The Maldon-Dombarton freight line will never happen without government money, according to a 2014 Transport for NSW business case.
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But this news didn’t stop the government from releasing a tender later that year calling for private sector interest in building the line.
Transport for NSW finished the business case in June 2014 but it did not make it public – despite the three-year-old document being used by the federal government in 2017 to knock back the rail line.
It was finally released earlier this month after a freedom of information request from Wollongong MP Paul Scully.
The business case found the private sector owner could not make enough money from charging track access fees to justify paying for its construction.
“The financial assessment indicates that track revenues are insufficient to cover the costs of developing, maintaining and operating the MDRL [Maldon-Dombarton Rail Line],” the business case stated.
“Further, track charges are projected to be insufficient to cover all recurrent costs. Accordingly, a contribution from government, other track managers or other beneficiaries would be required to financially support the development and operation of the MDRL.”
However, five months after the business case’s completion, the government launched an unsuccessful tender to gauge private sector interest in fully-funding the construction of the rail line.
A TfNSW spokesman did not say whether it agreed with the business case claim that the government would have to chip in funding.
He said it was important in achieving the “longer-term objective” of separating freight and passenger movements.