Transporting Melbourne A call for an integrated transport plan for Melbourne - Shaping Melbourne's future - Committee for Melbourne
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Transporting Melbourne A call for an integrated transport plan for Melbourne Shaping Melbourne’s future
About Committee for Melbourne Transport Taskforce Committee for Melbourne (Committee) is an The Committee’s Transport Taskforce, led by apolitical, not-for-profit, member-based entity partner at McKinsey & Company, Ishaan Nangia, that brings together over 140 organisations from aims to foster a greater understanding of Greater Melbourne’s business, academic and civic Melbourne’s transport challenges, identify key sectors, who share a common vision to make priorities for action and advocate for change. Melbourne a better place to live, work and do business. The Committee acknowledges and thanks the individuals from its member organisations, who As an independent organisation we represent no have contributed to this report. They include: single interest group or political position, but seek to challenge conventional thinking and to develop Jacqui Banks | Arcadis innovative ideas to continue to enhance our position as an economically prosperous and highly Brendan Bourke | Port of Melbourne liveable global city. Anna Crameri | RPS Graham Currie | Monash University Our thanks Ngcebo Gwebu | Jacobs The Committee would like to express its Jaison Hoernel | Good Cycles appreciation to our member organisations who helped contribute to the development of this David Jardine | Ashurst report. Peter Kartsidimas | RACV Amy Lezala | Metro Trains Purpose Avin Luther | Commonwealth Bank of Australia The purpose of this document is to call for the development and publication by the Victorian Darryn Paterson | Transurban State Government of a comprehensive plan for an integrated transport system for Greater Melbourne, Michael Wandmaker | Melbourne Water which incorporates transport, land-use and economic development planning. This report has been produced with the assistance of representatives from Committee for Melbourne’s Secretariat, including: Martine Letts | CEO Leanne Edwards | Director of Policy & Research Brett Van Duppen | Policy and Research Officer Julien Babanoury | Intern (The University of Utah) 1 Transporting Melbourne | July 2020
Foreword Transporting Melbourne was written prior to the onset of COVID-19, yet its key message remains more relevant than ever. The development and publication of a comprehensive integrated transport plan, which incorporates transport, land-use and economic development planning, is essential for the future of Greater Melbourne. It will provide certainty for the settlement, investment and development activity that is essential for the economy. COVID-19 has given us some breathing space to review the key elements of a comprehensive plan, taking into account, for example, the impact the pandemic will have on our working and commuting behaviour. Our assessment is that this does not reduce the need for a comprehensive, integrated plan, but may well change the sequencing and implementation of the components of such a plan. Prior to the health crisis, it was widely recognised that the construction of new transport infrastructure alone was unlikely to eectively deal with the congestion problems being experienced across Greater Melbourne. As we emerge from the COVID-19 health emergency, things might get worse, with governments reassessing major transport infrastructure investments as they accumulate signicant debt in the delivery of stimulus and support packages in response to COVID-19. Combined with the expected economic lag, some large infrastructure projects may now be at risk. This presents a major opportunity to consider a suite of lower-cost demand management initiatives. User pricing across the transport network, including for roads, public transport, and parking, could shift travel demand, helping reduce congestion, particularly during peak periods. Planners and policy-makers will need to consider the impact the adjustments we have made to our lives during the health crisis will have on how Melbourne functions in future. For example, COVID-19 has seen many professionals working from home, with organisations now considering incorporating more exible working arrangements into their long-term strategies. This may reduce the demand on the transport network. Social distancing is likely to reduce the capacity of public transport, with bike paths and active transport options more sought after than before. The right infrastructure will need to be in place to meet these demands. The development of fast and reliable transport links to major employment centres as well as improvements in rst and last-mile connectivity to encourage greater uptake in public transport, should also be considered. Transporting Melbourne | July 2020 2
The rise in people working from home has also tested how efiective Greater Melbourne’s neighbourhoods are. Increased demand for access to local green spaces, walking and biking paths, supermarkets and health services has been a feature of the pandemic period. To cultivate more liveable neighbourhoods, improvements to local amenity will be needed, such as access to local social activities (cafes, restaurants) as well as better infrastructure for active transport. The response to this health crisis has reduced pollution across the city - the skies have been clearer and the air cleaner. People now know what is possible. There is an opportunity to remake civic life which will help the natural environment and improve peoples’ health, including initiatives to support cycling and active transport. Policies to facilitate the widespread adoption of electric cars and buses could also reduce pollution across Greater Melbourne. As the economy recovers and we again welcome increasing numbers of new residents and visitors, we must ask ourselves what we must do for Greater Melbourne to remain highly liveable, prosperous and sustainable. Designing and implementing a comprehensive strategic plan, which combines transport, land-use and economic development planning, is a good place to start. The creation in July 2019 of an integrated Department of Transport should help pave the way for the Victorian Government’s ability to take a truly integrated approach, working across jurisdictions, departments and in collaboration with the private sector. identiffies the key areas that a plan should cover, including demand management, urban development and sustainability, which have become even more important in light of the COVID-19 pandemic. Martine Letts Ishaan Nangia CEO | Committee for Melbourne Chair | Transport Taskforce 3 Transporting Melbourne | July 2020
