Re: Transrapid abandons Sydney-Canberra

[rodh@zip.com.au (Rod Hibberd)]

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?
: 
: Cheers
: David

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. 

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. 

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.

Their figures simply don't stack up and they know it.
-- 

  -RodH-
rodh@zip.com.au  vox +61-2-955-00-395  fax +61-2-956-00-356
                 Rod Hibberd at Leichhardt Australia