More on the amazing story of Clem7 – the tolled tunnel under central Brisbane – that went down the tubes in more ways than one. (Backstory here.)
Less than two months after the spectacular collapse of listed toll road operator RiverCity Motorways, its traffic modelling forecaster Aecom faces a $700 million class action. …. The case will be a landmark as it is the first time a traffic forecaster has become the target of a class action. It could also open up a can of worms as the spotlight turns to other traffic forecasters, particularly given the poor track record of such forecasting in toll road projects in the past decade. …
The actual traffic numbers are averaging less than 24,000 per day. RiverCity’s financial performance has been so disastrous that on 25 February 2011 it was placed in administration. RiverCity was a tale of woe from the beginning, and follows a number of other listed toll roads across the country that have suffered similar failures and left shareholders will little or nothing.
Ref: Adele Ferguson, Brisbane Times, 14/4/11
And as an afterthought:
If people are stupid enough to invest money in a tollway at a time when people are screaming for train lines to be built, and when more bicycles than cars are sold, they don’t deserve compensation. They deserve to be declared mentally incompetent to handle their own finances. …. No one deserves financial compensation for wilful stupidity.
Ref: Reader’s Comment, Brisbane Times, 14/4/11
Thanks to Stephen Ingrouille at Transport Newsletter #207.