Industry: Transportation Region: Australia Deal price: $1 million Deal Method: equity financing
Brief introduction:
The project has a strong strategic advantage as it will improve connectivity in the area and directly support the realisation of the benefits of the first phase of the Mackay Ring Road, which is currently under construction.
Details:
Problems to be solved:
The Peak Downs Highway extends from the Bruce Highway at Port Mackay to the Gregory Highway near the town of Clermont in central Queensland.
The Peak Downs Highway is an important regional route as a major gateway to the coal and energy provinces of the Bowen and Galilee Basins. The Peak Downs Highway is used to transport important mining inputs such as fuel, plant and equipment, construction materials and explosives. It is also used to transport raw sugar and oil.
Within Walkerston, Peak Downs Highway runs through the town centre and includes schools, community facilities and shops, providing convenience for local residents. This part of the highway has also become congested, leading to longer travel times for commercial vehicles.
Project Description:
The proposed Walxton Bypass project involves the conversion of 10.4km of The Summit Downs Road from west of Walxton to the Mackay Loop at Stockkett Road. The new bypass will provide greater freight capacity, more direct links for larger vehicles, enhanced flood resistance, improved freight efficiency and safety and convenience for local residents while diverting traffic (including heavy and dangerous goods) away from The main streets of Vaxton. According to the Mackay, Isaac and Whitsunday Regional Plan (2012), the project also creates opportunities for urban expansion in the towns of Walkerston, Mirani and Ooralea regions. The project has a strong strategic advantage as it will improve connectivity in the area and directly support the realisation of the benefits of the first phase of the Mackay Ring Road, which is currently under construction.
Economic, social and environmental values:
The estimated benefits of the project are travel time savings, as well as savings in vehicle operating costs, safety benefits, environmental benefits and residual values (that is, the estimated value of the asset at the end of the lease or useful life). A significant portion of the savings in vehicle operating costs and travel time are attributable to commercial and freight vehicles, consistent with the goal of improving freight efficiency. Proponents suggest a benefit-to-cost ratio of 1.5 and a net present value of $67 million (an effective discount rate of 7%).