The NSW government has finally conceded that tolls will remain on the Sydney Harbour Tunnel, despite the existing charging regime expiring at the end of next month when the motorway is due to revert to state ownership.
The confirmation that motorists will keep having to pay tolls on southbound trips comes as the government is set to consider alternative ways of building a new motorway under Sydney Harbour.
Construction of the first stage of the multibillion-dollar Western Harbour Tunnel has begun as machines excavate a 1.7-kilometre tunnel from Rozelle to Birchgrove in the city’s inner west.
Metropolitan Roads Minister Natalie Ward announces the start of construction of the Western Harbour Tunnel.Credit: Rhett Wyman
However, a contract for the bigger second stage is not due to be awarded until late this year, and transport officials confirmed on Wednesday that they are considering alternatives to the long-touted plan of laying large tubes in a trench on the harbour floor.
One of the alternatives involves using large boring machines to dig a deeper tunnel through bedrock, which would avoid the need to dredge the harbour and help allay concerns from inner-city residents about the environmental impact on the seabed.
Metropolitan Roads Minister Natalie Ward said stage one of the motorway project would be delivered within the next two years, while the second stage would “hopefully” be completed around 2027, which is about a year later than originally planned.
Ward confirmed that the southbound tolls on the existing Sydney Harbour Tunnel would remain after the existing arrangements expire on August 31. However, she said additional tolls – such as for northbound journeys – would not be slapped on the existing tunnel or the Harbour Bridge.
“The tolls that are in place at the moment will stay in place. There are no changes to those on the tunnel or the bridge,” she said.
The end of the concession deed held for the last 30 years by Transfield and several other large companies will mean all the tolling revenue from the 2.7-kilometre Harbour Tunnel will start flowing into government coffers from September 1.
The change comes as the government undertakes a wide-ranging review of the patchwork of tolls on Sydney motorways, which is expected to be completed by the end of the year.
The first stage of the Western Harbour Tunnel will extend from Rozelle to Birchgrove in inner Sydney.Credit: Rhett Wyman
Labor roads spokesman John Graham said the opposition wanted to see the tolling revenue from both the harbour tunnel and the bridge be directed to financial relief for motorists who pay tolls.
“We don’t want the government announcing any new tolls or tolling contracts before the review has been completed,” he said.
While the new Western Harbour Tunnel will be tolled, Ward said the amount that motorists would be charged had yet to be determined. “We have a comprehensive tolling review under way led by Treasury, supported by Transport for NSW, and that will inform our views of this,” she said.
The third road crossing of the harbour will extend from North Sydney to Rozelle, where it will link to the $16.8 billion WestConnex motorway.
Transport for NSW project director Tarnjit Chahal said the agency was considering “various options” for the harbour crossing, including a deeper tunnel excavated using large boring machines. “The reference design has got an immersed tube option, but various options are currently under consideration,” he said.
The government has received three bids from the private sector to build the second stage. The first stage is costing $722 million, but a price tag has yet to be put on the second stage, which will be the lion’s share of the expense.
The combined cost of the Western Harbour Tunnel, and the seven-kilometre Beaches Link which was planned to connect to it, was estimated at $14 billion in leaked government documents in 2017.
The government recently delayed work on the Beaches Link between North Sydney and Balgowlah, as well as several other mega projects, amid surging construction costs and global labour shortages.
The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.