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Old 19-02-2013, 03:05 PM   #1
csv8
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Exclamation Another Brisbane Tunnel Goes Bankrupt

LESS than seven months after opening, the operators of Brisbane Airport Link have gone into voluntary administration.

The Board of BrisConnections has today informed the Australian Stock Exchange of its decision to appoint the McGrath Nicol Partnership as voluntary administrators.

The company has been in talks with lenders and other key stakeholders since last November when traffic levels fell well short of projections following the opening of the tunnel in late July.

At last count, about 45,000 vehicles a day were using the $4.8 billion roadway, 90,000 fewer than forecast.

Traffic volumes have declined steadily since the end of the toll-free period, despite the introduction of a discounted toll.

The tolls of $2, and $2.50 are due to increase in mid-April before rising again in October.



Operators had hoped the staggered introduction of the full-toll would help boost traffic volumes.

Non-executive Chairman Trevor Rowe said in a statement it was "disappointing the Board has had to reach this decision''.

"The Airport Link M7 is unquestionably a world class piece of transport infrastructure that will continue to support Brisbane's growth into the decades ahead,'' said Mr Rowe.

He said despite "extensive communication with the lenders and their advisers, the Board had not been able to reach agreement with the lending syndicate on the merits of the proposals".

The tunnel will remain open and available to road users as normal.

It is the second tollway to go broke shortly after opening.

In February 2011, receivers were appointed to RiverCity Motorway, who operate the Clem7 Tunnel.

A buyer has still not been found for the tollway which carries about 25,000 vehicles a day.
http://www.couriermail.com.au/news/q...-1226581072535

My Comment Why are they still building tunnels in Brisbane ,when they fail???? Legacy Way will go the same way. Here's a hint : lower the toll !!!
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Old 19-02-2013, 03:11 PM   #2
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Is it to do with variable speed limits = heap of speed cameras = dont use because too risky?
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Old 19-02-2013, 03:21 PM   #3
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Default Re: Another Brisbane Tunnel Goes Bankrupt

I've said it before and I'll say it again - there is no risk driving though these tunnels! You know the bloody cameras are there, keep it at 80!
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Old 19-02-2013, 03:28 PM   #4
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Doomed from the start I would think. Even at full forcasted figures it would take 40 years to pay off. It would be due for replacement well before that.
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Old 19-02-2013, 03:29 PM   #5
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Yep... The risk is minimal. I drive through one of these tunnels on a regular basis and have had no issues.

I think the cost is the biggest problem, many people do not value time like they should so they are happy to sit around in traffic rather then getting to their destination quicker.
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Old 19-02-2013, 03:29 PM   #6
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Originally Posted by Peuty View Post
I've said it before and I'll say it again - there is no risk driving though these tunnels! You know the bloody cameras are there, keep it at 80!
Too dificult for some.
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Old 19-02-2013, 03:42 PM   #7
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Default Re: Another Brisbane Tunnel Goes Bankrupt

I can't understand anyone investing in it in the first place, after the Clem7 debacle.
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Old 19-02-2013, 03:44 PM   #8
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Maybe, finally, people are beginning to realise that paying taxes for infrastructure, then paying tolls to a corporation who didn't pay for the use of the land, which was owned collectively by the people is wrong.
I avoid tolls like the plague as I will not line the coffers of these corporations.
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Old 19-02-2013, 03:51 PM   #9
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Default Re: Another Brisbane Tunnel Goes Bankrupt

I wish Transurban would go bankrupt. Public infrastructure should remain in public hands. CityLink has been so profitable that Transurban now owns several toll roads.

http://en.wikipedia.org/wiki/Transurban

Those profits should have gone back into the Victorian state coffers so the goverment could better fund roads, schools, hospitals etc.
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Old 19-02-2013, 04:16 PM   #10
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Originally Posted by Peuty View Post
I've said it before and I'll say it again - there is no risk driving though these tunnels! You know the bloody cameras are there, keep it at 80!
I do not care.

I will not use tunnels that have lots of speed cameras purely out of principle unless I absolutely have to and if so will travel at 30 or more km/h below the speed limit "for safety"......

I do exactly the same if I am forced to drive anywhere in Victoria, again, "for safety".

After all, any place that has lots of speed cameras MUST be a very dangerous place.......
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Old 19-02-2013, 04:42 PM   #11
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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I do not care.

I will not use tunnels that have lots of speed cameras purely out of principle unless I absolutely have to and if so will travel at 30 or more km/h below the speed limit "for safety"......

I do exactly the same if I am forced to drive anywhere in Victoria, again, "for safety".

