Roads Australia
The proposed sell off of Queensland Motorways and the NSW Government’s road spending plans have been the dominant road news stories of the past week.
The planned sale of Queensland Motorways (see story below) is part of a wider, staged assets sale announced by Queensland Premier, Anna Bligh, in Parliament this week. Other assets up for sale include the Port of Brisbane’s shipping terminal and Queensland Rail’s coal and freight business.
The Government says the sales are about ensuring it can reduce debt and continue with its ambitious infrastructure spending program. It says it hopes to raise $15 billion from the sale of the assets, and at the same time avoid $12 billion in required capital investment.
In another contentious decision, the Queensland Government has also decided to scrap the 8.3 cents a litre fuel subsidy, saving Treasury about $600 million a year.
The Courier Mail says the Government can expect a ‘massive backlash’ from unions and motorists over the planned sales and fuel subsidy cut.
South of the border, both the Daily Telegraph and Sydney Morning Herald reported this week that the forthcoming NSW State Budget would include a record $4.4 billion spend on roads.
The Tele put a positive spin on the story, claiming that road spending would increase by $400 million, with $1.8 billion for new roads. The Herald, on the other hand, took a decidedly negative tack, claiming there would be nothing for the expansion of the M4 and M5, and that spending on rural and regional roads would be reduced. The Herald also made much of the fact that the road budget had been leaked, causing the Government major embarrassment.
In other news, last weekend’s Sun Herald reported a proposal by Sydney University’s Professor David Hensher for fixed charges such as registration, as well as Federal fuel excise and state fuel taxes, to be scrapped in favour of a system of variable user charging based on time of day and location, including a congestion charge for the Sydney CBD.
And in Melbourne, the Age reported today on a massive swing to public transport over the past year, with nearly 60 million additional trips. This was indicative of a cultural shift to public transport, Minister Lynne Kosky was reported as saying.
Construction of a new Port of Brisbane motorway will be a key component of the sale of Queensland Motorways Limited.
The State Government says this will build on QML’s current business, which includes overseeing Brisbane road infrastructure surrounding the Gateway Motorway and Bridge (tolled), Logan Motorway (tolled) and Port of Brisbane Motorway, with the sale of a lease expected to return $4 billion for taxpayers.
QML currently carries $3 billion in debt, largely driven by the Gateway Bridge duplication, and generated $161.2 million in toll revenue last financial year.
State Treasurer, Andrew Fraser, said this week money saved and raised by entering into a private agreement for QML would be spent on ensuring the delivery of important projects.
Mr Fraser said the tender process would be highly competitive with tough provisions to protect the interests of south-east road users.
"All roads and bridges will remain state owned with any leasing agreement to include provisions to ensure toll prices will be fair and equitable.
"Current Queensland Motorways projects, including the Gateway Motorway duplication and the introduction of free-flow tolling, will also be guaranteed under a commercial arrangement.
"Governments establish corporations and companies to assist the delivery of important projects – Queensland Motorways is no different.
"Queensland Motorways has delivered on its charter and there is no longer a need for continued government funding."
Queensland Motorways Limited is responsible for the Gateway Motorway and Bridge (tolled), the section of the Gateway Motorway between Mt Gravatt-Capalaba Road and Nudgee Road, the Logan Motorway (tolled) and the 4km section of the Port of Brisbane Motorway.
A taskforce led by the Treasurer will now be formed and will determine the timing, sequence and manner of the sale.
Premier Bligh said this week the State Government made no apologies for doing whatever was necessary to ensure jobs and key infrastructure were delivered during these extremely tough economic times.
"The Global Financial Crisis has driven a $14 billion hole through the state’s budget," Ms Bligh said.
"Our trading partners are falling deeper into recession and state revenue streams have receded significantly.
"However this does not stop our population from growing nor the need for this government to deliver on one of the largest road and transport infrastructure programs in Australia.
"To build a stronger future for Queensland we have to make hard decisions."
Funding for the continuation of works on Adelaide’s South Road and Northern Expressway were among the big ticket capital expenditure projects announced in this week’s South Australian Budget.
The SA Government’s says it will invest a record $11.4 billion on infrastructure over the next four years, including $3.88 billion in 2009-10. Key road and transport initiatives over the next four years include:
The Government says the Department of Transport, Energy and Infrastructure’s total investment program for 2009-10 is a record $1.097 billion.
