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RESEARCH & CONSULTING

SYDNEY TRANSPORT INFRASTRUCTURE INSIGHT DECEMBER 2015

HIGHLIGHTS is currently on the cusp of As part of the NSW 2015-16 budget, Transport infrastructure projects will an infrastructure boom not seen the Baird government pledged $38 improve accessibility, create new before, with an unprecedented billion of major capital works in the business clusters, drive real estate amount of funds being directed transport sector across NSW over opportunities, trigger demographic towards building new roads, the next four years, underpinned by movement and drive a need for tunnels, railways and a new airport the project higher densities

CONTENTS HIGHLIGHTS

Pages 2 & 3. Sydney infrastructure With ’s capital cities predicted to add 3.2 million new overview in a National and State citizens in the next 10 years, new mass transit systems and context faster connections to markets will be needed. Sydney will Pages 4 to 11. An overview of Sydney’s key infrastructure lead the way, with transport infrastructure projects improving projects accessibility, creating new business clusters, driving real Page 12. Snapshot: A estate opportunities, trigger demographic movement and new approach to infrastructure drive a need for higher densities. delivery

Page 13. Future Plans | Further Greater Sydney is currently home to through and within its urban boundary. investment required? over 4.8 million residents and more than Sydney is currently on the cusp of an 470,000 businesses, the majority of infrastructure boom not seen before, which rely heavily on the city’s transport with an unprecedented amount of funds infrastructure system, in terms of both being directed towards building a new employment movement and the transfer airport, roads, tunnels, railways and of services. With a further 820,000 terminals. As Figure 1 suggests, residents expected to call Sydney home the value of work commenced in NSW over the next 10 years (ABS medium for transport infrastructure engineering series projections), Sydney’s is at peak levels ($5.4 billion, June 2015 infrastructure network will need to quarter) where on average $3.1 billion of continually evolve to keep pace with the works commenced each quarter over anticipated growth in population. the year to June 2015 (*selected sectors). While transport infrastructure has long been considered a negative for Sydney, However, more of note is the pipeline of the city is currently witnessing a rapid works which is yet to be done, where at transformation with new projects set to June 2015 the monetary value was 50% change the way people move into, higher than the same time last year.

TABLE 1 Key Sydney Infrastructure Projects*

Completion Project Name Cost* ($m) Type Status Year WestConnex $16,812 Road Construction 2023 Sydney Metro $10,500 Rail Early 2024 (formally North West Rail Link) $8,900 Rail Construction 2019 Western Sydney Infrastructure Plan (WSIP) $3,600 Road Construction 2025 NorthConnex $3,100 Road Early Works 2019 CBD and South East $2,100 Rail Construction 2018 Moorebank Intermodal Freight Terminal $1,870 Freight Hub Early 2030 Western (Badgerys Creek Airport) Stage 1 $1,840 Airport Early 2023 Light Rail $1,000 Rail Scoping & Investigation 2022 Hospital road connectivity and network $400 Road Construction 2017 Wynyard Walk $306 Pedestrian Link Construction 2016 upgrade $200 Ferry Early 2020 Northern Beaches Bus $125 Road Design 2017 Wynyard Station Upgrade $115 Rail Construction 2016 Ferry Hub $50 Ferry Design 2017 Extension - Rail Scoping & Investigation 2023 - Road Scoping & Investigation 2030

Source: Knight Frank Research *Estimated and are subject to change

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The current round of projects, both remaining $6 billion will be spent on FIGURE 1 NSW Engineering Construction underway and planned follows an areas outside of those listed above. By selected sectors*, annual moving average extended period of time where few major As part of the NSW 2015-16 budget, the

$7 Bn projects were progressed. While the Baird government pledged $38 billion of population of Sydney has increased by major capital works in the transport $6 approximately 650,000 persons over the sector over the next four years across $5 past decade alone, investment in NSW, underpinned by the Sydney Metro $4 infrastructure has not kept pace with project (including the Sydney Metro

$3 growth, placing tremendous pressure on Northwest project—formally called the existing rail and road networks. Already, $2 North West Rail Link) and the it is estimated that transport congestion WestConnex Motorway project. Of note, $1 costs the Sydney economy $5 billion per funding for the Rebuilding NSW program $0 annum, while if nothing is done this is has not been included in the 2015-16 expected to rise to $8 billion per annum budget given the partial lease of the NSW Jun-2005 Jun-2006 Jun-2007 Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 by 2020. Importantly, the projects electricity network had not yet been VALUE OF WORK DONE

