commercial vehicle'

Clem7 overcharges utility driver for 'commercial vehicle'

   * by Robyn Ironside
   * From: The Courier-Mail
   * June 21, 2010 12:00AM

A BRISBANE retiree has forced Clem7 tunnel operators to review their procedures after he was wrongly charged for driving a "commercial vehicle".

Banyo grandfather Kevin Swifte, 67, was surprised to receive a bill from E-toll for $4.43, the commercial rate, instead of the $2.95 charged for a standard car.

His inquiries with RiverCity Motorway revealed he had been charged the higher rate on previous occasions and he was told his 1997 Ford Courier utility had been classified as a commercial vehicle.

"I only bought it six months ago and it's never been registered as a commercial vehicle," Mr Swifte said. He said he would still be unaware of the problem had he not received a bill from E-toll.

"I'm just wondering how many other thousands of other people who drive utes and vans are wrongly classified as commercial vehicles," Mr Swifte said. "When you don't get an invoice you don't know how much you're paying."

RiverCity Motorway spokesman Anthony Havers said the company would review its systems to ensure such errors did not occur again.

Gary Fites, from Queensland's motoring body RACQ said it was important the problem was rectified quickly.

"There are a lot of people out there who are driving utes for non-business purposes and it's reasonable they shouldn't be charged the commercial rate," Mr Fites said.

"It would be well worth anyone using the facility to double-check the basis on which they're being charged," he said.

Mr Havers said motorists with electronic transponders should be receiving monthly statements – online or printed – detailing any tolls charged.

Mr Fites also raised concern that the problem could worsen when a new charge was introduced for light commercial vehicles using the Gateway Bridge from July 1.

Currently "small trucks" are charged the same toll as standard cars but that will change in the new financial year, bringing the Gateway into line with the vehicle categories used in the Clem7 tunnel.

Mr Fites said it was "one of the less justifiable aspects of the tolling regime".

"The only justification is the expectation that commercial vehicles would use the facility more often and become a greater revenue raiser," he said.

[ozbob]

From the Courier Mail click here!

Clem7 tunnel compensation costs ratepayers $141million

Clem7 tunnel compensation costs ratepayers $141million

    * by Alison Sandy
    * From: The Courier-Mail
    * June 25, 2010 11:00PM

BRISBANE ratepayers have handed over $141 million in compensation to home and business owners forced to sell their properties to make way for the Clem7 tunnel.

Of 101 properties resumed by Brisbane City Council, 28 are yet to settle.

The $2.2 billion tunnel, linking Bowen Hills and Woolloongabba, also had several last-minute hiccups before opening in March. The council had to spend $1 million to extend the ventilation outlet and an extra $130,000 to meet State Government air-quality monitoring requirements.

Monthly reports of the Clem7 obtained by The Courier-Mail under Right to Information detailed incidents including sewer damage, a faulty fire detection system and the temporary failure of a vent station. The tunnel's builder said all had since been fixed.

RiverCity Motorway chief executive Flan Cleary said there were some defects, but they didn't impact on the "functioning of the project" and that any construction issues had been resolved before the tunnel opened.

"There was a number of small matters . . . which are gradually being fixed up and I think they'll all be done by the end of this month," he said.

"In any project, if you build a house or anything, there are always little things that are not right."

Mr Cleary said the recent closure of the tunnel after its opening was for maintenance.

"There were about 60 small things that had to be fixed, but they didn't impact on the operation of the tunnel," he said.

"You look at any tunnel in Australia, it will close every three months and that's to do with warranties and cleaning and all those other things.

"(Clem7) wasn't closed for construction reasons, it was closed purely for maintenance."

Deputy Mayor Graham Quirk said in a statement that the issues were "very minor in nature" given the project's size.

"All the issues encountered are normal construction-related issues that are addressed and resolved in the usual course of events," he said.

It has been estimated the entire 4.8km, twin tunnel project will end up costing ratepayers up to $773 million in total.

