Airport Link, Brisbane
Encyclopedia
The Airport Link is a tunnelled motorway grade road which is under construction in the northern suburbs of Brisbane, Queensland, Australia
. It will connect the Brisbane central business district
and the Clem Jones Tunnel to the East-West Arterial Road which leads to the Brisbane Airport
. It is being built in conjunction with the Windsor
to Kedron
section of the Northern Busway
in approximately the same corridor.
The Airport Link and busway project involves 15 km of tunnelling including the road (5.7 km of twin tunnels), busway tunnels and connecting ramps, as well as 25 bridges and result in over 7 km of new road. The estimated construction cost of the Airport Link is $4.8 billion. Construction of the Airport Link, Northern Busway and Airport Roundabout Upgrade projects is scheduled for completion in mid 2012.
The toll (set at 2006 prices) between Bowen Hills and Kedron or Toombul has been set at $4.00 while the toll between Kedron and Toombul is $3.00. The toll will be indexed in line with Brisbane CPI. It's been estimated the eventual toll charge will $4.85 per trip when the road opens. The tolls will be collected via a 'free-flow tolling system', an electronic tolling system based on overhead gantries reading a tag fitted inside vehicles or by taking a photograph of licence plates, avoiding the need for vehicles to slow or stop. The Go via
and FLOW Tolling systems will be used. Any other Australian toll road tag will work on the Airport Link toll road.
On 16 July 2008, the State Government announced that the tunnel will be part of the M7 Motorway, which also includes the Clem Jones Tunnel.
BrisConnections, composed of Macquarie Group
, Thiess and John Holland, beating two other consortia (North Connect and Northern Motorway). BrisConnections was announced as the preferred bidder on 19 May 2008, and the final contract was awarded on 2 June 2008.
Conducted as a public-private partnership
(PPP), the Airport Link project has been mired in controversy from the outset. Macquarie Group charged $110 million in fees for the financial engineering which used the equity from private investors to raise the necessary debt and planned to pay investor distributions from capital, an arrangement which resembles a Ponzi scheme
and has been ridiculed as the "dead parrot
model", after the famous Monty Python comedy sketch. Queensland Premier Anna Bligh
enjoyed a free holiday at the Sydney mansion of Thiess director Ros Kelly
just before the contract was awarded. Former Labor ministers Terry Mackenroth
and Con Sciacca
were paid a "success fee", (as government relations advisors) believed to be about $500,000, by BrisConnections after the consortium won the tender.
BrisConnections was listed as a unit trust
on the Australian Securities Exchange
(ASX) via a $1.2 billion initial public offering
(IPO) of installment receipts (or stapled securities
) on 31 July 2008 . This was the largest IPO in Australia in 2008 and the most disastrous. The value of initial $1 installments fell by 60 per cent on the first day of trading, and by late November had collapsed to 0.1c, the lowest possible price on the ASX. The dramatic price slide was largely due to the leverage risk associated with stapled securities. Among the institutional investors was QIC, the state-owned corporation that invests the superannuation funds for Queensland's public servants, which invested $25 million. The Chairman of QIC is Trevor Rowe, who is also the Chairman of BrisConnections and was awarded Member of the Order of Australia in 2004 "for service to the investment banking sector and as a contributor to the formulation of public policy ... and to the community."
It is believed that some of this negative market sentiment was in response to the traffic forecasts contained within the Product Disclosure Statement lodged by BrisConnections. The EIS previously lodged by government showed traffic forecasts in 2012 of 95,000 vehicles per day, rising to 120,000 motorists by 2026. The Product Disclosure Statement prepared by [Arup] provides forecast of 193,000 vehicles in 2012 rising to 291,000 vehicles by 2026.