Contents Introduction..............................................................................5 Summary of recommendations.........................................6 Growth pressures on Greater Melbourne......................8 Population growth......................................................8 Trade volume................................................................8 Visitor economy...........................................................9 A call for an integrated transport plan.........................10 Governance..............................................................................12 Elements of an integrated transport plan....................14 Element 1: Demand management....................................15 Road-user pricing......................................................16 Commuter incentives...............................................17 Flexible employment arrangements..................18 Element 2: Infrastructure....................................................19 Optimise existing assets........................................20 Value of infrastructure............................................20 Industry engagement...............................................21 u F nding..........................................................................21 Skills...............................................................................22 Element 3: Technology........................................................23 Electric vehicles........................................................23 Mobility as a Service...............................................24 Shared mobility.........................................................24 Autonomous vehicles.............................................25 Element 4: Land-use planning.........................................26 Sustainable land-use planning............................26 Strategy........................................................................26 Active transport........................................................27 Densification...............................................................28 Element 5: Economic development..............................29 Innovation precincts................................................29 Investment...................................................................29 Tourism.........................................................................30 Australian East-Coast Megaregion....................30 Endnotes..................................................................................31 4
Introduction Melbourne is recognised globally as one of the population, trade and tourism growth, resulting most liveable cities in the world. It is safe, boasts in increasing levels of congestion. a diverse economy, delivers excellent health and education services, and hosts world-class While the construction blitz Melbourne sporting events and cultural attractions. is experiencing is delivering many long- needed projects, there is growing unease that Underpinning Greater Melbourne’s growth and Melbourne’s infrastructure is still not meeting prosperity has been its transportation system. our current and future set of challenges. It The city possesses the country’s largest freeway is considered that current plans for future network, the world’s largest tram network, a train investment will not be enough to overcome and bus network, and international gateways these challenges. The city’s meteoric and for people and freight through Melbourne unprecedented growth is placing our transport Airport and the Port of Melbourne; Australia’s assets under immense strain. Skyrocketing largest container port. This system has helped project costs, skills shortages, funding Melbourne become a thriving metropolis. constraints, disruptive technologies and the absence of a clear integrated plan, are some of However, mobility in Melbourne has reached the reasons contributing to a collective sense a tipping point. The population explosion that the challenge is becoming acute. COVID-19 Melbourne has experienced in the past decade, has complicated matters further. combined with growing tourism and trade volumes, has placed our essential services In addition, our reliance on private vehicles including our transport system - under will exacerbate congestion and continue to great pressure. Prior to COVID-19, peak hour have negative implications for the planet, with commutes on public transport had become transport being Australia’s second largest source increasingly uncomfortable, while trafic of greenhouse gas pollution.i Melburnians congestion on our roads had worsened. These should look no further than the images of conditions are expected to return following the devastation and destruction brought about by crisis. the recent national bushffire crisis to understand the importance of reducing our emissions and Melbourne has faced considerable transport safeguarding our natural environment. To ensure challenges in the past and has addressed sustainable urban development and to lower those challenges through sound policy and emissions, Melbourne must embrace alternative infrastructure investment. Whether it was the forms of transport and smart technology creation of the Hoddle Grid to help regularise solutions for future transport. the city’s street pattern, the construction of an underground city loop to alleviate the bottleneck As we continue to welcome increasing numbers between Flinders Street and Spencer Street of new residents and visitors, and as our Stations or the construction of the extensive economy continues to produce and consume freeway network to accommodate suburban more goods and services, we must ask ourselves growth, infrastructure policy plans responded what it will take to remain a highly liveable, to the challenges at the time. However, the prosperous and sustainable, twenty-ffirst century construction of road and public transport city. projects over the last 20 years has lagged 5 Transporting Melbourne | July 2020
Summary of recommendations A call for an integrated transport Infrastructure plan Recommendation 4: Optimise existing assets Recommendation 1: Publish and implement an through eective demand and congestion ecient and sustainable integrated transport management strategies, technology upgrades plan that includes land-use and economic plans, and asset management practices. to enable seamless mobility throughout Greater Melbourne. Recommendation 5: Improve approaches to cost-benet analyses to enhance their accuracy Governance with respect to capturing the true costs and benets of a project. Recommendation 2: Develop a governance model that encourages strategic decision- Recommendation 6: Implement measures making and the development of an integrated which help reduce major infrastructure bid transport plan, with targets, timeframes and costs and ensure that contract risk allocation is accountabilities. designed to maximise market competition and participation. Elements of an integrated Recommendation 7: Explore and test how transport plan various value capture mechanisms could be implemented to fund major transport Demand management infrastructure projects. Recommendation 3: Consider a broad approach Recommendation 8: Ensure there are enough to incentives and pricing to improve eciencies skilled professionals to deliver a pipeline of key of the transport network system, including for infrastructure projects. example: a. Implement one or more transport network pricing mechanisms to help reduce congestion and overcrowding. b. Oer dierent incentives to reduce numbers of people travelling simultaneously to the CBD. Transporting Melbourne | July 2020 6