[ozbob]

From the Courier Mail click here!

Toll for Clem7 tunnel to drop to $2

Toll for Clem7 tunnel to drop to $2

    * Ursula Heger
    * From: The Courier-Mail
    * June 28, 2010 10:32AM

THE toll for Brisbane's Clem7 tunnel will drop to $2 for cars as traffic in the new cross-river route remains below expectations.

The toll will be kept at $2 for three months in a desperate bid to attract motorists.

CEO Flan Cleary says market research found people would use it if it was $2.

The tunnel was initially free to use but when a toll was introduced it was discounted to $2.95 instead of the full $4.28 that operators had hoped to charge.

The toll will drop to $2 on July 1.

Tunnel operator Rivercity Motorway says 22,500 cars a day use the tunnel, which had been forecast to take 60,000 cars a day by a month after it opened.

"Our decision to reduce tolls is in response to feedback from Brisbane motorists that they are more likely to use the tunnel if the toll is set at $2", Mr Cleary said.

"We have listened to Brisbane motorists. Now we ask Brisbane motorists to support this great piece of infrastructure for the city."

[ozbob]

From the Courier Mail click here!

Businesses slap bans on Brisbane toll roads

Businesses slap bans on Brisbane toll roads

    * Ursula Heger and Sarah Vogler
    * From: The Courier-Mail
    * July 02, 2010 11:00PM


SMALL businesses are ordering staff to boycott toll roads and drive the long way around to avoid paying higher tolls after light commercials were this week slugged almost $6 to drive one way across the Gateway.

Their boycott comes as other motorists embraced the lower tolls on the Clem7 tunnel.

The Clem7 recorded a 12.8 per cent spike in the number of vehicles using the tunnel yesterday after the introduction of a lower $2 toll but figures show that Clem7 operators RiverCity Motorways made less from revenue than if tolls had remained at $2.95 with lower traffic.

If tolls had remained at $2.95, they would have made at least $74,316 instead of about $56,830.

The toll for private cars on the Gateway Motorway jumped by almost $1 on Thursday – increasing from $2.95 to $3.85 while a new classification for light commercial vehicles means some drivers are now paying $5.78 one way.

Light commercial vehicles, including utes, were previously classed as cars – paying only $2.95 to use the bridge.

West End plumber John Salmon described the State Government's decision to charge light commercial vehicles a higher toll as ludicrous.

"Why does the plumber in his ute get charged more than the barrister in his Rolls-Royce?" Mr Salmon asked.

"Give me a break."

Mr Salmon said his business faced a potential toll bill of about $17,000 a year for the 17 vehicles he has on the road.

"I ban my guys from using the toll roads. They have to take the long way," he said.

He said tolls were a factor in his decision to move his business away from the inner-city Brisbane suburb as he wanted to avoid the new Go Between Bridge which, when it opens on Monday, will also carry a toll.

Truck courier Steve McKenna said the changes to the classification system meant his five-tonne truck had been reclassified as a heavy commercial vehicle – with his tolls jumping from $2.90 to $10.20 one way on the Gateway Bridge.

"I can only carry five tonnes in my truck but I have been classified the same as a semi-trailer which can carry up to 50 tonnes," he said.

"I crossed the Gateway Bridge four times (yesterday) so I have already spent $40 in tolls – I live on the north side of Brisbane and if I travel to the southside of a morning I have to wear that cost personally."

He said he would not turn to the Clem7 tunnel, because it also classified his truck as a heavy vehicle – preferring to take a longer route through Brisbane's CBD.

Queensland Motorways chief financial officer Jeremy Turner said there had been no signs of any driver backlash on the first day of increased tolls .

Mr Turner said morning peak traffic numbers on the Gateway were consistent with the same period on Wednesday, when tolls were lower.

