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PLANNING AND ENVIRONMENT Agenda Item 5.8 COMMITTEE REPORT

6 September 2005 COMMITTEE FOR – TRANSPORT STRATEGY

Division Sustainability & Innovation

Presenter Andrew McCulloch, Manager Sustainable Policy & Planning

Purpose

1. This report responds to the following resolution of the Planning and Environment Committee on 5 July 2005:

“That the Planning and Environment Committee request that a report on the economic and environmental impact of the Committee for Melbourne’s Transport Strategy be presented at the 6 September 2005 Committee meeting.”

2. The report also discusses an idea for an East-West Integrated Transport Proposal and seeks the Committee’s support to develop the concept further.

Recommendation

3. That the Planning and Environment Committee:

3.1. note this report will be taken into consideration in the development of the Melbourne Transport Strategy; and

3.2. endorse the further refinement of the East-West Integrated Transport Proposal (EWITP) with the Department of Infrastructure and other stakeholders.

Key Issues

4. The Committee for Melbourne (CfM) prepared a strategic positioning paper, Melbourne’s Worst Transport Crisis Points in June this year through its transport taskforce (Attachment 1).

5. This Taskforce identified three major transport challenges for the Federal and State Governments:

5.1. reforming the way that transport is priced, charged, taxed and funded;

5.2. completing Melbourne’s major road network; and

5.3. significantly improving Melbourne’s bus services.

6. An assessment of the CfM challenges in terms of economic and environmental impact follows. Page 2 of 38

Background

7. The CfM represents 170 organisations. Members come from the business, science, academia, community and government sectors. The City of Melbourne is represented by the Chief Executive.

8. The CfM champion ideas to make Melbourne successful. They were instrumental in the creation of Melbourne Docklands, Citylink and the privatisation of ; they succeeded in having Melbourne take a pioneering role as the first city in the world to engage the United Nations Global Compact; and are the International Secretariat for the UN Global Compact Cities Programme.

Pricing, Charging and Funding

9. Pricing, Charging and Funding is potentially the area where the greatest economic gains and environmental benefits can be achieved in urban transport. As the CfM report states “At present there is little connection between the costs of providing transport services and infrastructure and the charges levied for the use of infrastructure services”. Such distortions in an advanced western market economy between pricing, supply and demand are perplexing in a political environment of efficiency, privatisation and competition.

10. CfM present a range of benefits that could be gained from new charging and financing mechanisms beyond those currently employed, which generally rely on annual state budget allocation. The following objectives, if followed, would result in a much closer nexus between current policy and strategic planning, funding and implementation. These suggestions augment the CfM work on this issue. The result will be a more efficient and effective use of resources that is targeted to the achievement of a more sustainable, efficient and integrated transport system.

10.1. funding for transport infrastructure and services should be rigorously aligned with agreed policies and strategic plans. This should be reflected in measurable outcomes for the quantum of funding that is allocated to different programmes (eg road funding, public transport funding etc);

10.2. a broad range of funding sources should be considered to ensure there are sufficient funds and a reasonable match between who pays and who benefits;

10.3. a broad assessment of projects and programmes, based on robust triple bottom line principles, should be applied to all projects to ensure sustainable net benefits can be maximised. This should include non-transport benefits such as health and environment;

10.4. funding processes should ensure that innovative and emerging programmes are not excluded from funding consideration as a result of narrowly based prescriptive administrative or statutory processes;

10.5. capital and non-capital projects should be considered on an equitable basis in terms of the discounted benefits over the life of the project. Projects, such as public transport service improvements, should not be disadvantaged because they are traditionally limited by funding from the annual operating component of the State budget; and

10.6. opportunities should be taken to leverage Government funding through entering into partnerships with other potential beneficiaries. However these agreements should only be entered into when they result in efficient allocation of resources that support agreed policies and strategic plans.