During the early period of the BrisConnections listing most of the securities were owned by institutional investors, however as the price collapsed many of these institutions divested their now worthless stock, including Macquarie Group. Most of these shares were taken up by retail investors who were unaware that two further $1 installments on the stapled securities were owing and faced financial ruin as a result. BrisConnections has threatened to sue these investors in order to raise the capital necessary to continue the project, while reducing dividends by 99 per cent. There are no further installments owning which means there are no further obligations on shareholders attached to the units.
While promoting BrisConnections at their media event in April 2009, Premier Anna Bligh denied any responsibility for the fate of the "Mum and Dad" investors saying, "it is not the role of the Queensland Government to underwrite private investment decisions made by people who were seeking to make a profit investing in the stock market". At this time, the Australian Securities and Investments Commission
(ASIC) belatedly sought to act on behalf of investors and to seek an independent report of BrisConnections' finances. BrisConnections was nearly wound up in April 2009 after the private company of one investor, Nicholas Bolton, requisitioned a general meeting of members of the managing company. However on the date of the meeting the proxies attached to Bolton's shares were exercised to against the resolutions, Bolton's company having earlier sold the proxy rights for $4.5 million to Theiss-John Holland (a subsidiary of Leighton Holdings
and the contractor for the Airport Link project). Therefore the special resolution fell short of the required 75% vote to pass and BrisConnections was allowed to continue operating under its current form.
In May, 70% (278 million) of outstanding shares defaulted
on the second $1 instalment payment. Some shareholders transferred their shares off market to false identities, such as Humphrey B. Bear
, in order to avoid payment. An auction of shares in default failed to attract a bidder. In June, BrisConnections commenced legal action to recover the unpaid moneys. With Brisconnections launching legal claims against defaulting investors, controversial businessman Jim Byrnes postured as a champion of small investors. The controversy featured prominently in Brisbane newspapers: The name 'BrisConnections' was played upon as a 'con', the project and ensuing farce being dubbed by the media as 'BrisCon'. In October, BrisConnections notified ASX it would stop pursuing defaulting investors.
By early December 2009, the share price of the second $1 installments had collapsed to 0.1c. With little other interest in the "toxic
" stock at this time, the chief executive officer, Ray Wilson, paid $10 for 5,000 shares. Two other directors of BrisConnections also purchased share parcels of a similar size, helping to raise the share price to 0.5c by mid-December, however the share price had again collapsed to 0.1c by year's end.
In August 2009 the main earthmoving contractor TF Group went into receivership, owing subcontractors as much as $2.8 million. A group of these subcontractors threatened to blockade the project until their outstanding debts were paid.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. It will connect the Brisbane central business district
Brisbane central business district
The Brisbane central business district , sometimes referred to as the city, is a suburb of Brisbane, Queensland, Australia and is located on a point on the northern bank of the Brisbane River. The triangular shaped area is bounded by the Brisbane River to the east, south and west...
and the Clem Jones Tunnel to the East-West Arterial Road which leads to the Brisbane Airport
Brisbane Airport
Brisbane Airport is the sole passenger airport serving Brisbane and the third busiest in Australia, after Melbourne and Sydney Airports. Brisbane Airport has won many awards. Located in the suburb with the same name, the airport serves the city of Brisbane and the surrounding metropolitan area...
. It is being built in conjunction with the Windsor
Windsor, Queensland
Windsor is an inner northern suburb of Brisbane, located about 3.5 km from the CBD. It is largely residential, featuring many old Queenslanders, although there is also considerable retail commercial activity, primarily concentrated along Lutwyche and Newmarket Roads.-History:Land was first...
to Kedron
Kedron, Queensland
Kedron is a northern suburb of Brisbane, Australia, centred on Gympie Road and Kedron Brook. It is close to Westfield Chermside shopping centre in the neighbouring suburb of Chermside...
section of the Northern Busway
Northern Busway, Brisbane
Northern Busway is a bus-only road in Brisbane, Queensland. The busway allows buses to travel north/south through the Brisbane City without encountering car traffic. The first section of the Northern Busway opened in February 2004 had one station, QUT Kelvin Grove, later Normanby and RCH Herston...
in approximately the same corridor.
