Peter Gutwein

Premier of Tasmania

30 January 2016

Rene Hidding, Minister for Infrastructure

Northern Suburbs Light Rail

The Hodgman Liberal Government will preserve the rail corridor from Hobart to Granton so that its potential for light rail passenger transport can be considered in the long term.

Infrastructure Tasmania has completed its evaluation of light rail between Hobart and Glenorchy, including a review of findings from all previous reports completed on the concept.

While the review has found that the Light Rail is not economically feasible under current conditions, there is potential for it to become a viable source of transport in the future. For this reason, the Government will ensure that the rail corridor from the city to Granton is preserved.

The review found that apart from the capital costs, which have been previously estimated at $100 million, the major impediment to the operation of the light rail service is projected significant operation losses.

Accordingly, the Government will work with both Glenorchy and Hobart City Councils to develop a comprehensive understanding of land use planning and rezoning issues for commercial and residential opportunities adjacent to the rail corridor.

Increased land utilisation along the corridor, particularly residential, will contribute to making the light rail more sustainable.

The two Councils have also been asked whether they are prepared to contribute to the running costs of the new service, given the potential benefits it will bring to their municipalities.

The review is available here:

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