Don't let the PoMC near my money!
The Economics of Channel Deepening....... an oxymoron
· Project cost: $969,000,000 (almost $1 billion!)
o As quoted by the Port of Melbourne Corporation (PoMC)
o Does not included ongoing costs of maintenance dredging!
o Approx. $500 million goes direct to overseas owned Boskalis, owner of the dredging ships
· Project return: highest estimate $2.2 billion
o As quoted by the State Government (even the PoMC says only $1.9 billion!)
o Of the $2.2 billion, approx. $1.3 billion will stay in
o Total return up to 2035 – ie, over 27 years! This is only $81 million a year, not much in the greater scheme of things.
o Mainly comprised of savings to shipping companies (local and overseas owned) and importers/exporters, who may or may not choose to pass the savings onto their customers. Even if they did, it would be such a small reduction, you’ll never notice it!
o This figure is also based on old interest and exchange rates. It has been said that current interest and exchange rates erode the return to $1.3 billion.
· The government only ever quotes the total return of $2.2 billion – they always conveniently leave out “over 27 years”. They also never quote the $2.2 billion return in the same breath as the $1 billion cost – they keep these figures well separated.
·
They would do far
· The government continually tells us that this project is critically important to the state’s economy. Where is the evidence of that?
· Surely there are
AND STILL THEY ARE ABOUT TO START!
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