Work on the $3 billion NorthConnex project in Sydney's north over the next six months will be "critical" to how late the tunnel linking the M1 and M2 motorways is in opening to motorists, toll road king Transurban says.
The nine kilometre road tunnel was originally due to open by December this year but it was recently revealed that construction was running about six months late after contractors Lendlease and French partner Bouygues tunnelled deeper to avoid property acquisitions.
While tunnelling is now complete, Transurban chief executive Scott Charlton said finishing works such as paving and installation of electrical equipment over the next six months would determine when the ribbon was finally cut on NorthConnex.
NorthConnex will link the M1 and M2 motorways in Sydney's north.Credit: Brook Mitchell
"Whether it is three months, six months or nine months late, we are covered," he said.
The contractors are exposed to paying Transurban an undisclosed sum in liquidated damages for foregone revenue if it is late opening.
"It is very difficult to give a definitive outcome [on the opening] because ... there are three different programs. It will be what it will be and we fully expect it to be in full-year 2020," Mr Charlton said.
Transurban chief executive Scott Charlton says it is difficult to put a date on the opening of NorthConnex next year.Credit: Pat Scala
Transurban tightened its grip on Sydney's growing labyrinth of toll roads last year when a consortium it led paid $9.3 billion for a majority stake in the 33 kilometre WestConnex motorway project.
While there has been speculation the ribbon would be cut on the first major part of WestConnex before the state election on March 23, both Transurban and the state government said the M4 East – a 6.5 kilometre roadway consisting mostly of tunnels from Homebush to Haberfield – would open to traffic some time between April and June.
"We are not giving a specific date ... [but] we are working as fast as we can," Mr Charlton said. "It is down to that last push and getting the commissioning done."
Transurban is more cautious than the government about when the final stages of WestConnex such as an underground interchange at Rozelle will open.
For instance, the company expects the "New M5" – twin tunnels from Kingsgrove to St Peters – to open in the middle of next year, which is later than the "early 2020" flagged by the government.
The outcome of the state election in March will dictate some of Transurban's longer term plans. Labor has vowed to ditch the Berejiklian government's proposals for a $14 billion toll road link to the northern beaches, and an extension of the F6 motorway in Sydney's south.
If Labor wins government, Transurban stands to benefit from its policy to reintroduce a scheme for motorists to get their tolls back from using the widened M4 motorway between Parramatta and Homebush, which is part of the first stage of WestConnex.
Mr Charlton said the cash-back scheme would have a"positive impact" on traffic volumes on the M4. "Utilising that capacity is a good thing," he said.
But Transurban does not expect the opening of a train line between Rouse Hill in Sydney's north west and Chatswood in May to hit toll revenue it reaps from the M2 motorway.
Mr Charlton said people tended to switch between different modes of public transport, such as from bus to train, instead of from their private cars to rail. "We still expect strong growth on the M2. We don't envisage a material impact [on earnings from competition from the new metro rail line]," he said.
Asked whether there had been a slowdown in NSW, Mr Charlton said it was difficult to be definitive on it because there had been many factors affecting traffic volumes on its Sydney toll roads, including a wet October. "It is too early for us to make that call," he said.