The parliamentary question concerns the capital costs of the Direct Rail Link to Mandurah and the Rail Rockingham Loop, as outlined in the South West Metropolitan Railway Master Plan. The answer justifies the rail option over buses based on broader benefits beyond capital costs.

AnsweredQoN 1040Legislative Assembly
Asked
13 September 2001
Portfolio
Planning and Infrastructure

QuestionView source ↗

(b) $694 million for the direct rail link to Mandurah; and (c) $824 million for the Rail Rockingham Loop?
(c) $824 million for the Rail Rockingham Loop?

AnswerView source ↗

Answered
12 December 2001
Responded by
Minister for Planning and Infrastructure
Response time
90 days
1 (b) The South West Metropolitan Railway Master Plan shows that the capital cost for the Direct Rail Link to Mandurah as being $693.9 million at 7% Discount Rate incremental to the Base Case. 1 (c) The South West Metropolitan Railway Master Plan shows that the capital cost for the Rail Rockingham Loop as being $825.4 million at 7% Discount Rate incremental to the Base Case. 2 The choice of the direct rail route to Mandurah was not made purely on the basis of a comparison of Capital Costs. The South West Metropolitan Railway Master Plan reports that a simple comparison of Capital Costs alone without consideration of a wide range of other factors could suggest that the bus option is the preferred solution. However as stated in the Master Plan and advised in answer to previous questions (Nos. 1038 and 1039), the Rail Option offers higher user benefits than the Bus Option. The higher benefits are: § Over double the travel time savings for travellers staying with their existing modes; § The benefits to passengers diverting to rail in the Rail Option are more than three times higher than the benefits to passengers diverting to bus in the Bus Option; § The savings in vehicle operating costs to car 'stayers' in the Rail Option are double the savings to car 'stayers' in the Bus Option; § The externality benefits of the Rail Option are up to $40 million greater than for the Bus Option; § Additional operator revenue is $130 million greater in the Rail Option than in the Bus Option; and § At the end of the project period annual operating costs for rail are considerably lower than for road.
1 (c) The South West Metropolitan Railway Master Plan shows that the capital cost for the Rail Rockingham Loop as being $825.4 million at 7% Discount Rate incremental to the Base Case. 2 The choice of the direct rail route to Mandurah was not made purely on the basis of a comparison of Capital Costs. The South West Metropolitan Railway Master Plan reports that a simple comparison of Capital Costs alone without consideration of a wide range of other factors could suggest that the bus option is the preferred solution. However as stated in the Master Plan and advised in answer to previous questions (Nos. 1038 and 1039), the Rail Option offers higher user benefits than the Bus Option. The higher benefits are: § Over double the travel time savings for travellers staying with their existing modes; § The benefits to passengers diverting to rail in the Rail Option are more than three times higher than the benefits to passengers diverting to bus in the Bus Option; § The savings in vehicle operating costs to car 'stayers' in the Rail Option are double the savings to car 'stayers' in the Bus Option; § The externality benefits of the Rail Option are up to $40 million greater than for the Bus Option; § Additional operator revenue is $130 million greater in the Rail Option than in the Bus Option; and § At the end of the project period annual operating costs for rail are considerably lower than for road.
2 The choice of the direct rail route to Mandurah was not made purely on the basis of a comparison of Capital Costs. The South West Metropolitan Railway Master Plan reports that a simple comparison of Capital Costs alone without consideration of a wide range of other factors could suggest that the bus option is the preferred solution. However as stated in the Master Plan and advised in answer to previous questions (Nos. 1038 and 1039), the Rail Option offers higher user benefits than the Bus Option. The higher benefits are: § Over double the travel time savings for travellers staying with their existing modes; § The benefits to passengers diverting to rail in the Rail Option are more than three times higher than the benefits to passengers diverting to bus in the Bus Option; § The savings in vehicle operating costs to car 'stayers' in the Rail Option are double the savings to car 'stayers' in the Bus Option; § The externality benefits of the Rail Option are up to $40 million greater than for the Bus Option; § Additional operator revenue is $130 million greater in the Rail Option than in the Bus Option; and § At the end of the project period annual operating costs for rail are considerably lower than for road.
§ Over double the travel time savings for travellers staying with their existing modes; § The benefits to passengers diverting to rail in the Rail Option are more than three times higher than the benefits to passengers diverting to bus in the Bus Option; § The savings in vehicle operating costs to car 'stayers' in the Rail Option are double the savings to car 'stayers' in the Bus Option; § The externality benefits of the Rail Option are up to $40 million greater than for the Bus Option; § Additional operator revenue is $130 million greater in the Rail Option than in the Bus Option; and § At the end of the project period annual operating costs for rail are considerably lower than for road.

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