Roads Australia
Road spending promises have come thick and fast in the past fortnight, with the major parties criticising each other over the detail of their respective funding commitments.
In The Australian newspaper, Deputy Prime Minister and Transport Minister, Mark Vaile, said Federal Labor’s $2.55 billion commitment to road infrastructure in south east Queensland (see story below) would not cover rising construction costs.
The Australian also foreshadowed an announcement by Mr Vaile during the campaign of an expansion of Auslink II funding.
Earlier this week the Courier Mail reported that Federal Labor would scrap the $2.3 billion Goodna bypass in favour of widening the Ipswich Motorway.
In Melbourne, the Herald Sun reported the Federal Government had committed a further $55 million to fix a notorious intersection at Whitehorse and Springvale roads in Nunawading, bringing its total funding commitment to the project to $80 million.
The Financial Review reported the Government had promised $10 million for two road projects in Perth (at Swan and Wanneroo) and a further $8.2 million to upgrade the Kings Highway in the marginal southern NSW seat of Eden Monaro.
In Adelaide, today’s Advertiser led with a story criticising the lack of spending commitments in that state, saying SA’s Duke’s Highway was a priority.
And in Hobart, AAP reported last week that the Federal Government had committed $30 million to fully fund the Kingston bypass, south of Hobart.
Away from election coverage, the Age reported that despite an increase in the number of people using public transport in Melbourne, analysis of the latest Census data shows that car trips have grown in absolute terms more than all other modes of transport.
AAP reported last week that NSW Premier Morris Iemma had denied that the extension of the M4 was dependent on any sell off of the state’s electricity assets.
And the Daily Telegraph reported the NSW Government was reaping $10 million in fines from fixed speed cameras in private motorways, up 20 per cent over the past year.
The Federal Government has committed $2.4 billion in AusLink II funding between 2009-10 and 2013-14 - with promises of more to come - for further duplication works on the Pacific Highway, in northern NSW.
The announcement was made last week by the Prime Minister, and followed on the heels of the previous week’s announcement of $2 billion for a major upgrade of the Bruce Highway from Brisbane to Cairns.
Mr Howard said the new investment should put the Pacific Highway on track by 2016 to achieve duplication as far north as Woolgoolga, south from the Queensland border to Ballina, and extensive safety work in between.
It would also complete the Banora Point (Sextons Hill) upgrade on the Tweed, as well as the Coffs Harbour Bypass, he said.
Mr Howard said the Government's preference remained for the duplication of the Highway to be fully completed by 2016, in line with a 2004 commitment.
However he said this was dependent on a contribution from the NSW Government, “...and to date they have indicated that they would not be willing to provide sufficient funding to enable the road to be duplicated for its whole length by 2016.”
Mr Howard said the Coalition Government was willing to provide its share of the additional funds needed to fully duplicate by 2016, if the NSW Government was prepared to match its financial commitment to a faster completion.
NSW Roads Minister Eric Roozendaal’s immediate reaction, as widely reported in the media, was to wait for details of the lastest funding commitment before responding.
But he reportedly told AAP that while the funding was welcomed, $8 billion was required to complete duplication of the Highway.
Meanwhile Victorian Roads and Ports Minister, Tim Pallas, used the Pacific Highway announcement as an opportunity to again criticise the Commonwealth for overlooking Victoria, detailing a list of projects the State Government had identified for AusLink II funding but which had as yet received nothing.
The Labor Party has used the first week of the Federal election campaign to announce major road funding commitments for Queensland and Victoria.
Shadow Minister for Transport, Roads and Tourism, Martin Ferguson, this week released details of a $2.55 billion commitment to get rid of traffic gridlock in south east Queensland and unchoke Brisbane’s roads as part of a Major Cities infrastructure program.
He said Federal Labor’s commitment to these projects would be in partnership with the Queensland government, local government authorities and the private sector. The funding package consists of:
In Victoria, Mr Ferguson promised a Labor Government would commit funding to start three major upgrade projects on the Western Highway to improve transport productivity and road safety:
These latest commitments come on top of a previous Federal Labor promise of $62.5 million for Stage 4A of the Geelong Ring Road (the Anglesea Overpass).
In NSW, Mr Ferguson committed a Labor Government to $15 million funding to start the $50 million Bega Bypass on the Princes Highway.
A re-elected Coalition Government will provide $250 million, with more to follow, for the duplication of Traralgon to Sale section of the Princes Highway, the Deputy Prime Minister and Transport Minister, Mark Vaile, announced today.
Mr Vaile said the duplication would deliver a first class freeway standard road, incorporating four traffic lanes with two carriageways, sealed shoulders and a central median dividing strip significantly boosting road freight capacity, reducing transit times and improving traffic flows.
“Sale and the Gippsland region is crucial to both the Victorian and national economy with many major industries based in the area, including dairy and forestry, relying on the Princes Highway as their major transport link," he said.
“It is expected by 2025 the number of heavy vehicles on the Traralgon to Sale section of the Princes Highway will grow to 1,437 per day – an increase of 57 per cent."
Total investment will remain at high levels during the next five years, underpinning solid employment, income and spending growth, according to leading economic forecaster and industry analyst BIS Shrapnel. However, industry will face a variety of challenges and risks. (Total investment includes public, business and dwelling investment).