VALUE OF WORK COMMENCED underway and planned will go a long way completed at that point in time. VALUE OF WORK YET TO BE DONE in alleviating these constraints. Source: ABS, Knight Frank Research With the November 2015 announcement *selected sectors include roads, railways, bridges, Following on from the establishment of that a lease for the TransGrid poles and and harbours the Restart NSW program in 2011, the wires has been reached for $10.258 Funded by the state government’s asset NSW government announced the billion, the Rebuilding NSW plan has recycling program, proceeds from the Rebuilding NSW plan in 2014 with the further advanced, with monies going partial privatisation of the NSW electricity objective of boosting infrastructure towards new and existing road and rail network businesses (poles and wires) investment across the state. projects. At the same time, an and an increase in stamp duty revenue, Underpinned and funded by the 49% expressions of interest campaign has the NSW government plans to spend lease of the NSW electricity network, the recently launched for the partial lease of $68.6 billion over the next four years on plan involves the investment of $20 Ausgrid (a state owned electricity infrastructure (including non transport billion in new infrastructure across the infrastructure company) with the infrastructure). The key focus will be on State. Of this total, 70% or circa $14 transaction expected to be finalised by easing congestion for motorists and billion is expected to go towards mid-2016, thereby further boosting the improving accessibility and efficiency for infrastructure projects in Sydney, funds available for transport public transport consumers. Newcastle and , while the infrastructure investment.

FIGURE 2 Selected Major Sydney Infrastructure Projects Timeline*

Wynyard Walk South West Rail Link Sydney Metro Northwest Western Sydney Infrastructure Plan Wynyard Station Upgrade Northern Beaches Hospital Road Upgrades WestConnex CBD and South East Light Rail Northern Beaches Bus Rapid Transit Barangaroo Ferry Hub Moorebank Intermodal Freight Terminal NorthConnex - Stage 1 Sydney Metro South West Rail Link Extension Circular Quay upgrade Outer Sydney Orbital

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Year

Source: Knight Frank Research, NSW Government *Estimated and are subject to change

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The first component of the newly PROJECTS announced rail line is the Chatswood to Sydenham stage which will involve new SYDNEY METRO 15km twin tunnels from Chatswood, under Sydney Harbour through Barangaroo and In November 2015 the NSW State Sydney’s CBD, to Sydenham. The second Government confirmed seven new component comprises an upgrade of the strategic stations for Sydney’s new Metro existing 13.5km railway line from “Transport is critical to the railway line, which will connect into the Sydenham to Bankstown. The Government Sydney Metro Northwest at Chatswood. efficient functioning and is also considering an extension from Sydney Metro Northwest will open in the Bankstown to Liverpool as a separate quality of life of Sydney first half of 2019 and deliver fast, safe and stage which will reduce travel times to the and its residents. Poor or frequent services between Rouse Hill and CBD from Liverpool by up to 15 minutes. Chatswood. reduced accessibility can As part of the project 52 properties will be be a major constraint on The proposed new metro stations include compulsorily acquired across Sydney, Crows Nest, Cross (North including 17 in North Sydney/Crows Nest the success and quality Sydney), Barangaroo, , Pitt and 19 in the CBD, including buildings as of places, their Street, Central and Waterloo. The high as 22 storeys. In the CBD, commencement of this major project is approximately 150 occupiers across neighbourhoods and confirmed to be 2017. 61,000 sqm of office space will be communities. Central to displaced in the next 18 to 24 months, The new rail network will transform representing 1.2% of the entire office Sydney’s future are a Sydney by offering fast, reliable journeys market, thus positively impacting vacancy number of key from Sydney’s North West with the and rental levels in these markets over the current $8.9 billion Sydney Metro short to medium term. infrastructure projects.” Northwest (formerly known as North West Rail Link) under construction, through the BENEFITS & OPPORTUNITY*: PAUL SAVITZ Lower and CBD, to Western

Associate Director Sydney. Research and Consulting

*see back page for icon key Follow at @KnightFrankAu MAP 1 Sydney Metro Concept plan

Source: Transport for NSW

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FIGURE 3 Western Sydney Airport Timeline Concept plan

