RAIL BACK ON TRACK
Feds swoop in with $126m lifeline to kickstart Stage 3
CONSTRUCTION of light rail Stage 3 will finally begin this year after the federal government swooped in with a $126m lifeline to get the Broadbeach-to-Burleigh extension back on track.
Federal Urban Infrastructure Minister Paul Fletcher said the urgent intervention was necessary to allow the Gold Coast to continue reducing congestion on its under-pressure road network.
The unprecedented funding commitment came after it was revealed negotiations had stalled between the state government and contractor John Holland Group over a cost blowout.
Stage 3, which will include eight stations terminating at Burleigh Heads, will now cost $1bn to build, up from the original $709m.
The state government will cough up $554m, $204m more than its original contribution announced in 2019. Council’s commitment of $91.5m will not change after Mayor Tom Tate declared no more ratepayer funds would be spent.
CONSTRUCTION of light rail Stage 3 will begin this year after the federal government swooped in with a $126m lifeline to get the Broadbeach-toBurleigh extension back on track.
The government announced the unprecedented funding commitment on Friday afternoon. It will cover a cost blowout after negotiations stalled between the state government and contractor John Holland Group.
The funding, to be included in next week’s federal budget, came after the Bulletin revealed in April that the deal to build the 6.7km tram link had not been signed, forcing the state to admit the project would be delayed and cost significantly more.
Stage 3, which will include eight stations terminating at Burleigh Heads, will now cost $1bn to build, up from the original $709m.
The state government will cough up $554m, $204m more than its original contribution announced in 2019.
Council’s commitment of $91.5m will not change.
State Transport Minister Mark Bailey blamed increased labour costs as the reason for the blow out.
“A lot has happened since the business case and costs have risen since them. That’s just the reality,” he said. “The economy has changed and we have to cut our cloth accordingly. Stage 3 is definitely going to be happen.”
Mr Bailey said negotiations were still ongoing with John Holland Group, the contractor the government selected last year.
Federal Urban Infrastructure Minister Paul Fletcher said the urgent intervention was necessary to allow the Gold Coast to continue reducing congestion on its underpressure road network.
“This additional funding brings our total commitment to Stage 3 of the light rail to $395.6m and demonstrates our government’s continued commitment to helping deliver what is the most significant transport infrastructure project ever carried out on the Gold Coast,” he said.
“This stage of the project is expected to directly support 760 jobs while also improving the speed, reliability and service frequency of the light rail system, and helping to further bust local congestion.”
Mr Bailey said the continued expansion of the tram line was critical to the city’s post-COVID recovery.
“There is an infrastructure boom supporting the Gold Coast’s economic recovery right now thanks to the strong partnership between our governments that is focused on building better roads and rail,” he said.
“Major M1 upgrades, upcoming works on the jointly funded $1.5bn first stage of the Coomera Connector and the extension of the light rail to Burleigh will transform how Gold Coast locals and tourists travel around the city.”
The extra funding was secured in recent weeks after a flurry of 11th-hour lobbying from local MPs to ensure the project got back on track and completed in 2024.
“Stage 3 is a critical project that will include eight new light rail stations, upgraded pedestrian and cycling facilities, and an upgraded bus and rail interchange at Burleigh Heads Station,” Moncrieff MP Angie Bell said.
“This will provide better access to jobs, schools, shopping, services and recreational facilities.”
The Bulletin has fought vigorously for Stage 3 since 2015, immediately after its reporting secured funding for Stage 2 from Parklands to Helensvale.
Mayor Tom Tate said the deal was “huge” for the city.
“It underscores the benefits of all three tiers of government working together,” he said.
“Light rail is our city’s public transport spine. Having this funding certainty also means we can continue our investigations into the vital east-west connections that will feed off the main light rail corridor. It’s a great day for our city.”
THE federal government’s 11th hour pre-budget pledge of more than $126 million towards the light rail has saved the city’s biggest infrastructure project. The Bulletin last month revealed the Broadbeach-to-Burleigh extension had stalled because the state government had failed to reach an agreement with their own contractors.
More embarrassingly, this had occurred despite a big pre-election announcement and six months of claims that construction was under way.
What has followed in the subsequent weeks following this report was the wheels of politics moving rapidly to stitch up a deal and get the public transport project back on track despite delays and a cost blowout.
While politics has largely returned to its pre-COVID polarised state, the negotiations behind the scenes to secure an agreement shows what can happen when toxic division is put aside in favour of pragmatism.
Critics of the tram who were hoping the delays would deliver a death blow to the light rail will be disappointed but this was never going to happen.
Light rail is the future and it will provide more than 700 jobs and help change the face of the southern Gold Coast. The deal is done, now the work begins.