DOCSLIB.ORG

I. Financial Arrangements of the Project

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
I. Financial Arrangements of the Project 12/10/2019 Committee Secretary Senate Standing Committees on Rural and Regional Affairs and Transport PO Box 6100 Parliament House Canberra ACT 2600 To the Committee Secretary, Re: The Management of the Inland Rail project by the Australian Rail Track Corporation and The Commonwealth Government I am the President of the Inner Downs Inland Rail Action Group. Our group represents property owners located on the Inner Downs. Our goal is to bring about awareness of Inland Rail and to have the Inland Rail re-routed to a line that has less impact on community, prime farming land and the environment. I. Financial arrangements of the project The costing for the Inland Rail project is flawed because it has been calculated utilising outdated data, former route selection and construction design. The false business plan is flawed with financial inaccuracies including freight types and charges, not to mention 24 hour service agreement. Treating this project as an equity injection is not sustainable. The contingency percent was not included in the total costing for the project. There will be serious cost blowouts in most sections of the project which is reinforced by Ernest and Young stating that the Inland Rail Project would cost $16 000 000 000. The design and engineering of the Inland Rail project has been modified due to the complexity of the terrain. Most citizens would consider costing to then be revised, unlike ARTC. The organizations’ employees have reported on numerous occasions that it still is within budget parameters. It is not surprising that landowners are skeptical of the response. The viaduct structures with an increase from 1.04km to 6km (with only a 25% increase in cost) is one example. Many design and engineering issues have arisen in the Wellcamp area with increased viaducts and road crossings. The infrastructure increases have been tenfold but there hasn’t been an anticipated expenditure increase. Again the budget for this work is grossly disproportionate. The Auditor-General has criticised the Australian Rail Track Corporation for shortcomings in providing value for money in procurement activities. (report attached) It had a higher than average amount of sole sourcing. Again this illustrates inexperience on behalf of ARTC in managing large projects and is a warning sign that the smaller local operators will be at a distinct disadvantage in the construction phase of the project. Public Private Partnership (PPP) parameters have not been made available. This agreement needs to be made public so a true cost of the project can be ascertained. The discrepancies between the business case and the actual costings and benefits for the project require reevaluation. The project requires PPP to complete the highly complex Great Divide tunneling and ARTC considers themselves as a partner. The terms of this partnership seem dubious, therefore, it is unlikely that any skilful company will provide funding. Obviously it will fall upon the government to provide the shortfall as a continued equity injection. FOI documents or the lack there of, demonstrates that the LNP government is not concerned about the cost overruns of this project and have agreed to allow this Nationals boondoggle to continue at any cost. Compensation figures for the Darling Downs have more than a 75% shortfall. (MCA report attached) The original compensation figures have not been updated since the Base Case investigations. Properties in the greenfield area from Pittsworth to Gowrie are very close to Toowoomba and are lifestyle blocks which bring a premium unlike the larger acreage properties further west in the Darling Downs. A factor not considered in the eleventh hour route change past the Wellcamp airport. The solution to these huge cost overruns on the B2G portion of the project could be easily solved by using the proposed forestry route that was supported by Lawrence Springborg . The Government had spent many years of investigation, design work and millions of dollars. It utilises existing rail and reduces greenfield substantially and has far less impact on communities and the environment. Putting it simply, it is flat, straight, fast and utilises State owned land. II. Route Planning and Selection Processes: The route planning process was totally inadequate and submissions were not extended to general community groups, local businesses nor locals. The selection process did not follow prescribed government process and was allowed to be biased by some influential parties. It is perceived by the community that the decision process around the final corridors was biased. Freedom of Information “FOI” records show records of this interference. The government was misleading the community proposing that all options were still being considered. The government had spent many years on planning and investigation on the original alignment. “Base Case” with the release of two reports ie. 2015 and 2010 The Multi Criteria Assessment “MCA” showed that this route was cheaper, had less