Sydney's new tram project, mired in litigation and delays.
Sydney's new tram project, mired in litigation and delays.
Big public transport projects like trams can be financially risky and troubled with cost over-runs and litigation, as illustrated by a major dispute in Sydney.
Transport Minister Phil Twyford and Finance Minister Grant Robertson have just made a surprise announcement of two Auckland tram projects which the NZSuper Fund wants to own although the Government is yet to accept the fund's proposal.
Sydney's tram project has caused major disruption while it is being built.
A glance across the Tasman shows that Australasia's biggest tram project is an almost-finished new line from Circular Quay to the eastern suburbs of Randwick and Kingsford.
But it is mired in issues including delays and cost rises and is heading to court.
Last month, it was reported that Spanish sub-contractor Acciona Infrastructure Australia filed a A$1.1b law suit in the Supreme Court of New South Wales against Transport for New South Wales for "misleading and deceptive" conduct, saying it was induced to enter a contract based on a false premise.
Acciona Infrastructure is the principal design and construct joint venture partner in the ALTRAC consortium, awarded with the contract to design and build the Sydney CBD South East Light Rail.
So the surprise $6 billion NZ Super Fund attempt to build, own and operate Auckland's two new tram systems comes at a tense time for the Sydney project.
Auckland Transport showed how trams could look on Dominion Rd.
Lengthy and difficult construction of that A$2.1b project also caused significant disruption and issues in the centre of the city, particularly for Sydney pedestrians, retailers and businesses as parts of streets were cut off and diversions put in place.
Estimates are now that the project could cost around A$3b to complete.
Light rail will be a hugely expensive failure
Proposed Auckland tram project have vociferous opponents.
John Dalzell of Silk Road Management which wants to build Auckland trams. Photo / George Novak
On May 1, Auckland councillor Mike Lee wrote in the Herald: "Light rail from the CBD to the airport risks being a costly failure.
"Light rail [trams] to the airport will be slower to build, provide a slower journey, serve a more restricted catchment and cost far more than extending the existing rail network. Why isn't the Government capitalising on the huge strategic investment going into the City Rail Link?
"There certainly is a role for light rail in Auckland as we max out bus capacity on our inner city routes — but light rail will be a hugely expensive failure as a rapid transit airport solution," Lee wrote.
Physician Ross Boswell wrote in the Herald that a dedicated airport busway from Puhinui train station to the airport would be $2b cheaper than trams, carry twice as many passengers and take about the same time
Last month, the Government put aside $4 billion for trams in Auckland in its draft 10-year transport plan.
Auckland Transport and the New Zealand Transport Agency have agreed to progress light rail for Auckland to urgently address the city's growing congestion and accessibility problems.
Alstom trams made in La Rochelle, France.
Auckland Transport says the city is growing, bringing diversity, vibrancy and opportunity "but growth also brings challenges such as current public transport reaching capacity, rising land costs, and increasing congestion. These affect our quality of life and productivity, as well as visitors' experiences and our ability to host world-class sporting, business and cultural events".
There are no shortage of businesses keen to build Auckland tram projects.
Paris-headquartered train and tram builder and operator Alstom and Chinese business Silk Road Management - headed in Auckland by former Panuku Development Auckland chief executive John Dalzell - have already expressed an interest.
The Herald has reported how trams first operated in Auckland in 1902 and were removed from the city streets in 1956 along with 72km of tracks. In the 1950s, trams carried 100 million passengers a year when the city's population was less than 400,000 people.
Chris Darby visited China last year, riding a hi-tech tram. Photo/Greg Bowker
Last year, Auckland officials visited China to look at a hi-tech tram project there.
Mayor Phil Goff and councillors Chris Darby and Ross Clow rode that tram.
Phil Goff and Ross Clow (back left) ride the hi-tech Chinese tram last year.
"We had first-hand experience of the CRRC super capacitor contemporary tram when we went for a ride on the 7.2km line on the south side of Guangzhou's Pearl River, a line that was constructed in 13 months," Darby said late last year.
"This technology represents one of the many fast-developing rapid transit technologies evident around the world. The race is on to develop innovative urban mass transit solutions and with Auckland facing the same mass transit challenges as hundreds of other global cities, the demand for solutions is accelerated," Darby told the Herald.
Grassed surrounds the hi-tech Chinese tram which Auckland council officials visited last year.
"I'm picking the technology we eventually run with is something far removed from light-rail as we currently think of it. The current discourse on heavy rail versus light rail will look very dull on reflection. Don't be surprised if the mass transit network we commit to - city-airport/west/North Shore - will present a radical departure from current thinking, such is the pace of research and development of new technologies."
