Transurban to rake in at least $45 billion in tolls from CityLink and West Gate Tunnel by 2045

Toll road giant Transurban will rake in at least $45 billion under new laws before state parliament. And the changes would see motorists in Melbourne’s southeast slugged $122 a week on CityLink within a decade. SEE THE NUMBERS.

Motorists are likely to cough up at least $45 billion to toll road giant Transurban over the next 26 years under new laws before state parliament.

The package introduced by the Andrews Government will allow Transurban to slug motorists with tolls for another 10 years on CityLink, in exchange for the company bankrolling the $6.7 billion West Gate Tunnel.

TRANSURBAN REAPING $2.3 MILLION A DAY FROM CITYLINK

HOW MUCH CITYLINK MAKES EVERY DAY

WHY YOU SHOULDN’T PAY TOLLS BY CREDIT CARD

Transurban will also slap tolls on motorists who use the new road, which opens in 2022, and increase CityLink and West Gate Tunnel charges by 4.25 per cent a year over the next decade.

web Citylink Toll 650 900

The changes would pave the way for motorists in Melbourne’s southeast to be slugged $122 a week on CityLink within a decade — up from about $80 today.

The West Gate Tunnel will connect the West Gate Freeway to CityLink via a tunnel under Melbourne’s inner-west, helping combat worsening traffic gridlock that Infrastructure Victoria says will leave motorists spending 20 per cent more time in congestion by 2030.

A parliamentary showdown looms over the toll hikes, with the state opposition and some crossbenchers saying the windfall to Transurban comes at the expense of motorists.

But Premier Daniel Andrews is standing by the deal made with the tolling giant without any competitive tender, saying it struck the right “balance”.

Tolls are set to be extended on CityLink for another decade. Picture: David Caird

“Either this is a contribution from government and a contribution from road users, or it will be wholly built and paid for by taxpayers,” he said.

“That means all the taxpayers see less money for hospitals, less money for schools.”

If the package is scuppered by parliament, compensation would be paid to Transurban — which is kicking in $4 billion for the West Gate Tunnel — for lost future earnings.

Macquarie Research analysis released in late 2017 projected Transurban would collect $27.3 billion from all West Gate Tunnel tolls and the 10-year CityLink toll extension to 2045.

On top of the extra revenue, at least $17.8 billion will be coughed up by motorists on CityLink before the current deed is due to expire in 2035.

Opposition Leader Michael O’Brien said it was “a huge money-spinner for Transurban”.

“This is not a good deal for Victorian motorists and certainly not a good deal for CityLink users who will be paying through the nose for a road, the West Gate Tunnel, they may never use,” Mr O’Brien said.

Premier Daniel Andrews inspects the tunnel boring machine to be used to dig the West Gate Tunnel. Picture: Andrew Henshaw

The Coalition and the Greens are expected to vote against the “sweetheart” deal, but the government only needs three more votes from 10 other MPs in the upper house.

Mr Andrews said the government had “a clear mandate to get on and get this done”.

Transurban group executive Victoria Wes Ballantine said the West Gate Tunnel was “a project for all of Melbourne”, creating a second river crossing to avoid the chaos caused by incidents on the West Gate Bridge.

He said the public-private partnership was a “proven way” for the private sector to provide funding and “bear the significant construction and finance risk”.

Former Liberal premier Jeff Kennett called for an independent audit of Transurban’s CityLink profits which, if a certain threshold was reached, would see the road put back into public hands.

A West Gate Tunnel construction site. Picture: Andrew Henshaw

“The government has been taken for a ride, and I think the government is therefore taking the public for a ride,” he said.

Swinburne University director of urban design Dr Ian Woodcock said the extended CityLink toll deed would be a major “cash cow” for Transurban.

“The amounts of money involved seem to be absolutely enormous,” he said.

Dr Woodcock said there was “cause for questions to be asked” by the government allowing a private company to continue reaping tolls, which could instead go into state coffers and be spent on new public assets.

“The state is basically handing control to Transurban and saying, ‘You work out what to do with that money’,” he said.

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