impact on community and the environment. (attached) The Project Reference Group “PRG” chaired by Bruce Wilson suggested further investigation of the Forestry Route but they were ignored. This was raised numerous times by the community and the response was that it was investigated. Again FOI documents tell a different story and a completely different area was investigated. In the PRG report (attached) it states that “shallow cuts are preferable” in contrast to the current design being delivered by ARTC. Cuttings the size of caverns will be constructed. Some of these cuttings will be larger than the ones on the Toowoomba bypass. This preferred alignment via the Wellcamp airport will definitely have a detramental impact on ground water supplies. This clearly shows that ARTC are only concerned about delivering a project not the detrimental effects it will have on the environment and the negative impacts on all the small businesses that support and keep these regional communities afloat because without water agriculture can’t exist. The current prefferred corridor in the B2G section has some of the highest elevations in the entire toure. This would increase the carbon dioxide emission and diesel useage for locomotives climbing these steep ascents. The information in the Multi Criteria Assessment (MCA) was heavily weighted towards technical viability whereas Environmental and Social impacts were given the lowest rating. It is obvious with the MCA weighting that communities are seen as mere collateral damage for the project. ARTC’s response to the Goondiwindi Regional Council and members of the Project Reference Group as to why it would not consider their proposal was because of the extra costs of earthworks. However, the MCA shows that the preferred route has substantially more required earth works. Furthermore, it was not the most cost effective solution in construction and operations. ARTC are using the same engineering company as the Toowoomba Bypass. Of grave concern were the serious ecological issues culminating in additional time and cost of the project. This may well occur again with the inland rail project. Inland rail will be traversing the same geological areas but with greater impact and engineering needs to meet the heavy loads of trains. The value of these properties has been severely impacted. Many of the landholders in the area have planned their retirement around their farming assets. The impact of the preferred corridor has drastically reduced property values; therefore, many will have to rely on alternate means of support e.g. aged pensions. This will in turn have an impact on the Australian Government with self-funded retirees having to rely on financial support from the Government. The exceptionally high elevations of the preferred corridor will impact negatively not only on overall operational profitability but greenhouse gas emissions. Diesel use and carbon dioxide emissions will be much greater for this route as it has elevations exceeding 612m, the highest elevations of the entire Melbourne to Brisbane project. The forestry route crosses 39 roads whereas the preferred corridor crosses an additional 81 roads, totalling 120. Furthermore, the impact on community safety will be jeopardized given that statistics show that 76% of rail crossing accidents occur at level crossings. Solution: A route selection that does not ascend to the highest elevation of the entire project would make sense. This would also assist in the reduction of running costs. III. Connections with other freight infrastructure, including ports and intermodal hubs Placement of the inland rail at the end of the Toowoomba Wellcamp Airport poses many challenges including the height of the structure and road and creek crossings. Data reveals that wind flow through the valley has been recorded above 100km per hour. A very concerning fact for double stacked trains, especially if unloaded. Moreover, there won’t be an access road to pick up the pieces when they blow over given that it is over a flood plain. The synergies between rail and air freighting are not strong enough to justify diverting the rail terminal to Wellcamp. Relatively speaking, the inland rail freight will tend to be high volume, low value while the air freight out of Wellcamp is more likely to be low volume, high value; any exceptions could be easily accommodated by road linkages. Secondly, Charlton has been the recognised destination for some years (since the ARTC 2010 report) and substantial investment decisions have already been made on the back of associated expectations. The development of a second rail freight hub 7km from the already approved hub under construction could not benefit Toowoomba. The project or partial project does not deliver a track to the Port of Brisbane that can cater for double- stacked trains. The Queensland Government has signed the Intergovernmental Agreement which will result in a realm of complications and difficulties in the future. Upgrading the existing corridor for double stacked trains through dense, inner‐city residential communities, will be technically difficult to construct and socially unacceptable.