Source: westernsydneyairport.gov.au WESTERN CBD & SOUTH only, this light rail extension to Randwick will substantially improve SYDNEY AIRPORT EAST LIGHT RAIL accessibility for residents, students, tourists and spectators alike. This light On opening in the mid-2020s, the airport, Implementation of Sydney’s Light Rail rail extension will service existing well which is located approximately 50 will see a line built through the Sydney established suburbs, and as a result kilometres from Sydney's CBD, would CBD to Randwick and Kingsford. The should development sites become operate from one runway with an estimated line will link Circular Quay and Central via available in these areas, it is anticipated five million passengers. As passenger George Street, the Moore Park sporting they will be at a high price point relative numbers increase over the decades, so too and entertainment precinct including the to other development sites in the would job opportunities both at the airport and Allianz Sydney Metropolitan area. and in surrounding business districts. Stadium, , the University of NSW and Prince of Wales BENEFITS & OPPORTUNITY: The new airport will be a major generator Hospital at Randwick. of economic activity—providing employment opportunities closer to where Previously serviced by a bus network people in Western Sydney live. Over 30,000 jobs could be generated directly by MAP 2 the airport's operation by 2060, and indirect Sydney Light Rail employment around the airport site could Concept plan contribute an additional 30,000 jobs. It is anticipated that the second parallel runway would only be required after 25 years and would provide the capacity to meet growth in demand for future air travel.

Current plans for the new airport do not include any rail access. This because the recently approved road network upgrades have been assessed as adequate to support anticipated airport demand for at least a decade after opening. However, in our opinion rail access is likely to be critical to the airports long term success.

BENEFITS & OPPORTUNITY:

Source: Transport for NSW

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FIGURE 4 NORTHCONNEX Circular Quay Ferry Wharf upgrade Artist impression & WESTCONNEX Two significant road upgrades are confirmed for the Sydney Metropolitan area, the NorthConnex and WestConnex. These road developments will serve to improve the current traffic congestion experienced in these areas and provide an overall improved amenity to suburbs. With less traffic congestion, retail and commercial uses are anticipated to increase, whilst improving accessibility for existing residents to access the CBD, airport and regional areas of the State. It is anticipated that suburbs within the vicinity of these proposed road upgrades will become more attractive and inspire new development.

NorthConnex, a 9km tolled tunnel motorway, will link the M1 Pacific Motorway at Wahroonga to the Hills Motorway at West Pennant Hills, when complete in 2019.

WestConnex, a 33km road project brings together a number of important road Source: NSW Government projects which together form a vital link in Sydney’s Orbital Network. They the reinvention and regeneration of the to not be of long term strategic include a widening of the M4 east of immediate area as a social, residential importance. Construction is expected Parramatta, a duplication of the M5 East and business hub. The NSW to begin in 2019. and new sections of motorway to provide government will generate the upgrade’s a connection between the two key funds by selling ground leases of In addition to the terminal upgrade, the corridors. The project is expected to several hotels and office properties first of six new will begin running complete in 2023. around the harbour foreshore deemed by the end of 2016 with the remainder

BENEFITS & OPPORTUNITY: MAP 3 WestConnex proposed route Concept Plan

CIRCULAR QUAY UPGRADE & NEW FERRIES The NSW government announced in September 2015 proposals for a minimum $200m upgrade of Circular Quay, in order for the area to reflect its important location within the harbour, and its position as a gateway to Sydney.

The plans include more modern, double storey and accessible wharves plus new retail facilities, which will help to facilitate Source: NSW Government

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rolling out through 2017. The ferries, the FIGURE 5 first additions to the city's fleet since Barangaroo Ferry Hub 2001, will service the inner harbour routes Artist impression

from Watsons Bay in the east to Cockatoo Island in the west, and stop at the new Barangaroo wharf.

