I refer to both feasibility studies recently completed by/for NSW Dept of Transport.

The Executive Summary for the Kandos to Gulgong Line Reinstatement concludes:

"...Feasibility Study has found that the project is marginal at a discount rate of 7%"

And in the lead comment in the Economic Analysis section:

"At a 7 per cent discount rate, the only scenario that would deliver a BCR greater than 1.0 is Scenario 3b at 1.20."

Citing the viability of the project is dependent on a real discount rate of 7%.

No mention is made of its viability at a 4% discount rate.

Whereas the Gulgong - Maryvale Line construction economic analysis references in its lead comment:

"All scenarios (except Scenario 1, that is marginal) are considered economically feasible at a discount rate of 4 per cent (or less)...."

Thus comparing the two economic outcomes based on two different discount rates is unrealistic and not a valid assessment.

Particularly when the report for the Gulgong-Maryvale Line project is prepared to recommend it proceed to the next level for investigation and Kandos to Gulgong Line Reinstatement is not.

When is the NSW Government going to realise that Mudgee is rapidly progressing to being a small city which will require freight rail access with an intermodal terminal to NSW Ports and ultimately a passenger rail service. Favouring one project over another is not on!

Let's get real and progress both projects.

- David Uphill

Send the Mudgee Guardian a letter.