Load more

Recommended publications
  • Submission to Infrastructure Australia and Believes That the National Network Links in Queensland Need to Be Upgraded to Four-Star Ausrap Status
    RACQ SUBMISSION TO INFRASTRUCTURE AUSTRALIA This submission covers: Issues Paper 1 - Australia’s Future Infrastructure Requirements; and Issues Paper 2 – Public Private Partnerships. The Royal Automobile Club of Queensland Limited October 2008 Page 1 of 16 20/10/2008 Summary The RACQ congratulates the Australian Government on the initiative to establish Infrastructure Australia and the undertaking to develop a long-range plan that prioritises infrastructure requirements based on transparent and objective criteria. The intention to establish nationally consistent Public Private Partnership (PPP) guidelines will also reduce bidding costs and encourage competition in the market. With the high cost of infrastructure, congestion, safety and environmental impacts, it is important that sound policy and project decisions are made. These need to move beyond the current electoral cycle and the debate between roads and public transport, toward a long term vision of a sustainable, integrated and resilient transport system that meets all future needs. This submission provides comments on policy issues associated with the funding of roads and details the five priority projects that RACQ believes should be implemented by Infrastructure Australia. These include: 1. Cooroy to Curra Bruce Highway deviation 2. Toowoomba Bypass 3. North West Motorway 4. Brisbane Rail Upgrade 5. Four-star National Network in Queensland Introduction Representing almost 1.2 million Queensland motorists, the RACQ congratulates the Australian Government on the initiative to establish Infrastructure Australia and the undertaking to develop a long-range plan that prioritises infrastructure requirements based on transparent and objective criteria. The intention to establish nationally consistent Public Private Partnership (PPP) guidelines will also reduce bidding costs and encourage competition in the market.
    [Show full text]
  • Chapter 11 June 10
    Department of Transport and Main Roads Fauna Sensitive Road Design Manual Technical Document Volume 2: Preferred Practices 11. TERMINOLOGY AND ABBREVIATIONS A..........................................................................................................................................1 B..........................................................................................................................................2 C..........................................................................................................................................2 D..........................................................................................................................................3 E ..........................................................................................................................................4 F ..........................................................................................................................................5 G..........................................................................................................................................5 H..........................................................................................................................................6 I ...........................................................................................................................................6 J ..........................................................................................................................................6
    [Show full text]
  • I've Been Everywhere Man!
    es ltop Cr Hil Sk yline D r 85 Y A Mount G AND HIGHW y St o ynoch ombungee Rd K oundar B W ENGL NE A3 M c S h a n e Ballard D Mount r er Morris Rd z an Kynoch G d St edfor B Ganzers Rd Hermitage Rd Hermitage Rd Hermitage Rd es St op Cr y St Hillt attle Cranley w Goombungee Rd inch Rd Sk oundar n ee yline D B Gr r gent P u N 85 85 ys Ct t Bedwell St er e Ct Gleeson Cr es r eb illiam Ct v cle Y Kelly St W A ho Mc P er St Lila D y r ophia C ophia Burnview Ave Walsh St w Ryans Dr S es D yle St o T Mount Coonan St D G or St AND HIGHW e y St ch o Kyno ombungee Rd v Ella Ct Mor e A r ounda t St yc alim St B C o W ENGL Binda Dr B St Willo NE w A ve v oll A attle e Nic A3 w M P c rinc r S h n ee Ballard Alpine Ct a Mount n e St r G Gregory St Hhal St e D r derick D Hogg St Hogg St Ro Kynoch er Morris Rd Hendy St Seppelt St Perry St z an Felix St Chopin St r G air St d St Cotswold F J ohn Ct t St edfor an St Mabel St Pedersen St B r o Jonathan St r Hermitage Rd P Ganzers Rd Mor unc old Hills D Hermitage Rd Hermitage Rd Hills D Montana St Holb Kate St Mount St t St otsw r Cranley er St David St C y St Lofty D Hamzah er Bingar Katim Ct attle arr ossan St r T w F anda D Go t alinga St ir ombungeeon RdSt inch Rd M oundar een al St B r a St Macr r Abif St G ine D Hawk St wnlands at Ct y St gent P W e St Do y St estiv et St F u N 85 aminer D or St inch Rd r ollege eac gandy St C eah T T Mar P L c Mus Civil Ct y Ct Sherr Clar ys Ct t Bedwell St Barlow St Bur y St r e tin St e Ct Makepeace St gent P r Gleeson Cr ent es Mole St r v eb illiam Ct Maureen
    [Show full text]
  • Chapter 5: Road Infrastructure
    5 Road Infrastructure 5.1 A substantial proportion of AusLink funding is being applied to the improvement of Australia’s main road networks. In this chapter the Committee examines road connections, in areas other than port precincts, brought to its attention during this inquiry – either in evidence or during site visits – where funding of road improvements was demonstrated to be a priority. 5.2 As with rail links in the last Chapter, where the road issues relate directly to a port, they have been dealt with in Chapter 3. 5.3 It is obviously vital for the main highways to be brought up to an acceptable international standard. However, the Committee received evidence from a wide range of sources indicating that there are bottlenecks and “missing links” in other parts of the freight transport system, that are holding back its overall expansion and efficiency. 5.4 In many areas, the infrastructure needed is a section of road that is not covered by either funding from the AusLink program, or by State government funding. The chapter highlights some of these areas, where a project would make a marked difference to the efficiency, and/or safety, of the freight network and, in some instances, the GDP of a region. 5.5 This Chapter also refers to some problems of inconsistency between states and territories and the regulations they apply to freight transport by road. 134 Road Weight Limits 5.6 The question of increasing allowable road weight limits and axle loadings was raised by a number of participants in the inquiry. The difficulties caused by varying regulations between states were also raised.