The new ferries will look similar to the iconic first ferry fleet but have significant modern improvements that include:  an extra 87 seats and the ability to carry up to 400 passengers  more spacious outdoor viewing areas Source: Transport for NSW  an additional large, walk-around deck  Wi-Fi access Major construction of the Barangaroo six minutes, avoiding steep inclines and  luggage and bicycle storage areas Ferry Hub is due to start in early 2016. road crossings.  real-time passenger information Construction is expected to take  tables and charging stations for approximately 11 months to complete. The project will increase the entry and electronic devices. Initially two wharves will be constructed. exit capacity of Wynyard Station to meet A third wharf will be built in the future current and future demands for the BENEFITS & OPPORTUNITY: when demand increases. CBD’s western corridor and waterfront. This includes catering for the Barangaroo BENEFITS & OPPORTUNITY: development, which is expected to accommodate up to 23,000 office workers and attract up to 33,000 visitors per day, when complete. BARANGAROO FERRY HUB Additionally, in October 2015, a new WYNYARD WALK pedestrian bridge over Sussex Street The Barangaroo Ferry Hub will serve Wynyard Walk will provide a fully was opened, providing a route via a lift, Sydney’s newest commercial district and accessible pedestrian link between escalators or stairs directly into provide increased capacity for ferry Wynyard Station and the developing Barangaroo from the Westpac Food services to meet future demand. CBD western corridor and Barangaroo. Court behind the . Together The new ferry hub will provide berthing The walkway, when opened in 2016, will with a new western entrance to Wynyard space for additional ferry services from allow pedestrians to transfer from Station on Clarence Street, an the , as well as direct Wynyard transport hub to the underground walkway and a new public access to and from the Barangaroo waterfront in approximately plaza at the corner of Kent and Napoleon and lower North Shore. Streets, the new bridge will make walking

between the Wynyard transport hub and MAP 4 Barangaroo a quick, convenient, safe and Wynyard Walk in context to surrounding infrastructure improvements accessible option. Concept plans

BENEFITS & OPPORTUNITY:

WYNYARD STATION UPGRADE Barangaroo’s development, the construction of Wynyard Walk and the proposed light rail line linking Circular Quay to Central and through to Randwick highlights the importance of Wynyard Station and its position as the gateway to Sydney's Financial district. Source: Transport for NSW

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MAP 5 Northern Beaches Bus Rapid Transit “B-Line” Proposed route and stops

Source: Transport for NSW As a result, construction is underway at will run until 12.30am every day, with Wynyard Station to provide a lighter, services every 10 minutes up to 11pm at WSIP brighter, cleaner station with increased night, thus improving the desirability, The Australian Government is delivering capacity. The $115 million station connectivity and accessibility for on its plan to build a stronger and more upgrade will improve amenity, enable currently underserviced residential areas prosperous Western Sydney by the smooth arrival and departure of 72 across the north shore. investing $3.6 billion over ten years in trains per hour during peak travel times, To support the operation of the major infrastructure upgrades that will and also enhance connectivity between B-Line service, around 900 new transform the region's economy. The Pitt and George Streets through to the commuter car parking spaces are being Western Sydney Infrastructure Plan western CBD and waterfront. provided over six locations between (WSIP) will provide better road linkages Brookfield’s 10 Carrington development Mona Vale and Manly Vale. This will within the western Sydney region and will further enhance the Wynyard include some at-grade and some multi- benefit the region's growing population, Station precinct, in addition to itself level car parks, with attention paid to including through reducing commuting capturing the upside from improved quality urban design outcomes and times. transport links. connectivity between the car parks, B- Line stops and the local road network. In addition, the Western Sydney BENEFITS & OPPORTUNITY: Infrastructure Plan will ensure the The project will include: proposed new airport site will be  nine modern B-Line stops at Mona supported by a quality surface transport Vale, Warriewood, Narrabeen, network to ensure the efficient Collaroy, , Brookvale, movements of passengers, employees NORTHERN Manly Vale, Spit Junction (Mosman) and freight. and Neutral Bay with real-time BEACHES BUS information, seating, weather protection and improved facilities WSIP | NORTHERN RAPID TRANSIT for customers ROAD  six new commuter car parks at “B-LINE” Mona Vale, Warriewood, A major part of this plan is the Narrabeen, Dee Why, Brookvale upgrade of The Northern Road from two To address the immediate need for and Manly Vale providing about 900 lanes to a four-lane divided road along a improved bus services on the Northern spaces 31 kilometre length. The total cost of Beaches, around 480 new weekly brand-new double decker buses the project is $1,579.5 million. The services will be added to the network  with improved on-board capacity Australian Government is providing between February and October 2016. and comfort $1,228.5 million and the NSW This service improvement will increase roadworks including new bus lanes, Government is providing $351 million frequency and alleviate crowding, prior  bus bays, minor lane widening and towards the construction of this project. to the delivery of the new B-Line other road improvements to Construction commences in late 2015. service (Mona Vale to CBD 27 kilometre support bus services The upgrade will be completed in bus rapid transit network) in late 2017. improved pedestrian and bicycle stages, with final stage to be completed  links to connect customers with B- in late 2019. The new double decker B-Line bus Line stops. services will run every five minutes in the morning and afternoon peak BENEFITS & OPPORTUNITY: BENEFITS & OPPORTUNITY: commute periods, and every 10 minutes at other times of the day, including weekends. The B-Line service

