High Speed Rail Project Between Sydney and Newcastle Faces Cost Concerns

High Speed Rail Project Faces Rising Costs and Delays. This was reported by the railway transport news portal Railway Supply.

The high speed rail project between Sydney and Newcastle has already cost millions, yet no track has been laid. Rising consultancy fees and unclear financial planning raise concerns about project efficiency and feasibility.

Consultancy Fees Drive High Speed Rail Costs Higher

Authorities plan to cut Sydney-to-Newcastle travel time from 2.5 hours to 45 minutes. However, consulting giant GHD has already billed the High Speed Rail Authority (HSRA) over $760,000 for First Nations advisory and engagement services.

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“Why does First Nations advice cost nearly $1 million?” asked 2GB’s Luke Grant. “What exactly does that consultation involve?” Critics question whether consultancy spending is excessive, delaying actual construction work.

Big Four firm Ernst & Young will receive more than $4 million for economic modeling, funding strategies, and demand projections. Additionally, they will charge $2.1 million for commercial delivery planning and industry engagement strategies.

A two-year office lease, beginning in June 2024, will cost nearly $500,000, further increasing concerns about budget management. Critics argue that since high-speed rail development spans decades, such short-term expenses seem unnecessary.

“Will HSRA triple its staff in two years, or is this just more waste?” Grant asked. “Where is the actual progress in building the rail line?”

High Speed Rail Business Case and Government Commitment

HSRA, led by former Sydney Metro executive Tim Parker, submitted its business case to the Albanese government last year. Nearly $80 million was allocated solely for planning—one-fifth of the government’s $500 million election commitment.

Parker has not disclosed the total project cost, but 2022 estimates suggest that the Sydney-to-Gosford section alone could cost up to $32 billion. With rising expenses, taxpayers remain skeptical about the project’s financial feasibility.

After three years, physical progress remains minimal beyond geotechnical examinations. Drill rigs recently collected samples from the Hawkesbury River and Brisbane Water to evaluate potential rail routes.

Unresolved questions persist, including whether a platform at Sydney’s Central Station is commercially viable. However, ongoing drilling suggests the federal government is treating the project more seriously than previous NSW administrations.

The Perrottet government’s fast rail strategy was abandoned before drilling even began, despite spending four years and $100 million on feasibility studies. Labor’s version introduces more complexity, including faster speeds and relocating Sydney’s primary station.

Labor promotes the rail project as a way to boost Newcastle’s economy, generate jobs, and improve regional connectivity. However, growing costs and operational uncertainties might outweigh expected benefits.

Future of High Speed Rail and Community Impact

A spokesperson for HSRA stated that the business case was completed under budget. “The High Speed Rail Authority finalized its business case in late 2024 for $62.7 million, far below the $78.8 million originally allocated,” they told Daily Mail Australia.

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Announced in early 2024, the business case explores a high speed rail connection between Newcastle and Sydney as part of a broader national network. The ultimate vision is to link Brisbane, Sydney, Canberra, and Melbourne.

“The business case was delivered on time, and the government is now reviewing the findings,” the spokesperson added. “This project could revolutionize travel in Australia for generations.”

The planned railway will stretch over 160 kilometers, passing through multiple communities. Authorities stress that engaging residents, businesses, and workers along the route remains a priority.

“A high-speed rail network would transform transportation, connecting cities and regions like never before,” the HSRA emphasized. “This could be the most significant infrastructure project in Australian history.”

Regarding leasing costs, HSRA defends its office expenses, arguing that space meets current operational needs. However, critics remain skeptical, pointing to ongoing concerns about excessive consultancy fees.

To complete the business case, HSRA engaged specialists in engineering, design, economics, and financing. Officials argue that expert consultation is crucial for planning a project of this scale.

Despite significant spending, the high speed rail project still faces uncertainty. While the business case marks progress, unresolved financial issues and logistical challenges may still derail the project before construction even begins.

Source: www.dailymail.co.uk

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