Business investment will remain at an elevated level for the next 12 to 18 months, before moderating in 2009, according to BIS Shrapnel’s Long Term Forecasts, 2007 to 2022 report.
The report states this weakening in business investment will be partially offset by a new round of dwelling investment and the significant volume of public infrastructure spending currently underway, before business investment cycles up again early next decade.
For more in formation, go to http://www.bis.com.au/news/ltf_15-10-07_mr.html/section/34
Seventy per cent of motorists surveyed for the Australian Automobile Association (AAA) disapprove of more toll roads.
Announcing the survey results last week, AAA Director of Research and Policy, John Metcalfe, said while there might be grudging acceptance of the reality of toll roads, it was very grudging indeed as the numbers in the survey reveal record disapproval levels.
“As a whole, disapproval of building more toll roads is at 70 per cent — up 10 per cent since 2005 and up 20 per cent since 1999,” he said.
“The highest level of toll road opposition was found among low income earners, with 77 per cent of those from households with an income under $40,000.
“All three toll road cities (Sydney, Melbourne, Brisbane) show significant disapproval rises.
“Disapproval of toll roads is hardly surprising given that motorists are already paying 38 cents per litre in fuel tax and a record proportion of motorists (93 per cent) believe that more of this should be spent on roads, according to the research.”
Transfield Services has announced its further expansion into New Zealand’s transport infrastructure sector with the acquisition of McBreen Jenkins Construction Ltd and its wholly owned subsidiary, Impact Services Ltd for NZ$24.2 million.
McBreen Jenkins Construction Ltd and Impact Services Ltd are well-established in New Zealand’s roading and water infrastructure sectors respectively.
CEO Transfield Services New Zealand, Mr Graeme Sumner, said the acquisition of McBreen Jenkins would strengthen Transfield Services’ market position in the New Zealand’s North Island roading market by expanding its regional presence and building on the recent acquisitions of roading and infrastructure companies N Forsyth Ltd, AC Blackmore Ltd and Kapiti Roadmakers & Contractors Ltd.
“These acquisitions now give Transfield Services a strong presence in New Zealand’s large population centres of Auckland, Wellington and Hamilton. Over the past 12-months Transfield Services has invested NZ$47million in expanding its roading capabilities. Annualised revenue from these businesses will be circa NZ$118 million.”
Mr Sumner said the McBreen Jenkins business was a good fit with Transfield Services existing roading operations and gave Transfield Services access to key competencies and experience at a time when skilled labour was in short supply.
“Aligning those competencies under the Transfield Services’ umbrella of professional services will strongly position the operation to take advantage of upcoming opportunities in the market.”
The acquisition is subject to regulatory approvals from New Zealand’s Overseas Investment Office. It is anticipated that completion will occur by the end of December 2007.
The following stories appear courtesy of World Highways.
Joint study on project financing
ASECAP – the European Association of tolled infrastructure operators – and IBTTA – International Bridge, Tunnel and Turnpike Association (International Association) – have decided to launch a joint study for the drafting of “guidelines on the quality of project financing” and, more generally, on the issue of concessions, in order to allow the integration of the different national legislations into a homogeneous international regulatory framework.
The proposal from the ASECAP President Fabrizio Palenzona was approved during the recent IBTTA annual meeting in Vienna. The study will be presented at a congress that ASECAP will organise in Venice next spring. This document, according to Mr Palenzona, will be “based on a scientific analysis and will provide the necessary parameters of certainty without which the toll contracts, being contracts of duration, are not sustainable”.
Foreign interest in US turnpike
The Pennsylvania Department of Transportation and the Pennsylvania Turnpike Commission have entered into a 50-year lease agreement for Interstate 80, a step toward tolling the 466km road.
Financial advisors in Pennsylvania previously determined that the state had a transport budget shortfall of US$1.75 billion per year.
Spanish contractors are reported to be studying the privatisation of the Pennsylvania Turnpike - one of the busiest roads in the US.
Governor Ed Rendell proposed a budget in February that included a private lease of the Pennsylvania Turnpike to increase revenue.
The Spanish said to be interested are: ACS, Cintra, Abertis Infraestructuras, FCC, Sacyr, and OHL.
The state transport department has said that the mega-highway project will require around US$8.5 billion in investment over the next 10 years.
Australian infrastructure firms have also said that they are looking at the privatisation of the Turnpike.
Spanish firm Cintra may partner with Macquarie, and Transurban has been tipped to form a consortium with Goldman Sachs to bid for the turnpike. Pennsylvania's financial adviser Morgan Stanley is to help review the proposals.
Changing behaviour
“Developing technology and changes in behaviour are both essential if emissions of greenhouse gases are to be reduced”, stressed Jack Short, Secretary General of the International Transport Forum, at a conference of Nordic and Baltic Ministers of Transport on climate change in the Finnish city of Joensuu.
He encouraged Ministers to provide the incentives for people to drive more fuel efficient cars. Short said that radical technological changes are not on the horizon. There are many long term possibilities including electric power trains, fuel cells and hydrogen, but of these only battery powered cars appear likely to be commercially viable before 2030. Nevertheless, the potential from improving existing technologies can deliver up to 30% reduction in CO2 emissions.
For more road news from around the world, visit the World Highways website.
Submitted by Mark Bowmer on Friday October 19th 2007 2:58pm
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