The Greens say the State Government could buy back the AirTrain for $45 million, based on new analysis of financial documents which reveal the corporate owners’ own estimation of the asset’s value. If AirTrain refuses to sell up by 2027, the Government should legislate to force them, overriding the contract on the basis that it is an unacceptably bad deal for Queensland ahead of the 2032 Olympics.
Greens MP for Maiwar Michael Berkman:
“The privatised AirTrain is railway robbery - it’s time to change tracks.
“If we paid the owners a fair price of $45m, which is what their own financial reports say it’s worth, it would be the cheapest and quickest public transport project in Queensland’s history.
“The cost of a single major road upgrade could pay for 50c fares on the Airtrain line five times over.
“Privatisation was a staggeringly bad deal - dreamt up by Labor, signed by the Liberal/Nationals, and dumped on Queenslanders for decades to come.
“This is a deal that bans any other public transport to the airport, and gives offshore corporate owners total control over fares and frequency until 2036.
“Basically, the Government got played, and now the AirTrain costs almost 50 times as much as any other Queensland train fare.
“Exceptionally bad deals call for exceptional measures, which is why the Government should force the offshore corporate owners to sell if they keep trying to squeeze taxpayers for more than it’s worth.
“The State government needs to put their foot down, bring this vital infrastructure into public hands and make it 50c.
“By ending the private contract we could also get to work building a new station at DFO, and boost frequency from 30 minutes to every 15 minutes.
“A few months ago I surveyed hundreds of Brisbane residents on what they’d like to see out of the 2032 Olympics. The highest rated priority was better public transport, and buying back the AirTrain to make it cheaper was the number one improvement they wanted to see.
“If we’re still stuck with an expensive, infrequent AirTrain for the 2032 Olympics, it’ll be an embarrassment to Queensland.”
Background
|
Value of intangible assets - (service concession) (after amortisation) |
|||||||||||
|
2013-14 |
2014-15 |
2015-16 |
2016-17 |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
2024-25 |
|
$100,356,938 |
$95,111,199 |
$90,607,360 |
$86,102,908 |
$81,598,458 |
$77,094,006 |
$72,589,554 |
$52,855,575 |
$63,575,215 |
$59,070,274 |
$54,629,115 |
$50,117,887 |
Source: USS Axle Pty Limited, Financial Reports - 2014-15 to 2024-25 (available on request)
Notes:
- Value of asset increased in 2021-22 due to reversing the impairment amount from the previous year.
- Financial statements for every second year were obtained between 2013-14 to 2018-19; as a result, the actuals are not represented for every year, meaning that figures may not be fully accurate due to reporting and tax timing.
Analysis of financial statements of AirTrain’s parent company indicate that $45 million would be a fair price for the State Government to buy back the AirTrain from its corporate owners.
- USS Axle Pty Limited (USS Axle) acquired AirTrain in 2013. USS Axle is a wholly owned subsidiary of Universities Superannuation Scheme Limited, a British pension fund.
- USS Axle applied for a Class Order which relieved its subsidiaries (including AirTrain) from financial reporting obligations, but these are consolidated under the financial reporting of the parent company.
- We had the Parliamentary Library analyse the financial statements of USS Axle, which include their measurement of the value of the AirTrain contract each year under “Intangible assets”, relating to the “service concession” afforded by the contract with the Government.
- In 2025, USS Axle valued the AirTrain at $50 million. Based on previous statements, the value falls by approximately $5 million each year, with the value due to fall to zero in 2036 when their exclusive contract expires. Their own valuation suggests the State Government could buy back the AirTrain for just $45 million in 2026.
The Greens plan:
- Buy back the AirTrain for $45 million
- If the corporate owners refuse to sell, legislate to force them
- Make AirTrain fares no more than 50c
- Increase frequency to every 15 mins all day, with trains starting earlier and finishing later, and a new station at Skygate for the thousands of airport precinct workers
- Scrap the Metro bus to the airport, which would rip up the Doomben train line
- Finally fund the long-delayed Gold Glider and extend it to the airport