Claims that extending Canberra's light rail line to Woden do not make financial sense have failed to consider the broader economic benefits of the project, Australia's peak rail body says.
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Australasian Railway Association chief executive Caroline Wilkie said the stage 2B extension would deliver more than an expanded transport network by prompting urban renewal and delivering economic, social and environmental benefits.
"Light rail projects in Australia and across the globe have consistently shown to dramatically transform communities, driving urban renewal and growth along its corridor, supporting better housing and job opportunities," Ms Wilkie said in a statement.
"As with heavy and metro rail, investment in light rail infrastructure provides certainty to the community and local businesses, encouraging land development and increasing property values."
Renewal along Northbourne Avenue and around Dickson, the route of the first light rail stage, demonstrated the positive impact permanent transport infrastructure had on investment, she said.
Ms Wilkie said light rail delivered benefits that bus routes - which could be moved or cancelled more easily - could not.
"If we want to ensure continued investment and urban renewal in the nation's capital, as well as an efficient and environmentally friendly public transport system that can manage our growing population and support tourism, then light rail will form a critical part of the solution," she said.
Ms Wilkie said the upfront construction costs of light rail were higher but its running costs were generally lower, reducing the cost per passenger over the life of the system.
The Australasian Railway Association also pointed to data from its report The Renaissance of Light Rail that showed light rail could move between 4000 and 20,000 people an hour in the space equivalent to one traffic lane.
"The same space dedicated to an arterial road lane could move only 800 cars (or less than 1,000 people) per hour, while the same space dedicated to buses would move between 2,000 and 8,000 people per hour," the association said.
A discussion paper published last week by community advocates called on the government to abandon the expensive and inflexible extension to light rail in favour of improved bus services and a trackless tram trial.
Public Transport Association of Canberra chair Ryan Hemsley said the report was a "mish-mash of mistruths and half-baked proposals" while the Canberra Liberals, which have promised to cancel stage 2B if elected in October, praised its findings.
The Australasian Railway Association represents more than 130 organisations involved in the rail sector, including the ACT government and other members of the Canberra Metro consortium.
The ACT Audit Office has previously cast doubt on the government's claims of light rail's wider economic benefits, which have been key assumptions in businesses cases for the project.
A 2021 audit said a significant portion of the benefits attributed to light rail stage 2A - planned to link the city centre with Commonwealth Park - relied on the project accelerating development at the Acton waterfront on Lake Burley Griffin at West Basin, but the business case and economic appraisal report failed to show how the project would do so.