    [Show full text]
  • Darling Downs Regional Recovery Action Plan
    DARLING DOWNS REGIONAL RECOVERY ACTION PLAN A MESSAGE FROM The Queensland Government has committed more THE PREMIER THE HONOURABLE ANNASTACIA PALASZCZUK MP than $8 billion to support COVID-19 health and AND economic recovery initiatives across the State. THE TREASURER THE HONOURABLE CAMERON DICK MP The COVID-19 pandemic has touched everyone and communities $500M $90M in the Darling Downs have not been in electricity and water bill for jobs and skills, including immune to its effects. relief, with a $200 rebate for funding for the Back to Work, households, and a $500 rebate Skilling Queenslanders for Work The Darling Downs Regional for eligible small business and and Reef Assist programs Recovery Action Plan builds on our sole traders immediate commitment to keeping the region moving through extra support for businesses, workers and households – from payroll tax waivers to electricity bill relief. Our recovery approach recognises that local industries such as agribusiness and tourism will continue to play a central role in the region’s economy. It also seeks to harness emerging opportunities $400M $267M land tax relief for property building boost to support home for future growth and to create long-term sustainable local jobs. owners which must be passed owners, ‘tradies’ and construction, We are investing in existing industries and new technologies. This onto tenants in the form of rent including a $5,000 regional home includes an agricultural technology and logistics hub in Toowoomba, relief building grant new feedlot facilities in Allora and a digital connectivity program across the Darling Downs. The Toowoomba Bypass which opened in September 2019, is expected to contribute more than $2.4 billion to the Toowoomba economy.
    [Show full text]
  • Connecting SEQ 2031 an Integrated Regional Transport Plan for South East Queensland
    Connecting SEQ 2031 An Integrated Regional Transport Plan for South East Queensland Tomorrow’s Queensland: strong, green, smart, healthy and fair Queensland AUSTRALIA south-east Queensland 1 Foreword Vision for a sustainable transport system As south-east Queensland's population continues to grow, we need a transport system that will foster our economic prosperity, sustainability and quality of life into the future. It is clear that road traffic cannot continue to grow at current rates without significant environmental and economic impacts on our communities. Connecting SEQ 2031 – An Integrated Regional Transport Plan for South East Queensland is the Queensland Government's vision for meeting the transport challenge over the next 20 years. Its purpose is to provide a coherent guide to all levels of government in making transport policy and investment decisions. Land use planning and transport planning go hand in hand, so Connecting SEQ 2031 is designed to work in partnership with the South East Queensland Regional Plan 2009–2031 and the Queensland Government's new Queensland Infrastructure Plan. By planning for and managing growth within the existing urban footprint, we can create higher density communities and move people around more easily – whether by car, bus, train, ferry or by walking and cycling. To achieve this, our travel patterns need to fundamentally change by: • doubling the share of active transport (such as walking and cycling) from 10% to 20% of all trips • doubling the share of public transport from 7% to 14% of all trips • reducing the share of trips taken in private motor vehicles from 83% to 66%.
