Project off the rails
The price of Auckland’s big City Rail Link project has risen by just over $1 billion, to become $5.5 billion, and its completion will be at least a year later than previously thought.
The long-speculated cost increase to the country’s biggest public transport infrastructure project has been confirmed, with Auckland Council and the Government expected to split the higher cost between them.
Completion of the project had been expected by the end of 2024, but that has now been pushed back to at least November 2025, with some station fit-outs by Auckland Transport and KiwiRail to follow.
In a statement, Auckland Council has flagged that the increase will add to significant financial challenges it faces when it prepares its next 10-year budget starting in 2024.
’’The cost increase and delay have been primarily driven by the Covid-19 pandemic and associated lockdowns, which has resulted in staffing, supply chain and technical-related challenges associated with a project of this scale and complexity, and inflation in construction costs,’’ the council said.
The chief executive of the joint venture City Rail Link Ltd, Dr
Sean Sweeney, defended the delay and the cost increase.
‘‘People need to remember that in Auckland we endured two level four lockdowns, a further 280 days of restricted working conditions (Covid traffic light system) and we lost 3.2 million hours through illness among staff, with 800-plus workers infected,’’ he said.
The increase had been scheduled to be unveiled before Christmas but was delayed by ongoing contract negotiations with the Link Alliance of companies building the twin rail tunnels for the council and government joint venture.
In the same statement, Auckland Council, for the first time, put a price on the costs it will face following the January 27 and Cyclone Gabrielle weather emergencies. ‘‘The cost of the council’s operational response to these events and returning assets to their previous service levels could cost between $900 million and $1.2 billion,’’ it said.
Those impacts were expected to largely be felt from mid-2024 onwards.
The update on the City Rail
Link does not make clear exactly when passengers will be able to start travelling through the tunnels under the city centre.
November 2025 is the expected completion date for the main works, but the council said KiwiRail and Auckland Transport ‘‘will then carry out the additional work required to open the CRL to its first passengers’’.