Without considering the fact that the orbit of the Moon is not circular, this only helps reduce the delta-v needed to go from the surface of the earth to the surface of the moon by ~3.2km/s, but we still need ~12-14km/s to go to GTO/GEO.
Going directly up means over 1h of fighting earth gravity. So need Isp > 3600. Much cheaper to go for orbit.
But if you miss the cable, you're boned.
Also every second you are accelerating straight up costs you gravity worth of Delta-v because gravity losses. So need to be quite short and intense burn to be worth it.
You don't need to get sideways velocity at all. It's enough to only reach the distance. This is a major and huge saving in fuel.
Just need to build a trans Lunar railway from the poles to supply the water.
Or attach the damn thing to one pole because no atmosphere.