Transurban confirms West Gate Tunnel 2023 completion 'no longer considered achievable'

Transurban confirms West Gate Tunnel 2023 completion ‘no longer considered achievable’

In Transurban’s report of its half year results, the company flagged a statutory loss of $448 million and announced the West Gate Tunnel project’s 2023 completion date is no longer considered achievable.

It cited spoil disposal issues on the West Gate Tunnel were ongoing and disposal sites would not be ready to accept the tunnelling spoil in time for a 2023 completion date.

Chief Executive Officer Scott Charlton said that project parties were continuing to work towards resolving the technical and commercial issues that have led to delays on the West Gate Tunnel Project in Melbourne.

“We are progressing towards tunnelling commencement, however at this stage disposal sites
participating in the D&C subcontractor led tender process would not be ready to accept tunnelling spoil
soon enough to enable a 2023 completion. We remain committed to working with project parties to
deliver this much-needed project for the Victorian community as quickly as possible,” Charlton said.

The company noted average daily traffic had decreased in the term by 17.8 per cent, as a result of COVID-19 restructions across all markets.

Though throughout the period, traffic volumes did improve with average daily traffic at 2.1 million in December, compared to 1.8 million in July.

Charlton highlighted the positive traffic trend during the first half of FY21 and the progress that the business had made on several key projects during the period. He noted that despite ongoing challenges in the global operating environment, the business was well positioned to pursue the pipeline of projects materialising in its core markets.

“Transurban was significantly impacted as a result of COVID-19 during the first half of FY21, particularly in Melbourne and the Greater Washington Area where the virus and associated government restrictions were most severe. Pleasingly, traffic in Melbourne improved significantly through the half, with traffic in December down 19 per cent compared to 66 per cent in August, when restrictions were at their peak,” he said.

“In markets where restrictions have lifted, for example Brisbane and Sydney, we have seen traffic
largely recover to pre-COVID-19 levels, however it will remain sensitive to government responses and
economic conditions. Transurban continues to monitor customer views on transport and mobility and
today releases findings from the second iteration of Urban Mobility Trends from COVID-19 February
2021.”

In Sydney, the company achieved a toll revenue increase of 7.7 per cent, which was driven by the M8/M5 East and North Connex openings and the additional ownership of the M5 West.

The company has also committed to net zero green house gas emissions by 2050, a goal which is underpinned by a defined strategy.