For comprehensive SA State Budget information, click here.
Three consortia have been shortlisted for the Victorian Government’s $750 million Peninsula Link project.
Roads and Ports Minister, Tim Pallas, announced this week the three bidders invited to continue to the next stage of the selection process were:
The Invitation for Expression of Interest was released in March this year seeking a private partner to build, design, operate and maintain the Peninsula Link as an Availability Public Private Partnership (PPP), under the Partnerships Victoria framework.
Mr Pallas said all five initial submitters showed capability in building Melbourne’s newest major freeway, however the shortlisted three had demonstrated exceptional qualities.
“The bids were evaluated by a team of experts that considered the technical, financial and delivery capabilities of the bidders and were overseen by the project probity auditor. These consortia will now need to respond to a brief detailing the requirements for the project,” the Minister said.
Treasurer John Lenders said the bidders were expected to meet extremely high standards for innovation, urban design, project delivery and maintenance. Shortlisted bidders will receive a Request for Proposal with detailed documentation on the Peninsula Link project this month.
Peninsula Link is a 25-kilometre, four-lane connection between EastLink and the Frankston Freeway at Carrum Downs and the Mornington Peninsula Freeway at Mt Martha.
The NSW Government will boost road funding for local councils and reclassify a number of roads around NSW following an independent review of the NSW road network.
Roads Minister, Michael Daley, said last week the implementation of the NSW Road Classification Review would ensure roads throughout the state were better managed and funded in the future.
The review panel, chaired by former President of the NSW Shires Association and the Australian Local Government Association Mike Montgomery, has worked closely with local councils across NSW since 2003.
“The panel identified which roads should be classified on the State Road network, for which the RTA is responsible, and which should be on the Regional Road network, for which councils receive government assistance,” Mr Daley said.
The Government has accepted the vast majority of the independent panel’s recommendations for individual road reclassifications.
In addition, the Government has agreed to a new State Road at West Wyalong in Bland Shire and decided that the Pacific Highway between Berowra and Calga, the Old Pacific Highway between Calga and the Kariong Interchange and the Cobb Highway between Ivanhoe and Wilcannia will remain State Roads.
“The government will provide $10.5 million over three years and continue working hand-in-hand with local councils to support these changes,” Mr Daley said.
“This is on top of the NSW Government’s investment of $150 million to maintain regional roads and an extra $60 million over four years to help replace old timber bridges.”
An important new overpass opens in Townsville next week as part of the Federally-funded $52 million upgrade of the Bruce Highway between Woodlands Shopping Centre and Veales Road.
Federal Transport and Infrastructure Minister, Anthony Albanese, said this week the overpass would provide a safer link for motorists from Bushland Beach and Mt Low to the Bruce Highway, while also reducing congestion at the Mt Low parkway intersection.
Meantime, the Federal and Queensland governments today announced a $21 million contract had been awarded to Probuild Civil (Qld) Pty Ltd as part of the $80 million upgrade of the Varsity Lakes Interchange (Exit 85) on the Pacific Motorway.
Another significant milestone has been reached in the Hume Highway upgrade with the opening last week of the new $78 million Sheahan Bridge over the Murrumbidgee River at Gundagai.
The duplication of the new two lane bridge began in November 2007 and has been completed ahead of schedule.
“Together with the Coolac Bypass, which is due to open in the next few weeks, this project will complete the duplication of the Hume Highway between Sydney and the Sturt Highway turnoff,” said Federal Infrastructure and Transport Minister, Anthony Albanese, at the official opening.
NSW Roads Minister, Michael Daley, said the RTA would now carry out essential maintenance work on the existing bridge until September, after which time both bridges would start operating as separate carriageways for the first time.
The program for this year’s Roads Australia National Roads Summit, with the theme of Foresight, has been finalised and is now available.
The Summit, which is the pre-eminent gathering of road industry leaders, takes place at the Novotel Brighton Beach, in Sydney, on July 28 and 29. Registrations are still open for both the Summit and the John Shaw Award Dinner.
Among the issues on the program are:
Key speakers at this year’s Summit and John Shaw Dinner include:
For registration deatils and to download the program, click here.
Submitted by Mark Bowmer on Friday June 5th 2009 1:03pm
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