AUSTRALASIA

SUBMISSION IN RESPONSE TO THE DRAFT NSW LONG TERM TRANSPORT MASTER PLAN

OCTOBER 2012

S

VEOLIA

SUBMISSION IN RESPONSE TO THE DRAFT NSW LONG TERM TRANSPORT MASTER PLAN

OCTOBER 2012

INTRODUCTION

Veolia Transdev is very happy to provide this submission in response to the release of the draft NSW Long Term Transport Master Plan (LTTMP).

Firstly the NSW Government should be congratulated for taking the time to prepare such a detailed and thorough plan and for its commitment to gather and consider the feedback from the community. When the draft plan was released, some of the commentary argued that there should have been detailed funding allocation and commitments to specific projects. In our view this criticism is not justified and it is entirely appropriate that time be taken to plan and budget for the correct priorities, taking into account community feedback in the process.

The clear distinction between actions and projects to be delivered in either the short, medium or longer term provides proper insight to operators like us as well as customers and taxpayers – they know that not everything can or should be delivered in the next year but providing a clear timeline will help with their assessment. The clear framework in the plan should encourage consistency and enhance accountability.

It is encouraging that the plan both sets the direction for the next two decades but also shines light on the path for the next few years and makes clear that sectoral and other plans will provide further detail. We agree with the government about the key themes: 1. putting our customers first; 2. integrate, modernise, grow and manage; and 3. integrated planning across modes and the network. These themes reflect what customers and transport authorities have said to us both here and in other countries1. The primary focus on customer needs is the most important development in recent years in transport planning and will help ensure that the plan delivers where it is needed most.

We support the initiatives in the LTTMP, particularly those that are listed as integrating modes to meet customer needs, such as the Opal and improvements to wayfinding signage. We are ready to assist with the Opal rollout when it commences on later this year and we will be able to provide our expertise regarding signage gathered as an operator both here and overseas. Also, the projects identified to get moving again are the right projects for the times ahead. We will pick up a few of those projects in more detail below. Likewise the issues discussed and the projects proposed in the context of Sustaining Growth in Greater Sydney, are appropriate and fundamental to fixing Sydney’s transport issues.

It is refreshing to see a transport plan that identifies those difficult choices that must be made in the context of planning for the growth of a global city. It is clear from the State Infrastructure Strategy, released on 3 October, that there are divergent views amongst government agencies about the precise projects needed to address common issues. It is a healthy sign that such differences are aired publicly.

If we have a criticism of the draft LTTMP, it is that it should have been bolder in some areas, in particular regarding a world class network for Sydney. We touch on this below and trust that as the draft becomes final, this ‘boldness’ will win out.

With such a detailed draft we could have provided comments and some insight into many areas. However we have chosen to focus on a few key issues about which we feel the most passionate and think we have something useful to add, namely light rail, the need for a second harbour crossing and the need for greater private sector involvement in the delivery of . But first we provide some background to Veolia Transdev to give some context to our comments.

1 Veolia Transdev, 2011, Today’s Challenges for Tomorrow’s Mobility 2011 Survey Results

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ABOUT VEOLIA TRANSDEV AUSTRALASIA

Veolia Transdev Australasia (VTDA) is a leading passenger transport company. We have a team of more than 3,600 employees working on our , , coach, , light rail and monorail transport services across Australia and New Zealand.

With our partners in local government, public authorities and private companies, we deliver over 85 million passenger journeys every year on around 1,300 vehicles and vessels.

Globally, Veolia Transdev is a world leader in the operation of passenger transport services. Operating in more than 25 countries, it has 102,000 employees worldwide, manages more than 60,000 vehicles and vessels and delivers 3.3 billion trips a year.

Veolia Transdev was formed in 2011 following a merger between and Transdev.

VTDA Vision

To be Australasia’s acknowledged passenger transport leader.

VTDA Mission

Delivering high quality passenger transport services in partnership with stakeholders.

VTDA Values . Safety . Commitment . Partnership . Passion . Performance

A key operator in NSW

In NSW alone, Veolia Transdev operates: in regions 10, 11, 12 and 13; the light rail and monorail; and ferries (via Harbour City Ferries, its joint venture with Transfield Services).

We have more than 1,500 employees working in these businesses delivering services to communities in the north, central, south and south west of the city and we have been a proud partner to government for over a decade.

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FOCUS ON LIGHT RAIL

There has been a great deal of discussion about the future of light rail ever since the current light rail service commenced in 1997. The original route was extended to Lilyfield in 2000 and is now being extended again to Dulwich Hill. The current system, operated by Veolia Transdev under contract to the NSW Government-owned MTS, performs well but is not fully integrated into the wider public transport network of Sydney.

