Southern Outlet Transit Lane: Cost of project blows out as Tasmanian government seeks federal help
The long-discussed new lane planned for the Southern Outlet is going to cost a lot more than originally envisaged, with the state government now asking Canberra for more money.
Tasmania
Don't miss out on the headlines from Tasmania. Followed categories will be added to My News.
The cost of building a fifth lane on the Southern Outlet has blown out by more than $25m and the state government is now asking the Commonwealth to contribute in excess of $110m to fully realise its vision for the project.
Since 2018, the government has touted the new transit lane as being key to busting congestion on one of Hobart’s most notorious bottlenecks.
The original $35m proposal was for the lane to run from Olinda Grove at Tolmans Hill to Macquarie St. But the Liberals announced plans for an extension during the 2024 state election campaign, which would eventually see the lane continue all the way to Kingston.
The 2024-25 state budget, handed down last week, revealed that not only had the cost of the first stage of the transit lane blown out to $62.5m but the bill for the extension was estimated to be $100m on top of that.
Labor leader Dean Winter said the new lane was the “dumbest” infrastructure project in the state and accused the government of attempting to shelve it.
With construction due to begin next year, the second component of the transit lane is contingent on the federal government contributing $80m, while the state pays $20m. The Liberals have committed $31m to the first stage, which they’re asking Canberra to match.
“We’ve already seen homes demolished [for this project], we’ve seen millions of dollars spent on consultants and works that are currently under way to support the projects, yet they’re going to cut the actual project that is supposed to be driving and resolving traffic issues,” Mr Winter said.
The Commonwealth committed $38.5m towards a public transport plan for Hobart in the 2024-25 federal budget, including funding for planning work associated with the Southern Outlet transit lane, which is understood to be well advanced.
Deputy Premier Michael Ferguson said the new lane was going ahead and criticised Labor for threatening to “tear it apart”.
“We’ve already allocated state funding directly toward the fifth lane of the Southern Outlet, and that work has actually already commenced,” he said.
The T3 transit lane would be used by buses, taxis, motorbikes, emergency service vehicles, and private vehicles carrying three or more people. It’s hoped it will encourage greater uptake of public transport and improve travel times.
A Tasmanian government spokeswoman said the cost increase for stage one was due to “engineering challenges”, post-Covid cost escalations, and “additional works being identified during the detailed design process”, such as rock protection measures.
“It also includes extension of the transit lane through the Davey Street and Macquarie Street intersections, which has been added since the original budget to ensure the transit lane delivers maximum benefits,” she said.
“We have repeatedly approached the federal government for funding for the critical infrastructure.”
The spokeswoman said work on the transit lane would begin as planned in 2025 “using existing funds” and was expected to take about 12 months to complete.
More Coverage
Originally published as Southern Outlet Transit Lane: Cost of project blows out as Tasmanian government seeks federal help
Fit former Premier to embark on another mammoth journey for migrants
Former premier Peter Gutwein is lacing up his running shoes again, this time journeying from Launceston to Canberra to highlight the benefits of a culturally diverse community.
More Tasmanians accessing voluntary assisted dying
For the last two years, terminally ill Tasmanians have been accessing voluntary assisted dying. The latest figures have been released, providing an insight into who is choosing the option.