Yet another failing Tollroad/Tunnel & Court Case – Compensation court fight shines a light on toll road pitfalls

Troubled ... the Lane Cove Tunnel. Photo: Bloomberg

SYDNEY’S last big toll road project, the Lane Cove Tunnel, has become a legal morass for some big super funds, investment banks and transport consultancies as a large investor in the infrastructure chases compensation.

The troubles are a cautionary tale on the eve of the release on Wednesday of the latest plan from the NSW government’s adviser, Infrastructure NSW, for more toll roads to criss-cross Sydney.

The Lane Cove Tunnel, finished in 2007, went into receivership at the start of 2010, the victim of wildly optimistic traffic forecasts and an inability to pay its debts.  The road is still there and operated by a new owner, Transurban, and charging motorists $2.94 a trip…

In 2009 AMP started to sue the two transport consultancies that provided the traffic forecasts underpinning the project, Parsons Brinckerhoff and Booz Allen Hamilton.

Jacob Saulwick, The Sydney Morning Hearald, October 1, 2012