Benefits

Based on Veolia Transdev’s extensive light rail experience we argue there are many benefits to be gained by having a light rail network, including:

. Makes it easy to connect to other services/modes - high-frequency works alongside other modes, fills the gap between bus and heavy rail; . Light rail carries more passengers than articulated bus (200 -300 people vs approx 90 people); . Provides a comfortable journey; . It is one of the most sustainable modes of transport – mitigates greenhouse gases compared with other modes and produces less noise; . It reduces congestion in cities, improving access to major destinations and event venues; . It leads to increased tourism and mobility in city-centre and inner suburb areas. People from Sydney will recall that Ultimo and Pyrmont were once a wasteland - the introduction of the light rail and monorail was a catalyst for enormous change in the area; . If done well, light rail adds to the visual appeal of a city (e.g. Reims, see right) and integrates well into high density such as pedestrian malls; . It enhances accessibility (stations at grade), legibility and the fact that customers visually recognise where they are on a light rail system gives enormous confidence to customers and makes light rail systems easy to use; and . Finally, in almost all instances that Veolia Transdev has been involved in, it has delivered patronage growth far in excess of patronage forecasts.

Challenges

But of course there are challenges to deliver these benefits, including:

. It needs to be well planned; . Capital costs vary, but can range between $30-$100 million per km including rolling stock. Where tunnelling is required then these costs will be higher; . Because of the interaction with the environment and many interested parties the stakeholder management task is significantly more challenging than for any other transport mode. This task is critical during the construction phase when there can be significant impacts on local communities and then becomes an educational task as operation of the system approaches; . Getting the commercial delivery model and the design of the system right is key– evidence from many places around the world shows that getting this right is critical to the success of light rail systems; . Managing the ‘apparent’ divergent interests of car users and the light rail system – the most obvious balance to be struck is the extent to which signal priority is given at signalled intersections, and . Finally, light rail is a unique and different mode of public transport than bus, heavy rail or metro – as such Government must ensure that it has the necessary expertise to manage such projects and also that it works with the private sector providers like Veolia Transdev, who bring the international expertise and local understanding to make the extension of a success.

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As noted above, the much anticipated 20 year State Infrastructure Strategy - First things first, was released by Infrastructure NSW (INSW) on Wednesday 3 October.

Among other recommendations the strategy recommends that the Government not build light rail down George St but instead build a busway underground from the Harbour Bridge to Wynyard. The SIS does however recommend light rail to the University of NSW (Central to Moore Park and UNSW via Anzac Parade). The SIS’ recommendations have been provided to the NSW Government for its consideration in developing plans for infrastructure investment and we all await the Government’s formal response.

Our recommendations

It is critical to consider the following light rail design principles, which impact the customer experience, the affordability and the operability of the system:

. gradient (the flatter the better); . road width (need enough space to manage road conflicts); . straight lines (the less curves the better); . traffic flow; . integration with other traffic, including other public transport options; . depot location; . terminal location, design and interchange features; and . early and active involvement of the operator in the design, planning and construction.

As a company that operates more light rail networks than any other company, and given the principles listed above, our experience leads us to firmly believe that the future of light rail in Sydney must include the following elements:

. it must be a network (not just a collection of routes) and fully integrated with the rest of the public transport system; . it must be at grade, ie: the customers must be able to see it in the street; and . the light rail system must be given traffic priority to ensure it is competitive to private car travel.

Given the above it is therefore vital that the light rail is taken down George Street – it creates the necessary ‘central spine’ from which to build Sydney’s light rail network; it is visible making it easier to use and connect to other modes; and it integrates well into the environment / streetscape. If George Street is too difficult then perhaps decision-makers should consider building light rail down an alternative city street such as Castlereagh or Sussex Streets but still create that ‘central spine’ for the network. That said the benefits of a George Street route outweigh the difficulties. The George Street option will cause dislocation and require changes to traffic management throughout the city. This is not to be avoided; this is in fact the whole point of using the George Street route – it shifts cars and buses and replaces them with light rail, which is the most suitable public transport option for this part of the city (as part of an invigorated light rail network).

If however, decision-makers do believe that it is better to build a busway as indicated in the SIS because it is more cost-effective or less complicated, then we would urge them to not build the busway underground. A system built underground is less open, visible, accessible and therefore less attractive to potential customers, particularly tourists and occasional users. In our own view, a busway as envisaged in the SIS would be a major missed opportunity for such a fabulous city as Sydney.

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There are plenty of examples where light rail works e.g. , Reims, , Montpellier, Nantes or Grenoble (all operated by Veolia Transdev)2 – we should look to these and other such cities for how to implement a light rail system successfully.

Of course the George Street route is the most important but not the only route that is needed. The proposals to build a line out to the University of NSW and beyond is welcomed. In addition an extension to Barangaroo is also warranted and this provides access to the western part of the city (and ). It would link to the current network between Capitol and Paddy’s Market (Hay Street), continue on Sussex Street, Hickson Road and proceed around Dawes Point, joining George Street in the Rocks and terminating at Circular Quay. This would be a total extension of 4.1km. Alternatively it could cease at Walsh Bay if the link to Circular Quay is too problematic.

