Why WestConnex will cost so much for so long

It’s just been announced that WestConnex users will be paying tolls for 43 years, including the bits that are currently free.

Why?

Put simply, WestConnex is horribly expense.

$15,400,000,000.

It’s not a telephone number. It’s the estimated cost of building WestConnex. Fifteen billion dollars.

Someone has to pay for it.

WestConnex will be able to carry maybe 100,000 drivers a day.

The interest bill alone has been estimated at $630 million. Dividing that between 100,000 drivers a day, 365 days a year, means each driver needs to pay $17, just to pay the interest.

And if business is going to touch it, they’ll want to do a lot better than just paying off the interest.

WestConnex is a seriously bad investment. There are better alternatives.

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