Technology Economic development Align the regulatory and Ensure an integrated physical environment for electric vehicles with transport plan drives and facilitates the overseas best practice. development of innovation precincts across Melbourne. Ensure accurate transport data, including mobile data, is (ethically) Ensure an integrated collected, shared and utilised in real time. transport plan maximises Melbourne’s potential to attract national and foreign direct investment. Ensure Melbourne’s urban landscape encourages shared mobility Ensure an integrated as a pathway towards more eficient and transport plan considers the needs of the visitor environmentally sustainable mobility solutions. economy. Conduct studies and Ensure an integrated trials to assess the multitude of autonomous transport plan considers how Melbourne will use cases, variables and scenarios, to fully integrate eectively with Australia’s east coast understand how trafic congestion will change. cities and regions. Land-use planning Ensure that the integrated transport plan includes a sustainable land-use strategy which accommodates the needs of individuals and the freight sector. Develop a long- term, strategic outlook when developing a comprehensive plan for Melbourne, including the sequencing of projects over time. Create an urban environment which encourages the uptake of active transport. Reduce rezoning land on Melbourne’s urban fringe and develop a comprehensive framework that encourages urban densiffication. 7 Transporting Melbourne | July 2020
Growth pressures on Greater Melbourne Melbourne’s transit network is under increasing combined with inefficient investment in transport pressure from a multitude of factors. Australia’s infrastructure, will reduce and dissipate the historic car culture is contributing to our economic gains from an increasing population. current challenges, as is the absence of a comprehensive, strategic, metropolitan-wide Trade volume plan. However, three key areas contributing to this problem today include the growth Domestic and international trade is good for in population, trade volumes and the visitor Melbourne. Increased competition for goods and economy. While the restrictions on mobility in services helps grow the economy and benefits response to COVID-19 has temporarily halted the consumers by raising the purchasing power of demand on the transport network, high demand their incomes. is expected to re-emerge as mobility restrictions ease. As the economic centre of Victoria, Melbourne makes up 227 million tonnes of freight task, out Population growth of the 270 million tonnes Victoria generates per year. The Port of Melbourne plays a key Despite Greater Melbourne’s transport system role in enabling this ow of goods. In 2018- serving us well to this point, it is now under 2019, it handled over three million Twenty-Foot significant pressure. The city’s population has Equivalent Units (TEUs), while Melbourne grown by over one million people since 2006, Airport and Avalon Airport, also play vital roles which has placed greater demand on our as gateways for freight. transport infrastructure. Melbourne is not standing still; trade volumes With Melbourne’s population having just passed are expected to increase significantly over five million people and expected to reach the next three decades. With the population approximately nine million by 2050, the pressure expected to increase, more containers carrying on our transit and freight networks will continue all kinds of consumer goods will continue to to grow. Increased road use and traffic has seen enter the market. Despite a potential review Melburnians driving 2.7 per cent slower during into Australia’s supply chain network following peak hour in 2018 compared with five years COVID-19, the import of building materials earlier. This trend is set to continue with freeway to construct homes and infrastructure will delays expected to rise by 12.5 per cent in the likely continue to increase, as will machinery, morning peak. electronic products and fuel; all necessary to help continue powering the economy. Port of Melbourne’s outer suburbs are the fastest Melbourne forecasts that total container trade growing in Australia. This outward expansion volumes will grow by 3.5 per cent per annum of commercial and low-density residential over the long term, equating to approximately development to the fringes of metropolitan 8.9 million TEUs by 2050. While the growth in Melbourne means that approximately 1.4 million trade will be significant, an important challenge Melburnians lack access to quality public to overcome will be the added congestion on transport; forcing ever-more people onto our road network. the road network. This mounting congestion, Transporting Melbourne | July 2020 8
Visitor economy KEY STAT I ST I C S : M EL BOU R N E’S G R OW TH Over the coming decades, Melbourne and P R ESSU R E S its regions will welcome more domestic and international visitors. With numbers expected 9 million: Melbourne’s expected to swell, it adds to our need for an integrated population in 2046 (up from 5 million in transport plan to accommodate this growth. 2018)x In 2019, Victoria welcomed 90.6 million 1: Melbourne is Australia’s fastest international and domestic visitors – up 11.2 per growing cityxi cent on the previous year. As the international gateway to our city, Melbourne Airport 11.5%: increase in average daily xii welcomed approximately 35 million domestic commuting times (2002 2017) and international passengers per year. This 13%: congestion increase on the number was expected to increase to 67.8 million xiii Tullamarine Freeway (2013-2018) y b 2038. While the impact of COVID-19 will temporarily reduce visitor numbers and may $10.3 billion: annual cost of road slightly alter the anticipated number of visitors congestion to Melbourne’s economy in in the near term, the expected near doubling of 2030xiv passengers over time is still expected to occur which will have a signicant impact on the 68 million: expected number of transport network. passengers utilising Melbourne Airport per year in 2037-38 (up from 35 million Without an ecient integrated transport system, in 2018)xv the rst impression visitors will continue to experience is a city challenged y b congestion 8%: fall in average speeds (the highest in and delays. An integrated transport plan is Australia)xvi required to ensure that visitors can travel easily throughout Melbourne and Victoria. Despite 237 million: approximate number of the temporary reduction in visitor trac, the people who used the metropolitan train projected numbers s( ee e k y statistics) continue network in 2018 (up from 130 million to be an important guide on the pressures that people in 2000)xvii Melbourne faces in the future. 900 million: tonnes of freight volume predicted by 2051 (up from 360 million tonnes in 2014)xviii 9 Transporting Melbourne | July 2020
A call for an integrated transport plan This report identifies and articulates what our for Victoria. There is a plethora of plans and members believe are the key transport-related frameworks that seek to provide a planning initiatives that decision-makers and stakeholders roadmap for how Melbourne should grow. Some must address if we are to remain one of the of the key documents include The Victorian world’s most liveable cities. Infrastructure Plan, Plan Melbourne Refresh, Network Development Plan Metropolitan Rail, Given the growth pressures that Melbourne as well as Infrastructure Australia’s report will continue to grapple with, the capacity of . our transit network to cope with demand will However, none of these documents oer a truly be challenged considerably. The Committee comprehensive, detailed, strategic framework, believes it is critical that the Victorian outlining how Melbourne will grow in the long- Government should aspire to: term. A truly integrated plan would mean that those dierent concepts and plans would be eR commendation 1: Publish and coordinated and able to be interpreted together, implement an ecient and sustainable with key actions and timeframes articulated. integrated transport plan that includes The Committee commends the Victorian land-use and economic plans, to