The South Australian government has abandoned plans for a second major airport, a part of a freight transport vision.
A business case report prepared by KPMG found that GlobeLink was economically unviable, costing taxpayers $7 billion with limited benefits and low demand.
Transport Minister Stephan Knoll said the government had fulfilled its election commitment to investigate Globelink.
Globelink was designed as a road and rail corridor behind the Adelaide Hills to connect the National Highway and rail link from Victoria to northern Adelaide, as well an intermodal export park and freight-only airport at the Murray Bridge end of the corridor.
“The state government has accepted all recommendations in the KPMG report and will not be progressing the original GlobeLink proposal,” Minister Knoll said on Monday.
“The State Government will not be progressing with the original GlobeLink proposal,”
“The government is clearly disappointed with the results of the business case, but it’s become clear that this particular proposal doesn’t stack up.”
The $2.4 million business case report found that current air freight in the state is only about 10 per cent of the minimum viable volume.
The business case stated that the major reason for launching the report was predictions existing freight rail link would hit capacity in the 2030s, however the case concluded that trucks are taking more goods.
“With rail volumes unlikely to increase sufficiently in the future, the benefits of a new rail corridor are very marginal,” Minister Knoll said.
Mr Knoll said aspects of the GlobeLink report to be considered included an upgrade to Cross Rd, as well as new freight routes that could bypass the South Eastern Freeway.