I also think the Clem7 is a nice piece of infrastructure that will eventually pick up respectable traffic. The key word being eventually - IMO it will happen in decades to come, but definitely not by 2012 when Airport Link opens, and not by 2011 when it will run out of cash.
Clem7 is structurally, operationally sound, but financially it's a disaster. The cost of building it was far more than the returns. The road cost over $1.5 billion to build, but the directors only think its worth $258m from the latest announcement.
Investors who backed RCY have done their dough anyway a person looks at it. Even the banks take a big hit if the carrying value of Clem7 is right.
Also, I think comparing Clem7 with the Gateway, the Gateway wins hands down. It just has so much more utility than Clem7 - there's no direct competition for it (unlike the Clem7 which has the ICB and Story Bridge to compete with), and it saves a lot of time for the many workers in the industrial zones just north and south of the bridge. I live around the Toombul area and if I need to head to Murrarie I'm happy to pay $2.95 for the trip, anywhere else on the Southside and its usually the ICB. I'd love to own a piece of the Gateway if it were ever listed on the ASX, but I'm not too sure about Clem7.
RCY Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held