enable Government on its significant amount of work seamless mobility throughout Greater in coordinating the unprecedented number of Melbourne. transport projects across Victoria as part of its program. Furthermore, the Committee This may not appear to be a unique or acknowledges (PMR), revolutionary vision; most cities around the the Victorian Government’s key plan which aims world are aspiring to develop an efficient to guide Melbourne’s growth out to 2050. It is and sustainable integrated transport system. a document which has merit. However, Greater However, as the fastest growing major city in Melbourne requires a strategic plan with greater Australia and one of the fastest growing cities depth and clarity. in the world, there is a growing urgency to not deliver any solution, but deliver the one for Melbourne. Given our city’s unique cultural, political and economic history, and current circumstances, the development of an efficient and sustainable integrated transport system, which enables seamless mobility for people and goods, and which embraces dierent modes across the whole journey, must form part of a long-term plan for Melbourne. The requires the development of a long-term transport plan Transporting Melbourne | July 2020 10
Aside from the inclusion of the various transport needs will facilitate private investment committed infrastructure projects, including to make freight transport more responsive to Melbourne Metro, PMR does not adequately those community, as well as industry, needs. articulate detail and timelines for long-term projects or policies that will enable eficient and Other beneffits would include the eficient sustainable growth out to 2050. Projects already allocation of limited resources, the enhancement identiffied by the Victorian Government as critical of transit capacity, reliability and predictability, to Melbourne’s growth, including the North-East a more productive economy and ultimately Link, the Suburban Rail Loop and Melbourne a seamless experience for the user. The Airport Rail Link, did not feature in the original harmonious use of all transport modes would be PMR, yet were added in a 2019 Addendum. facilitated by interoperable technologies. While the capacity to adapt and be exible is important with any form of strategic planning, a Despite the clear beneffits, there is little evidence comprehensive plan for Melbourne’s connectivity to suggest that we are moving towards the would be expected to include such critical pieces design and implementation of an eective, of infrastructure at the outset and how they integrated transport system. In the absence of link to the economic development and land- a comprehensive plan to deliver such a system, use planning in the strategy. Details and timing which considers and incorporates elements regarding policies and infrastructure regarded such as demand management, land-use and as necessary to solving issues of congestion sustainable economic development planning, and overcrowding, including transport network unsatisfactory results concerning the evolution pricing, bus rapid transit, bicycle routes and of our transport system and our city more extending Melbourne’s tram network, could also broadly will continue. be expected to feature in PMR. With no comprehensive, overarching strategic PMR could have included more detail about plan for Greater Melbourne, governments may how Melbourne will grow, including expected make ad hoc decisions on what to build and population distribution in dierent regions, where to build it. To ensure the infrastructure as well as the type of work and industries constructed and the policies developed beneffit that will be developed in those areas. Despite all Melburnians, it is incumbent on governments the improvement of some existing policies to to ensure a long-term, strategic plan is in place address housing aordability, diversity and and that it is delivered upon. Its successful supply, without articulating in detail about implementation will help ensure Melbourne where the population will be distributed at remains a highly desirable destination to live, as given stages, it is dificult to ensure adequate well as help the city attract foreign talent, boost housing supply and transport services in those productivity and position it as an attractive areas. Ultimately, Greater Melbourne needs investment destination. a publicly available plan that clearly outlines where the population might be distributed at various stages out to 2050 and the detailed corresponding policies and infrastructure required to accommodate this growth. Developing an integrated transport plan must be a priority for authorities, but it cannot be done in isolation. In broad terms, an integrated transport system oers an individual the opportunity to use multiple transport modes, which work in coordination through infrastructure, a fare model and a common validation system, all of which encompass the totality or greater part of a city’s territory. Furthermore, it would allow Melbourne’s freight and logistics systems that support and service population growth to be more eficient and competitive. A clear vision for freight that is integrated with community 11 Transporting Melbourne | July 2020
Governance Creating an eficient and sustainable integrated including transport, housing stock, urban density, transport system that enables seamless industrial land and Smart City infrastructure in mobility throughout Greater Melbourne a binding and eectual manner. This requires and drives economic growth and liveability reform of planning processes more broadly, outcomes, is a complex task. Once a plan is which must be developed with key stakeholders, developed, it must be followed up with action. including all governments and industry. A range of policy initiatives, combined with the design, construction and operation of Recent changes to the Victorian Government’s major infrastructure projects, will need to be Transport structure gives us a reason to be implemented over a long period to deliver optimistic about its ability to work across change. jurisdictions, departments and in collaboration with the private sector. In July 2019, VicRoads There are enormous challenges associated with and Public Transport Victoria combined with the implementing transformative policies or projects. Department of Transport (DoT) to become an There will always be individuals and interest integrated transport department. groups that oppose change. To withstand this inertia, decision-makers would need to: The DoT’s new structure reects the importance of working with the Major Transport Ensure the community is consulted regarding Infrastructure Authority (MTIA) which should any proposed changes. allow the creation of an integrated transport system. The Committee understands that the Implement pilot programs to test policies or DoT will: initiatives. respond much faster and give people the Stage the implementation of transformative information they need to make the best initiatives to allow time for the community to travel choices. adjust. make better use of existing road and Show a willingness to make dificult decisions rail, shifting more journeys onto rail and which will beneffit Greater Melbourne over prioritising public transport on roads. the long-term. respond much quicker to innovation and new One possible factor inhibiting the design and transport technologies. implementation of a world-class, integrated transport system is Australia’s and Melbourne’s take a holistic view in planning for the future. governance structure. The e F deral and Victorian Governments (with a plethora of departments partner with others to address a range of and agencies), and 31 metropolitan Melbourne issues, from safety to reducing environmental councils, all have a stake in determining impacts. how Melbourne grows. It is critical that mechanisms are achieved for all governments to There are many positive outcomes identiffied in coordinate and plan for issues which transcend the DoT’s objectives, which align with the ideas organisational remits and municipal boundaries for shaping an integrated transport system in Transporting Melbourne | July 2020 12
