Indicative costs and funding models

The actual final costs of Fast Rail depend on many variables including the ultimate ownership, staging and timing and management arrangements for the Fast Rail infrastructure and rail operations. These functions could be performed by a mix of government and private sector agencies.

The actual final costs of Fast Rail depend on many variables including the ultimate ownership, staging and timing and management arrangements for the Fast Rail infrastructure and rail operations. These functions could be performed by a mix of government and private sector agencies.

Strategic planning cost estimates for each of the Fast Rail corridors are provided, based on per kilometre rates. A higher and lower bound estimate are provided – this reflects the upper bound and lower bound values of assumed project parameters that impact on cost and operating speed, such as the ultimate track configuration and other corridor arrangements.

Indicative Cost Estimates for Fast Rail in SEQ

CorridorLink (all distances from Roma Street Station)Lower Bound Fast Rail Solution ($M) 60 minute regionUpper Bound Fast Rail Solution ($M) 45 minute region
Northernto Maroochydore CBD (108km)$5,728$9,714
to Caloundra (90km)$3,905$7,826
Southernto Coolangatta Airport (97km)$3,320$5,462
Westernto Withcott (125km)$4,884$10,640
to Toowoomba City (135km)$7,884$13,640

Indicative Cost Estimates for Fast Rail in SEQ – Totals for Fast Rail Network Scenarios ($M)

Destination combinationsGC Airport Toowoomba MaroochydoreGC Airport Withcott MaroochydoreGC Airport Toowoomba CaloundraGC Airport Withcott Caloundra
60 minute region$16,932$13,932$15,109$12,109
45 minute region$28,816$25,816$26,928$23,928

Business case development 

A business case is the first stage of the project, with decisions about funding, approvals and timing to be confirmed in the future, subject to need and government funding priorities.

The business cases for the northern, southern and western Fast Rail corridors will formally capture the information needed to move forward with the Fast Rail network. The business cases will document the justification for each project, estimated cost, delivery and implementation strategies balanced against the risks and anticipated benefits and savings to be gained. 

The North Coast Connect Consortium recently completed the business case for Fast Rail from Brisbane to the regions of Moreton Bay and Sunshine Coast. Post-Business Case additional planning and design is required for Stage 1 (Beerwah to Caloundra) and Stage 2 (Caloundra to Maroochydore) to confirm the corridor and station arrangements as part of readiness for market activities. 

It is expected that at least $2 million of additional funding is required to undertake more detailed planning and design for both stages – including items such as further consideration of station concepts and access arrangements, updated patronage estimation, refinement of likely property impacts to road and rail corridors and refinement of the preferred delivery model. 

The North Coast Connect Business Case has been reviewed and accepted by the National Faster Rail Agency (NFRA). The NFRA have provided the Business Case to Infrastructure Australia for evaluation and it has will now be considered in an IA Board Meeting in October 2020. Should the project be approved by IA it will then be included on the “infrastructure priority list”.

Business cases for the southern and western corridors have not yet commenced although Commonwealth funding has already been allocated. A similar process and outcomes as delivered for the North Coast Connect project would be required for the Gold Coast and Ipswich/Toowoomba fast rail corridors.

The Commonwealth Government has committed $8 million towards the Brisbane to Gold Coast Fast Rail business case and $15 million towards the Brisbane to Toowoomba business Case. Despite the State Government only providing ‘in-kind’ contributions to the North Coast Connect business case, there is anticipated to be some level of financial contribution and support from the State Government in order to proceed with the remaining two business cases to meet funding guidelines.

It is understood that agreements between the NFRA and the State Government have advanced, charging the Department of Transport and Main Roads with the task of delivering the remaining business cases for South East Queensland. 

While these agreements represent a ‘business-as-usual’ approach to business case development, Fast Rail is not a ‘business-as-usual’ project for Transport and Main Roads. A thorough and genuine exploration of Fast Rail needs the involvement of the Commonwealth and the councils of South East Queensland that also play an important role in planning, funding and delivery the region’s transport. 

