Tram shock
State cost estimate range the best argument for haste on building light rail to GC Airport
The race is now on to hasten and streamline light rail Stage 4’s build to the airport given the upper estimate of the State’s costings for the project sitting at $7.6 billion.
In the past 12 months, officers at Gold Coast City in determining council’s likely funding have been working off a total cost of about $4 billion.
Transport Minister Bert Mellish, under pressure from the State Opposition to provide details from the preliminary business case to extend the tram line from Burleigh to Coolangatta, has revealed the estimated cost is $4.4 billion. The cost range is worrying, from $3.1 billion to $7.6 billion.
The Bulletin in 2022, after the council budget, established a total cost of $2.7 billion, based on the forward estimates of the City spend on the trams across several years reaching $260m as part of its 11 per cent contribution.
There has never been any dispute about the figure or council’s ability to meet its third share, with the State and federal governments.
City leaders have publicly acknowledged that figure would grow to $3bn and privately suspected it could reach $4bn. City of Gold Coast CEO Tim Baker said the upper estimate from the state was higher than expected.
Which is why Mayor Tom Tate has run the narrative of fast forwarding the project and building some of the more expensive components earlier.
Mr Tate on Tuesday welcomed the decision by Mr Mellish to fast forward the detailed business study. This could take 18 months.
The Mayor in late 2022 first called for the Government to bring forward the construction of the bridges across Tallebudgera and Currumbin creeks.
He later told councillors the then Minister, Mark Bailey, had “responded positively suggesting the City should pursue this outcome”.
The City has been as strong as steel in its contribution. The project busts traffic congestion and streamlines tourist transport on the Glitter Strip.
“Council can bring this contribution forward to provide certainty and ensure delivery of this project well in advance of the 2032 Olympic Games. As well as providing certainty, this will deliver a saving to ratepayers given rapidly escalating construction costs and the time value of money,” Mr Tate told councillors.
A super majority of them agreed that he write to Mr Bailey, to seek an early design of the bridges, and to his federal counterpart in getting early support.
These future costing estimates now only confirm the Mayor’s concern about escalating costs.
All levels of government need to commit on moving forward fast and smart on this project, otherwise for taxpayers and ratepayers, light rail to the border will be a bridge too far.
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