this report. It is also hoped that as a larger department, this will make it easier to co- G OV ER N A N C E ordinate across other important departments F R A M EWO R KS like Department of Environment, Land, Water The governance framework examples and Planning. Such coordination is necessary provided below are at a high-level and do to ensure that land-use planning and economic not seek to endorse any particular model. development are coordinated within the integrated transport plan. One-tier consolidated governance: An optimised governance structure for development of an integrated transport plan, to coordinate all levels of government and stakeholder input, may be required. This would Two-tier o ( r supra-municipal) governance: enable Greater Melbourne to develop the right integrated transport system to ensure the best outcome for all stakeholders. It will allow for the inclusion of planning principles, which refiect and support community values and aspirations, as well as the implementation of aspirational Inter-municipal joint authorities: targets and timeframes for delivery. Sound governance arrangements will also allow for the ongoing review of the plan’s implementation against original objectives. Any planning exercise cannot anticipate all changes in circumstances. Metropolitan-wide inter-municipal joint However, regularly reviewing the plan will authorities: enable the fiexibility to adapt to changing circumstances. Infra-metropolitan inter-municipal joint authorities: Special purpose districts: Voluntary cooperation: 13 Transporting Melbourne | July 2020
Elements of an integrated transport plan The following elements should be considered when designing and constructing an integrated transport system: 1. Demand management 2. Infrastructure 3. Technology 4. Land-use planning 5. Economic development The impact of various initiatives associated with these elements will be enhanced if they are implemented in conjunction with one another. Initiatives implemented in complete isolation are unlikely to have the desired efiect that Melbourne requires. Transporting Melbourne | July 2020 14
Element 1 Demand management Historically, Melburnians have opted to own and live on suburban property, encouraging the development of a low-density sprawling city. This worked well for a period. However, given the city’s meteoric growth, there are ineficiencies FAST FACTS and congestion issues being experienced across the transport network. Induced demand is the concept that explains why increasing road capacity encourages Peak-hour trafic congestion and demand on more people to drive, therefore aggravating the public transport network across Greater congestion rather than alleviating it. Melbourne has worsened over time. Melbourne’s Published evidence suggests that on growing freight task has exacerbated this issue. average and with all other things being While COVID-19 will likely alter the working and equal, a road with 100% increase in lane travel habits for many individuals, congestion capacity might be expected to generate an and overcrowding on the transport network is increase in trafic of 36% within 1-3 years and expected to return in the post-pandemic period. a 62% increase in 5-10 years. xi There are a multitude of options that might Examples of this latent demand can be increase eficiencies and decrease congestion found in many cities around the world. across the network. Incentives that encourage Between 2008 and 2011, the City of Houston individuals to use public transport, particularly spent US$2.8 billion to build the widest during offi-peak periods, combined with freeway in North America. The result - a 30% improvements to rst and last mile connectivity, increase in congestion during morning peak would help reduce road network congestion. hours and a 55% increase during evening Furthermore, investment in a metro-style system, peak hours.xii Back home, Infrastructure with its turn-up-and-go frequencies which Australia conducted a Project Business minimise station dwell times would encourage Case Evaluation of the Sydney WestConnex greater public transport uptake. Regarding the project and found that induced demand need for the seamless movement of freight - reduces beneffits by approximately 25%. xiii critical for lowering the costs of doing business - getting more containers onto rail, as well as The concept of induced demand has been increasing the eet of High Productivity Freight accepted by economists and transport Vehicles , will help reduce the number of trucks researchers for over 50 years, yet the on the road network. phenomenon fails to be accounted for in many cost-beneffit analyses.xiv Demand More targeted demand management options management is therefore a critical element could also deliver substantial benets, including of a balanced approach to reducing on-demand bus services, the pricing of all congestion. parking spaces at various times and locations to manage car travel demand, as well as the integration of ticketing through the network to connect various public transport modes and shared mobility services. 15 Transporting Melbourne | July 2020
Road-user pricing C ASE STU DY The formulation of a new pricing regime will be CON G EST I ON C HA R G I N G critical to the challenge of reducing congestion, improving eciency of the state’s transport To help reduce congestion, London network and achieving optimum value-for- implemented a congestion charge in 2003. money for infrastructure investment. Signicant Results from 2007 showed a 30% reduction productivity losses and other ineciencies are in the number of vehicles entering the expected unless we begin to price our roads designated area and the trafic on free adequately. passage routes’ did not increase. A survey estimated that 40% of those deterred by Road-user pricing is a mechanism whereby the charge switched to alternative forms drivers are charged for the use of the roads they of transportation, while 30% chose to not drive on in place of some other existing charges. make the trip at all.xv Despite the reduction The driver is faced with direct costs through in volume, trafic speeds have not increased pricing that reects higher demand for particular - primarily due to the reallocation of road routes, o z nes and travel times. space for pedestrians, cyclists and buses. There are many ways that road-user charges Stockholm has had similar success after could be implemented, including area licensing the implementation of a seven-month schemes, continuous charging systems or cordon congestion charge trial in 2006. Despite pricing. Therefore, any proposed charging being unpopular in local polls prior to its scheme would vary according to location, time implementation and having to overcome of day and type of vehicle. It will be critical that various political and legal obstacles, the the implementation of any road-user charges congestion charge trial proved