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Metro Tunnel Level Crossing Removal West Gate Tunnel Key Facts

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RESEARCH Population growth in Victoria is creating strong demand for infrastructure to maintain the liveability and productivity of key urban areas. There is $47.9 billion worth of infrastructure projects currently under construction or in planning across the state. Victoria remains the fastest growing state renewal site that has the potential to Key Facts in Australia, with 2,000 new residents accommodate 25,000 residents and There are 11 major infrastructure entering the state per week. Over the next 43,000 jobs, the planned North Melbourne projects totaling $47.9 billion 20 years, Melbourne is projected to grow station (previously referred to as Arden currently under construction or in by an additional two million residents station) will assist in stimulating residential planning. (ABS), overtaking Sydney as the largest and commercial development within the capital city by 2031. Victoria’s The $11.03 billion Metro Tunnel and immediate surrounds. infrastructure will need to continually $7.9 billion Level Crossing Removal projects are fully funded by the evolve to keep pace with this anticipated Level Crossing Victorian Government. growth in population. This will further support future economic growth for Removal The next major infrastructure project to Victoria and drive real estate The $7.9 billion Level Crossing Removal reach completion will be the $1.28 opportunities. billion CityLink Tulla Widening project project, also fully funded by the Victorian Government, sees the removal of 50 in 2018. As such, the Victorian Government has congested level crossings across outlined a pipeline of major infrastructure North East Link Melbourne Melbourne. Ten level crossings have been The and projects to be delivered over this time. Airport Rail Link projects are currently removed since the project commenced in Major infrastructure projects currently in the early planning stages. 2015, with the number expected to reach under construction or in planning total 11 20 by 2018. The project is expected to be projects tallying to $47.9 billion. The most completed in 2022. significant projects are outlined below. Aside from reducing road travel time and improving safety, the removal of level crossings will increase patronage on trains. Melbourne’s rail network operator will be able to increase the frequency of train services without increasing boom Metro Tunnel gate closures and creating more delays for The $11.03 billion Metro Tunnel project, road users. This will in turn free up road fully funded by the Victorian Government, capacity for freight operators, which is will be the biggest overhaul to the train particularly important for the south-east network since the construction of the City corridor where growth in significant Loop in 1985. With five new underground employment clusters, such as Monash and stations to be delivered by 2026, the Dandenong South, rely on efficient freight project will expand the capacity of movement. Melbourne’s rail network by over 39,000 passengers during peak periods. West Gate Tunnel Research Analyst On top of reducing congestion in the City The $6.7 billion West Gate Tunnel project Loop, it will help relieve the Swanston comprises three interrelated projects: the Street tram corridor serving the St Kilda West Gate Tunnel, the Monash Freeway Road office precinct and the Parkville Upgrade and the Webb Dock Access education and health precinct, opening up Improvements. Transurban is financing $4 opportunities for strong rental and capital billion of the project (in exchange for a 10- growth within those residential and year extension of CityLink tolls to 2045), commercial sectors upon completion. with the remaining $2.7 billion being financed by the Victorian Government. Additionally, with the Arden-Macaulay Follow at @KnightFrankAu precinct being identified as a major urban The West Gate Tunnel involves building twin tunnels from the West Gate Freeway Freeway between the Bolte Bridge and to the Port of Melbourne, a bridge over Melbourne Airport. It also includes Melbourne Airport the Maribyrnong River and four additional additional lanes on the Bolte Bridge and Rail Link lanes on the West Gate Freeway between on a section of the West Gate Freeway. It Planning has begun for the long-awaited the M80 and the West Gate Bridge. will increase road capacity by up to 30%, Melbourne Airport Rail Link project. Construction began in January 2018. reducing travel time by 15 minutes and Currently in the proposal stages, the Upon its 2022 completion, travel time removing 3,000 trucks a day from local Victorian Government committed $10 from the west to the CBD will be reduced roads. million in the 2017/18 State Budget to by 20 minutes. For the industrial sector, it develop a business case for