Cost shocker: Cross River Rail blows out by $960m

Taxpayers will fork out an extra $960m for the Palaszczuk government’s Cross River Rail project and its opening will be delayed to 2026, Transport Minister Mark Bailey has revealed.

• George St Beat: Kaiser tipped for top job

Taxpayers will fork out an extra $960m for the Palaszczuk government’s Cross River Rail project.

Transport Minister Mark Bailey dropped the budget bombshell on Friday, as he also confirmed the start of services will be pushed back from the end of 2025 to the first quarter of 2026.

About $848m of the extra money is needed for rising costs, while another $112m is required for new land acquisition at Roma Street.

The cost increases mean the government will now spend $6.3bn on the mega project - up from the initial budget of $5.4bn.

Mr Bailey said the total increase in government funding to the project was about 17.8 per cent.

Transport and Main Roads Minister Mark Bailey, with L to R, Kat Stapleton CEO Queensland Rail with Graeme Newton the CEO CRR. Photo: Steve Pohlner

He blamed “high impact, low probability impacts” for the overrun, including the Covid-19 pandemic, La Niña weather events, and the war in Ukraine.

“The fact we were able to keep our sites operational during the Covid-19 pandemic, unlike similar projects in other states, meant we have been able to maintain construction momentum and help minimise impacts,” Mr Bailey said.

“We’ve been flagging since August last year Cross River Rail is not immune from the pressures being faced by major infrastructure projects here in Australia and around the world.

“We have done everything possible to mitigate these unavoidable impacts further, including pre-purchasing rail, materials and steel to protect from further price increases and ensure supply.”

The government says recent reviews found steel costs had increased about 42 per cent, while electrical costs had jumped by 28 per cent.

Concrete costs had climbed by 15 per cent and precast concrete costs had also increased by 8 per cent.

In addition to the now $6.3bn cost to taxpayers, the project is also being funded through about $1.5bn in private funds

It comes as train users are being urged to plan ahead over Easter as vital Cross River Rail works force the closure of every southeast Queensland line, causing major changes to Gold Coast, Airport, Beenleigh and Ferny Grove services.

The news also follows a report by Auditor-General Brendan Worrall suggesting the cost of the CRR project may outweigh its benefits if public transport patronage doesn’t jump.

Deputy LNP leader Jarrod Bleijie questioned how many more budget blowouts would occur before commuters could use Cross River Rail.

“They’re all excuses, but the facts are the Palaszczuk Labor government can’t deliver on-time or on-budget and Queenslanders are footing the bill,” he said.

Originally published as Cost shocker: Cross River Rail blows out by $960m