The Tunnel

Apparently we are in the midst another round of Labrador to Newfoundland tunnel talks, though this time it seems that Newfoundland is being aided and abetted by Quebec.

I really don't understand how this concept has had such staying power. Given the billions (close to 2) that this project will likely cost, I just don't see how the tunnel will ever be able to pay itself off, particularly as there will be so few people living near either end of the proposed tunnel. And I have to imagine that this number is projected to drop over the coming years (turns out I was right, projections aren't positive for the economic zones on either side of the tunnel)

I thought that it was particularly funny that in the linked CBC article it was suggested that savings of $2 billion could be achieved over the course of 20 years (on a tunnel that will likely cost at least $1.7 billion - if not more). So it seems that in the best case scenario there might be a net savings of $300 million, though I guess this comes before the interest on the borrowed $1.7 billion, the cost over-runs that are sure to transpire, and 20 years of tunnel maintenance. Maybe savings on a $1.7 billion (or larger) investment should have the potential to be worth more than $15 million a year?

Maybe there are less expensive methods of saving $2 billion over 20 years than spending $1.7 billion upfront and then having an expensive piece of infrastructure that will require constant maintenance and care?

Score
Cameron 54
Neil 0