After all, any place that has lots of speed cameras MUST be a very dangerous place.......
I understand where you're coming from, but that's a bit unfair on the guy behind you. It's not his fault the speed cameras are there, he and everyone else held up in your rolling road block shouldn't be punished. As rare as the occosion might be.
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Old 19-02-2013, 04:54 PM   #12
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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I understand where you're coming from, but that's a bit unfair on the guy behind you. It's not his fault the speed cameras are there, he and everyone else held up in your rolling road block shouldn't be punished. As rare as the occosion might be.
No, no, no I am saving them too. Speed kills. My mission is to save the world. I am a born again do-gooder and Gatso is my saviour.

And of course there is always more than one lane.

But besides that, the whole thing is a LOT unfair on all road users and there are many many examples of people being fined unfairly and even some losing all 12 points in one trip through the Clem 7.
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Old 19-02-2013, 05:08 PM   #13
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Default Re: Another Brisbane Tunnel Goes Bankrupt

I must say I find the whole concept of a privately developed and operated piece of road infrastructure to be foreign and puzzling. What happens in a case like this when the owner goes belly up, does the government get it by default, does the tunnel close etc?

At least in Wait Awhile the government builds, operates and maintains everything, even if we have to wait a generation for it!
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Old 19-02-2013, 05:31 PM   #14
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Originally Posted by Road_Warrior View Post
I must say I find the whole concept of a privately developed and operated piece of road infrastructure to be foreign and puzzling. What happens in a case like this when the owner goes belly up, does the government get it by default, does the tunnel close etc?

At least in Wait Awhile the government builds, operates and maintains everything, even if we have to wait a generation for it!
IF these builds were profitable from the get go, the government would be all over it like pimples on a 14 year old ....
Why does the government now tender all these jobs out,because they then dont have the worry of the huge loss
Some muppet from the government would have done the numbers on this roadway before it was even started
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Old 19-02-2013, 05:36 PM   #15
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Originally Posted by Road_Warrior View Post
I must say I find the whole concept of a privately developed and operated piece of road infrastructure to be foreign and puzzling. What happens in a case like this when the owner goes belly up, does the government get it by default, does the tunnel close etc?

At least in Wait Awhile the government builds, operates and maintains everything, even if we have to wait a generation for it!

That's why we have governments isn't? To set laws, protect the citizens, provide essential services (health, policing, communications, electricity, transport) and to build the infrastructure to provide the services for its citizens by way of taxation. Someone somewhere decided that privatisation is the way to go. Hre's the proof .... no profits for board members/investors/share holders = no infrastructure or services.
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Old 19-02-2013, 05:41 PM   #16
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Default Re: Another Brisbane Tunnel Goes Bankrupt

From my reading on the subject, cash strapped Governments invite these private organisations along to build the infrastructure (roads) to satisfy the 'Communities need' In return the Organisations have rights to charge tolls for the use of the road, hopefully making a profit over the 25-30-35-40 years the agreement is in place. once the term ends the road returns to 'Government' ownership ( do they remove the tolls???) The deal allows the 'required infrastructure' at minimal cost to Government, however the corporations are great at demanding extras from the government sweetening the deals.
In less aboveboard dealings there have been accusations of governments closing down or rendering un-useable alternate roads such that the only real option is the Toll road> I cannot see why a government would make this decision to close or slow perfectly good alternates unless there were paper bags full of cash left at a decision makes door, But then again what do I know.

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Old 19-02-2013, 05:53 PM   #17
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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I must say I find the whole concept of a privately developed and operated piece of road infrastructure to be foreign and puzzling. What happens in a case like this when the owner goes belly up, does the government get it by default, does the tunnel close etc?

At least in Wait Awhile the government builds, operates and maintains everything, even if we have to wait a generation for it!
Can't say about other states, but in NSW if the owner goes bust, the Government usually bails them out & gets a higher percentage ownership, or full ownership in the road, (pretty sure most toll roads in NSW are co-owned, Private-Government to start with any way).
The private companies also are under contract for a certain amount of years to operate them, (eg. 50 years), then the Government takes full ownership & control.
The private operator charges tolls to get back building costs, pay for maintenance & make a profit (if they can).
When the Government get's full ownership at the contract end, tolls are removed as per F3 Freeway & M4 Motorway in Sydney.
The NSW Government (RMS) fully owns & operates the Sydney Harbour Bridge & Sydney Harbour Tunnel. Ongoing tolls there, are for continual maintenance & general revenue, all other motorways (toll roads), become Freeways.

Cross City Tunnel gets handed back Dec. 2035
Eastern Distributor gets handed back July 2048
Hills M2 gets handed back May 2042
Lane Cove Tunnel gets handed back January 2037
M5 South-West gets handed back August 2023
M5 East is owned by the NSW Government, but operated by a private company on behalf of the Government, (There are no tolls here).
Westlink M7 gets handed back February 2037

Funding & building them privately allows them to be built now, instead of waiting 10-15+ years for the Government to have funding for them.
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Old 19-02-2013, 06:32 PM   #18
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Governments just don't get it...

