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Queensland Greens propose $45 million Airtrain buyback based on asset depreciation

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Queensland Government Could Acquire Airtrain for $45 Million

The Brisbane Airtrain, a privately operated rail link between Brisbane Airport and the city, could be acquired by the Queensland government for approximately $45 million, according to Greens MP Michael Berkman.

"If we paid the owners a fair price of $45 million... it would be the cheapest and quickest public transport project in Queensland’s history."

Berkman's estimate is based on financial statements from USS Axle, the Airtrain's owner, which show the asset's book value declining by about $5 million annually. However, the current arrangement faces scrutiny due to high fares and an exclusive contract that blocks alternative public transport options.

Background of the Airtrain Contract

The Airtrain operates under a 35-year exclusive contract signed in 2001 with the Queensland government. This agreement grants the company exclusive rights until 2036, after which all assets revert to the state.

  • Book value has dropped from over $100 million in 2013-14 to about $50 million in 2024-25, driven by annual amortization.
  • High fares: A one-way ticket costs $22.30, compared to just 50¢ for the rest of the rail network.
  • Exclusivity prevents other airport public transport services from competing.

Financial Complexities

The financial filings also reveal nearly $50 million in internal debt and unpaid dividends owed to the parent company, which could complicate any buyout.

Airtrain CEO Chris Basche stated that the statutory balance sheet does not reflect economic value; the company declined further comment. USS Axle director Timothy Heaton indicated the company sees long-term value due to rail network expansions and Brisbane Airport plans.

Political Reactions

  • Michael Berkman advocated for compulsory acquisition if negotiations fail, pushing for a $45 million buyout.
  • A spokesman for Transport Minister Brent Mickelberg said the government is committed to the current arrangement.

"If we paid the owners a fair price of $45 million... it would be the cheapest and quickest public transport project in Queensland’s history." – Michael Berkman, Greens MP