Home' Future Building Australian Infrastructure Review : Volume 4 Number 1 Contents 6 futurebuilding Volume 4 Number 1
The Hon Mike Baird MP
the National Secretary of the Australian Workers'
Union, recently supported this approach.
We also need to engage superannuation funds
with the right assets, ensuring a win-win situation.
Eighty per cent of the leases of Port Botany and
Port Kembla went to Australian superannuation
funds, which now own the assets. So millions of
Australians still have a stake in those assets. The
state receives the money up-front, so we can
invest in additional infrastructure, and the private
sector capital gets invested into the ports, driving
ef ciencies in a way the public sector cannot. The
new port owners, without the same constraints on
their balance sheet, are mapping the logistic chain,
identifying where leakages are and looking for
opportunities for improvement.
The Port of Newcastle will be assessed using a
similar approach, due to the success of the Port
Botany and Port Kembla operations. Newcastle has
embraced the transaction and will be revitalised
as a result, because we have been honest with the
community and told them where we are at nancially,
and exactly what we want to do. The political class
underestimates the intelligence of the electorate and
their capacity for an honest debate.
The nal question is what do we do in delivery,
once the funding, the strategy and the priorities are
As I indicated earlier, the rst project we are
going to deliver is WestConnex.
This project involves 33 kilometres of roadway, the
removal of 3000 trucks from Parramatta Road, and a
time saving of 40 minutes from Parramatta to Sydney
Airport, including 52 sets of traf c lights avoided. It is
going to be a revolution for Western Sydney.
The nancing model we are putting forward shows
innovation in project delivery. We are responding to
the market's concern about patronage risk, and our
own balance sheet challenge, by bringing the two
together and delivering a sustainable model.
The Government's initial contribution of $1.8
billion comes from the port leases and will be
used to construct stage one, in collaboration with
the Commonwealth contribution. Through these
contributions, we'll prove up cash ows from tolling,
which will then be taken to the market. Once those
In relation to tolling, which
has historically been a dif cult
issue politically, I think the
battle is largely won
Right: The Hon
Mark Birrell greets
The Hon Mike Baird
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