Engineering, Passenger Rail, Signalling & Communications

Knoll says City Tram Extension cost could blow out by $44m

South Australian transport minister Stephan Knoll says the former Labor Government is to blame for the fact the City Tram Extension in Adelaide’s CBD is yet to open, and could end up $44 million over budget.

Knoll said last week the extension has suffered from “mismanagement” by the last government.

He said issues arising from the extension’s signalling system could see the cost of the project rise to as much as $124 million, well over the project’s $80 million budget.

“This trouble-plagued tram extension is yet another example of the gross mismanagement and incompetence of the former Labor Government,” Knoll said on September 27.

Calling the situation a “scandal”, Knoll has accused Labor of “burying” the signalling problem in January, ahead of the state election.

“We’ve been working hard to get this project back on track since March to deliver a safe and functional tram service down North Terrace for the people of South Australia,” Knoll continued.

“When we came to government in March North Terrace was still a construction site and any suggestion that this project was on time is absolutely laughable.

“We’ll be working to minimise the cost blow to protect taxpayers to the greatest extent. We will be reviewing this project once it’s complete to ensure Labor’s mistakes aren’t made in future projects.”

Speaking to the ABC, opposition infrastructure spokesman – and former state treasurer – Tom Koutsantonis, disputed Knoll’s claims.

“All we’re getting from the minister is excuses,” Koutsantonis was quoted as saying. “Quite frankly, if he has a report saying that something went wrong under Labor, release it.”

Knoll told the ABC the tram extension’s opening date was “extremely close”. Knoll previously set a date of July 29 as the opening day, but delayed this just days prior, due to signalling issues.