Government to own new railcars

12/10/01
The Western Australian Government has decided to purchase 93 new railcars, rather than lease them as proposed by the previous Government.
Planning and Infrastructure Minister Alannah MacTiernan said extensive and exhaustive negotiations with the tenderers for the new electric railcars were unable to reach an acceptable leasing arrangement.
"This decision is expected to save taxpayers tens of millions of dollars over the cars' estimated 15-year lease period,"
Ms MacTiernan said.
"Analysis conducted by Treasury as part of the tender process showed that the lower risk to Government in leasing the railcars, did not justify the extra cost.
"The new railcars, in three-car sets, are needed to enable us to service the new South West Metropolitan Railway and the extension of the northern line to Clarkson."
Ms MacTiernan said the previous government had called tenders with a preference for obtaining the railcars under an operating lease over a period of 15 years.
She said it was now necessary to amend documents to reflect Government ownership rather than leasing and to obtain revised prices from the tenderers.
As a result, a new contract would not be let until early in the New Year and the first railcars may not become available until early 2004.
The Minister said this meant full services to Clarkson that were planned to commence in late 2003 would be deferred by about four months.
"We are looking at ways to commence partial services to Clarkson using existing railcars and by improving bus operations," she said.
"The commencement of services to Mandurah will not be affected and these will still begin by the end of 2006."
Media contact: Steve Keogh 92136400