GlobeLink freight plan needs more work, says Knoll
Taxpayers are on the hook for $20 million to investigate whether the GlobeLink freight plan stacks up.
The GlobeLink freight project will need to go back to the drawing board, Planning, Transport and Infrastructure Minister Stephan Knoll has indicated.
Following 18 months of assessment, a consultants’ report has come up with about 60 options to address the problems GlobeLink was supposed to solve.
“At the end of the day, I don’t mind what the answer is, I just want to know what the truth is,” Mr Knoll told an SA Freight Council conference on Tuesday.
“The most likely outcome is that it’s going to lead to some further work.
“I’m keen to get it (the consultants’ report) out there because it’s going to spark quite interesting discussions.
“There are things contemplated in there that are not things that have previously been contemplated. There are some short-term opportunities.”
The Government has allocated $20 million to investigate the GlobeLink plan.
This included hiring professional services firm KPMG and infrastructure developers AECOM to assess a business case.
The plan envisaged a multi-billion dollar rail and road freight route sweeping behind the Adelaide Hills from Murray Bridge to Truro and then west along the northern Barossa Valley to connect with the Northern Expressway and the Adelaide-Port Augusta rail line.
In addition, a freight-only airport and intermodal park would be built near Murray Bridge.
Release of the consultants’ report was up to Cabinet, Mr Knoll said.
Adelaide Airport managing director Mark Young said the company had made its position quite clear to the GlobeLink assessment.
“You cannot split the freight and passenger task – it threatens the sustainability of airlines if you do,” he said.
“We have nine airlines with very reliable service to 300 destinations around the world (with maximum one intervening stop).
“We have ample capacity and we’re not able to see any capacity constraint in the future.”
The SA Freight Council and organisations such as the RAA have called for alternatives to building a corridor around the Hills such as upgrading Cross Rd to South Rd or building a tunnel to connect to Springbank Rd.
Mr Knoll also told the SA Freight Council the government wanted to stabilise the soaring backlog in road maintenance.
The backlog had grown from less that $200 million in 2005 to more than $700 million in 2018, Department of Planning, Transport and Infrastructure Tony Braxton-Smith said.
SA Chamber of Mines and Energy chief executive Rebecca Knol said maintaining regional roads was critical for the economy.
“Earlier this year a pothole so big it cracked the fuel tank on a diesel delivery truck, caused 300 litres of diesel to spill onto Borefield Rd 30km North of Roxby Downs,” she said.
“Similar issues are found on the Gidgealpa Road in the Cooper Basin.”
In a wide-ranging speech, Mr Knoll said he wanted electric vehicles to be taxed so owners contributed to road funding because they were avoiding fuel excise.
“I’m an advocate for doing that sooner rather than later,” he said.
“The longer we wait, the more difficult reform becomes.
“Only a mere fraction of vehicles are electric now.”
Mr Knoll also told the SA Freight Council the government wanted to stabilise the soaring backlog in road maintenance.
The backlog had grown from less that $200 million in 2005 to more than $700 million in 2018, Department of Planning, Transport and Infrastructure Tony Braxton-Smith said.
SA Chamber of Mines and Energy chief executive Rebecca Knol said maintaining regional roads was critical for the economy.
“Earlier this year a pothole so big it cracked the fuel tank on a diesel delivery truck, caused 300 litres of diesel to spill onto Borefield Rd 30km North of Roxby Downs,” she said.
“Similar issues are found on the Gidgealpa Road in the Cooper Basin.”
In a wide-ranging speech, Mr Knoll said he wanted electric vehicles to be taxed so owners contributed to road funding because they were avoiding fuel excise.
“I’m an advocate for doing that sooner rather than later,” he said.
“The longer we wait, the more difficult reform becomes.
“Only a mere fraction of vehicles are electric now.”
Not saying we shouldn't be spending more to maintain regional roads, but I think it's worth noting that we've set ourselves up for ever-increasing road costs by failing to maintain and grow rail freight in areas where it is a sensible alternative.
Re: News & Discussion: Regional Transport
Posted: Thu Oct 31, 2019 10:30 am
by [Shuz]
So... what have the liberals actually achieved other than breaking pretty much every single promise since coming to power?
Re: News & Discussion: Regional Transport
Posted: Thu Oct 31, 2019 12:14 pm
by claybro
I'm really not sure how the state government just does not get the massive amount of extra road maintenance required, when they close rail freight and put hundreds of extra trucks on the roads.. some of them still 1950's standard. It's almost like they think they can bank the money saved on rail and spend it on general revenue. But it's worse tan that, because more trucks equates to more accidents, higher road toll, worse environmental impacts. And no point just blaming knol (useless as he is). Both sides of politics have been at it for decades.
That's hiring 200 people for a year at $100 000 per year. Not that many people will be hired, so where does the money actually go?
Good question. It is astounding how little questioning there is of the ridiculously large sums of taxpayer money which is routinely spent on reports from consultants.
Even more astounding is the fact that despite such astronomical amounts of money being spent on these reports, they often amount to little more that pretty pictures and an insightless rearticulation of self-evident facts.
I don't doubt that many people on this forum would have a sufficient understanding of infrastructure and development issues to be able to produce the same (if not more insightful) recommendations to government than these consultants whose work is apparently worth $20 million.
Re: News & Discussion: Regional Transport
Posted: Thu Nov 28, 2019 3:08 pm
by urban
The cost to a company for staff isn't equal to the staff salary costs. You have to add on Super, sick leave, annual leave, payroll tax, administration costs, insurance, a building for them to work in, power, water, computers, printers, desks, chairs, software licenses, profits, etc, etc, etc.
A good rule of thumb for charge out rates is 3 times the salary. Some businesses have a higher rate and some lower.