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11. The allocation of funding for transport infrastructure and services must be assessed against equity, environmental, economic and financial principles. Some important issues to consider are:

11.1. Equity – costs and charges should be distributed fairly among users and beneficiaries;

11.2. Environmental – the local regional and global environment should be protected and enhanced;

11.3. Economic – resources should be used efficiently; and

11.4. Financial – funding arrangements must be sustainable and the revenue collection processes should be easily understood

12. In reality, there is little prospect that State Governments will be able to allocate a higher proportion of their total budget to transport, given the existing political pressures for expenditure on health, education and law and order. This means there are two options available to State Governments:

12.1. Introduce beneficiary and transport user charges (such as an Inner City Parking Levy); or

12.2. Debt as the CfM paper acknowledges this is the least likely mechanism the Sate Government would employ.

13. In summary, CfM’s contention that new pricing, charging and funding mechanisms need to be found is not just considered to be economically and environmentally sound, but also it is also a political imperative.

Completing Melbourne’s Major Road network

14. The CfM considers that congestion is the major issue facing Melbourne’s road network. It identifie s three major road projects that it claims are needed to be completed by 2015 to protect Melbourne’s competitiveness and preserve the city’s lifestyle:

14.1. extending the Eastern Freeway to the ;

14.2. joining the Ring Road at Greensborough with the Eastlink project; and

14.3. upgrading the West Gate Corridor (including the option of a Duplication).

15. The notion that Melbourne is far too reliant on a single corridor – the Westgate/Monash corridor is acknowledged. It is also true that the amenity and potential of the area immediately north of the CBD (Northern Corridor) is restricted by the amount of through traffic flowing through it. However, a road tunnel connection of the Eastern Freeway with the Tullamarine Freeway was rejected on economic and environmental grounds as part of the draft Northern Central City Corridor Study (NCCCS). The draft NCCCS analysis illustrated that:

15.1. at the most 10 per cent of Eastern Freeway car traffic travels to and from the Northern arm of City Link (Tullamarine freeway);

15.2. two-thirds of this traffic is to and from the CBD, its southern surroundings and the inner northern suburbs;

15.3. over one third of the traffic heads south down Punt Road (approximately 90,000 cars);

15.4. trucks represent less than 5 per cent of the traffic exiting the Eastern Freeway;

15.5. over one third of the truck traffic heads south down Punt Road; and

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15.6. 25 per cent (of truck traffic) travels through to the Tullamarine freeway the remainder percolates trough the Northern suburbs.

16. The Eastern freeway carries about 140,000 vehicles a day at its western end. Traffic volumes on the Eastern Freeway increased by over 30,000 vehicles a day after it was extended to Springvale Road, the Mitcham – Frankston Freeway (Eastlink) is expected to add an additional 25,000 vehicles a day. The pressure on the western end of the Eastern freeway will only increase; the benefit of any East-West link would be to act as a City by-pass, relieving the congestion pressures in the inner northern suburbs. As the draft NCCCS highlighted the amenity of the inner northern suburbs is being severely constrained by through traffic, and it is clear that freight to the Port of Melbourne is being limited by poor access.

17. Given the existing and projected transport growth in this corridor and the nature of traffic flows, an east-west connection need not be simply a road tunnel. Integrating wider public transport and freight rail solutions with a road tunnel could address broader transport issues.

18. Building on the CfM’s original position, we are suggesting a more elaborate scheme that may have the potential to solve a range of both local and metropolitan transport needs. We have called this the East-West Integrated Transport Proposal (EWITP). This proposal could only be implemented by the State Government (with private sector investment) and therefore needs to be assessed by the State before it could proceed. Travel on the route will also have to be appropriately priced so as to facilitate personal travel by public transport and needed road space for freight movement. It is presented as an idea for examination and development.

19. The EWITP is a route option, integrating public transport and freight needs by creating a corridor from Doncaster to the Western Ring Road. This proposal potentially addresses:

19.1. Eastern- Tullamarine road link;

19.2. WestGate Corridor and WestGate Bridge capacity issues;

19.3. Rail access to the Doncaster region, Melbourne University, the Parkville Hospital precinct and CBD;

19.4. Rail and road freight access to the Port of Melbourne;

19.5. Road freight in the Footscray area; and

19.6. Opportunities for amenity and local accessibility improvements in the northern corridor and central Footscray ( a designated “Transit City”).

