Rowville-Rail-Study-Final-Stage-1-Report-FINAL

8. Costs, benefits and impacts
8.1 Capital costs
Final Stage 1 Feasibility Report
Costs, benefits and impacts
At this interim stage of the work we consider that the design has not progressed sufficiently
to provide a reliable capital cost estimate. The concept design should be further refined and
optimised, with the benefit of community input, before a full capital cost estimate is prepared.
However we would point out that the capital cost would be substantially more than that given
in the City of Knox’s 2004 report ($480 million including rail fleet, which would translate to
around $800 million in 2011 prices). The main reasons for this are that the 2004 study:
only costed a single-track line (we have allowed for a twin track line);
had a greater proportion of the line above rather than below ground (elevated structures
are less costly than tunnels);
assumed a 15-minute service headway that would only require 4 new trains (we have
assumed a 10-minute headway which would require 5 new trains); and
appears to have been very conservative on the costs of stations, access, etc.
The rail line would be complex to build in a busy six-lane road environment, and it would
require grade separation at eight major crossing roads, including two freeways, which would
result in its being above or below ground virtually all the way.
8.1.1 Funding sources
Funding for the project, if it were to proceed, would probably come mainly from Government
sources. However the rail line could significantly enhance land and property values in station
catchments. It would also encourage or precipitate redevelopment, especially at key
locations like Monash University and Stud Park. Planning approvals for such redevelopments
should be conditional on developer contributions and/or tax increment funding to help fund
station works; landowners and developers should be expected to contribute to the costs in
this way.
8.2 Operating costs
When fully operational with services to and from the city, the Rowville rail line would incur
additional public transport operating costs; that is the additional cost of rail operations, track
and station maintenance, partially offset by some savings in bus operating costs (due to
reconfiguring bus routes to feed to the stations rather than running in parallel to the line).
8.3 Economic appraisal
We have not finalised an economic appraisal at this stage, for two reasons:
1) As stated above we consider that the concept design should be refined with the benefit
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