Brisbane’s Airport Link tunnel delay to cost USD60M

The 6.7km (4.1 mile) tunnel had been expected to open by 30 June. TJH now faces rolling penalties of USD$1.2M a day until the project is completed. Leighton Holdings, which owns TJH, has named 20 August as the likely opening date.

TJH parent company Leighton Holdings announced that while construction of the project would be completed by June, the electrical fit-out would still require testing. "Construction elements of the project will be completed in line with our expectations with final commissioning and safety testing programmed to be completed through July," said Hamish Tyrwhitt, CEO of Leighton Holdings. "More than half of the tunnel is now in the commissioning stage with the testing of services including lights, fans, surveillance, fire deluge and ventilation systems, and tolling systems underway."

Tyrwhitt added: "The commissioning involves around 12,000 individual tests and TJH has completed some 7,000 of these so far. Whilst remaining commissioning activities are complex, we are anticipating that the final tests will be completed in July allowing the road to then be opened to traffic in August."

The delay is further bad news for the project; in April 2012 Leighton Holdings identified deterioration in the financial performance of the Airport Link tunnel, resulting in a forecast profit reduction of USD 263.6M before tax reflected in the current financial year to 31 December 2012.

However, Leighton Holdings has stated that the revised opening date will not impact on its profit guidance for 2012 as the company had made adequate commercial allowances to cover the schedule changes.

When completed in August, the Airport Link tunnel will run from Bowen Hills, where it connects to the existing Clem7 tunnel, and to near Brisbane Airport through a network of 15km (9.3 miles) of tunnels and busway tunnels.