A robust approach to investigating Fast Rail should also involve the expertise of the private sector. The private sector can challenge governments thinking of key issues and bring a range of different perspectives to the table. This will be instrumental in ensuring the best possible outcome for the communities and businesses of South East Queensland. 

How this can be successfully achieved through the SEQ City Deal

There are a range of potential options for funding and delivering Fast Rail, with differing degrees of public and private sector involvement:

  • Full public sector capital – although detailed design and construction work would be contracted out under public oversight.
  • A mix of public and private sector capital,
  • Total private sector capital.

Either public or private sector mechanisms could raise project revenue because of the increase in land values created by Fast Rail. This is also known as value capture or value creation. 

The best examples of value creation can be seen in the Australian City Deals underway at the moment nationally, in many cases to unlock project funding. City Deals are targeted at bringing together three tiers of government, the community and private enterprise to create place-based partnerships. City Deals work toward aligning the planning, investment and governance necessary to accelerate growth and job creation, stimulate urban renewal and drive economic reforms.

Fast Rail is a “city-shaping” and “region-shaping” transport project – it will create value and wider economic activity. This means that Fast Rail lends itself to a SEQ City Deal – due to the transformational nature of the project and the engagement of all levels of government. 

Fast Rail will contribute to region-wide city shaping enhancements and benefits all local, state and 

Commonwealth levels of Government. 

The implementation of Fast Rail will potentially generate significant increases in land value and urban regeneration, predominantly as a result of improving accessibility. Likely beneficiaries include property owners, developers and occupiers, public transport users and operators, businesses and employees, and Governments. 

Fast Rail will generate benefits for many stakeholders, beyond those who simply use the infrastructure. For example:

  • Increased value of residential and commercial properties and land surrounding the Fast Rail corridors. Adjacent properties will become more attractive and new opportunities for development and economic activity will arise.
  • Growth in commercial activity for businesses across SEQ.
  • Improved connections between individuals and businesses, encouraging greater market competition, enabling new employment and labour market opportunities, and generating regional benefits. The potential Fast Rail station precincts at Petrie in Moreton Bay and Loganlea in Logan City are very good examples of this. For North Coast Connect, this is likely across the health / education sector as the North Coast Connect project connects the Sunshine Coast University and Hospital on the Sunshine Coast with the proposed new University campus at Petrie with the various Universities in Brisbane such as QUT, UQ and major hospitals such as the Royal Brisbane Hospital. Fast Rail joins these together on a single corridor.

In May 2017, the Commonwealth Government invited the Queensland Government and the Council of Mayors (SEQ) to jointly develop a City Deals strategy for South East Queensland. 

TransformingSEQ, the SEQ City Deal proposition document, was released in February 2019. A key theme of the SEQ City Deal is ensuring economic activation of South East Queensland to maintain and improve our region’s liveability. 

Regional transport connectivity would enable residents to access a range of essential services and daily needs within 30 minutes, and have easy access to high quality jobs, key economic clusters and major lifestyle opportunities within 45 minutes.

Given the involvement of all three levels of government, Fast Rail aligns well with the objectives of a City Deal partnership and a future SEQ City Deal. The objectives of the SEQ City Deal are four-fold: 

  • Alignment of planning and prioritisation – to support greater coordination and integration between the levels of government.
  • Connecting our activity and growth centres – to leverage Cross River Rail and Brisbane Metro to deliver new trunk network connections for the region and support greater economic and urban agglomeration.
  • Optimising our network – to maximise the efficiency of our existing network and systems.
  • Connecting our markets – to support the region’s supply chain and grow the export oriented-economy.

The SEQ City Deal will focus on delivering significant liveability and productivity benefits across the region. Fast Rail represents a strong opportunity for the SEQ City Deal. This is because Fast Rail supports future growth and will help deliver value creation and transformational outcomes. 

Share the Post:

Related Posts