to be a is equitable and does not exacerbate socio- success. In a referendum conduced in economic inequalities. August 2007, two-thirds of the population Not only would the implementation of one or supported its permanent implementation, more of these charges help reduce congestion, including all political parties.xvi With they could support government revenue; which Stockholm achieving substantial congestion is under pressure with the current system of reductions, governments around the world tolls and charges, as well as the nancial and can learn from its experience. economic ramications of COVID-19. Falling fuel Back home, public policy think tank, Grattan excise revenues, due in part to improvements Institute, released a report calling for in vehicle eciency and the rise in demand Melbourne to impose a congestion charge for electric vehicles, is generating the nancial during peak hours. The report suggested a imperative to introduce one or more of these around the CBD would likely lead measures. The revenue generated from these to 40% fewer cars on the road during peak mechanisms could be redirected towards other hour, a 16% speed increase on roads in the transport projects. CBD and a 20% speed increase on arterial Road-user pricing can reduce congestion and roads coming into the CBD.xvii Introducing a ensure nancial sustainability, so community cordon price in inner Melbourne is supported acceptance about the perceived benets of by Infrastructure Victoria. Its modelling new road pricing changes will be essential to indicates that implementing a cordon any changes in existing pricing mechanisms. charge, as part of a network-wide pricing Directing all revenue generated in this manner reform, would deliver substantial beneffits for towards much-needed transport infrastructure Melbourne.xviii projects could help convince the community of its merit. Transporting Melbourne | July 2020 16
Commuter incentives 17
Flexible employment C ASE STU DY arrangements F L EX I BL E WORK I N G There are signicant benets of urban A R R A N G EM EN TS I N agglomeration. Firms located in Melbourne’s FINLAND Central Business District C( BD) benet from Finland implemented the Working Hours ready access to talent, ideas, customers and Act on 1 January 2020, which will impact lower production costs. Individuals benet organizational structures and employee through lower transport costs, access to high- attitudes regarding the work environment. paid jobs and greater choice in amenity. The Act redefines workplace’ to legally incorporate working hours not tied to a Despite these signicant benets, there are single location. Greater emphasis is placed costs associated with urban agglomeration, on time spent working, allowing employees including greater levels of pollution, waste- to decide when and where they work for half disposal problems and of course, transit network of their hours.x congestion. Private organisations located in and around Melbourne’s CBD could play a role Flexible work hours in Finland did not in addressing each of these issues, particularly happen overnight. A survey conducted in transport congestion. 2011 showed that 90% of Finnish companies already offiered exible work schedules Depending on the nature of the organisation for their employees, the most in the world. and the roles and responsibilities carried out y b In the same survey, Australian companies its employees, many workers could be allowed ranked 3rd at 85%. xi or even encouraged to work earlier or later in the day, or work longer hours over a shorter Melbourne-specific research indicates that work week. If enough employers based in the a 30% increase in telecommuting among CBD embrace the idea, it would help reduce those already permitted to work anywhere congestion during peak hours. Furthermore, could reduce the number of daily commutes the ubiquity of laptops, mobile devices and from 550,000 to 394,000.xii high-speed internet has made telecommuting possible. More employees that can work from home, even if for one day of the working week, would help reduce congestion on our transport network. The collective response to COVID-19, Recommendation 3: Consider a where thousands of individuals have been broad approach to incentives and forced to work remotely, has demonstrated that working from home can be achieved and pricing to improve eficiencies continue to allow employees to be productive. of the transport network system, including for example: Improved access to Greater Melbourne’s designated Metropolitan Activity Centres and a. Implement one or more the regions through more ecient and reliable transport network pricing public transport services could also be benecial. mechanisms to help reduce It would provide businesses with more options in choosing where they conduct their activities. congestion and overcrowding. b. Offier diffierent incentives to reduce numbers of people travelling simultaneously to the CBD. Transporting Melbourne | July 2020 18
Element 2 Infrastrucutre Victoria is experiencing an infrastructure boom. With a record infrastructure agenda worth over $100 billion, xiii the Victorian Government has committed to a range of new projects that are being built or planned. More will be needed as Melbourne’s population grows and we welcome more visitors and trade. The provision of public transport infrastructure will be essential for Melbourne to eficiently transport nine million people by mid-century. A range of useful road projects have been committed to, but merely building more roads has failed to adequately solve the problem of congestion. Mass transit options must form the backbone of our integrated transport plan. With its capacity to transport large volumes of people in a condensed space, along with the increase of speed, frequency and consistency, optimising the use of our existing public transport infrastructure, as well as investing in the infrastructure projects, will be critical. This investment should consider rail, tram and bus services, which are responsive to commuter demand across Greater Melbourne. Furthermore, the experimentation of new forms of mass transit, including trackless trams, should be considered. Greater Melbourne has a raft of infrastructure assets already in place, which, if utilised to their full capacity and managed more effiectively, could reap enormous benets for the city. The effiective use of policy levers available to government, many of which are described throughout this document, including various pricing mechanisms and incentives, could ensure infrastructure settings are as eficient as possible. 19 Transporting Melbourne | July 2020
Optimise existing assets Value of infrastructure Recommendation 4: Optimise existing assets through efiective demand and congestion management strategies, technology upgrades and asset management practices. Recommendation 5: Improve approaches to cost-beneffit analyses to enhance their accuracy with respect to capturing the true costs and beneffits of a project. Transporting Melbourne | July 2020 20
Industry engagement Funding Recommendation 7: Explore and test how various value capture mechanisms could be Recommendation 6: Implement implemented to fund major measures which help reduce transport infrastructure projects. major infrastructure bid costs and ensure that contract risk allocation is designed to maximise market competition and participation. 21 Transporting Melbourne | July 2020
Skills eR commendation 8: Ensure there are enough skilled professionals to deliver a pipeline of key infrastructure projects.
