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 2020Contents 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
4Introduction
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 2020Summary 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 6Technology 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 2020Growth 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 8Visitor 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 2020A 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 10Aside 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 2020Governance
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 12this 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 2020Elements 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 2020Road-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 16Commuter 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 18Element 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 20Industry 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 2020Skills
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 2020Mobility 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 24Autonomous 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 2020Element 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 26Behavioural 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
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