In the longer term (maybe 20 years), once the ’s Access Plans are known (ie where will people live in 30 years time), other land use planning decisions are taken, and once government commits to a broader light rail network, integrated with the rest of the public transport system, routes could be added:

. To the west through Balmain ( Rd, Military Rd); . To Green Square to the south and linking to the CityRail network; . To Sydney University in the south west.

Government is on the right path with seeking input into the review process. Government needs to be decisive and not constrained by challenges if they are indeed committed to building a light rail network. Government needs to be bold. Building light rail down George St will have its challenges but once in place it will become the “central spine” for the rest of the network.

Montpellier, France

Barcelona, Spain

2 Veolia Transdev, 2012, Portfolio of Expertise, Light Rail

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GETTING SYDNEY MOVING AGAIN - SECOND HARBOUR CROSSING

In addition to the light rail projects already discussed, the draft LTTMP lists a series of other initiatives to ‘get Sydney moving again’. As a public transport operator it is not surprising that we support all of those initiatives that enhance the experience for public transport users. The key ones are:

. A redesign of the city’s bus network to a highly integrated network that gives customers more choice of services and more frequent services; . Integrating roads, public transport and freight to better meet customer needs; . A detailed feasibility study for new bus interchanges in the Sydney City to redirect buses from the city centre; . A program of work to expand capacity on Sydney’s most congested corridors, including road, rail and bus improvements; . Major upgrades to the busiest CBD interchanges ; . A Barangaroo Ferry Plan that will improve ferry services to the CBD; . The new integrated electronic ticketing system, Opal and other measures to integrate and align Sydney’s transport networks; and . Investing in the cycling network around Sydney’s urban centres and the CBD.

The key additional project is Sydney’s Rail Future – a plan to modernise the metropolitan rail network, including investment in network capacity, new links to the city’s South West and North West, more frequent services and faster journey times, and a second tunnel under Sydney Harbour as part of a new CBD rail link. From our perspective it is vital that the second harbour crossing be part of any long term solution for Sydney, despite the controversy it will create, the time it will take to build and the huge price tag that comes with it. Without it there will never be the rail capacity to meet future needs and it will mean a sub-optimal outcome for the users of the North West Rail Link. faces similar issues with its rail network and its pinch point is not a bridge but an underground rail loop that was right for the 1970s but will not deliver the capacity needed beyond the next few years. The solution to that issue is the Melbourne Metro, a new set of underground tunnels to effectively double rail capacity. is contemplating the Cross River Rail project, which will address similar rail capacity issues. It is vital that Sydney is in a position to push ahead with its plan for the second crossing to ensure it is able to capitalise on any Federal funds that may be available in future years (it will still need to compete for requests from other jurisdictions).

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A BIGGER ROLE FOR THE PRIVATE SECTOR

It is not just big projects that should be considered but also using existing infrastructure more carefully and utilising different delivery models for both projects and transport services.

Although this will seem self-serving, it is worth noting that the NSW Government could achieve better outcomes in delivering passenger transport by getting the private sector more involved as a delivery partner.

As the TTF report 3well espouses, the benefits of greater private sector involvement, through franchising, accrue to three key groups: customers; governments / taxpayers; and employees.

For customers the benefits include: an enhanced customer experience via innovation and investment, use of contractual incentives to increase focus on customer satisfaction, and a stronger customer-focused workforce culture. Examples include: smarter information tools; better customer service training (such as Veolia Transdev’s Going for Green); innovative ticketing; customer loyalty schemes and enhanced customer engagement opportunities. The results of the 2011 Bureau of Transport Statistics Customer Satisfaction Survey (see right) show that private buses operated by Veolia Transdev took out the top two and four of the top six places4.

For governments and taxpayers, the benefits include: reducing public subsidies enabling reinvestment in services as well as other non- financial benefits to government such as clarification of transport priorities and greater certainty over future transport budgets. If the private operator has international operations, they can tap into overseas experts to assist with local problems. Veolia Transdev has used its overseas experience to assist with security issues in and eco-friendly driver training in NSW. IPART found that in Sydney, private bus operators are able to operate at 20 – 30 per cent lower labour costs than public operators5 (and as can be seen above, with higher customer satisfaction).

And thirdly, the employees transferring from public to private operation experience increased job satisfaction and career development through opportunities available in the private sector.

CONCLUSION

Veolia Transdev Australasia congratulates the NSW Government for the vision and thoroughness of its transport planning shown in the draft LTTMP. We encourage it to turn the draft into reality and to pursue those elements of the plan that prioritise better public transport outcomes. In particular we urge the Government to proceed with a high quality, city-shaping light rail network with a CBD extension down George Street and new routes to the University of NSW and Barangaroo, for completion in the medium term. We also support a second harbour crossing to increase the capacity of the rail network. Finally, as part of the world’s largest and most multimodal private operator of passenger transport, we stand ready to continue to work alongside the government to transform Sydney.

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3 Tourism and Transport Forum, July 2012, Public Transport, Private Operators: Delivering better services through franchising 4 Veolia Transdev Australasia, 2012, Growing Together: Our story 2012 and beyond, p 20 5 TTF, ibid, p 32

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