20. The EWITP could provide improved accessibility to and from Central Melbourne and address a number of perceived key transport shortcomings. It could provide transport infrastructure and services to enable the continued development of Central Melbourne as the key activity centre in the Metropolitan Area and the Port of Melbourne. The difference between this idea and proposals put forward in the past is that it suggests improvements for public transport, freight and car traffic in an integrated approach that is consistent with the Governments and Councils long term planning and development objectives, as well as community expectations.

21. Integrated transport proposals which successfully address urban congestion must be supplemented by strategies which may be used in conjunction with additional road space:

21.1. Travel Behaviour Programs (such as TravelSmart);

21.2. Public Transport Improvements: frequency, service and span of service;

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21.3. Road Pricing;

21.4. Parking Management and Pricing;

21.5. Freight Transport Management; and

21.6. Smart Growth.

22. Such pricing and travel demand management strategies ensure that at least some of the surface road space that is liberated by transport tunnels is effectively returned to sustainable transport usage (walking and cycling), improved tram travel times and linking communities and passive open space for community use.

23. In summary, the EWITP builds on the CfM’s road solution; it is a broader transport proposal which, if combined with travel demand measures has the potential to address metropolitan wide transport issues and local access in the inner north. The EWITP is discussed in more detail as Attachment 2. This proposal is being discussed with local governments and state agencies across the corridor.

Providing Modern Bus Services across Melbourne

24. The lack of transport choices in middle and outer suburbs significantly adds to individual private transport costs, social dislocation and access to employment opportunities -particularly with rising fuel prices.

25. Buses have the ability to service areas that do not have access to heavy or light rail. They are particularly well suited as orbital feeders to rail lines which enhance suburban access to the City. Their ability to feed rail services is however predicated by existing capacity constrains of the rail system, the upgrading of rail lines and signalling along key corridors is emerging as an important issue.

26. The State Governments own planning strategy Melbourne 2030 shows that two thirds of metropolitan Melbourne’s residents only have access to bus services. These services are notoriously poor; average peak serviced are 40 minutes, the average finish time of buses is before 7pm and only 18 per cent of buses operate on Sundays. As long as 66 per cent of metropolitan Melbourne are without public transport services, only a third of the broader population have the choice of using public transport to access the City of Melbourne.

27. There is no rational argument which can be mounted against better public transport provision to middle and outer Metropolitan Melbourne. In essence the issue is intimately related to the first of the three CfM issue; Pricing, charging and funding. Without changes to transport pricing, charging and funding public transport projects will not be adequately financed by the State Treasury or other sources.

Government Relations

28. Council officers have discussed the possibility of modelling and refining EWITP with their peers at the Department of Infrastructure.

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Finance

29. At this point, there is no financial obligation arising from this report. It may be necessary to contribute some funding to refining the efficacy of the EWITP idea in association with the Department of Infrastructure. If so this would occur within Council approved budget parameters.

Legal

30. This report is consistent with the objectives and functions of the Local Government Act 1989. There are no direct legal implications arising from the recommendation contained in the report.

Sustainability

31. Attachment 2 provides a triple bottom line assessment of the EWITP.

Attachments: 1. Committee for Melbourne Media Release 2. East-West Integrated Transport Proposal 3. East-West Integrated Transport Proposal: Summary 4. East West Transport Corridor 6 Page 7 of 38

MEDIA RELEASE

Committee for Melbourne Identifies Melbourne’s Worst Transport Crisis Points

Melbourne faces a major transport crisis within a decade unless urgent action is taken, according to the influential business group, the Committee for Melbourne (CfM).

A specially convened CfM Transport Taskforce has identified three major challenges for the Federal and State Governments:

♦ Reforming the way that transport is priced, charged, taxed and funded. ♦ Completing Melbourne’s major road network, and ♦ Significantly improving Melbourne’s bus services.

