I couple of years ago I wrote about (arguably) the worst ever example of a Private / Public infrastructure project, Sydney's Airport Rail Link. The only positive thing I can say about the debacle is that it was signed off by a Conservative government.
A quick recap ... the government built a railway from the city to the airport, and contracted a private consortium build the airport stations, to be paid for by adding a surcharge on top of the price of the ticket. Our great conservative economic managers wrote into the contract that if passenger numbers didn't allow the consortium to make a profit, the government would stump up millions to pay them out.
With the surcharge at a level that made a taxi fare competitive, it wasn't surprising that passenger numbers never approached the predicted levels. The consortium collapsed, leaving the government holding the debt.
The government recently sold the stations to a new consortium for an unknown amount. Where it was expected that the new owners would reduce the fares to increase patronage, they've done the opposite.
You can only assume that the new owners bought the asset for a song. They know that the core users are mainly wealthy or expense subsidised individuals who don't care about the cost, and will keep using it regardless of the price.
By not taking control of the facility, the government has ensured that motor vehicles will remain the primary method of traveling to the airport, and that an expensive public transport asset will remain under utilised.
Total stupidity.