[WTN]

The problem lies in the definition of a "commercial vehicle". They want to charge them more because they're used to make money, but the definition doesn't appear to be fair. There's no difference between a ute used by a tradesperson and a private individual. Similarly, there's no difference between a family sedan and a company fleet sedan used on duty. Then what about cars used to travel to and from work? Obviously they're not included, and harder to distinguish, but they're still "work related".

Perhaps to be fairer, ALL commercial use vehicles, regards of size, should be subject to a surcharge. But it doesn't solve the problem of travel to and from work. Or just take the easy way out and go purely by size (utes charged as cars).

As for the Clem 7, I think its a bit early to judge the increased usage. School holidays are around this time. But look at the maths. The toll for cars goes from $2.95 to $2. That's only 2/3 of the previous price. You'd need a 50% increase in patronage to make up for the lost revenue.

[ozbob]

From the Sunday Mail click here!

$200m to fix Clem7 tunnel crash risk at Pacific Motorway exit

$200m to fix Clem7 tunnel crash risk at Pacific Motorway exit

    * by Patrick Lion
    * From: The Sunday Mail (Qld)
    * August 01, 2010 12:00AM

The Sunday Mail can reveal the State Government has been urged to undertake a major overhaul of the Pacific Motorway to fix a serious problem with the southern exit of the tunnel.

The Department of Transport and Main Roads recommendation to expand the motorway by an extra lane came after a planning study last year identified a flawed tunnel exit increased the risk of crashes.

The study also found the tunnel would increase congestion on the motorway, with a normal eight-minute trip from the city to the Marshall Rd exit at Holland Park increasing to 12 minutes.

The revelations are the latest problem to hit the toll road as concerns escalate over its financial viability if woeful traffic volumes fail to improve.

Documents obtained under Right To Information laws reveal the Government knew about the safety problem as long ago as December 2008 – almost enough time to have built the expansion in time for the Clem7's opening this year.

In a briefing note to Main Roads Minister Craig Wallace in February, department metro region director Miles Vass said the 2009 study had found that southbound cars exiting the tunnel were a problem.

Drivers exit the tunnel and enter a fourth lane on the right but the motorway quickly reduces to only three lanes, crunching the traffic into a smaller space.

"Merging three full southbound lanes to the right in the vicinity of the tunnel portal to fully utilise the 'expected half full lane' will create many weave manoeuvres, which may increase the accident rate in this location," the department said in the briefing note.

It recommended an additional lane, including four bridge structures.

"TMR believes a 2.5km long general purpose lane needs to be constructed along the motorway from the tunnel portal to at least the Marshall Rd exit to provide four general purpose lanes," it said.

"This will cost approximately $100m to $200m and take between 18 to 24 months to deliver."

Mr Wallace yesterday attempted to play down the problem, saying there had been no safety incidents since his department gave the tunnel the green light to open in March.

But the less congested conditions have only been a matter of luck, with the toll road attracting only 20,000 to 30,000 cars daily instead of the forecast 60,000 to 75,000 required to pay the bills.

The department was so concerned about safety at the exit it cut the motorway speed limit from 90km/h to 80km/h before increasing it later when traffic flows were light.

In a statement, Mr Wallace confirmed his department would consider any changes if required due to more cars.

"I've spoken to the engineers and they're very satisfied with the network around the Clem7," he said. "Having said that, my department will still keep watch and if down the track action needs to be taken, action will be taken."

Tunnel operator RiverCity Motorway distanced itself from the problem, saying the Government had approved the connection and it would not pay for any upgrades.

Lord Mayor Campbell Newman said he was not aware of the proposed change and dismissed any notion he would help fund it.

"Council has already delivered a massive $2.2 billion piece of infrastructure that has taken significant pressure off state-owned roads," he said.

[Jonno]

Not a cent of my taxes should be spent on this.  If there are then the Lord Mayor must stand down. 

[somebody]

If there are then the Lord Mayor must stand down. 

Now, now.  I don't follow how you can say this.