The public pays income tax, we pay taxes to buy and use our cars, we pay fuel tax, we pay fees and charges for registration, etc, etc, etc...

So why the hell should we have to bloody well pay for the damn roads we drive on as well?? How much money is enough from a long suffering public?

I recall way back when one of the first toll roads in Queensland opened up...on the Sunshine Coast (Nicklin Way? Sunshine Motorway? Can't recall the name). The public, for the reasons I mentioned above, weren't happy at all about it. We were down there on holiday, and found ourselves on the motorway, and we didn't have any change...we were wondering how to pay the toll.
Then we remembered hearing about a protest campaign on the local radio station called "Follow the yellow ribbons", and we saw a light pole beside the motorway festooned with yellow ribbons, and a hand made sign saying "Follow the yellow ribbons". The next pole had a ribbon, as did the next, down an off-ramp, along a road, around a roundabout, then along a two lane bitumen road just beside the motorway near cane fields. We "followed the yellow ribbons" on every light pole and post, and drove right past the toll booths (which were practically empty of cars), and then came back up onto the motorway some distance further down the road. Brilliant!!
The government caved in, and the next time we visited, the toll booths were empty with no gates, and the next time we went a few months later, the only sign they'd ever been there was a wider spot in the highway and a concrete section of road.
The world didn't end, the road system didn't collapse, and civilisation continued...governments have to realise they just have to suck it up and pay for facilities for the tax payer now and then.

People aren't stupid...
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Old 19-02-2013, 06:49 PM   #19
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Default Re: Another Brisbane Tunnel Goes Bankrupt

I won't use them cause they cost a bloody fortune to drive through.
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Old 19-02-2013, 06:50 PM   #20
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Easy no tunnels on the Goldcoast ha ha ha.....
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Old 19-02-2013, 06:57 PM   #21
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Yeah, and isn't driving through the Gold Coast a pleasant hassle free experience...
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Old 19-02-2013, 07:41 PM   #22
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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The world didn't end, the road system didn't collapse, and civilisation continued...governments have to realise they just have to suck it up and pay for facilities for the tax payer now and then.
Thats such a great story. Unfortunately in todays age there will be 24hr police presence arresting the ribbon erectors.
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Old 19-02-2013, 07:49 PM   #23
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Default Re: Another Brisbane Tunnel Goes Bankrupt

Like this wasn't going to happen....
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Old 19-02-2013, 07:53 PM   #24
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Thats such a great story. Unfortunately in todays age there will be 24hr police presence arresting the ribbon erectors.
I'd think so too...back then, as I said, it was pretty widely known amongst Sunshine Coast people, and they started the yellow ribbon campaign...a local radio station kept telling people about the campaign without actually saying in so many words "you can avoid the tollgate by following the yellow ribbons"...the local news items were just mentions of the popular anti-toll gate campaign and the "yellow ribbon" campaign. You filled in the blanks yourself and nce you actually noticed the yellow ribbons, it was pretty glaringly obvious what was going on. Local shops also had signs inh the window against the toll and a slogan about "follow the yellow ribbons". Pretty good showing of civil disobedience right there...

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Old 19-02-2013, 07:59 PM   #25
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Yeah, and isn't driving through the Gold Coast a pleasant hassle free experience...

not wrong there. when ever I am down that way I try too avoid surfers paradise and southport like the plauge
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Old 19-02-2013, 09:11 PM   #26
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Yeah, and isn't driving through the Gold Coast a pleasant hassle free experience...
Agreed, i went down there on the weekend and with all the work on Goldlinq it was a joke, and it was bad enough to begin with. Smith St MWY is munted along with the GC HWY.
I rarely have to use tunnels living where iam, but if i need to use one i have no issues doing so.
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Old 19-02-2013, 09:50 PM   #27
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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Yeah, and isn't driving through the Gold Coast a pleasant hassle free experience...
A tunnel is a little hole.

What is the point of a having a little hole in a great big one......
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Old 19-02-2013, 10:00 PM   #28
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Default Re: Another Brisbane Tunnel Goes Bankrupt

It's simple, there are to bloody many toll ways in Brisbane, I work in qld but live in Adelaide. And if it wasn't for a company paid vehicle no way on gods green earth would I pay those ridiculous toll fees, I understand that they are expensive to build and company's need to make their money back.
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Old 19-02-2013, 10:35 PM   #29
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Default Re: Another Brisbane Tunnel Goes Bankrupt

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A tunnel is a little hole.

What is the point of a having a little hole in a great big one......
Gold coast starts at the southern side of Broadbeach...... I live in Burleigh ha ha
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Old 19-02-2013, 10:52 PM   #30
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Default Re: Another Brisbane Tunnel Goes Bankrupt

The amount of money the government gets from fuel excise, the extra few cents per liter for road maintenance, and 10% on top of those two for GST.

The roads should be paves from gold with people in designer suits with fedoras hand polishing it every 20 meters.
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