The Commonwealth Government has committed to funding the second stage of the Gold Coast Light Rail line.
Prime Minister Malcolm Turnbull visited the Gold Coast with Queensland premier Annastacia Palaszczuk and minister for transport Jackie Trad to announce the funding on Sunday.
Queensland said the news will mean more than 1000 jobs during construction.
Turnbull committed $95 million from the Federal Government towards Stage 2 of the Gold Coast project, which would extend the line to an interchange with heavy rail at Helensvale, connecting the light rail line with the greater South East Queensland rail transport network.
“Construction of Stage 2 of Gold Coast Light Rail will provide the missing link from the Gold Coast to Brisbane,” Turnbull said.
“This project is vital for the Commonwealth Games transport task. It connects five competition venues and nine events to accommodation and public transport interchanges.”
Federal funding of the rail extension was ruled out by former prime minister Tony Abbott.
Abbott’s view that urban roads should be favoured by the Commonwealth over public transport appears to be one of the key differences between his policies and those of the man who replaced him, Malcolm Turnbull.
As congestion increases on the Pacific Motorway between the Gold Coast and Brisbane, the efficiency of the rail system and its mass transit capabilities become increasingly important for the region beyond the Commonwealth Games, Palaszczuk said on Sunday.
The premier welcomed the funding commitment from the Commonwealth and said with support secured Stage 2 can now be built in time for the Commonwealth Games.
“I congratulate the Prime Minister Mr Turnbull for committing funding support to help deliver Stage 2 of Gold Coast Light Rail,” Palaszczuk said.
“Once the Commonwealth was provided with the Business Case, the prime minister prioritised the decision to fund this infrastructure which will be critical to the success of the Games.
“With this announcement from the Commonwealth and the $55 million funding commitment from the Council, all three levels of Government are now on board to deliver this legacy project for Queensland.
“This funding commitment from all three levels of government is an investment in the success of the Commonwealth Games and the Gold Coast’s future. The new line will connect the Coast to Brisbane and complement an impressive pipeline of new resorts and attractions already in train.”
Trad, who is also the deputy premier on top of being minister for transport, said the funding agreement meant a preferred contractor could be appointed in early 2016, following the conclusion of the Request for Tender phase on December 23, 2015.
“Light rail has become the backbone of the public transport network and Stage 1 has driven a 25% increase in public transport patronage on the Gold Coast in the first year alone,” Trad said.
“Gold Coast Light Rail is a transformative piece of infrastructure and Stage 2 will continue to change the way people move and get around the Gold Coast.”
Gold Coast mayor Tom Tate said the funding agreement showed the value of all three tiers of Government working together.
“This announcement is a historic day for our city and will ensure this vital second stage of the light rail completed before the Gold Coast 2018 Commonwealth Games,” Tate said.
“Gold Coast Light Rail patronage continues to exceed expectations, with an average of more than 18,200 trips made on Gold Coast Light Rail each day.”
The state government’s contribution to the project will come from savings identified by the Department of Transport and Main Roads within its existing budget, with no new spending required over the forward estimates.
Minister for territories, local government and major projects Paul Fletcher also welcomed the announcement.
The expression of interest process was completed in September, with six national and international consortia vying to construct the proposed 7.3 kilometre light rail alignment from the Helensvale heavy rail station and bus interchange to connect with Stage 1 at the Gold Coast University Hospital light rail station.