[Dean Quick]

This rather large white elephant is getting bigger by the minute   

[#Metro]

I like this one: 

mark of sunnybank hills  Posted at 8:56 AM Today
can the CM actually get the names and faces and qualifications and where they work of the people who make the decisions to waste our money.

Comment 13 of 18

http://www.couriermail.com.au/news/queensland/m-to-fix-clem7-tunnel-crash-risk-at-pacific-motorway-exit/comments-e6freoof-1225899427788

[Jonno]

If there are then the Lord Mayor must stand down.  

Now, now.  I don't follow how you can say this.

The Clem 7 is his baby as is TransApex.  All these tunnels are part of his Can Do Campbell election campaign.  This white elephant is his responsibility not the State Governments at all.

[somebody]

If there are then the Lord Mayor must stand down.  

Now, now.  I don't follow how you can say this.

The Clem 7 is his baby as is TransApex.  All these tunnels are part of his Can Do Campbell election campaign.  This white elephant is his responsibility not the State Governments at all.

But voted on by the public and supported by the majority.  No misconduct.  No sleazy politics that I can see either.

[Jonno]

He committed publically to standing down if he did not fix congestion.  He has done nothing of the sort and should live up to his word.

[somebody]

He committed publically to standing down if he did not fix congestion.  He has done nothing of the sort and should live up to his word.

Ahh, Ok.  I wasn't up here at the time so didn't hear that one.

[ozbob]

From the Brisbanetimes click here

Clem7 'cuts cross river congestion'

Clem7 'cuts cross river congestion'
Courtney Trenwith
August 17, 2010 - 2:17PM

The Clem 7 tunnel has eased congestion on two of Brisbane's river crossings, including slashing seven minutes from the most popular route, Brisbane City Council says.

However, drivers continue to lament increased problems on roads leading to the tunnel.

More than 20,000 fewer vehicles each day are using the Story Bridge to cross Brisbane River, a drop of 18 per cent, the council says.

Lord Mayor Campbell Newman said the drop in vehicle numbers had reduced travel times on the bridge, which links Kangaroo Point to Fortitude Valley.

Cr Newman said travelling from Ipswich Road to Lutwyche Road via the Story Bridge now took 14 minutes, compared to 21 minutes earlier in the year.

The same route but departing from Shafston Avenue, Kangaroo Point, now took 11 minutes instead of 14 minutes, he said.

Council's figures showed 13,834 fewer vehicles - 9 per cent - used the Captain Cook Bridge between the city and Kangaroo Point since the tunnel opened.

Cr Newman said the tunnel had also reduced traffic volumes on Ipswich Road (by 27.2 per cent), Gipps St (by 14.6 per cent) and the Pacific Motorway (by 9.8 per cent).

However, the impact was expected to be greater.

When the toll was first applied to the $3 billion Clem 7 tunnel, which links Bowen Hills in the north and Woolloongabba in the south, only 20,000 vehicles a day used it.

That was well below operator RiverCity Motorway's estimation of 60,000 vehicles a day.

The company was forced to extend a reduced toll period and in July cut the toll by more than 50 per cent to $2.

Now, an average of 30,000 trips are made via the tunnel each day, according to the council.

The state's peak motoring body, RACQ, claims drivers have received little benefit from the tunnel.

Spokesman Jim Kershaw said while it was positive that traffic volumes were rising in the Clem 7, that was causing bottlenecks on roads around the tunnel's entry and exit points.

Drivers are particularly suffering on Lutwyche Road, the tunnel's only northern entry/exit.

Mr Kershaw said the benefits to cross river roadways should have been a lot greater.

"The reduction of traffic on the Story Bridge of 18 per cent could be much higher if more traffic used the tunnel," Mr Kershaw said.

"This goes for all surface roads directly above the tunnel.

"We have to remember that this tunnel cost $3 billion. Spending $3 billion on surface roads, and/or extra river crossings across the network may have given us a better bang for buck."