The Committee for Melbourne has brought together a range of top executives and professionals in both the public and private sectors in the transport industry to begin an urgently needed debate about the city’s transport needs.

The Chairman of the CfM Transport Taskforce, Mr Jack Smorgon AM, said with Melbourne’s population to increase by a third or by more than a million people in the next 25 years, the community needed to understand the policy choices necessary to improve transport infrastructure.

Mr Smorgon said an investigation by the taskforce already shows that:

• The cost of congestion in Melbourne will double from $4 billion annually to $8 billion by 2015. Over 60% of these costs are business costs, particularly for the freight industry, thus influencing business’ ability to maintain employment levels, • The length of road congested will more than double from 640km to 1330km by 2011, with the major growth in outer suburbs, • Peak travel speeds are projected to decline from 19.7km/h to 15.2km/h in Melbourne, even with the completion of existing major road improvement projects, while Sydney’s peak travel speeds are improving, • Much of Melbourne’s outer suburbs are poorly served by public transport, with the average finishing time for bus services around 7pm, and • With train and tram services close to or at capacity, tram services will also continue to be strongly affected by the growing congestion on our roads.

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“The Taskforce is very concerned that under-spending in the city’s transport system will cause Melbourne to be less competitive. This will get worse given the commitment of both of our northern neighbours to massive transport infrastructure investment programs,” he said.

“Melbourne is already rapidly falling behind Sydney in creating an orbital road network that has the potential to attract hundreds of millions of dollars of new investment. And the Queensland Government has just unveiled a 25 year infrastructure program. In addition, Sydney and Brisbane have also announced significant re-investment in their public transport networks.

“If Melbourne does not respond, infrastructure investors will overlook our city to take opportunities in other parts of Australia where there are stronger visions for the future.”

The CfM Transport Taskforce has reviewed existing policies and commitments, including those presented in the 2004 Metropolitan Transport Plan, and concluded that, while many of these programs were worth doing and supported, they fall well short of what is needed in total.

The Committee has also identified three major projects that need to be completed by 2015 to protect Melbourne’s competitiveness and preserve the city’s lifestyle: • Extending the Eastern Freeway to the Tullamarine Freeway, • Joining the Ring Road at Greensborough with the Eastlink project, • Upgrading the West Gate Corridor (including the option of a West Gate Bridge Duplication), and • All of the above three road projects should include dedicated transit/bus corridors.

Many new projects have very long lead times between conceptualisation and opening for traffic. Therefore the State and Federal Governments should commence serious investigations of these projects immediately.

At least one of these projects need to be completed within the next five years – for example, the continuing expansion of the Port of Melbourne will need improved road connections to both contain the impact of trucks on surrounding roads and minimise freight delays.

These major projects are in addition to the need for a substantial upgrade program on many two lane arterial roads in the fast growing outer suburbs, where traffic volumes exceed the practical capacity of the road network. High accident rates and growing congestion costs are the result of this backlog, according to the Committee.

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The chairman stressed these issues were not an industry wish-list and there were real consequences for Melbourne’s social and economic development if politicians continued to ignore these issues.

“It is also important to commit to a significant upgrade of Melbourne’s public transport system, particularly the bus network, especially as the State Government is introducing parking levies to dissuade car use in the CBD,” Mr Smorgon said.

“Public transport has to remain an intrinsic part of Melbourne’s overall transport system. There is a significant financial and political commitment to tram and train programs such as Think Tram and the Dandenong line triplification which are strongly supported by the CfM. However buses, which serve a greater number of people in Melbourne’s middle and outer suburbs, have been the poor relation. We really have to address that.”

The Taskforce proposes that local bus services should run on weekdays from at least 6 am to 8 pm with a minimum 30 minute frequency; on Saturdays from 7 am to 8 pm with a minimum 60 minute frequency, and Sundays 8 am to 6 pm with a minimum 60 minute frequency. Timetabling for these services must ensure that they connect well with the other public transport services (particularly trains) at all major interchanges.