the project. will reduce travel time to the Port of The Federal Government subsequently Melbourne by up to 50% and allow for all committed $30 million to the business container trade moving through the Port case in the 2017/18 Federal Budget. The of Melbourne to have direct freeway North East Link business case will undertake a detailed access. The $16.5 billion North East Link project is assessment of the best route for an Victoria’s largest infrastructure project in airport rail link, an estimated cost and Construction on the Monash Freeway the pipeline. Currently in the early planning funding means. Upgrade and the Webb Dock Access stages, the Victorian Government recently Improvements began in 2015 and will announced that the framework for It is expected that by the time the Metro complete in 2018. Through the addition of Corridor A has been selected as the Tunnel is completed in 2026, new lanes on each of the freeways and a preferred route. The chosen route will link construction on the Melbourne Airport redesigned ramp to the Bolte Bridge, the Metropolitan Ring Road to the Eastern Rail Link would have commenced. traffic flow on the West Gate Freeway and Freeway via a toll road between Monash Freeway will be improved. Greensborough Highway and Bulleen Preliminary design for the project Access improvements to the Webb Dock Road, and a tunnel travelling five includes new track along the Sunbury will support the Port of Melbourne’s $1.6 kilometres beneath Bulleen Road. line which will connect to Southern Cross billion Port Capacity Project which Station. Each way, the estimated journey involves infrastructure development in The project will also include the addition from Tullamarine Airport to the CBD will Swanson Dock and Webb Dock East, and of up to seven lanes on the Eastern be 30 minutes, with a train every 10 the creation of an automotive facility in Freeway between Springvale Road and minutes. Webb Dock West. Bulleen Road, and two new separated bus lanes from Doncaster ‘Park and Ride’ to the Victoria Park precinct. Other Projects CityLink Tulla There are further projects in planning, Widening Together, this will allow for up to 15,000 dependent on priorities and funding, The $1.28 billion CityLink Tulla Widening trucks and 9,000 cars to be removed from such as Fishermans Bend Tram Link, DP project, for completion in 2018, is being local roads a day, most notably Rosanna World Australia/Austrak Intermodal financed by the Federal Government, the Road and Fitzsimons Lane, reducing Freight, Port of Hastings development, Victorian Government and Transurban, the travel times between the north and south South International Airport, Outer operator of CityLink. The project involves by up to 30 minutes. Construction is Metropolitan Ring Road and East West adding extra lanes on the Tullamarine expected to commence in 2020. Link Road. Victoria’s Major Infrastructure Projects Timeline and Cost* 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 CityLink Tulla Widening $1.28b Chandler Highway Bridge Project $110m Cranbourne/Pakenham High Capacity Train $660m Upgrade Mernda Rail Extension $597m $518m Melton Rail Duplication $300m Mordialloc Bypass $7.9b Level Crossing Removal West Gate Tunnel $6.7b High Capacity Metro Trains $2.3b Metro Tunnel $11.03b North East Link^ $16.5b $TBC Melbourne Airport Rail Link^ 2 RESEARCH & CONSULTING Jane Wong Analyst, Victoria +61 3 9604 4650 [email protected] Kimberley Paterson Associate Director, Victoria +61 3 9604 4608 [email protected] CAPITAL MARKETS Danny Clark Head of Commercial Sales, Victoria +61 3 9604 4686 [email protected] INDUSTRIAL Gab Pascuzzi Senior Director, Head of Industrial, Victoria +61 3 9604 4649 [email protected] OFFICE LEASING Hamish Sutherland Senior Director, Head of Office Leasing +61 3 9604 4734 [email protected] OCCUPIER SOLUTIONS Gordon Wyllie Director, Occupier Solutions +61 3 9604 4666 [email protected] VALUATIONS & CONSULTANCY Michael Schuh Joint Managing Director, Victoria +61 3 9604 4726 [email protected] VICTORIA Knight Frank Research provides strategic advice, consultancy services and forecasting James Templeton to a wide range of clients worldwide including developers, investors, funding Managing Director, Victoria organisations, corporate institutions and the public sector. All our clients recognise the +61 3 9604 4724 need for expert independent advice customised to their specific needs. [email protected] Australian Office Top Global Cities 2018 Melbourne Industrial Culture Clash: Sales Transactions Vacancy October Flexible Workspace, CY2017 2017 Coworking & The Future August 2017 Knight Frank Research Reports are available at KnightFrank.com.au/Research Important Notice © Knight Frank Australia Pty Ltd 2018 – This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from any use of, reliance on or reference to the contents of this document.
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