Element 3 Technology The construction of an eficient and sustainable Electric vehicles integrated transport system hinges on the ability to seamlessly connect people and goods, from In contrast to traditional internal combustion one point in the city to the other, through a fully engine vehicles that use liquid fuels, electric optimised and interconnected transport network. vehicles (EVs) are at least partially propelled by electricity. Incorporating road and rail vehicles, Technological platforms will have the capacity as well as aircraft, EVs can be powered in one of to seamlessly integrate physical infrastructure, two ways; either through self-contained sources, transport modes, transport service providers including batteries, generators or solar panels; or and data management systems; enabling a via external electricity sources. sustainable mobility ecosystem that aligns demand with supply and caters to individual With EVs becoming popular around the world, preferences. they are now penetrating the Australian market. Australia has experienced a 68 per cent increase New technologies will have other transport- in the adoption of electric vehicles and as related beneffits, which must be capitalised advances in EV technology continue, signifficant on. Big data analytics will assist with asset market penetration is expected around 2027. management, including predictive maintenance, as well as trafic management and supply The widespread adoption of EVs will have far- chain management; allowing engineers and reaching implications for Melbourne. Space other transport-related practitioners to make and infrastructure for charging stations will be better decisions and ultimately reduce costs. necessary. Furthermore, ensuring our energy Furthermore, the ethical use of citizens’ grid is resilient and can meet peak electricity smartphone data will help reduce congestion. demand will be vital and must be planned for. With enhanced processing power and equipped with sensors that determine location, proximity The successful transition to EVs will have and orientation, smartphones have the potential signifficant beneffits for Australian society, to connect with smart city technologies to including lower transport costs, reduced carbon improve trafic ow. emissions, less pollution and better health conditions. It is estimated that by 2046, 27 Despite the expected beneffits that will accrue million tonnes of greenhouse gas emissions with each new breakthrough in transport-related could be eliminated in Victoria, should we technology, it will be critical that Melbourne successfully transition to an entire eet does not allow technology to dictate how the comprising zero emission vehicles. city grows. aF ilure to develop a blueprint which determines how Melbourne will grow increases eR commendation 9: Align the risk of this happening. A comprehensive the regulatory and physical plan will help authorities understand which technologies are required to achieve the vision environment for electric vehicles determined and reduce the chances of decisions with overseas best practice. being made which risk further entrenching congestion across the transport network. 23 Transporting Melbourne | July 2020
Mobility as a Service Shared mobility Recommendation 11: Ensure Recommendation 10: Ensure Melbourne’s urban landscape accurate transport data, including encourages shared mobility as a mobile data, is (ethically) pathway towards more eficient collected, shared and utilized in and environmentally sustainable real time. mobility solutions. Transporting Melbourne | July 2020 24
Autonomous vehicles Recommendation 12: Conduct studies and trials to assess the Through an ability to sense its surroundings, an autonomous vehicle (AV), or driverless vehicle, multitude of autonomous use can operate or perform its functions without cases, variables and scenarios, human intervention. There is a plethora of AVs to fully understand how trafic that can increase eciencies, including trains, congestion will change. buses, cars and freight delivery trucks. Many cities and countries around the world have begun to embrace the benets of public transit AVs. Finland is into the fourth year of a pilot program testing a eet of autonomous mini-buses in the cities of Helsinki, Espoo and FAST FACTS Tampere. The 10-year smart-mobility pilot is attempting to make private vehicles irrelevant Innovation in technology and regulation through demand-based transport systems. in California is making the US state the Meanwhile, y b embracing automation, Singapore epicentre of AV development. In 2018, has one of the most reliable rail services in 48 start-ups logged 2 million miles of the world. Like the Finish and Singaporean xlii autonomous driving on public roads, while governments, others around the world are seeing Tesla drivers have driven over 1 billion miles the benets of automation, in terms of reliability, xliii with autopilot engaged. eciency and safety. Waymo, a Californian-based start-up, has Whether AVs help or hinder our eorts to ease been granted a permit to begin testing congestion remains to be seen. Regarding passenger transport in their AVs. In the private autonomous vehicles, competing visions first month of testing, more than 6200 for their role in our transport future exist. AVs xliv commuters were transported by Waymo. could drive lower carbon emissions, improve safety, reduce car ownership and reduce the Australia is experimenting with AVs. The need for car-parking spaces. Less parking spaces Royal Automobile Club of Western Australia may create space for more vehicles to travel launched the country’s first driverless and through, be transformed into public realms or electric vehicle trial on public roads in 2016. developed into mixed-use complexes. Termed the Intellibus, the automated vehicle takes a journey along the iconic South However, additional road network congestion Perth Esplanade, demonstrating to locals may result with greater uptake of AVs. With and visitors the changing nature of vehicle more people wanting to use these vehicles, their xlv technology. preparedness to travel longer distances and growing demand for larger, more comfortable vehicles, trac congestion could worsen. In a positive development, a simulation conducted in Lisbon studying the implementation of a fully autonomous and shared eet of vehicles showed promising results. With an ecient train network in place, which complemented the eet, 90 per cent of private vehicles could be removed from the road network. Therefore, provided governments take a proactive position to the regulation of AVs and there exists supportive transport infrastructure, private AVs combined with shared mobility platforms have the potential to reduce road network congestion. 25 Transporting Melbourne | July 2020
