Rail travel a bargain
Sydney Morning Herald
Thursday June 11, 2009
THE lungs of Sydney are provided by three great saving graces: the extensive network of parks and gardens, the harbour and ocean, and the rail system. In the past year, there were 305 million passenger journeys taken on CityRail, an increase of 3.9 per cent over the previous 12 months. Every one of those journeys was subsidised by the State Government, and the subsidy is significant 70 per cent. It may seem like an extravagance, but we think the rail system pays for itself, and more.Sydney's heavy-rail network makes a real difference between the city being relatively clean and functional, and being under the pall created by congested, polluting traffic. The magnitude of this social benefit is supported by a report prepared for the Independent Pricing and Regulatory Tribunal, made public this week.The report concluded that the real cost of the average rail trip was about $6, and passengers contributed about $1.80 per trip. Sounds like a great deal for passengers, but anyone familiar with the trains at peak hour knows rail commuters are getting no more than what they pay for.The real benefits of rail do not show up in the annual accounts, but in the savings derived from less congestion and less air pollution. The report found the cost to the city of more vehicles on the roads is higher than the subsidy paid to the rail system. It estimated the cost of every vehicle on the roads is $15.80 an hour. This makes rail travel look cheap, even with the subsidy factored in.Rail travel also benefits everyone by putting a cap on the amount of pollution. The level of pollution in Sydney is directly related to the number of litres of fuel consumed. The report, compiled by a pricing and infrastructure consultant, Mike Smart, estimated the savings in pollution reduction from having a busy heavy-rail network easily offset the cost to the city of the subsidies.Mr Smart's report also issued a warning: if heavy rail is good for the city, and is to grow to keep pace with Sydney's expansion, then the proportion of train fares paid by train users is going to have to increase in order to help fund the expansion of the rail infrastructure, which is very expensive.In other words, rail travel, for all its faults, is a bargain, no matter which way you measure it, and fares will need to go up. We agree.
© 2009 Sydney Morning Herald