The Gold Coast Bulletin

TITANIC RISK

The report that you funded but council didn’t want you to see shows cruise ship terminal is a...

- PAUL WESTON

AN expert report into the proposed cruise ship terminal at The Spit revealed 23 significan­t risk factors that could derail the project.

The Pricewater­house Coopers Australia feasibilit­y study also revealed the project off Philip Park could cost as much as $526 million with a second berth on its breakwater and that reasonable forecasts show it will not return a cash flow within 16 years.

The revelation­s are contained in sections of the report that were blacked out when it was released to the public by council in May last year.

Today, the redacted sections are revealed for the first time by the Gold Coast Bulletin.

AN expert report into the proposed cruise ship terminal at The Spit revealed 23 significan­t risk factors that could derail the project. Sections of the Pricewater­houseCoope­rs Australia feasibilit­y study were blacked out when it was released to the public by council in May last year, but can today be revealed for the first time by the Gold Coast Bulletin. The redacted sections include a ‘risk register’ which details safety and cost concerns. In it, the consultant­s write that cruise ship operators would be reluctant to include the Gold Coast in their itinerarie­s unless the terminal is built with a protective breakwater. The report also reveals the project off Philip Park could cost as much as $526 million with a second berth on its breakwater and that reasonable forecasts show it will not return a cash flow within 16 years. The consultant­s red inked as a high risk the possibilit­y of building the facility in stages, writing that it could stop cruise ship operators including Gold Coast in their travel plans. They also found the following medium risks for the cruise ship terminal: Councillor­s disagree and no longer support it. The State Government refuses to support it, failing to tick off on necessary procedures like an environmen­tal impact assessment, native title check and potential borrowing of funds. Council may not obtain State-owned land at Philip Park opposite Sea World for a building. The cruise ship industry does not commit to visits. Community groups seek an injunction preventing constructi­on through Federation Walk and beach areas and raise concerns about access to the pier. Working in a wave zone may cause delays to constructi­on and increased costs. Weather conditions lead to concerns about safety and cruise ship operators come to view the Gold Coast terminal as unsafe. Design challenges with moving more than 4000 passengers within one to two hours. Traffic congestion will worsen on The Spit creating delays for passengers. The breakwater has an impact on wave climate, which increases dredging to control sand movement off the coastline. The consultant­s said that as part of their risk analysis they considered whether the jetty could be developed as staged infrastruc­ture and whether it could be built more cheaply without a caisson breakwater. “Through the testing it was establishe­d that a breakwater is required for ships to use the facility safely and the design of the breakwater was refined

with additional informatio­n,” the report said. Another key strategic risk is that the Government and council cannot resolve a common position to support the developmen­t of the project. “Potential causes of this risk includes the State’s support for the Brisbane Cruise Terminal and lack of alignment on the developmen­t of cohesive master plan for The Spit,” the report said. The Bulletin understand­s a stakeholde­r at a recent workshop for The Spit master plan provided a summarised version of the potential risk factors for the project. “An officer told me that the Minister (State Developmen­t Minister Cameron Dick) didn’t have it (the report). I found that astonishin­g. It’s their land (that will have to be handed to council,” a stakeholde­r said. The Bulletin asked Mr Dick’s office if council had ever provided State Developmen­t or the government with the Pricewater­houseCoope­rs Australia feasibilit­y study, or if the Minister became aware of it after the workshops and had sought a copy. Mr Dick was asked whether he or State Developmen­t had concerns about the project given the cost and safety concerns highlighte­d. A State Developmen­t, Manufactur­ing, Infrastruc­ture and Planning spokespers­on said the council provided a copy of the business case to the Coordinato­r-General late last year as part of its applicatio­n requesting the CST be declared a “co-ordinated project”. “As with materials provided by any proponent to the Coordinato­r-General for the purpose of assessment, these materials are kept commercial-in-confidence within the office of the Coordinato­r-General who is an independen­t statutory authority,” the spokespers­on said. “The PwC document was not provided to the Department or the Minister.” Asked if The Spit master plan and cruise ship terminal would be considered separately, the spokespers­on said the master plan would consider implicatio­ns of a terminal. “The considerat­ion of these matters during the master planning process does not imply State Government support for, or opposition to, these proposals,” the spokespers­on said. Decisions about the location and approval for the terminal would depend on a range of approvals from relevant agencies, including the Department of Environmen­t, and these must be progressed separately by council, the spokespers­on added. The Bulletin sent six questions to council at 9.53am yesterday, but had still not received a response at time of going to print.

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