The Airport Link and busway project involves 15 km of tunnelling including the road (5.7 km of twin tunnels), busway tunnels and connecting ramps, as well as 25 bridges and result in over 7 km of new road. The estimated construction cost of the Airport Link is $4.8 billion. Construction of the Airport Link, Northern Busway and Airport Roundabout Upgrade projects is scheduled for completion in mid 2012.
The toll (set at 2006 prices) between Bowen Hills and Kedron or Toombul has been set at $4.00 while the toll between Kedron and Toombul is $3.00. The toll will be indexed in line with Brisbane CPI. It's been estimated the eventual toll charge will $4.85 per trip when the road opens. The tolls will be collected via a 'free-flow tolling system', an electronic tolling system based on overhead gantries reading a tag fitted inside vehicles or by taking a photograph of licence plates, avoiding the need for vehicles to slow or stop. The Go via
Go via
go via is the new form of free-flow tolling for Queensland Motorways and is designed to coincide with the Gateway Upgrade Project. It replaces the previous E Toll system in Queensland, though existing tags will continue to work there and throughout Australia...
and FLOW Tolling systems will be used. Any other Australian toll road tag will work on the Airport Link toll road.
On 16 July 2008, the State Government announced that the tunnel will be part of the M7 Motorway, which also includes the Clem Jones Tunnel.
Contract and controversy
The contract was awarded to the consortiumConsortium
A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal....
BrisConnections, composed of Macquarie Group
Macquarie Group
Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world...
, Thiess and John Holland, beating two other consortia (North Connect and Northern Motorway). BrisConnections was announced as the preferred bidder on 19 May 2008, and the final contract was awarded on 2 June 2008.
Conducted as a public-private partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
(PPP), the Airport Link project has been mired in controversy from the outset. Macquarie Group charged $110 million in fees for the financial engineering which used the equity from private investors to raise the necessary debt and planned to pay investor distributions from capital, an arrangement which resembles a Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
and has been ridiculed as the "dead parrot
Dead Parrot
The "Dead Parrot Sketch", alternatively and originally known as the "Pet Shop Sketch" or "Parrot Sketch", is a popular sketch from Monty Python's Flying Circus, and one of the most famous in the history of British television comedy...
model", after the famous Monty Python comedy sketch. Queensland Premier Anna Bligh
Anna Bligh
Anna Maria Bligh is an Australian politician and the Premier of Queensland since 2007. The 2009 Queensland state election was the first time a female-led political party won or retained state or federal government in Australia...
enjoyed a free holiday at the Sydney mansion of Thiess director Ros Kelly
Ros Kelly
Ros Kelly AO was a member of the Australian House of Representatives for the Division of Canberra from 18 October 1980 to 30 January 1995. She was a minister in the governments of Bob Hawke and Paul Keating....
just before the contract was awarded. Former Labor ministers Terry Mackenroth
Terry Mackenroth
Terence Michael "Terry" Mackenroth is a former Queensland Australian Labor Party politician, serving almost 28 years with a notable parliamentary service history and a number of ministerial roles including Treasurer and Deputy Premier....
and Con Sciacca
Con Sciacca
Concetto Antonio "Con" Sciacca AO , Australian politician, was an Australian Labor Party member of the Australian House of Representatives from July 1987 to March 1996 and again from October 1998 to October 2004, representing the Division of Bowman, Queensland...
were paid a "success fee", (as government relations advisors) believed to be about $500,000, by BrisConnections after the consortium won the tender.
BrisConnections was listed as a unit trust
Unit trust
A unit trust is a form of collective investment constituted under a trust deed.Found in Australia, Ireland, the Isle of Man, Jersey, New Zealand, South Africa, Singapore, Malaysia and the UK, unit trusts offer access to a wide range of securities....
on the Australian Securities Exchange
Australian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
(ASX) via a $1.2 billion initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) of installment receipts (or stapled securities
Stapled security
A stapled security is a type of financial instrument, a security that is contractually bound to one or more other securities to form a single salable unit....
