Friday 8 February 2013

Why Melbourne doesn't have an airport rail link

Transurban has one good asset -- its CityLink system. CityLink is a good system, it provides quick and reliable freeway transport for motorists across Melbourne. The rest of its assets are a pack of dogs. Without CityLink, Transurban would be a dog too, not the steady earner beloved of pension funds. Or a "dog with fleas" as Gordon Gekko said.

The absence of a rail link to Melbourne Airport suits Transurban fine, because you can only get to Melbourne Airport by car, taxi or bus. The SkyBus service costs $17 one way. Taxis cost around $50 from the airport to the city. A rail link would mean Transurban would lose a great many of these customers. Transurban operates toll roads, so it makes sense for them to maximise traffic.

Tansurban is not alone in applauding the lack of an airport rail link. Australia Pacific Airports, which operates the airport, has just completed a multimillion dollar upgrade of its parking facilities. It costs around  $20 just to park long enough to pick someone up. It is almost impossible to pick someone up from the curb at the airport. Melbourne Airport's  parking fees are said to be among the highest in the world. Australian Pacific Airports  would be very upset by an airport rail link, which would see much of their business disappear. Even a recent suggestion there should be a dedicated bus lane on the freeway to the airport caused barely concealed alarm.

Transurban, the taxi industry and  Australian Pacific Airports are what economists call "rent seekers". Who would benefit from an airport rail link? Only the consumers. And who cares about them? Certainly the Baillieu Government doesn't, because they could change the "no rail link" policy with the stroke of a pen. Good old "Do Nothing Ted" is maintaining his reputation.  

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