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MAP 6 Western Sydney Infrastructure Plan (WSIP) Concept plan

Source: Department of Infrastructure and Regional Development

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WSIP | BRINGELLY The total cost of the project is estimated the routes potential to encourage urban at $1.25 billion and planning for this growth and contribute to the region’s ROAD project is underway with construction transport network. expected to commence in mid 2020 and Another major part of the Western be completed in 2024. The spine of the chosen route runs from Sydney Infrastructure Plan is the $509 Westmead to Strathfield via Westmead million upgrading of Bringelly Road. BENEFITS & OPPORTUNITY: Hospital, Parramatta CBD, Western Construction of stage one of the upgrade Sydney University, Camellia and Sydney commenced in January 2015 with Olympic Park. A light rail line will also construction of this stage expected to be branch to Carlingford, replacing the completed late 2017. Bringelly Road will existing heavy rail shuttle. be upgraded to a minimum of four lanes between The Northern Road and PARRAMATTA A Special Infrastructure Contribution . LIGHT RAIL (SIC) will be implemented, with the levy BENEFITS & OPPORTUNITY: expected to be set at around $200/m² of To stimulate economic productivity, and gross floor area of new residential to accommodate projected population developments subject to consultation. growth, the NSW State Government has The funding from the SIC is to be recently (December 2015) unveiled the reserved for Parramatta Light Rail and preferred route for the 22km Parramatta associated infrastructure like new WSIP | M12 Light Rail project. schools and road upgrades. The SIC will be in addition to the $1 billion the NSW MOTORWAY The new light rail line will aim to Government has already reserved for The third major project within the increase accessibility to education and Parramatta Light Rail. The government Western Sydney Infrastructure Plan will employment opportunities, by providing will also explore funding contributions involve the construction of a new four- greater transport options into and out of from the federal and local governments. lane motorway in the vicinity of Elizabeth Parramatta. Drive, providing access to the airport at It is expected that construction on the Badgerys Creek and forming the main The NSW Government investigated four project could start as early as 2018 and east-west connection between the M7 short-listed corridors for light rail in take four years to complete. Motorway and The Northern Road. The Western Sydney with the preferred BENEFITS & OPPORTUNITY: new motorway will also involve a network including a combination of two motorway interchange with the M7 of these options. This followed a Motorway. strategic evaluation, which focussed on

MAP 7 Parramatta Light Rail route Indicative route only

Source: Transport for NSW

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developed, with the total project costing NORTHERN MOOREBANK approximately $1.87 billion over ten years.

BEACHES INTERMODAL The IMEX terminal (stage 1) is expected to start operations in late 2017 and the HOSPITAL ROAD TERMINAL interstate terminal in approximately 2019 CONNECTIVITY Moorebank had been identified as a and is anticipated to provide economic priority location for a freight terminal benefit of around $120 million a year for AND NETWORK since 2004. Its direct rail link to Port the economy of south-western Sydney. Botany and freight markets around BENEFITS & OPPORTUNITY: ENHANCEMENT Australia, and its proximity to major motorways, made it ideal for an PROJECT intermodal facility. The NSW Government is upgrading roads around the new Northern The Sydney Intermodal Terminal Alliance Beaches Hospital with work planned to (SIMTA) will build and operate the OUTER SYDNEY be completed in time for the hospital intermodal freight precinct. SIMTA is a opening in 2018. These upgrades would consortium between the import export ORBITAL (M9) provide customers with a better travel logistics company Qube Holdings and Transport for NSW is currently undertaking experience, increase the capacity of the the rail freight operator Aurizon Holdings. studies to identify a suitable north-south road network and improve access corridor potentially connecting the existing through the area, including for The new precinct will include an import- road and rail networks, including the F3 pedestrians and cyclists. export (IMEX) freight terminal with north with the south of eventual capacity for up to 1.05 million Campbelltown. Ultimately the corridor will Road widening, intersection upgrades, containers per year by 2030, and an provide increased road and rail capacity to new pedestrian bridges and bus priority interstate freight terminal with capacity improve accessibility to housing and lanes are all options being considered for up to 500,000 containers a year. employment opportunities in Western to ensure the road network operates Stage 1 will see 250,000 containers per Sydney. effectively to service the new hospital year through the IMEX facility. The first

