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Would you prefer a nice new Ferrari to light rail? [With poll]

By johnboy - 18 July 2013 48


The Liberals’ Alistair Coe is having a fine time nitpicking the Capital Metro light rail proposal:

The ACT Government is spending $433,333 per additional commuter to ride the service, ACT Shadow Minister for Transport Alistair Coe said today.

“The Government has stated that light rail patronage will be 4,500 people in the morning peak. However, currently 3,000 commuters ride ACTION on Northbourne in the morning,” said Mr Coe.

“To spend so much money on an additional 1,500 people seems extraordinary and will hardly make a dent on the number of cars.

Would you like 1,500 shiny new Ferraris in Canberra (we could raffle them) or some trams?

I like trains but it’s a bit of a tooth sucker

For the same money would you prefer?

View Results

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UPDATE: Shane Rattenbury has made clear his displeasure with this line of thinking:

“The Liberals’ latest criticisms about costs are so simplistic they are embarrassing. They pick one projected cost and divide it by an estimated passenger increase for one random point in time, with no consideration of other factors – it’s almost like dividing two random numbers together. It doesn’t take into account any factors like population growth, the longevity of the rail system, environmental benefits, development opportunities or modal shift benefits on the whole transport network.

“An economic consultant conducted a cost-benefit analysis of the light rail project and showed that for every dollar invested in light rail, the Canberra community will receive over two dollars in benefits.

“It is clear that the light rail project will return the investment in benefits to the community. Not only will it will help the travelling public get around more easily, it will help with congestion and allow our city to develop in a smart and sustainable way. This is Canberra growing into a progressive and convenient 21st century city,” Mr Rattenbury concluded.

Of course a system of shared driverless cars using reputation indexes to get like minded people together would be within this sort of budget.

UPDATE: Chief Minister Gallagher has expressed her displeasure with young Alistair:

Chief Chief Minister and Acting Minister for the Environment and Sustainable Development, Katy Gallagher, has called on opposition spokesperson, Alistair Coe, to stop misleading the community on the Capital Metro Light Rail project.

“Mr Coe has issued a barrage of irrational and increasingly hysterical statements on this project which are very loose with the facts,” the Chief Minister said.

“The ACT Government went to the election with a commitment to deliver Capital Metro including releasing the latest draft cost estimates developed by economic experts.

“To date the government has issued four project updates which detail the latest news on the Capital Metro project. Comprehensive planning of the project is ongoing and the formation of the Capital Metro Project Office including the appointment of a specialised project director is underway.

“It is time for the Canberra Liberals to stop talking down the project and misrepresenting the facts to the Canberra community for purely political purposes, especially considering Mr Coe has not even

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48 Responses to
Would you prefer a nice new Ferrari to light rail? [With poll]
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aussie2 4:24 pm 12 Sep 15

Here are some facts for you to digest ONLY FOR STAGE 1:

Capital Metro Agency costs: $81.5 million budgeted through to 2018-19; and
Construction and Operate Contract cost: $2 billion over 30 years (2014 prices).
Construction (3 years): $783m [Business Case figure]
Interest burden on construction cost (23 years): $600m [independent estimate]
Ops & Logistics (30y): 30 x $22.2m pa = $666m [Business Case figure]
Total cost (30 years): $2,049m

Costs first 20 years:
Total: $ 1,830m
Availability Payment per annum: $ 91.5 m
Potential rates increase to pay for project $ 570 pa [160,000 households]

1. All figures are almost certainly on the low side – only 20-28 % contingency allowed.
2. ‘Real’costs are those that have to be paid by ACT taxpayers, expressed in 2014 dollars.
These were calculated by a qualified specialist in this work. No arguments! For those complaining about the project, here is another opportunity to make yourself heard:

Capital Public Transport Alliance

PA1 10:03 pm 20 Jul 13

I’ve got this feeling the Light Rail is going to be botched. It’s costing too much for a system that is mostly going to be build on crown land.

Why is it costing $200m to relocate services when light rail is primarily above ground (except for some cabling and storm water drains). My gut feeling is that some of our Chardonnay Socialist Politicians are adding unnecessary cost to the project (Eg: Solar power plant for electricity, non removal of tree in the Northbourne median, etc).

dungfungus 7:03 pm 20 Jul 13

kagey said :

Cost-benefit analysis.
Has it been done? If so, can we have a look?

Was the opportunity cost for disruption during building?
Who will wear the risks for budget overruns/delays/?

Cost = massive inceases in rates
Benefit= A Green controlled Labor government until 2016

kagey 12:03 pm 20 Jul 13

Cost-benefit analysis.
Has it been done? If so, can we have a look?

Was the opportunity cost for disruption during building?
Who will wear the risks for budget overruns/delays/?

gibbering 2:16 pm 19 Jul 13

Unless they are planning to put the light rail underground to avoid traffic lights, there is no benefit to light rail over dedicated bus lines – FOR THE POPULATION DENSITY.

Spending money on light rail over dedicated bus routes with synced traffic lights is criminal as you will end up with lower frequency by trying to save money in multicarriage runs.

I challenge anyone to show cost benefit of light rail over dedicated busses working. If nothing else, show me the thousands of free carparks at the terminus in Gungahlin or the thousands of appartments within a couple of mins walk of the line.

Coe might be wrong, but at least he’s not the one building the white elephant.

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