Element 4 Land-use planning Given the growth pressures Greater Melbourne is is anticipated or allowed in the future. A facing, more than ever it is critical that efiective comprehensive plan will indicate where the land-use planning meets the needs of individuals population might be distributed and the level of today, while safeguarding resources for future distribution at various stages. It will articulate the generations. policies needed and the infrastructure required to accommodate such growth at the given Land-use planning is becoming more complex periods in time. for planning practitioners around the world, with the impacts of COVID-19 adding additional layers Furthermore, greater consideration for of complexity. Urbanisation, global warming, Melbourne’s freight and logistics sector must be maintaining economic growth, water allocation, made. Building developments must plan for the as well as poverty and unemployment, are some servicing of freight deliveries, while bufier zones of the key issues they must grapple with as they near industrial land and areas of employment are set about planning how cities will grow. essential. A comprehensive integrated transport plan eR commendation 13: Ensure that for Melbourne should consider how the city’s the integrated transport plan designated Metropolitan Activity Centres (MAVs) - Box Hill, Dandenong, Epping, o F otscray, includes a sustainable land-use o F untain Gate-Narre Warren, Frankston, strategy which accommodates Ringwood and Sunshine are planned to secure the needs of individuals and the investment in transport, health, education and freight sector. other services. MAV development will encourage local job creation, in turn helping reduce Strategy congestion on our public transport system and road network, thereby facilitating environmental An integrated transport plan must be and health beneffits. strategically focused; signalling to the community and investors the direction that Sustainable land-use planning the city is headed. It must paint a picture of how Melbourne will grow, with its core assets, An integrated transport plan must consider and including the Port of Melbourne and Melbourne incorporate sustainable land-use planning. In Airport, as well as potential additional key assets, doing so, it will help solve some of Melbourne’s forming the basis of a larger vision. most pressing challenges now and in the future, including congestion, housing afiordability, All aspects of transport and land-use planning location of freight and logistical centres, climate must be considered when developing an change mitigation and adaptation, and economic integrated transport plan. Greater detail around growth. planning controls, land reservations, corridor planning and transit-oriented development, Transport planning should drive land-use will help avoid investor speculation and avoid planning and economic outcomes, and any plan potentially negative outcomes for the city. should therefore consider where development Transporting Melbourne | July 2020 26
Behavioural mechanisms, like road-user pricing, urban environment is critical. oF r individuals will need to be included, as well as a pipeline of to embrace active transport, there must be a major infrastructure projects that are needed. safe and accessible network of walking and This pipeline must spell out the expected micro-mobility paths, along with micro-mobility timeframes for construction and justify the storage facilities located at stations and key sequencing of projects. employment precincts. Furthermore, the city’s public transport system should offier commuters The importance of an eficient, sustainable and fast, reliable and comfortable services, to cost-effiective freight and logistics industry encourage greater uptake. cannot be understated; it is an essential component of a modern, thriving economy. In addition to reducing congestion on our The long-term design and execution of an transport network, active transport improves integrated transport plan which services our health outcomes for individuals and helps growing freight task must be prioritised. Part reduce greenhouse gas emissions. The Victorian of the solution will be to ensure more freight is Government and local governments should be transported via dedicated train networks. implementing measures which encourage all forms of active transport. A revised plan will need to consider the broader and long-term plans for population Recommendation 15: Create growth and regional activation. If Melbourne an urban environment which is to decentralise to identied metropolitan and regional growth precincts, there must encourages the uptake of active be widespread understanding of which key transport. precincts will be developed, how they will be developed and when. This added certainty for investors will encourage economic development and growth, and could form the basis for a C ASE ST U DY broader settlement strategy. M OR E T HA N A R A I L L I N K One critical and often overlooked aspect of planning is the need for government to consult The long-awaited Melbourne Airport Rail and collaborate with key utility authorities, Link looks set to become a reality after both particularly with water and energy suppliers, in the Victorian and eF deral Governments the development of business cases and prior to committed funding to the project. any major infrastructure announcements. Once constructed and provided it proceeds along the proposed Sunshine route, it will Recommendation 14: Develop a not only deliver a world-class rail service long-term, strategic outlook when linking Melbourne Airport and the CBD, and developing a comprehensive remove thousands of private vehicles from plan for Melbourne, including the the road network, it will unlock broader sequencing of projects over time. benefits for metropolitan Melbourne and Victoria’s regions. Active transport This project is an opportunity to strategically As Greater Melbourne’s key urban development shape the way Melbourne functions, precincts have become more dense, walking and including how it connects to the growing cycling have become an important complement western suburbs and regions to support to traditional motorised forms of mass transport. Melbourne’s liveability and productivity. It However, with mobility restrictions enforced could help mitigate population and urban due to COVID-19, there has been an even infrastructure pressures and potentially greater uptake in active transport. An integrated unlock jobs, and housing, in transit- transport plan for Melbourne should consider supported precincts. these developments and encourage more active forms of transport. - The design and development of the city’s 27 Transporting Melbourne | July 2020
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