and reduce congestion in and around stage of the interstate terminal will have a Community consultation was recently Frenchs Forest. It is estimated that the similar capacity. Subsequent stages will sought for the project and once finalised, project will cost approximately $400 be developed in line with demand. the corridor will be preserved for future million. The Commonwealth is expected to invest uses. In this case, construction on the BENEFITS & OPPORTUNITY: around $370 million in the development, project is unlikely to occur prior to circa including funding the rail connection 2025. between the terminal and the Southern BENEFITS & OPPORTUNITY: Sydney Freight Line and land preparation works. The precinct will include 850,000 sqm of integrated warehousing when fully

MAP 9 Moorebank Intermodal Terminal location and site plan Concept plan

Source: Moorebank Intermodal Company

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MELBOURNE SNAPSHOT A NEW APPROACH TO INFRASTRUCTURE DELIVERY Infrastructure Victoria It is anticipated that removing the level • Arden • Parkville • CBD North crossings will: • CBD South • Domain Major infrastructure planning reforms are  deliver significant safety improvements underway in Victoria with the Infrastructure for drivers and pedestrians The aim of the project is to increase the Victoria Bill being passed on 3 September  improve travel around Melbourne – capacity, reliability and efficiency of 2015. making roads more reliable, enabling Melbourne's busiest train lines to allow for people to better predict their travel times 20,000 more passengers to use the The new statutory authority will promote  stimulate economic growth by creating metropolitan rail network in the peak hour. rigorous and transparent decision making, and thousands of jobs during construction The new stations will ease congestion, improve public debate and consensus about  revitalise local communities, with many improve access to public transport, priority infrastructure projects in Victoria. The areas benefiting from station rebuilds employment, education and opportunity in new expert body will be required to publicly  enable more trains to run more often and Melbourne's inner city growth areas. release a 30-year Infrastructure Strategy (by on time. the end of 2016) detailing short, medium and long-term infrastructure needs and priorities. Western Distributor This strategy will be refreshed every 3-5 years. Melbourne Metro Rail In December 2015 the Victorian To help retain Melbourne’s status as one of Government announced that it will partner The Government will also develop a five year the world’s most liveable cities the State with to deliver the $5.5bn Infrastructure Plan, outlining priority projects Government has committed to the Western Distributor Project, which includes and funding commitments which will deliver Melbourne Metro Rail project. The project the Monash Freeway Upgrade and greater certainty to communities, developers will deliver two nine-kilometre rail tunnels upgrades to Webb Dock. The main section and investors. from South Kensington to South Yarra, of the project includes a tunnel and travelling underneath Swanston Street in the elevated motorway connecting the West Mixed-use residential and commercial CBD, as part of a new Sunbury to Gate Freeway with the Port of Melbourne, opportunities will arise from the new strategy Cranbourne/Pakenham line. The new CityLink and the city. Construction on the and other proposed infrastructure projects, underground stations will be located at: Western Distributor will start in 2018 with namely areas adjacent to the redevelopment the full project to be completed by 2022. of level crossings and the Melbourne Metro rail project. The opportunity for transit MAP 8 orientated development (TOD) to occur will be Melbourne Metro Rail route a key feature going forward across Melbourne, Indicative route plans and proposed new stations over the short and medium term.

Level Crossing Removals Over the next eight years the Level Crossing Removal Authority will oversee the removal of 50 level crossings across Melbourne, which are considered dangerous and/or congested.

The Victorian Government allocated $2.4 billion in its 2015-16 budget to remove at least 20 level crossings by 2018. These sites form the basis of a long-term strategic plan being developed to remove all 50 level crossings by 2022. Construction has already commenced on several sites, and planning and early consultation is underway for the delivery of the entire project.

