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Building a Better Australia: Getting the Best from Our Infrastructure AUSTRALIAN ACADEMY OF TECHNOLOGICAL SCIENCES AND ENGINEERING (ATSE) NUMBER 187 DECEMBER 2014 BUILDING A BETTER AUSTRALIA GETTING THE BEST FROM OUR INFRASTRUCTURE Shaping the way the nation lives, works and moves will depend on getting our infrastructure right – starting now Enhancing Australia’s prosperity through technological innovation The Australian Academy of Technological Sciences and Engineering (ATSE) ATSE is made up of some of Australia’s leading thinkers in technology and engineering. One of Australia’s four Learned Academies, it’s an eclectic group, drawn from academia, government, industry and research, with a single objective in mind – to apply technology in smart, strategic ways for our social, environmental and economic benefit. To achieve that goal, ATSE has formed a variety of expert, independent forums for discussion and action – platforms to move debate and public policy on issues concerning Australia’s future. These focus on energy, water, health, education, built environment and innovation – and the international collaboration necessary to ensure that Australia is abreast of world trends. It’s an open, transparent approach – one that government, industry and community leaders can trust for technology-led solutions to national and global challenges. Each year, the Australian Government recognises the importance of the work we do by awarding the Academy an establishment grant to help with: n Fostering research and scholarship in Australia’s technological The Australian Academy of Technological sciences and engineering; Sciences and Engineering (ATSE) n 1/1 Bowen Crescent Providing and conducting administrative support, workshops, Melbourne Victoria 3004 forums and similar events to enable the Academy and its Fellows Australia to contribute on important national issues; +613/ (03) 9864 0900 n Managing the development and execution of our programs; and [email protected] n Supporting relationships with international communities. www.atse.org.au A4 Ad.indd 1 11/09/13 2:26 PM www.atse.org.au FOCUS DECEMBER 2014 NUMBER 187 1 COntents 3 Infrastructure: from the past into the future By Max Lay 7 Revolutionising how we think about infrastructure By Cynthia Mitchell Infrastructure planning is a critical issue (Page 17). 4 Multiple challenges for infrastructure planning 9 12 Infrastructure priorities for Australian cities Waste not, want not: making 14 Crisis and opportunity: time for a national better use of what we’ve got infrastructure plan By Rob Fitzpatrick 17 Infrastructure planning is a critical issue AUSTRALIAN ACADEMY OF TECHNOLOGICAL SCIENCES AND ENGINEERING (ATSE) Front cover: Freeways 18 Statement of Expectations will drive IA activities NUMBER 187 DECEMBER 2014 intersect in Los Angeles. Photo: iStockphoto 18 Inland Rail freight project planning advances 19 IICA recognises ATSE priorities 20 Energy Green Paper has gaps, says ATSE 21 New national water reform strategy needed BUILDING 43 ATSE in Focus A BETTER AUSTRALIA GETTING THE BEST FROM OUR INFRASTRUCTURE Shaping the way the nation lives, works and moves will depend on getting our infrastructure right – starting now COPYRIGHT This publication contains copyright material. Some of the material is owned by Australian Academy of Technological Sciences and Engineering Ltd ACN 008 520 394 (ATSE) and some material is owned by others. All copyright and other intellectual property rights in the materials remain with the owner. No material in this publication may be copied (except as legally allowed) or further disseminated without the express and written permission of the holder of that copyright, with the exception of ATSE Focus is produced to stimulate copying for educational purposes. discussion and public policy initiatives on key Copyright © ATSE 2014 topics of interest to the Academy and the nation. Many articles are contributed by ATSE PUBLISHER Fellows with expertise in these areas. Opinion CEO: Dr Margaret Hartley FTSE ACN 008 520 394 articles will be considered for publication. Editor: Bill Mackey ABN 58 008 520 394 Items between 800 and 1400 words are Print Post Publication No 341403/0025 ISSN 1326-8708 preferred. Please address comments, Australian AcaDEMY OF Technological SCIENCES AND Design and production: suggested topics and article for publication to ENGINEERING (ATSE) Coretext 03 9670 1168 www.coretext.com.au [email protected]. Address: Deadline for the receipt of copy for next edition Level 1, 1 Bowen Crescent, Melbourne Postal Address: of Focus is GPO Box 4055, Melbourne, Victoria 3001 16 January 2015. Telephone: 03 9864 0900 Facsimile: 03 9864 0930 Email: [email protected] Our vision is to create sustainability and excellence in Australia’s power engineering. What is the API The Australian Power Institute (API) is a not for profit national organisation established by the Australian power industry to boost the quality and numbers of power engineering graduates with the skills and motivation for a career in the energy industry which encompasses: - Generation, transmission and distribution utilities - Manufacturers and