Gungahlin to city light rail adds up

Written by Alan Kerlin Friday, 10 April 2009 00:00

The ACT Government has finally released the PWC cost benefit analysis on light rail. The news is it stacks up - to the tune of a $1 billion net benefit to the community. With the case now proven, surely it's time to get this project under way?

Previously we have said:

The problem with public transport is that people (and governments) always talk about it as a budget cost item. They never look at the complete picture. Only a complete cost-benefit analysis will reveal all the offset savings and revenues that would spin out of a light rail link.

negated/deferred road building costs
reduced bus operational costs
reduced greenhouse emissions
reduced medical costs from accidents
INCREASED property sale prices - residential and commercial
INCREASED rates along routes

And now the Price Waterhouse Coopers feasibility study has backed up our thoughts.

In the cost benefit analysis results PWC predict that for an outlay of $1.65 billion on the entire network and its operating costs, this will produce benefits to the Territory in the order of $2.66 billion through increases in amenity and significant reductions in costs the Territory would otherwise have to bear in to the future.

“Whilst it would be foolhardy by any stretch of the imagination to think that Infrastructure Australia are likely to foot the bill for the entire project in one hit, we are optimistic that sufficient funding will be provided to contribute significantly for at least an initial portion of any Light Rail network”, said ACT Light Rail's Jonathon Reynolds. “The PWC study has conclusively confirmed that Light Rail is an affordable and beneficial transportation option for the Territory and all it will take now is the political will of the Government and Assembly to make it reality."

In 2002, the head of MBA pointed out that against the then estimated cost of the Gungahlin-to-city line of $80 million, the increased revenue for just one estate would have been $8 million. So some 10% of the rail construction paid for with just one estate. And since then, there's also been Wells Station, Hillside, Franklin and Forde. So if they'd got serious about it back in 2002, the rail line would likely have been paid for by now without factoring in all of the above savings as well...

With the upcoming commercial and residential land releases planned in and around the town centre for the next few years, if the ACT Government does not build a rail link, they will be doing themselves out of money - plain and simple.

There's an election coming up, and sure as eggs there'll be candidates knocking on your door between now and October. So when they do, ask them for a commitment on a full and comprehensive cost-benefit analysis on a light rail link.