) on 31 July 2008 . This was the largest IPO in Australia in 2008 and the most disastrous. The value of initial $1 installments fell by 60 per cent on the first day of trading, and by late November had collapsed to 0.1c, the lowest possible price on the ASX. The dramatic price slide was largely due to the leverage risk associated with stapled securities. Among the institutional investors was QIC, the state-owned corporation that invests the superannuation funds for Queensland's public servants, which invested $25 million. The Chairman of QIC is Trevor Rowe, who is also the Chairman of BrisConnections and was awarded Member of the Order of Australia in 2004 "for service to the investment banking sector and as a contributor to the formulation of public policy ... and to the community."
It is believed that some of this negative market sentiment was in response to the traffic forecasts contained within the Product Disclosure Statement lodged by BrisConnections. The EIS previously lodged by government showed traffic forecasts in 2012 of 95,000 vehicles per day, rising to 120,000 motorists by 2026. The Product Disclosure Statement prepared by [Arup] provides forecast of 193,000 vehicles in 2012 rising to 291,000 vehicles by 2026.
While promoting BrisConnections at their media event in April 2009, Premier Anna Bligh denied any responsibility for the fate of the "Mum and Dad" investors saying, "it is not the role of the Queensland Government to underwrite private investment decisions made by people who were seeking to make a profit investing in the stock market". At this time, the Australian Securities and Investments Commission
Australian Securities and Investments Commission
The Australian Securities & Investments Commission is an independent Australian government body that acts as Australia's corporate regulator...
(ASIC) belatedly sought to act on behalf of investors and to seek an independent report of BrisConnections' finances. BrisConnections was nearly wound up in April 2009 after the private company of one investor, Nicholas Bolton, requisitioned a general meeting of members of the managing company. However on the date of the meeting the proxies attached to Bolton's shares were exercised to against the resolutions, Bolton's company having earlier sold the proxy rights for $4.5 million to Theiss-John Holland (a subsidiary of Leighton Holdings
Leighton Holdings
Leighton Holdings is Australia's largest project development and contracting group. It is active in the telecommunications, engineering and infrastructure, building and property, mining and resources, and environmental services industries...
and the contractor for the Airport Link project). Therefore the special resolution fell short of the required 75% vote to pass and BrisConnections was allowed to continue operating under its current form.
In May, 70% (278 million) of outstanding shares defaulted
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
on the second $1 instalment payment. Some shareholders transferred their shares off market to false identities, such as Humphrey B. Bear
Humphrey B. Bear
Humphrey B. Bear is an Australian children's television series and its fictional character namesake is an icon of Australian children's television. Humphrey B Bear was first broadcast on Adelaide's NWS-9 on Monday, 24 May 1965. The show became one of the most successful programs for pre-schoolers...
, in order to avoid payment. An auction of shares in default failed to attract a bidder. In June, BrisConnections commenced legal action to recover the unpaid moneys. With Brisconnections launching legal claims against defaulting investors, controversial businessman Jim Byrnes postured as a champion of small investors. The controversy featured prominently in Brisbane newspapers: The name 'BrisConnections' was played upon as a 'con', the project and ensuing farce being dubbed by the media as 'BrisCon'. In October, BrisConnections notified ASX it would stop pursuing defaulting investors.
By early December 2009, the share price of the second $1 installments had collapsed to 0.1c. With little other interest in the "toxic
Toxic asset
Toxic asset is a popular term for certain financial assets whose value has fallen significantly and for which there is no longer a functioning market, so that such assets cannot be sold at a price satisfactory to the holder...
" stock at this time, the chief executive officer, Ray Wilson, paid $10 for 5,000 shares. Two other directors of BrisConnections also purchased share parcels of a similar size, helping to raise the share price to 0.5c by mid-December, however the share price had again collapsed to 0.1c by year's end.