    [Show full text]
  • Invest Toowoomba
    INVEST TOOWOOMBA Your regional gateway to business growth Trade and Investment Queensland presents investors with the opportunity to be a part of a growth story. The confluence of an economy hungry for productivity growth and a region taking the initiative to define its future through infrastructure, agricultural and technology investment makes Toowoomba a uniquely attractive, affordable and quality investment proposition. It’s the base for businesses driving innovation, with room to grow. Contents QUEENSLAND, AUSTRALIA .......................................................................................................................................1 WHY TOOWOOMBA? ..................................................................................................................................................2 TOOWOOMBA FAST FACTS .......................................................................................................................................3 YOUR GUIDE TO TOOWOOMBA INVESTMENT INDUSTRIES ...................................................................................4 TOOWOOMBA HIGHLIGHTS ......................................................................................................................................6 Dynamic industries ................................................................................................................................................6 Strong growth economy .........................................................................................................................................6
    [Show full text]
  • Toowoomba Bypass
    TOOWOOMBA BYPASS TOOWOOMBA, Location Toowoomba, Australia Client Queensland Department of QUEENSLAND, Transport and Main Roads AUSTRALIA Project Value A$1.6 billion Builder Ferrovial and ACCIONA joint Financial adviser venture Project investor Architects Parsons Brinkerhoff and Aurecon joint venture Services Broadspectrum Financial Close August 2015 Completion Date September 2019 Awards Best Road/Highway Project, 2020 Engineering News-Record Global Best Projects Awards Most Innovative National Road Infrastructure Project, 2019 BUILD Infrastructure Awards Silver, Best Transport Project, 2017 PPP Awards Best Road Project, 2016 Partnerships Awards Road Deal of the Year, 2015 PFI Awards Asia Pacific Deal of the Year, 2015 IJGlobal The Toowoomba Bypass is a 41-kilometre bypass which runs to the north of Toowoomba from the Warrego Highway to the Gore Highway via Charlton and was one of Queensland’s highest priority road infrastructure projects. The project will assist in reducing travel time across the Toowoomba range by up to 40 minutes. It will redirect trucks from local roads in Toowoomba’s central business district and enhance freight efficiencies. Plenary is part of the Nexus Infrastructure consortium contracted by the Queensland Government to finance, operate and maintain the project for 25 years. The road partially opened to traffic in December 2018 and was fully completed and operational by September 2019. © Plenary Group 2021 TOOWOOMBA BYPASS Contract terms Design, build, finance and TOOWOOMBA, maintain for 25 years QUEENSLAND, Project
    [Show full text]
  • Toowoomba's House Prices Climb by Sherele Moody 21St January 2017 September Quarter's Activities Were Slow Compared to Previous Sales Periods
    Toowoomba's house prices climb by Sherele Moody 21st January 2017 September quarter's activities were slow compared to previous sales periods. "It's a reflection that there are fewer people who are willing and able to buy properties at the moment,” Mr Snow said. "There is a hint of tentativeness from buyers. "I believe there is a sense of caution from buyers generally, they probably don't know why they're being cautious but there is a sense HOUSE buyers are waking because of the low turnover of caution. from their winter and of properties in the three spring slumber as months. "We've had a very positive Toowoomba's market and active October and Highfields had the highest moves towards a November and I would be quarterly media price with "positive and active” expecting the last quarter of that suburb's median sitting summer, the region's 2016 to show good numbers on $525,000. property leader says. of sales. East Toowoomba recorded The city's house prices lifted "We had a very good final a quarterly median of but unit prices dropped in quarter of 2015 and I'm $430,000, Centenary the three months to looking forward to seeing Heights hit $367,000, South September 31. that happen at the end of Toowoomba's median was 2016.” Real Estate Institute of $359,250 and Kearneys Queensland property Spring's median was Mr Snow said the region's statistics reveal the region's $355,000. rental vacancy rate was median house price rose sitting around 3%. Advertisement 1.5% to $350,000 and the A total of 341 Toowoomba median unit price fell 8.1% "We may have seen a slight houses changed hands in to $285,000 in the the September quarter and improvement in vacancy September quarter.