Councillor Newman said the tunnel offered the quickest route for travel between Lutwyche Road and Woolloongabba or Kangaroo Point, at six and four minutes respectively.

"These time savings have also flowed over to our bus network, meaning even daily public transport users are reaping the benefits that the Clem7 is having on getting Brisbane moving again," Cr Newman said.

The new Route 77 bus service from Eight Mile Plains to Chermside, which runs through the tunnel, also cut travel time from 39 minutes to 55 minutes.

Source: smh.com.au

[Jonno]

Another road project that had just moved the bottle neck somewhere else and any decrease in congestion will disappear in under 12 months.  Keep flogging a dead horse Lord Mayor!!!! Flog it!!!

[O_128]

Another road project that had just moved the bottle neck somewhere else and any decrease in congestion will disappear in under 12 months.  Keep flogging a dead horse Lord Mayor!!!! Flog it!!!

As bad as the projects are at least he gets them done on budge and on time which cant be said for the state gov, i wish council was in charge of crr

[Jonno]

Another road project that had just moved the bottle neck somewhere else and any decrease in congestion will disappear in under 12 months.  Keep flogging a dead horse Lord Mayor!!!! Flog it!!!

As bad as the projects are at least he gets them done on budge and on time which cant be said for the state gov, i wish council was in charge of crr

Ahhhh. The original cost of the NSBT was 2 billion and toll of $2.  It ended up 4 billion and is heavily discounted to $2.  Northernlink is the same and so is the Go between link.

Who says CRR is over budget and taking longer thean planned?  yes it should have been done years ago but is it over time?

Building the wrong infrastructure at even no cost and in little to no time does not over come the fact that it makes the problem bigger and the externalities are bourne by us all and our children.

[Golliwog]

When he was campaigning to be elected for council, I do believe they also stated that the whole of Transapex was going to be built for $3B, which was revised upwards once they actually looked at it.

[#Metro]

I can't see any more tunnels really. Its politically and financially getting more difficult.
They are very costly, the first few projects put a bad taste in people's mouths and the share price for these things have gone through the floor.

Does anyone know how the Go-Between Bridge is going?

[somebody]

Does anyone know how the Go-Between Bridge is going?

My understanding is that it's only missing traffic targets by a small amount.  Much to my surprise.

[#Metro]

Why, because the traffic targets were lowered?
12 000 per day is pretty low.

I think a discussion on what the purpose of these bypasses are should be had.
Do freeways have a role in big cities?

[Golliwog]

Yes. But not such a massive role as they do currently. An integrated transit system still has private vehicle use, but it is much reduced. One of the main ideas of an integrated system is to provide multiple transit options to get around with, with the tendancy to favour the "better" modes such as bus, tram and train. Frieght movements are still going to have to occur on the roads too.

[ozbob]

From the Brisbanetimes click here!



Troubled tunnel posts $1.67bn loss

Troubled tunnel posts $1.67bn loss
Tony Moore
August 31, 2010 - 1:35PM

The operator of the troubled Clem7 tunnel is hopeful another key infrastructure project in Brisbane will ensure its survival after today reporting a $1.67 billion annual loss.

RiverCity Motorway predicted 60,000 vehicles a day would use the $3 billion toll tunnel, but it has struggled to attract half that number.

The company this morning announced the loss, after a reduced toll (from a planned $4.28 down to $2 on July 1) failed to improve traffic figures.

"The current situation is serious, but it is very early days in the life of our 41-year concession," Group chairman Robert Morris said in a statement today.

"To maximise the number of potential users of the tunnel, tolls will remain at their current reduced level for the remainder of 2010."

He said the expected opening of the adjoining Airport Link tunnel in mid-2012 will help connect the Clem7 to the Brisbane road network.

RiverCity Motorway also admitted that it had enough cash to cover shortfalls only for the next year and is in talks with its bankers to prop it up until Brisbane's Airport Link opens in mid 2012. The company is hoping that the Airport Link will also encourage motorists to use the Clem7 under the Brisbane River.