As well as this improved local bus service provision, the Taskforce called for much faster roll-out of the higher frequency cross-town SmartBus network, with selected bus priority on busy arterial roads, to reduce transit times and improve bus reliability. The success of the SmartBus trial – an unprecedented increase in passengers of around 30% to 43% -- shows the public’s acceptance and support of the SmartBus concept.

“The scale of congestion costs, coupled with the need for major expansion in transport infrastructure and services, emphasises the need for reform of transport pricing, taxing, expenditure and funding,” said Mr Smorgon. ”This reform will help to bring transport policy and land use policy closer together. The goals of Melbourne 2030, the city’s growth strategy, will not be met unless transport and land use are dealt with in an integrated manner, including pricing reform.

The Taskforce believes that there should be a clear separation of taxes from charges, with charges being related to the full cost (including the “costs” imposed on the wider community) of the trip. The revenue raised from the charges should be used to fund transport infrastructure and services. Provision of a safety net for public transport services is necessary where full costs are not recovered by the fare box to ensure a travel choice for all.

“These reforms have happened with just about every other infrastructure service, and they are well-overdue in transport”, Mr Smorgon said. “We need to put Page 10 of 38

everything on the table, including the role of public sector debt for infrastructure funding, direct user charges such as tolling or congestion pricing, ’s share of Commonwealth road and transport funding, and the future of public-private partnerships.”

End of media release

Media Contacts:

Jack Smorgon AM Chairman, Escor Janine Kirk Taskforce Co-Chair and Executive Director, spokesperson Committee for Melbourne e) [email protected] e) [email protected] p) 03 9650 8800 p) 03 9650 8800

Roger Poole Danielle Johnston Chairman, Bates Smart Communications and Projects Taskforce Co-Chair and Manager, spokesperson Committee for Melbourne e) [email protected] e) [email protected] p) 03 8664 6200 p) 03 9650 8800, 0408 379 019

Ken Ogden General Manager, Public Policy RACV Spokesperson: Road network e) [email protected] p) 03 9703 6141

John Stanley Executive Director Bus Association Victoria Spokesperson: Bus services e) [email protected] p) 03 9645 3300

Mark Sayer Director, Infrastructure Capital ABN AMRO Spokesperson: Transport funding e) [email protected] p) 03 9612 1366

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Background:

Members of the Committee for Melbourne Transport Task Force

Transport Taskforce Members:

• ABN AMRO • Arup • Bates Smart Pty Ltd • Bus Association Victoria • City of Melbourne • Clayton Utz • Committee for Melbourne • Connell Wagner Pty Ltd • Escor Corporation • Freehills • Gavin Anderson & Company • Grenda Corporation • Lend Lease Corporation Ltd • Maunsell Australia Pty Ltd • Metlink • Minter Ellison • Royal Melbourne Institute of Technology University (RMIT) • Royal Automobile Club of Victoria (RACV) Ltd • Transurban Group • Victoria University of Technology – The Institute for Logistics and Supply Chain Management.

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Background:

Transport: the Key to Liveability and Prosperity

Melbourne’s reputation as the world’s most liveable city is a vital foundation for its economic and social development. The success that is being achieved in this regard is reflected in Melbourne currently having the fastest population growth of all Australian capital cities – people want to live here in increasing numbers. This implies a commitment to investing in infrastructure to accommodate growth and deal with current backlogs, particularly in transport.

Sustaining Melbourne’s liveability and prosperity depends on a number of factors, foremost of which is its transport system. The Committee for Melbourne, a representative group of Melbourne’s business leaders, is deeply concerned that Melbourne is failing to cope with an emerging transport crisis and believes that urgent action is required to:

• recognize the problems and • take positive steps to deal with them.

It highlights three areas where it believes that a real sense of urgency is required, beyond what is apparent in Melbourne 2030, the Metropolitan Transport Plan, or recent State Budget funding commitments. These three areas are:

1. completing Melbourne’s major road network; 2. significantly improving bus services, especially in Melbourne’s outer suburbs, with significant spin-off benefits in terms of social inclusion as well as congestion benefits; and 3. improving the way transport is priced, charged and funded.