    [Show full text]
  • The Management of the Inland Rail Project by the Australian Track Corporation and the Commonwealth Government
    The Management of the Inland Rail project by the Australian Track Corporation and the Commonwealth Government. Comments with reference to: B. Route planning and selection processes C. Connections with other freight infrastructure, including ports and intermodal hubs. b. Route planning and selection processes. Historical. In 2007, the Queensland Department of Transport and Main Roads (TMR) initiated a study into the proposed Southern Rail Freight Corridor (SRFC). The study area was from the interstate rail corridor (SGRC) at Kagaru south of Jimboomba, to Rosewood on the western rail line, despite the general area being identified on the 2005 SEQ Regional Plan as being north of Jimboomba. A more suitable corridor to the north was also identified however was discounted by the Queensland Government as it was close to the (then) proposed residential developments at Springfield and Ripley and it was deemed to be inappropriate to bring a high speed freight corridor so close to residential areas. This criterium appears to have been forgotten or discarded with the choice of the proposed alignment utilizing the existing interstate corridor from Kagaru to Acacia Ridge bisecting the residential developments at Flagstone and Greenbank proposed to accommodate 120000 residents in the near future. A draft Assessment Report was released in 2008 and despite many strong and relevant objections, the final report was released in August 2010 and the corridor gazetted by the Queensland Government. This report clearly identifies that ARTC was heavily involved in the selection of the corridor at this phase of the process despite their current claims that they must use the SRFC identified by the Queensland Government.
    [Show full text]
  • Sustainable Queensland Volume 2
    Sustainable Queensland Volume 2 Financing Infrastructure: Public vs Private Stephen Gray Sustainable Queensland Infrastructure Mark Ingham Private Capital Finance Stephen Walsh, Ian Macoun et al. SUPPORTED BY CEDA INFORMATION PAPER 88 About this paper CEDA Information Paper 88 Title: Sustainable Queensland Vol 2 ISSN 1832-8814 © Committee for Economic Development of Australia 2007 The views expressed in this paper are solely those of the author and should not be attributed to CEDA. CEDA’s objective in publishing this paper is to encourage constructive discussion on matters of national, economic and social importance. Persons who act in reliance upon the material published do so at their own risk. Cover photography: Surfers Paradise, Queensland, Australia. Courtesy of Tourism Queensland. About the authors Professor Stephen Gray is director of the University of Queensland’s Business School Corporate Valuation Centre. His work on empirical finance, asset-pricing and corporate finance has been published in leading academic and practitioner journals. He is an active consultant and researcher in the areas of valuation, cost of capital, corporate financial strategy, financial modelling, financial risk management, and the creation of shareholder value. He teaches a range of award and executive education courses in financial management, asset valuation, and corporate finance at UQ Business School, and was recently awarded the Prime Minister’s Award for University Teacher of the Year in the Economics, Business and Related Studies field. He holds honours degrees in commerce and law from the University of Queensland and a PhD in financial economics from the Graduate School of Business at Stanford University. Mark Ingham has been at PricewaterhouseCoopers for 13 years, eight years as a Partner.
    [Show full text]
  • Capability Statement
    CAPABILITY STATEMENT Core Competencies Integrated transport planning and project evaluation Transport modelling Strategic planning for public transport Toll road analysis Accessibility analysis Statistical and economic analysis Land use projections TransPosition is the GIS and technical software development trading name of Peter Davidson Consulting, Past Performance which has operated since 1993, with a Sydney Motorways Corporation Bid (Traffic modelling), Pacific Part- special focus on the nerships, 2017-2018 analytical side of Queens Wharf Development Bid Review (Traffic), Department of transport, software State Development, Infrastructure and Planning Queensland, 2014- development and 2015 land use planning. Surat Basin Transport Strategy, Queensland Transport and Main With a client list that Roads, 2015 includes a range of Queensland Motorways Bid, Abertis Infraestructuras et al, 2014 local governments, Toowoomba Second Range Crossing Business Case, Projects state agencies, na- Queensland, 2013 tional organisations and private develop- Clem 7 Bid Assessment, UBS, 2013 ers; TransPosition Toowoomba Sub Regional Transport Study, Stage 1 and 2, Queens- has a depth and land Transport and Main Roads (TMR), 2012-2013 breadth of experience Toowoomba Bypass Business Case Review, TMR, 2011 that makes it particu- Review of New England Highway Upgrade, TMR, 2011 larly well suited to TransApex Strategic Advice, Queensland Transport, 2006-2008 integrated, multi- Brisbane Urban Growth Model, Brisbane City Council (BCC), 2007-
    [Show full text]