Bundaberg-Gin Gin rail trail scrapped due to $20 million shortfall

The Bundaberg Regional Council will can a Gin Gin project following a detailed business case showing the project’s shocking blow out costs exceeding the council’s budget capacity. FULL STORY

Bundaberg Gin Gin rail trail project has been shut down.

The Bundaberg Regional Council confirmed plans for the Bundaberg-Gin Gin Rail Trail, which has been in the works for six years, will not proceed due to a massive cost blowout.

The initiative was aimed to convert an old rail corridor between Bundaberg and Gin Gin into a recreational trail for walking, cycling, and outdoor activities.

This announcement comes only a week after Bundaberg Mayor, Helen Blackburn shared that the council had plans to let go at least 70 employees.

The plans for the trail had been in the works with the first application for funding submitted back in 2018.
Previous Bundaberg Mayor Jack Dempsey made the announcement in June, 2019 and at the time said it would cost about $13.1 million.

Bundaberg Gin Gin rail trail project has been shut down following overflowing costs.

In a media release provided on Monday, the finance portfolio spokeswoman, Deb Keslake said the council’s current financial realities paired with a significant inflation to the project costs meant it could no longer be prioritised.

“After undertaking a detailed business case it was estimated a basic level rail trail would be $39.799 million to deliver,” she said.

“With current funding commitments between the State Government and Council sitting at $19.112 million, there was a project funding shortfall to Council of $20.687 million.

“Our primary responsibility is to ensure the long-term financial sustainability of Council, and that means making some difficult decisions about what projects we can realistically deliver,” Ms Keslake said.

Originally published as Bundaberg-Gin Gin rail trail scrapped due to $20 million shortfall