The Problem

Traffic congestion. Congestion is increasing rapidly on Melbourne’s roads, reducing personal mobility and increasing freight costs. Congestion currently costs about $4 billion annually, with this cost projected to double by 2015. Over 60% of these costs are business costs.

The State Government’s Linking Melbourne: Metropolitan Transport Plan recognizes the significance of the congestion problem. It notes that 640 km of Melbourne’s road length was congested in the morning peak in 2001 and this is projected to more than double to 1330 km by 2011. Morning peak travel speeds are projected to decline from 19.7 km/h in 2001 to 15.2 km/h in 2011, even with the completion of some significant major road improvements projects (Eastlink, Deer Park Bypass, Pakenham Bypass)1.

1 Source: Department of Infrastructure Page 13 of 38

This is a very substantial decline in peak hour travel speeds over a short time period. It implies a significant deterioration in urban amenity and livability. Freight costs will increase and economic competitiveness decline, with associated job losses.

Comparative data for Melbourne, Sydney and Brisbane shows that Melbourne’s all-day travel speed is the lowest of the three cities and the gap between Melbourne and the other two capitals is likely to widen over coming years. Melbourne has traditionally enjoyed a comparative advantage over Sydney and Brisbane in access terms but, because of recent investment in those cities, we are losing that advantage, with potentially significant economic consequences.

50

45

40

Melbourne

35 Sydney

Brisbane

30 Principle Road km/hPrinciple day Speed averageNetwork - Travel all - 2000 2004 2008 2012

Source: Austroads National Performance Indicators and various forecasts

Safety. The number of fatal plus serious injury road crashes in the Melbourne metropolitan area has remained relatively static at about 3,800 over the last nine years. While some improvement has been achieved in the number of minor injury crashes, the failure to significantly reduce fatal and serious injury crashes has meant that road accidents continue to cost the community about $2 billion annually2.

There is a particular problem in the outer suburbs, where fast population growth and associated car and truck movements have run well ahead of additions to road capacity, leading to rapidly increasing peak period congestion and casualty accident rates much higher than the State average. For example, the road casualty crash rate for City of Casey is twice the State rate.

2 These costs have been calculated on the basis of cost to the community from Austroads Report: Economic Evaluation of Road Investment Proposals: Improved Methods for Estimating Australian Unit Crash costs. Crash costs based on the willingness to pay philosophy would be much higher. Costs are in dollars of the day. The magnitude of costs each year is about twice the annual investment in infrastructure improvement.

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Air quality. Air quality indicators show that Melbourne is winning the race on motor vehicle emissions. Implementation of tighter emission control standards in coming years, plus cleaner fuels, should ensure that air quality continues to improve, even with growing traffic levels.

Greenhouse. While air quality is improving, the greenhouse gas situation is not. Road traffic remains the second largest contributor to greenhouse gas emissions and the sector is the fastest growing sector in emission terms. The fast growth in freight movement is a significant contributor to this problem. While the average fuel economy rate from cars has improved about 19% over the 1997 to 2002 period, fuel economy across the heavy road vehicle fleet has deteriorated over this period3. With the rapid growth in road freight traffic volumes, greenhouse gas emissions will continue to grow strongly.

Social Exclusion. With Melbourne being so car-dependent, those without a car available for travel may have less opportunity to engage in the range of pursuits and relationships that are available in a liveable city. This is especially the case in Melbourne’s middle to outer suburbs, where public transport service options are far less than in the inner area and bicycle/walking options are more limited. Melbourne Bus Plan, for example, showed that

• the average weekday finishing time for Melbourne’s bus services is before 7.00pm; • only 3 in four bus services operate on a Saturday, with the average finishing time being just after 5.00pm; and, • only one in five bus services operate on a Sunday.

Summary. In economic (congestion and comparative economic advantage), safety, environmental and social terms, the Committee therefore concludes that there is a crisis developing in Melbourne’s transport system. Yet there is no sense of a crisis in Government policies and current policy directions (as reflected in the 2004 Melbourne Transport Plan) fall well short of what is needed to deal with these emerging crises.