suppliers to the industry - Consultants to the industry - End users of electricity in their operations. Value Proposition To deliver a sustainable supply of highly skilled power engineering professionals working effectively to meet the challenges of creating Australia’s new energy future, and underpin the technical and commercial success of member companies in the energy sector. The key objectives of API are to achieve the following: - Provide a sustainable supply of quality power engineering graduates to industry - University power engineering teaching and learning provides relevant industry skills - Value added continuing professional development programs - A respected organisation leading the national development of power engineering skills. Further Information Contact - Mike Griffin (Chief Executive) 6 0419 643 795 [email protected] www.api.edu.au and www.powerengineering.org.au www.atse.org.au FOCUS DECEMBER 2014 BUILDING A BETTER AUSTRALIA 3 By Maxwell Lay [email protected] K toc S I : : hoto P A role for social media in infrastructure planning? Infrastructure: from the past into the future Social media might have a role in public consultation to formulate community aspirations that could supplement, rather than supplant, our current well-tried political processes. lthough public infrastructure is as it cannot be financed and operated around the world public transport systems a widely used term, a definition on the basis of charges made for its use. have typically collected about half their is useful. A common meaning Many of the reasons for this stem from operating costs from the fare revenue. We is that it refers to the various the fact that infrastructure systems can need to adopt better ways of capturing the Asystems such as transport, water supply and be very large and require considerable value added by infrastructure investments. sewerage that underlie the daily operations foresight, long-term planning, compulsory Pricing of infrastructure usage is of an active community and which are acquisition of land and access limitations. often a vexed issue. usually means to some other ends. Typical schemes might well take One of the efficiency lessons of the The provision of infrastructure begins more than a decade to plan, design and 20th century was that charges for the use with the community having the foresight construct. Consequently, acceptable usage of any product should at least equal the to assess an important future need that will charges often fall short of financing and marginal costs of providing that product. not be satisfied unless action is taken. It operating costs and capital investments This rule has yet to be applied to much then decides what specific action is needed provide low direct rates of return. Indeed, road usage, where users assume that the and ensures that that action occurs. their operations may need to be subsidised. product is free. Pricing road usage is now Typically, public infrastructure cannot Most transport infrastructure fits relatively straightforward, but we have yet be provide by normal commercial processes easily into this categorisation. For example, to see any government embrace the process. www.atse.org.au FOCUS DECEMBER 2014 of many of the policies of Marxist-based governments and the rigid nature of the BUILDING A BETTER AUSTRALIA plans and their very poor outcomes gave much ammunition to planning opponents. 4 This combination of events meant that When one scenario is selected, some provisions should be made in case effective planning was uncommon during the hedging th 20 century, particularly under right-wing one of the alternative scenarios occurs. Some of the events that will determine governments and pressures from free markets. The estimation of population the future will be beyond the community’s On the other hand, much of the benefit size is a core design factor for most control, but many are a consequence of th century. The of infrastructure provision in reflected infrastructure plans. I once reviewed the the community’s current aspirations. For in increased land values. This is readily models used in planning Melbourne’s example, does it want to expand into new captured by taxes on land value, but transport during the 20 territory, develop new industries, change again is rarely used (it is more common errors made by careful, serious planners the way in which people travel, preserve in the US where municipal bonds are were enormous. A long-term plan some threatened natural features? used to fund municipal improvements). Two key parameters that can be used to produced in the 1950s so underestimated In Melbourne, the massive changes . Planning and then defining population growth that the design illustrate infrastructure issues are land use in land use that have occurred along the population had been reached by 1971. and population The next plan in the late 1960s Western Ring Road since it opened 20 future land use gained momentum during years ago are indicative of the uncaptured estimated Melbourne’s 1985 population the Romantic / City Beautiful movements value that is added by a typical piece to be 3.6 million.
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