Re: Airport link company Defaults on loan

[mauried@tpg.com.au (Maurie Daly)]

On Wed, 22 Nov 2000 18:41:01 +1100, "Peter Cook"
<deletethispetercook@nospam.optusnet.com.au> wrote:

>SpeedRail:  It'll probably wind up in the same boat as AL, so if it is to
>proceed, it probably should be a government project [ducks]
>
>Alice-Darwin, Melbourne-Brisbane:  These are lines primarily intended to
>carry freight, which can be viable provided freight contracts (or at the
>very least expressions of interest) are finalised before construction
>begins.  There was no contract between Airport Link and the people of NSW
>guaranteeing a certain level of patronage, but it is certainly an option for
>non-cattle traffic. [ducks again]
>
>
>MrPC
>ICQ 58337073


None suggested that there was any contract re the AL line , but there
were traffic projections which showed that the project was viable.
Now these traffic projections have been shown to be grossly
overstated.
As AP - darwin and Melb - Brisbane are also based on traffic
projections , why couldnt these projections be equally wrong.
Currently the AP to darwin consortium admit that initially there will
be only 1 train per day over the new line .
One train per day isnt going to pay for a $700 M line ,so the
viability of the line must be based on traffic projections in the
future.
Also, unlike the AL line , AP to darwin or Melb to Brisbane dont carry
any Govt guarantees re viability , so if anything , both are far more
risky undertakings for would be financiers.

MD