Source: Melbourne Metro Rail

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FUTURE PLANS | FURTHER INVESTMENT REQUIRED?

While the investment detailed in this and commercial drivers of each potential southern section of the South West Rail report is a starting point and a positive route as well as the cost and timeframes Link has been identified while the step in the right direction particularly after for each. northern section is currently being an extended period where few projects investigated. With the area home to the commenced, further investment in key With the Federal Government stating that anticipated Sydney’s second airport and areas is still required. In a global context, the airport will be ‘rail ready’ by its 2025 the Broader Western Sydney Sydney significantly lags its major opening, it is unlikely that development will Employment Area, the northern competitors, with transport infrastructure begin until the late 2020’s as it is expected extension will be vital in connecting the recognised as a major deficiency, both Federal and State governments will South-West Growth Centre to both particularly across public transport where want to test how the road networks employment opportunities and the Sydney is ranked 24th (from 30) in PWC’s respond once opened before making a broader Sydney region. Cities of Opportunities report (2014). move to implement a rail line. LIGHT RAIL The current round of projects, both TRANSPORT planned and underway are game- EXTENSION - changing developments that will SOLUTION FOR transform the mobility and productivity of CARLINGFORD the broader metropolitan Sydney region, THE BAYS while providing particular benefits to four TO MACQUARIE of Sydney’s major office markets, the PRECINCT CBD, North Sydney, Macquarie Park and PARK Located approximately 2km from the Norwest. However, with Sydney rapidly Sydney CBD, The Included in the initial options for the expanding there are still emerging areas comprises 95 hectares of largely Parramatta Light Rail was an option to that require attention in terms of government owned land which is set to run a line to Macquarie Park via improved transport. provide significant employment and Carlingford. While the full line to

housing opportunities over the coming Macquarie Park was not the chosen RAIL ACCESS TO decades. However, with there being very route, the light rail will go to Carlingford limited transport options available in the which opens up the opportunity for an WESTERN area, the viability of the precinct is largely extension in years to come. With the dependent on the governments ability to corridor being in one of Sydney’s Global SYDNEY provide adequate public transport options. Economic Corridors, an area designated for future employment concentration and AIRPORT With the October 2015 Transformation activity, an extension would facilitate With the Western Sydney Airport Plan revealing very little about how the growth and movement of workers and anticipated to open in 2025, recent precinct will be serviced, it should become services. debate has been focussed on the need a key priority of Transport for NSW over for the new airport to be serviced by rail. the short to medium term. The NSW While the Western Sydney Infrastructure government has indicated that options are OTHER OPTIONS Plan incorporates major road upgrades to being explored including a light rail Beyond the above mentioned projects, support the airport, rail services will be network and ferry options. However, more there are other areas which are likely to required to support its long term capacity. certainty is required to achieve the require attention. Notable areas include governments ambitions for the precinct. further investment in CBD and suburban In November 2015, it was announced that cycle paths and the implementation of a rail options to Sydney’s second airport bike hire system for the Sydney CBD would become the focus of a jointly SOUTH WEST which would enable linkages between funded Federal and State government the CBD and inner city locations. scoping study to explore the potential rail RAIL LINK Another area which is expected to need routes. The study, which is anticipated to addressing is where take 12 months to complete will EXTENSION significant congestion already exists. investigate the broader implications of a With Sydney’s south-west projected to With the area being identified as a rail network to the airport, taking into experience rapid population growth over priority precinct, congestion is only going consideration the economic, population the next 20 years, an extension to the to increase.

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Icon Key: Real estate sectors which will benefit or will create opportunity from an infrastructure project RESEARCH & CONSULTING Matt Whitby Group Director Head of Research & Consulting +61 2 9036 6616 Houses Office [email protected]

Paul Savitz Associate Director, Consulting Apartments Retail +61 2 9036 6811 [email protected]

Luke Crawford Senior Analyst Hotel Industrial +61 2 9036 6629 [email protected]

Data sources used for this report include; Department of Transport and Main Roads, Department of Infrastructure and Regional Development, Transport for NSW, NSW Government, NSW Department of Planning and Environment, NSW Roads and Maritime Services, Moorebank Intermodal Company, Infrastructure Victoria, Australian Bureau of Statistics (ABS), Cordell Connect

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