But in what is resembling Sydney's failed Cross City and Lane Cove tunnels, RiverCity today booked the $1.67 billion loss for the year to June after slashing the value of its only asset by $1.56 billion to just $250 million.

RiverCity said today in a statement that it believed it was able to pay its debts as and when they fell due but admitted that its ability to continue as a going concern would depend upon future traffic levels, toll pricing and arrangements with the bankers.

The company has burned through a further $21 million in cash over the last two months, leaving its  operational cash reserves at just $106 million.

Robert Morris said traffic volumes would need to ''improve markedly'' over the coming months for the company to meet its financial obligations after its cash reserves were used.

- with Matt O'Sullivan

Source: smh.com.au

[Jonno]

The obvious question is should the company declare bankruptcy now and actually preserve some of the investors (mostly super funds) money rather than just run it down to nothing.

Don't forget that the Mayor wants to develop his own version of this in Northern Link.  1.67 billion is a big hole in my rates and BCC finances.  The QIC should resind the loan immediately before it us just fished down another tunnel!!!!!!

[somebody]

The obvious question is should the company declare bankruptcy now and actually preserve some of the investors (mostly super funds) money rather than just run it down to nothing.

Under Australian law, that would mean the investors lose everything.

It's too late for the Clem 7.  The money has been spent.  And we are too far advanced on the Airport link too.

[Jonno]

The obvious question is should the company declare bankruptcy now and actually preserve some of the investors (mostly super funds) money rather than just run it down to nothing.

Under Australian law, that would mean the investors lose everything.

It's too late for the Clem 7.  The money has been spent.  And we are too far advanced on the Airport link too.

Sorry but the investors (aka most likely your super annuation find) is going to lose everything anyway.  The death spiral is well underway.  This is not going to turn around and Airport Link is not going to help.  Get out why you can!!!  2 white elephants testimony to the failed transport planning of the late 1900's.

Agree though not much can be done to fix these now other than let them go broke and turn the Clem 7 into a busway.  Northern Link is another matter.  Stop it now before the money is lost!!!

[somebody]

It looks that way.  But why should the investors give up everything when there is an outside chance it may come good?

[Jonno]

Chances are better if hey take their money and place it on a "sure thing as doomben this weekend"

[somebody]

Chances are better if hey take their money and place it on a "sure thing as doomben this weekend"

Who would give them any of their money back?

[#Metro]

Why do I get the feeling the someone is going to do an X-ray
of the IPO prospectus, take issue with the traffic forecasts and then launch a class action? 

[colinw]

From The Australian, Click Here.

Clem7 tunnel losses endanger public-private infrastructure

Annabel Hepworth and Jared Owens, September 01, 2010 12:00AM

GOVERNMENTS face pressure to radically overhaul the way they structure public-private partnerships for critical infrastructure following the shock of Brisbane's first major road tunnel being written down by a massive $1.56 billion.

The operator of the Clem7 tunnel revealed yesterday that traffic volumes were still much lower than expected, despite tolls being slashed by 50 per cent on July 1 in a desperate bid to convince motorists to use the link.

The company might be unable to meet debt repayments unless revenue picked up, it said.

The tunnel company's woes bring to eight the toll-road PPPs that have caused losses to investors, lenders and taxpayers in the past five years.

The tunnel projects have lost at least $5.5bn, according to an analysis by The Australian, and there are fears the figure could rise.

The losses sparked warnings that governments should revise the way they procure infrastructure, and should commit to a national infrastructure plan.

Otherwise they may struggle to attract private sector funding to tackle the $770bn backlog of national infrastructure projects.

Infrastructure Australia chairman Rod Eddington said yesterday regulatory and pricing reforms were needed to make projects viable.