Construction
Status
As at 19 March 2010, 3.3 km of tunnels already dug and 13 roadheader machines (each 18.2 m in diameter and weigh 135 tons) in use on tunnels. In the coming months this will rise to 16 roadheader machines.Milestones
- 19 May 2008 - State government announced BrisConnections as the preferred bidder for Airport Link
- November 2008 - Official start to project construction
- December 2008 - Drill and blast excavation commenced at Bowen Hills, construction of cut and cover structure at Toombul (Kalinga Park) commences
- March 2009 - First roadheader commenced tunnelling at Truro Street site (mid tunnel point) in Windsor
- April 2009 - Roadheader tunnelling commenced at Federation Street site in Bowen Hills
- May 2009 - 24-hour tunnelling operations commence across the project
- June 2009 - Roadheader tunnelling commences in Kedron
- November 2009 - First Tunnel boring machineTunnel boring machineA tunnel boring machine also known as a "mole", is a machine used to excavate tunnels with a circular cross section through a variety of soil and rock strata. They can bore through anything from hard rock to sand. Tunnel diameters can range from a metre to almost 16 metres to date...
(TBM) arrives from Germany for assembly - March 2010 - Completion of both cut and cover structure and Tunnel Boring Machine (TBM) launch box at Toombul
- 18 June 2010 - First mined tunnel breakthrough between Bowen Hills and Lutwyche. Transport Minister Rachael Nolan witnessed the occasion.
Timeline
- Mid 2010 - First TBM commences tunnelling from Toombul while second TBM arrives from Germany
- Mid 2010 - Second TBM commences tunnelling from Toombul heading west toward Lutwyche
- Early 2011 - Northern Busway tunnelling complete
- Early 2011 - TBMs removed from tunnel shaft at Chalk Street in Lutwyche
- Late 2011 - Airport Roundabout Upgrade scheduled completion
- Mid 2012 - Northern Busway (Windsor to Kedron) scheduled completion
- Mid 2012 - Airport Link scheduled for completion
History
On 17 June 2009, CNI requested that the Coordinator-General evaluate a proposed change to the Airport Link project under section 35C of the State Development and Public Works Organisation Act 1971. Due to the discovery during the first half of 2009 of less than favourable ground conditions in the vicinity of the Kedron ramps, BrisConnections proposed the establishment of a new worksite on vacant land at Rose Street, Wooloowin, between Kent and Park Roads to facilitate improved construction access to the mainline tunnels. A shaft 15 metres in diameter and 42 metres deep would be constructed to launch two of the project’s ‘roadheader’ excavation machines. It is anticipated that the worksite would be in use for up to 29 months, including backfilling and rehabilitation.In August 2009 the main earthmoving contractor TF Group went into receivership, owing subcontractors as much as $2.8 million. A group of these subcontractors threatened to blockade the project until their outstanding debts were paid.
See also
- Airport Link, Sydney
- Kalinga Park, BrisbaneKalinga Park, BrisbaneKalinga Park is a park located on northside of Brisbane, Australia. It is community park land associated with the locality of Kalinga, in the suburbs of Clayfield and Wooloowin.- History :...
- South East Queensland Infrastructure Plan and ProgramSouth East Queensland Infrastructure Plan and ProgramThe South East Queensland Infrastructure Plan and Program 2010–2031 is produced by the Queensland Department of Infrastructure and Planning and outlines estimated infrastructure investment across South East Queensland Australia to 2031. It represents a long-term commitment to infrastructure...
- TransApexTransApexTransApex is a transport plan devised by the former Brisbane Lord Mayor Campbell Newman to connect existing motorways and major arterial roads with new transport links and divert cross-city traffic out of the Brisbane CBD. The plan is currently being delivered by Brisbane City Council at an...
External links
- Official site
- Brisconnections
- BCC project site
- TransLink project site for Northern Busway
- Forum - AirportLink Forum