The Committee for Melbourne believes that these problems are indicative of a serious emerging crisis, which Government has not fully acknowledged, and the implications of which are not recognized by Government or the community.

The Committee recognizes that the solution to these crises will be multi-faceted. However, to focus attention to the crisis and point the way to the necessary responses, it proposes three significant reforms which, taken together with other committed projects and initiatives (including those in the Metropolitan Transport Plan) will form the essential components of a response to the crisis. These reforms are outlined below.

3 Unpublished National Transport Commission analysis, based on Survey of Motor Vehicle Use data. Page 15 of 38

Completing the Major Road Network

The Sydney and Melbourne road networks are shown below, to the same scale. A comparison of these networks indicates:

• Sydney has a continuous, integrated and compact freeway/toll road network of approximately 100 km either operating or under construction with staged opening over the next 4 years. • Over 90% of Sydney is within 3 km of this network. • Melbourne requires around 300 km of freeway/toll road to achieve the same coverage/accessibility, due to the city’s geography. Melbourne currently has only about 200 km of such routes. • Significant gaps remain in Melbourne’s network, which means that it cannot function as a connected, continuous system. As well as the delays, safety problems and economic disadvantage that this causes, it means that the potential of modern “smart” road management technology cannot be fully realized. • Melbourne is far too reliant on a single corridor – the Westgate/Monash corridor. Experience has shown that even a small incident at a critical time on this corridor can almost bring the whole city to a near-standstill. This is intolerable, and the problem must be addressed urgently.

Given current political and funding commitments to road investment in Victoria (including such projects as EastLink, Craigieburn, Deer Park, Geelong, Pakenham and Calder), Victoria requires two further links to complete a continuous, connected motorway network connecting the State’s major centres, and one project to relieve Melbourne's most significant congestion problem, namely: Page 16 of 38

Eastern Freeway – Tullamarine Link. The connection of the Eastern Freeway with the Tullamarine Freeway. This “missing link” in the freeway network is the cause of significant congestion to the north of the central city, and that congestion will increase with the completion of the EastLink project in 2008.

The . Completion of the metropolitan ring road, or orbital corridor, by connecting the Ring Road at Greensborough with the Eastern Freeway. With this link in place, a full 360 degree orbital motorway would exist, and, on the evidence of other cities (and Sydney’s imminent achievement of the same objective), this would provide significant economic and social benefits not only to Melbourne, but to the State as a whole.

Monash – West Gate corridor. The – West Gate corridor is the most heavily used road in Melbourne and a key axis of economic activity in Victoria, linking the Melbourne CBD and Port of Melbourne with industrial areas in the outer eastern and western suburbs. Significant sections of these freeways, including the West Gate Bridge, are approaching capacity, with resultant poor travel times and higher accident rates. Unless relieved, congestion in this corridor will limit Victoria’s future economic growth. The route therefore requires upgrading, including the duplication of the West Gate Bridge crossing.

The Committee for Melbourne is concerned that, notwithstanding these problems and opportunities, Victoria remains a relatively small spender from State funds on road improvements – road investment from its own sources is less than that of NSW and Queensland on a per-capita basis. Also, the State has no detailed plans to improve bus service levels in outer suburban areas.

Providing Modern Bus Services Across Melbourne

Public transport is an intrinsic part of Melbourne’s transport system. Trains and trams are the more high profile segments of the transport network and are well funded. People who choose to, and are able to, live in tram-suburbs or near a railway station, receive a much higher quality public transport service than the great majority of Melbournians. Some 60% of Melbournians have no train or tram services nearby. They rely on buses for their public transport services and bus service levels are poor across much of the region.

