Mayor: Cruise bid on track
MAYOR Tom Tate says it is wrong to suggest that ratepayers will pay for the construction of the oceanside cruise ship terminal.
Councillor Tate yesterday released a statement where he reaffirmed that planning for the project off Philip Park at The Spit remained on track.
The Mayor downplayed the “risks” of building the facility in the ocean and maintained that his majority win at the 2012 and 2016 elections where the project was part of his key agenda showed support for it.
Cr Tate said it was inaccurate for anyone to report that ratepayers would be asked to pay for the terminal construction.
“That’s wrong and should not be reported as it is inaccurate. We are currently getting the project design and business case finalised,” he said.
“That is what ratepayers are investing in. Once that is done and presented to the State Government, the project will be what we call ‘shovel-ready’.
“The State has made it clear that they want to finish their 20-month community consultation into future uses for The Spit land. The Spit is State land under their control.
“That State-led consultation is underway now and concludes in July 2019.
“By the time that is wrapped up, we will have our business case well and truly ready so it will ultimately be a State call as to whether they allow a small section of land to be used for an oceanside cruise ship terminal.”
The costs to ratepayers to get the project shovel-ready are expected to be between $7.4 million to $10.45 million.
A confidential consultant report to council prepared in March 2017 outlined the business marketing case for a CST.
“There is currently no committed finance to build the project,” the report said.
“The City has a significant cash balance of $780 million which suggests that at least some of the capital expenditure required for the CST could be financed through existing resources.”
The consultants warned the Federal Government may not support the project and admitted “there is very little appetite for private investors to take patronage risk on large scale infrastructure”.
“Unless cruise companies are prepared to sign up to longterm agreements to guarantee usage of the facility over an extended period of time (15 plus years) it is unlikely that private finance will be available,” the consultants wrote.
In a report two months ago on the CST and Spit master plan, council officers said a project team would provide ongoing financial and commercial analysis updates.
Part of that would be assessing a public private partnership (PPP) on the design, build and financing of the CST which could be like several of Brisbane’s toll road projects where the council financed it through construction until demand was proven.
“The application of this for the OCST would be for the City to fund the design and construction of the project and retain the revenue in the form of the port charges, then once the demand had been established, to sell or lease the terminal – including port charges – to a private sector proponent,” the officer’s report said.