Installation of underground track is complete in all sections of a huge Brisbane rail project.

But the project’s cost has blown out in line with broad increases in civil construction costs throughout Australia.

In its latest announcement, the Queensland Government says that track installation is complete on every section of the 4.7 kilometre twin tunnels (or 9.4 kms of tunnel in total) on its $6.3 billion Cross River Rail Project.

Only the sections within the underground stations themselves and surface connections to the existing rail network are yet to be completed, which it due to take place this year to complete Cross River Rail’s alignment.

The focus in the tunnels is now on the electrical and mechanical fit out, including installing power and fire safety mechanisms.

Set to unblock an important bottleneck within the Brisbane rail network by creating a second crossing of the Brisbane River, Cross River Rail will connect Bowen Hills at the northern end with Dutton Park at the southern end via a 10.2 kilometre line that includes 5.9 kilometers under the Brisbane River and the CBD.

The project includes four new underground stations at Boggo Road, Woolloongabba, Albert Street and Roma Street.

(image supplied)

Queensland Minister for Transport and Main Roads, Mark Bailey, says the completion of the underground tracks marks a significant milestone.

Bailey says that at its peak, more than 80 people including nine apprentices worked day and night shift during the tunnel installation.

These are part of a wider Cross River Rail team involving more than 3,000 workers.

“This year we’re really starting to see Cross River Rail come to life as the project hits milestone after milestone,” Bailey said.

“To now have tracks installed in all sections of Cross River Rail’s twin tunnels – which will become the arteries of our new rail network – is incredibly exciting, and means this transformational project is yet another step closer to reality.”

However, the government has also flagged higher costs and delays as the project has been subject to supply chain pressures which have impacted the broader civil construction sector.

All up, the project cost has been increased by $960 million or 17.8 percent, and will now total $6.3 billion.

Meanwhile, commencement of first services has been pushed back by one quarter.

These are now expected in the second quarter of 2025.

The cost blowouts are in line with broader cost pressures in the civil construction industry throughout Australia.

Since construction of the project started in 2019, heavy and civil engineering costs around Australia have increased by 18.0 percent amid strong pressure on costs for materials, energy and labour., according to Producer Price Index data from the Australian Bureau of Statistics.

This includes a surge of 15.8 percent over the two years to December 2022 alone.

In announcing the increase, the government said the project has been affected by higher costs for materials.

These include increases in the cost of steel, electrical, concrete and precast concrete  of around 42 percent, 28 percent, 15 percent and 8 percent respectively.

Also impacting completion timeframes are further supply chain impacts.

These include delays for delivery of signal relays (components produced in Ukraine) as well as concrete and steel fabrication supply issues – with alternative providers having to be sourced.

Bailey says the government and project team have done everything possible to mitigate the impact of supply pressures.

He says these have been particularly challenging considering the complex nature of the project, which spans across seventeen worksites and involves new tunnels, new stations and a new signaling system – all of which need to connect with the existing rail network.

“High impact, low probability impacts including the COVID global pandemic, consecutive La Niña weather events and the war in Ukraine have impacted the supply and costs of materials and labour all at the same time – a scenario no one could reasonably have foreseen ahead of construction in 2019” Bailey said.

“The fact we were able to keep our sites operational during the COVID-19 pandemic, unlike similar projects in other states, meant we have been able to maintain construction momentum and help minimise impacts.

“We’ve been flagging since August last year Cross River Rail is not immune from the pressures being faced by major infrastructure projects here in Australia and around the world.

“We have done everything possible to mitigate these unavoidable impacts further, including pre-purchasing rail, materials and steel to protect from further price increases and ensure supply.

“At the same time, we’ve undertaken a rigorous and thorough assessment of cost impacts and conducted some firm and considered negotiations with our major contractors in order to isolate the additional investment required to offset the inevitable impact of these global events.

“While the need for additional funding has been unavoidable, a 17.8 percent increase on a mega project like Cross River Rail is significantly lower than the huge increases in costs that we’re seeing confirmed on other projects like the Brisbane Metro and projects interstate.

“All we have to do is look down the road at the Brisbane Metro project, which is only a bus project, where the cost has increased by more than 80 percent.

“The Cross River Rail percentage increase has been less than a quarter of the increase of the Brisbane Metro cost in the same location.

“The Sydney Metro cost has increased by $6 billion.

“The review has seen a new integrated schedule implemented, with first revenue services now expected to commence one quarter later than originally anticipated.

“Everyone involved in bringing Cross River Rail to life – from the Government agencies involved to the contractors building it – have worked closely to set this new schedule, which brings with it a strong sense of unity and certainty moving forward.

“We know from other projects that integrating delivery partners and leaving a suitable and safe period for testing is critical for successful operation.

“This is a complex mega project spanning 17 worksites involving new tunnels, new stations and a new signaling system, which all need to knit back into an existing rail network.

“Two project sites are already complete at Yeronga station and Mayne Yard North with many other sites very advanced.

“Various aspects of delivery have been unavoidably delayed by supply chain issues and escalation, and it makes sense to allow extra time now to make sure that everything works as it should, and operates safely, before passenger services commence.”

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