Sir Rod warned that returns on transport projects were often inadequate, given the risks involved and said this should be addressed to encourage the private sector to invest. "Some of the states took the view that you could transfer key risks - like construction and patronage risks - to the private sector on day one," Sir Rod said.

"But it may have been that the private sector wasn't the best entity to take those risks anyway."

Australian Super head Ian Silk warned that if the private sector was to shoulder the risk that traffic volumes would fall short, this would "warrant a much higher return than is currently available in many infrastructure investments".

And Nick Greiner, chairman of construction group Valemus, echoed that, saying: "The pendulum has swung in recent years too far one way."

Industry Funds Management chairman Garry Weaven said "somebody is going to lose money" if the private sector "bid too aggressively on the basis of inflated traffic forecasts".

ANU infrastructure professor Patrick Troy said Brisbane had been the victim of reckless legacy-building on the part of the city's Lord Mayor, Campbell Newman. "He's made all sorts of silly promises and (is) committing money to projects that will never work," he said.

"It's the kind of engineering madness among those who think that if you build something, people will come. "

Dr Troy said that while traffic projections were able to effectively predict how trucks and taxis would react, individual motorists would carefully weigh up the costs and benefits of taking tollways.

Bond University associate professor of infrastructure Michael Regan warned this could be the end of public-private tollway partnerships.

But Infrastructure Partnerships Australia executive director Brendan Lyon defended the project, saying it would deliver long-term benefits to Queensland's economy.

Mr Lyon said the problems with projects such as Sydney's Cross City Tunnel, coupled with the global financial crisis, had discouraged investors. Governments and industry "need to think hard about how traffic risk can be shared", he said.

RiverCity Motorway Group chairman Robert Morris said yesterday his company's situation was "serious".

He also indicated the company was banking on the upcoming Airport Link, which would connect the terminal to the Clem7.

"We will be actively exploring options with our lenders to sustain the group in its current form until after the Airport Link opening."

Queensland Premier Anna Bligh said the taxpayer would be insulated if the government-sponsored Airport Link met a similar fate to the Clem7.

"This is a commercial decision for risk taken by a commercial company," she said. "The private sector made that decision to buy that risk. That is a commercial decision for them."

[#Metro]

"The bottom line is that the motorway stays open, it's not an option for the private owner to close the road," he said.

"If they breach that then the [council] can, in fact, take the road back. No private company is going to risk the road [being taken] back for no value at all."

Deputy Mayor Graham Quirk confirmed this morning ratepayers were not at risk of funding the tunnel's survival.

"What would happen simply is that there would be other companies that would be interested," he told ABC Radio.

http://www.brisbanetimes.com.au/queensland/tunnel-of-woe-going-nowhere-20100901-14md8.html

Interesting. If the council takes it back, the toll road will still need maintainence and upkeep. Would the traffic through that be enough to fund that? If 28 000 cars are using the tunnel, and the toll is $2, that's $56 000 per day, but you have to subtract whatever cut the toll account people get...

[Jonno]

And Northern Link?  It is BCC not a private operator that will go broke!

[ozbob]

Brisbanetimes --> Flee Clem7 tunnel turmoil, investors told

[#Metro]

Why do I get the feeling the someone is going to do an X-ray
of the IPO prospectus, take issue with the traffic forecasts and then launch a class action?  Huh?

Oh look, class action brewing:
http://www.couriermail.com.au/business/rivercity-faces-lawsuit-threat-over-clem7-tunnel-losses/story-e6freqmx-1225913004352

INVESTORS have sounded out the possibility of legal action against the troubled operators of the Clem7 toll tunnel.

But organisations renowned for involvement in corporate lawsuits are yet to decide on whether a shot at operator RiverCity Motorway is valid.

On Tuesday RiverCity reported a $1.67 billion net loss for the year due to a huge valuation writedown on its Clem7 tunnel. Traffic through the tunnel fell well below its forecasts for the first five months.

''The precise reasons for the reduced traffic volumes to date are unknown,'' the company said.