Proposed $3.2bn Sunshine Coast rail project subject of funding dispute

A proposed $3.2bn Sunshine Coast train project vital for the 2032 Olympic Games is veering off the rails already, with the state government saying the price tag was ‘made up’ and refusing to commit to paying half.

A proposed $3.2bn Sunshine Coast train project needed in part for the 2032 Olympic Games is veering off the rails already, with the state government refusing to commit to going halves claiming the price tag was “made up”.

But the federal government has rubbished the claim while a Coalition MP warned there was no time to spare to build it in time for the Olympic Games.

The federal government on Monday announced a $3.9bn rail and roads funding bonanza in the election eve budget, including half the $3.2bn needed for the Beerwah to Maroochydore rail extension.

Under the usual funding arrangements, the Queensland government would chip in the other half, but Treasurer Cameron Dick and Transport Minister Mark Bailey signalled the state was not convinced.

“We have no idea on what basis this $1.6bn figure has come from,” Mr Bailey said.

“There’s a preliminary evaluation under way right now, a business case is due next year … this figure seems to be plucked out of the sky.”

Transport Minister Mark Bailey says the federal government figure ‘seems to be plucked out of the sky’.

But the federal government hit back, pointing out the $3.2bn figure had come from a detailed business case prepared by a consortium of big business working under the banner North Coast Connect in late-2019.

And the increased cost of materials and building infrastructure since that time have also been worked into the price tag.

The full business case isn’t public, but an Infrastructure Australia assessment released in 2020 revealed some detail, including that the original idea included five stages totalling $5.7bn.

Only the first two stages were relevant to the rail connection being floated now.

Infrastructure Australia, at the time, stated “the challenging terrain in sections of the proposed route, the presence of environmentally sensitive sites within the project area, and the level of design detail present project delivery risks”.

Fairfax MP Ted O’Brien confirmed that a lot of design work was needed, with the bulk of construction likely to happen in the second half of the decade.

“We have a deadline, which is something we haven’t had before and that deadline rests on the 2032 Olympic and Paralympic Games,” he said.

“That deadline might be a decade away, but we don’t have so much as one minute spare, we need to get going.”

The NCC study found the Beerwah to Maroochydore rail connection could be complete by the end of 2029 if construction began in 2025.