Analysis of Economic Risks in High-Speed Rail Projects: Australia

This report examines the economic risks associated with the construction of a high-speed rail system, focusing on the route between Sydney and Melbourne. It highlights the significant infrastructure costs, comparable to building multiple airports, and the potential for government subsidies to cover operating losses, which could impact taxpayers. The report also addresses the potential negative impacts on businesses dependent on road transport and the environmental disturbances caused by the rail system's construction, including the destruction of habitats and the disruption of natural resources. The author draws on multiple sources to support their findings.

Economic Risks Involved in Building a Melbourne to Sydney High Speed Rail System
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Economic Risks
In comparison with other infrastructure, the cost of infrastructure involved in constructing
high-speed rail is equal to the amount of building two airports irrespective of the distance in
between Sydney and Melbourne and building another international airport at either Sydney or
Melbourne. The economic risk involved is sacrificing or halting of other Australian government
projects and retarding economic system to accommodate the rail system (Finkel, 2015). Even
though there is going to be a high net benefit to Australia, Australian tax-payer subsidies will be
channeled to take care of the operating losses or double taxation imposed to generate extra
revenue to running and maintain the project. This is going to impact greatly to the taxpayers and
the Australian government will be forced to guard tax-payers against the taxation. This will lead
to privatization of the rail system (Paolillo, Olson and Straub, 2016).
The commercial businesses that are situated along the road joining Sydney to Melbourne
by road transport will be affected. The towns like Canberra, Betans Bay, Metug in victoria
among others. The will in turn directly affect the economy of the people running business
depending of road transport (Hu and Liu, 2016).
Besides these, there is going to be ecological disturbances on the natural resources and
habitat which remain to be home of flora and fauna both on land and in waters. The route taken
by the rail system will result in the destruction of plants and animals. The environmental
disturbance is prone to happen (Harper, Harper, and Snowden, 2017).

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References
Finkel, G. (2015). The economics of the construction industry. Routledge.
Harper, C., Harper, C. L., and Snowden, M. (2017). Environment and society: Human
perspectives on environmental issues. Routledge.
Hu, X., and Liu, C. (2016). Profitability performance assessment in the Australian construction
industry: a global relational two-stage DEA method. Construction management and economics,
34(3), 147-159.
Paolillo, W., Olson, B. V., and Straub, E. (2016). People centered innovation: Enabling lean
integrated project delivery and disrupting the construction industry for a more sustainable future.
Journal of Construction Engineering, 2016.