Re: Melbourne Darwin Railway

[Andrei Souprounovich <andrei@ausisp.com>]

Here's the story from the Australian Financial Review:


Macquarie Bank backs $1.4bn inland railway
By Sam Strutt
2000-07-15 01:53:19

A privately-funded, inland rail link between Melbourne and Brisbane could be
operating within three years after the Federal Government announced on Friday
that
Macquarie Bank had agreed to provide financial backing for the $1.4 billion
project.

The Federal Minister for Transport, Mr John Anderson, said a full feasibility
study
into the project would begin immediately.

He made the announcement after releasing a report, prepared by engineers
Maunsell
McIntyre and Macquarie Bank, which found that the railway was viable and would
not
require federal funding.

The Melbourne to Brisbane link is the first stage in a proposal for an inland
freight and passenger railway linking Darwin with the eastern States.

The project is being developed by a private sector group, the Australian
Transport &
Energy Corridor Ltd.

Federal Liberal MP Mr Mal Brough, who heads a government steering committee
which
has been overseeing the project, said on Friday that Macquarie Bank had
confirmed it
would back the rail link, after deeming it a bankable proposition.

"Macquarie Bank has made it clear to me, in a letter . . . that there will be no
net
cost to government, that they will not be requiring money from government and
that
they have the full capacity to be able to raise the funds to build the project,"
he
said.

Announcing the results of the pre-feasibility study at the Queensland National
Party's annual conference on the Gold Coast on Friday, Mr Anderson said the
first
section of the Australian Inland Rail Expressway to Darwin could be implemented
at
no cost to government.

The Federal Government is eager to be seen to support the project, which could
provide a shot in the arm for rural centres along the route.

"It appears that not only is it attractive and 'doable', but it is entirely
backable
by the private sector, on the basis of the work that has been done so far," Mr
Anderson said.

"The private sector is now willing, able and indeed keen to invest in this sort
of
infrastructure."

Mr Anderson said the study had found that the inland rail network would attract
freight from road operators and capture a significant share of the total,
contestable freight market.

But the Labor Opposition attacked the Government's "political" approach to
funding
rail infrastructure.

"The community has to be sure that decisions are being made for the right
reasons
and that the Government is not treating taxpayers' money like monopoly money to
hand
out to its preferred tenderers," Opposition transport spokesman Mr Martin
Ferguson
said.

"The Government needs to be absolutely clear and consistent with the public
about
the process from here for considering the Melbourne to Darwin rail link and
whether
or not the Federal Government will ever be asked to contribute to it," he said.

© This material is subject to copyright and any unauthorised use, copying or
mirroring is
prohibited.

This story was found at: http://afr.com.au/news/20000715/A7756-2000Jul14.html