The major works contract for Light Rail Stage 2A – City to Commonwealth Park was signed this morning, handing over the raising London Circuit project to Canberra Metro in 2024–25.
Canberra Metro was the only company considered. Chief Minister Andrew Barr said it had “successfully delivered reliable services and a project that has been a remarkable success in Stage 1” (Gungahlin to Civic).
ACT transport minister Chris Steel expects construction to begin in late 2024 and to take two years, followed by testing and commissioning; the first passengers will likely take the light rail service in January 2028 – nearly nine years after Stage 1 opened at Easter 2019.
Stage 2A would cost $577 million. The ACT and Federal governments will pay for half each. The Federal Government will contribute an additional $125.5 million, Catherine King MP, federal minister for infrastructure, transport, and regional development Australia, announced. This brings the Commonwealth contribution to stage 2A to more than $344 million, Ms King said.
Canberra Liberals’ worst fears confirmed
Canberra Liberals MLA Mark Parton, Shadow Minister for Transport, was disappointed with the project cost and the delivery date.
“Today’s announcement confirms the worst fears that the Canberra Liberals had regarding the cost and delivery date of this project,” Mr Parton said.
This time last year, the Canberra Liberals announced they could not support light rail to Woden; they estimated that Civic to Woden alone would cost more than $3 billion (stage 2A $343 million, stage 2B $2.7 billion), and that the entire project would cost $14 billion (more than three times the entire ACT budget when the project began a decade ago).
But the cost of stage 2A was “substantially higher” than the $343 million the Liberals had calculated last year, Mr Parton said – more than $800 million, in fact.
To the government’s costing of $577 million, Mr Parton added the LRPDE contract (expansion of the depot, acquiring light rail vehicles, purchasing batteries and retrofitting) of $167 million, and the raising of London Circuit (originally $60 million, but closer to $100 million).
“Stage 2A has come in at more than double what the Canberra Liberals estimated,” Mr Parton said.
Stage 2 in its entirety, he thought, would cost “north of $4 billion”.
“If you are spending close to $5 billion on this project in its entirety, that’s close to $5 billion that you can’t spend on something else,” Mr Parton said.
“It’s great that there’s Commonwealth money, but there’s only so much Commonwealth money will come to this jurisdiction. And so if the vast bulk of Commonwealth money is going to go this project, you have to consider the opportunity cost of where Commonwealth money would have been spent if not for this light rail white elephant.”
If the Canberra Liberals win next year’s election, Mr Parton said it was “a foregone conclusion” that light rail would get to Commonwealth Park.
“We’re certainly not going to be in the business of tearing up contracts,” he said.
But he drew the line at taking the light rail further.
“It would be a dereliction of my duty as an MLA,” Mr Parton said. The amount needed to get to Woden was “astronomical”.
“The government will have to borrow it at a time when obviously interest rates will continue to rise and it doesn’t make economic sense to proceed. And I think the government actually knows that, because otherwise we wouldn’t be staring down the barrel at arrival in Woden by – when will it be? 2034? Will it be 2040? Who knows?”
ACT Government: “City-shaping”
The line from Gungahlin to Commonwealth Park will move the CBD down towards Lake Burley Griffin, Mr Barr said. The government has released land for new mixed-use development: parks, housing, hotels, restaurants, cafés, and commercial activity.
Mr Steel said the Stage 2A extension will serve educational precincts and the Australian National University; residential and commercial precincts in City West, New Acton, and Acton Waterfront; and the recreational precinct at Commonwealth Park.
The government said there has been significant interest in ACT Government land release along the route – as there was with Stage 1 (Gungahlin to Civic).
51 per cent of existing light rail passengers would use one of the three new stops being built, at Edinburgh Avenue, City South, and Commonwealth Avenue, Mr Steel predicted.
“This is an important city-shaping project,” Mr Steel said. “This will provide a walkable street environment for pedestrians and cyclists, better access and connectivity to mass transit public transport that will reshape the southern part of our CBD.”
Since light rail began, it has carried more than 15 million passengers, travelled more than 4 million km, and been available and operated on schedule, with an average reliability 99.9 per cent of the time, Simon Nichols, from the Canberra Metro consortium, said. 95 per cent of passengers were likely to recommend the service.
Light rail to Commonwealth Park will run wireless and along green tracks, sitting within grass or plants instead of concrete.
The environmental impact statement for Stage 2B (Commonwealth Park to Woden) will be delivered next year.
Public Transport Association of Canberra
The Public Transport Association of Canberra (PTCBR) welcomed today’s announcement.
“Light Rail Stage 2 will completely change and improve the way we travel around the city,” said PTCBR Chair Ryan Hemsley.
“For far too long, City West and surrounds have been dominated by bitumen, parked cars and rabbits. Stage 2A will transform this blighted landscape and bring the city and lake closer together for all Canberrans to enjoy.
“It’s certainly been a long road to this announcement, and we congratulate the ACT Government, the Federal Government, Major Projects Canberra and Canberra Metro on reaching this important milestone.
“We look forward to seeing those shiny red light rail vehicles gliding through Canberra’s revitalised city centre, all the way down to the lake along beautiful green tracks.
“Next stop, Woden.”
