Re: Transrapid abandons Sydney-Canberra

[David Bromage <dbromage@omni.com.au>]

Rod Hibberd wrote:
> 
> David Bromage (dbromage@omni.com.au) wrote:
> : Rod Hibberd wrote:
> : > Does anyone really take this 'me too' attitude to european style
> : > trains seriously? In the unlikely event a Syd-Can TGV can be put
> : > in for $3G7, and assuming you can find a mug to put that kind of
> : > spondulix into the hands of a developer, at how many months before
> : > the thing goes belly up flat broke and dies?
> :
> : Why would Alstom, Leightons, Qantas and the Commonwealth Bank be putting
> : up that sort of money if they didn't expect to make a substantial profit
> : from it? Why were Virgin, Ansett, Adtranz and the Macquarie Bank prepared
> : to put up a similar amount of money in a rival bid?
> 
> Remember that there is international competition for projects
> world-wide (and for subsidiies and special deals). You have to
> throw your hat into every ring to keep up the profile.
> 
> The announcement that the team who 'won' the Syd-Can selection
> got Alsthom and TGV mentioned in every trade and business page
> in the world. Their whole involvement would have been financially
> justified by that publicity alone.

They've put something like $20 million into it already. The TGV has 
already been exported to half a dozen countries, with more on the way.
Alstom doesn't NEED any more advertising thn that.

> In the executive suite at Alsthom in Sydney the day of the
> announcement, so I am told by a person who was present, there was
> not the slightest ripple of excitement.

Because they were told they were going to win several days before.

> Alsthom and their mates know perfectly well that a new train line
> Syd-Can is a dead duck unless 'someone' will pick up two thirds
> of the cost of building it and three quarters of the cost of
> operating it.

Proof please? They are still spending millions of dollars of their own
money on the final proving up and the EIS.

Cheers
David