NSW Labor Says Sydney Metro Cost Blowout in the Billions

A woman walks in front of Sydney Metro billboard in Sydney on May 1, 2018. - Australia's central bank kept interest rates at a record low on May 1 for a 19th consecutive meeting, unwilling to make any move ahead of the national budget next week. (Photo by SAEED KHAN / AFP) Photo credit should read SAEED KHAN/AFP via Getty Images

The Sydney metro project, one of Australia’s largest public transport systems, will experience cost overruns into the billions, according to new transport briefings revealed by the recently elected New South Wales (NSW) government.

The Sydney Metro, which includes the Sydney Metro City and Southwest sections, the Sydney Metro West, and the Western Sydney Airport lines, will far exceed initial estimates, the Labor government claims.

Specifically, Sydney Metro West’s construction cost is expected to hit $25.32 billion (US$17.17 billion), resulting in a cost overrun of at least $12 billion (US$8.14 billion).

At the same time, the full cost of building Sydney Metro City and Southwest is estimated to be at least $20.5 billion, around $9 billion more than the initial estimate and $2 billion above the most recent public forecast.

A general view of construction at the Sydney Metro Southwest Project at Barangaroo in Sydney, Australia, on Dec. 3, 2020. Jenny Evans/Getty Images

The NSW government also said the Sydney Metro West lines were unlikely to open before 2030, several years behind previous projections.

The Sydney Metro system will be Australia’s first fully automated driverless metro rail system. Once completed, it will cover 46 stations and 113 kilometres of new metro rail, connecting Sydney’s northwest, western, and southwestern regions.

Sydney’s main population growth area is to the west of its eastern suburbs which centres around Sydney Harbour.

The new railway system is expected to have a capacity of about 40,000 customers per hour, similar to other metro systems around the world.

Review Ordered Into Sydney Metro Project

Following the briefings on the cost of Sydney Metro, the Minns government said it would conduct a review of the project.

Mike Mrdak, former secretary of the Department of Infrastructure and Transport (2009-2010) will be in charge.

The review will evaluate the delivery of the Sydney Metro program and make recommendations on improving it. A final report is expected by the end of 2023.

NSW Premier Chris Minns said his government would be honest and upfront with the state residents.

“We know we have significant challenges. This review is about assembling the right rescue team to come up with solutions to get literally get the metro projects back on track,” he said in a statement.

Labor leader and Premier elect Chris Minns during the NSW Labor reception in Sydney, Australia, on March 25, 2023. Labor won the election and will form a majority government after Premier Dominic Perrottet conceded defeat. AAP Image/Dean Lewins

“We’re not interested in casting blame–we’re interested in finding solutions.”

Meanwhile, NSW Transport Minister Jo Haylen said an urgent independent review into the whole Sydney Metro project was appropriate and warranted due to the importance of the project and the significant amount of government investment put into it.

The Epoch Times has reached out to the NSW Liberal Party for comment but did not receive a response in time for publication.

Inland Railway Cost Blows Out to $31.4 Billion

The NSW government’s announcement comes after an independent review showed that a major railway project at the national level would also experience significant cost overruns.

The review commissioned by the federal government found that the Inland Rail project, a proposed network of rail connecting the two capital cities, Melbourne and Brisbane, faced serious challenges.

There are suggestions work be halted to contain growing costs.

The Inland Rail includes 1,100 kilometres of existing rail line, which will be upgraded and enhanced, and another 600 kilometres of new track.

When it commences operation, the project will complete Australia’s national rail network and allow commodities to be transported more effectively.

A report by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) found that the project would help Australian businesses save $200 million in freight costs each year.

In 2015, the Liberal-National Coalition government estimated the project would be complete by 2027 with a total cost of $10.7 billion, which was later revised to $16.4 billion in 2020.

However, the latest estimate by the government-owned Australian Rail Track Corporation showed that the construction cost would blow out to $31.4 billion, with the completion date delayed to the early 2030s.

Report author Kerry Schott said there were challenges in evaluating the timeframe and cost of the project because there were no clearly defined routes.

“The detailed and clearly defined scope of much of the route has not yet been settled as approval processes are not complete,” she wrote in the report.

“Until this scope is firmed, an assessment of schedule and cost cannot be made with confidence.”

Schott also pointed out that the rail track corporation’s board had “weak” expertise in engineering, safety, environment, sustainability, and contracts, and that the project had been operating without a substantive chief executive since mid-2021.