Having said all that the cost still seems very high.
Re: News & Discussion: Regional Transport
Posted: Fri Dec 27, 2019 6:37 pm
by Eurostar
#BREAKING: VICTORIAN GOVERNMENT OFFERS OVERLAND REPRIEVE
The Victorian Government says it’s offered to extend its support for the passenger rail service between Melbourne and Adelaide for three months as uncertainty continues surrounding its future.
The government continued to subsidise Great Southern Rail’s operation of the Overland after South Australia axed its financial contribution but the current deal runs out after Tuesday.
“To give holidaymakers certainty, the Victorian Government has offered to extend the Overland train until the end of March 2020,” a spokesman for the Andrews Government said today.
“Given the South Australian Liberal Government's cut to the service, Victoria will use the next three months to continue discussions with Journey Beyond about the future of the Overland.
“This gives the South Australian Liberal Government three months to reassess its cut in funding for the service — which is primarily used by South Australians.”
Re: News & Discussion: Regional Transport
Posted: Fri Dec 27, 2019 9:53 pm
by TrebleSketch
Damn! This is great to hear, at least for the time being...
“This gives the South Australian Liberal Government three months to reassess its cut in funding for the service — which is primarily used by South Australians.”
"primarily used by South Australians" ... to travel to Victoria to spend their money.
Inbound tourism is an export industry. South Australians travelling on The Overland are doing so to spend money in Victoria - even if it's just to attend a Crows/Power match at the MCG, they will still spend on the tickets. accommodation, food etc.
Perhaps if more Victorians used The Overland to travel to SA, the SA government would have a better reason to help fund the service instead of expecting the passengers to pay the full cost of their trips.
“This gives the South Australian Liberal Government three months to reassess its cut in funding for the service — which is primarily used by South Australians.”
"primarily used by South Australians" ... to travel to Victoria to spend their money.
Inbound tourism is an export industry. South Australians travelling on The Overland are doing so to spend money in Victoria - even if it's just to attend a Crows/Power match at the MCG, they will still spend on the tickets. accommodation, food etc.
Perhaps if more Victorians used The Overland to travel to SA, the SA government would have a better reason to help fund the service instead of expecting the passengers to pay the full cost of their trips.
I'm embarrassed as a South Australian that the Andrews Labor Government has yet again come to the rescue of a service that should receive funding assistance from our State Govt. We're not talking tens of millions here- $300,000 a year? The state Premier is paid more than that annually.
This penny-pinching Marshall Liberal Government has somehow found hundreds of millions for road widening schemes, intersection upgrades, etc. whilst adding a record amount to the state debt - forecast to increase to $21.3 billion by 2022-23 - way beyond the end of the Bannon Labor years - and yet they can't afford $300,000 a year to help a service that has been running for 132 years, provides a valuable link for country residents and helps promote the State as a destination. It's also our last regional passenger rail service.
You can probably count on one hand the amount of metro systems around the world that make a profit from fare income alone - but that doesn't stop governments and local authorities from subsidising them in the interests of the environment, social mobility and most obviously just to keep cities moving.
It's embarrassing hearing the likes of Marshall and Knoll issue matter-of-fact statements about taxpayers not being willing to part with a few hundred thousand a year to help an iconic service - The Overland helps makes us who we are as a State, helps give a sense of history and identity, and tells a story about who we are - simply priceless.
“This gives the South Australian Liberal Government three months to reassess its cut in funding for the service — which is primarily used by South Australians.”
"primarily used by South Australians" ... to travel to Victoria to spend their money.
Inbound tourism is an export industry. South Australians travelling on The Overland are doing so to spend money in Victoria - even if it's just to attend a Crows/Power match at the MCG, they will still spend on the tickets. accommodation, food etc.
Perhaps if more Victorians used The Overland to travel to SA, the SA government would have a better reason to help fund the service instead of expecting the passengers to pay the full cost of their trips.
I'm embarrassed as a South Australian that the Andrews Labor Government has yet again come to the rescue of a service that should receive funding assistance from our State Govt. We're not talking tens of millions here- $300,000 a year? The state Premier is paid more than that annually.
This penny-pinching Marshall Liberal Government has somehow found hundreds of millions for road widening schemes, intersection upgrades, etc. whilst adding a record amount to the state debt - forecast to increase to $21.3 billion by 2022-23 - way beyond the end of the Bannon Labor years - and yet they can't afford $300,000 a year to help a service that has been running for 132 years, provides a valuable link for country residents and helps promote the State as a destination. It's also our last regional passenger rail service.
You can probably count on one hand the amount of metro systems around the world that make a profit from fare income alone - but that doesn't stop governments and local authorities from subsidising them in the interests of the environment, social mobility and most obviously just to keep cities moving.
It's embarrassing hearing the likes of Marshall and Knoll issue matter-of-fact statements about taxpayers not being willing to part with a few hundred thousand a year to help an iconic service - The Overland helps makes us who we are as a State, helps give a sense of history and identity, and tells a story about who we are - simply priceless.
Is the statement that The Overland is mostly used by South Australians true? The Overland doesn’t “provide a valuable link for country residents” as it has no stops in SA besides Adelaide. The “link” is purely emotional.
I suspect that the Jetstar flights between Adelaide and Denpasar are also used primarily by South Australians. Should that also be subsidised by the SA government to make it more affordable for South Australians to leave the state?
I agree that it is disappointing if the service closes, but I have never used it, and the current operator doesn’t seem to be able or willing to make it financially viable. Maybe that is because it is the only passenger service on what has become a long haul freight route. The marketing of the long passenger rail services seems to be based on nostalgia, and eventually that customer base will disappear. Perhaps it already has.
