There will “never be a cheaper time” to build the costly tunnel connecting troubled HS2 to its Central London terminus at Euston, the government has been warned.
Whether HS2 finishes at Euston or at Old Oak Common, in London’s outer suburbs, has been shrouded in uncertainty throughout this year amid soaring costs and delays across the project.
“Given costs already incurred, and with existing infrastructure and site teams in place, there will never be a cheaper time to build this tunnel than now,” John Dickie, chief executive of BusinessLDN wrote in a letter to rail minister Lord Peter Hendy, seen by City A.M.
“If the decision is further delayed it would lead to significant remobilisation costs” he explained, with relevant machines, infrastructure and staff currently waiting to be brought into use for the project.
Uncertainty over whether HS2 would terminate at its originally planned terminus began last October when former PM Rishi Sunak said private financing would be needed for the 4.5 mile tunnel between Euston and Old Oak Common.
But on Wednesday, London Mayor Sadiq Khan struck a far more optimistic tone. “While I don’t want to tempt fate, It’s looking increasingly positive that HS2 will come to Euston,” he said in a speech at the London Transport Museum’s annual dinner.
It comes after a National Audit Office (NAO) report in July flagged the need for a decision on the existing tunnelling contract by the end of summer.
Two colossal tunnel boring machines, needed to drill the tunnel, will be fully delivered from Germany this month. HS2 bosses have warned they won’t be able to afford any further delay to the work, which is set to begin next spring.
Failure to complete the section would “further curtail North-South capacity and reduce the future value of HS2 as a key national infrastructure asset,” Dickie wrote, adding that the country would miss out on some £41bn in economic output by 2053.
According to HS2’s most recent annual report, it could also impact the organisation’s ability to safely operate and maintain Old Oak Common station and train services across HS2, the Great Western Main Line and the Elizabeth Line.
The government has been approached for comment.