For those people without access to a private car, the poor availability of bus services in outer Melbourne is a significant constraining factor on the capacity for social engagement. Poor bus service availability also increases car dependence, adding to traffic congestion in areas where arterial road improvement has not kept pace with population growth. Recent research by Bus Association Victoria reveals that even those with car availability in outer areas see the need for improved bus services, to provide travel choices and help ease congestion pressures. Page 17 of 38

For this reason, the Committee for Melbourne believes that it is time to raise the profile of buses and lift bus service standards across the city, particularly in the middle to outer suburbs. The Committee considers that a modern bus system for Melbourne should have at least the following service standards:

• Monday to Friday: 6.00am start, with the last run starting at 8.00pm; frequencies of at least 30 minutes at peak and inter-peak times and 60 minutes at off-peak; • Saturday: 7.00am start; 8.00pm start of last run; 60 minutes frequency; • Sunday: 8.00am start; 6.00pm start of last run: 60 minutes frequency. • In areas of high demand, higher frequencies (and longer spans of hours) would be expected.

Implementation of such improvements in local bus services would cost about $60 million annually. This would represent an increase of about one quarter in Government funding of bus services in Melbourne, with most effort being devoted to raising outer suburban service standards.

To maximize the effectiveness of investment in improved bus services, selective bus priority measures should be implemented, to reduce the impact of traffic congestion on service speeds and reliability. State Government SmartBus initiatives on Blackburn and Springvale Roads have shown how substantial patronage increases (20-40%) flow from improved service standards in association with bus priority operation. The SmartBus program should be rolled out much more quickly across Melbourne, complemented by spot priority initiatives to improve bus travel speeds.

Pricing, Charging and Funding

At present, there is little connection between the costs of providing transport services and infrastructure and the charges levied for use of infrastructure/services. The Committee for Melbourne believes that the crises identified above will not be resolved without fundamental reform of transport pricing, charging and funding.

The essence of this reform will involve:

• clear separation of taxes from charges; • charges being cost-based, including any relevant externalities (e.g. accidents, greenhouse gas emissions, congestion), the revenue so raised being used to fund transport infrastructure and services; • provision of basic “safety-net” public transport and local street access services for which user charges may not be appropriate.

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The Committee has identified a number of options for reform of road user charging, funding and pricing. It believes that a serious public debate must occur on what combination of these should be adopted, as part of an overall reform package which would lead to the above outcomes. These options include:

Government Debt. This includes the issuance of long term government debt typically in the form of bonds by Treasury Corporation of Victoria or the Commonwealth Government. Increased government debt, however, would potentially be seen as being imprudent given recent fiscal consolidation and debt reduction.

Budget Appropriations/Taxes. This covers the full range of Commonwealth, State and Local government taxes, including income, corporate and GST at the Commonwealth level, stamp duties, land taxes and payroll taxes at the State level, and property related taxes at the Local level. This form of funding spreads the costs widely throughout the community, which potentially accords with the nature of the benefits resulting from the infrastructure provision. Key drawbacks include their inefficiency (as they are often distorted) and the likelihood that they would be subject to significant stakeholder and political opposition.

The distribution of Commonwealth funds needs to be considered within this. For example, over recent years, Victoria has received a significantly lesser share of Commonwealth road funds than would be indicated by its share of the national economy or the higher economic returns from project investment in Victoria.

User Charges. These can include tolls, fares or tariffs that are directly levied on the consumer of the good or service. The asset can be publicly or privately financed, or can even fall somewhere in between (such as “shadow tolling” where the private sector takes usage risk, and the government pays a toll per the public’s usage). Charges are usually linked to the cost of service provision but can also include externalities, such as congestion costs. User charge systems funded by the private sector allow the acceleration of infrastructure provision and the transfer of usage risk to those parties. These systems require the private sector to invest equity and debt (via either the bank or capital markets) into projects, and receive a market return. The “usage” charge element typically restricts this mode of financing to those assets which will involve high levels of public usage. User charge systems can be politically unpopular, but their increased usage appears to be leading to increased social acceptance against the government funded alternatives.

Public-Private Partnerships. These are privately financed vehicles which provide public infrastructure and associated services. They may be Build-Own- Operate or Build-Own-Operate-Transfer type projects. These vehicles build, finance and operate the infrastructure, for which they receive availability payments from government to cover their costs. This can be particularly relevant for projects where public usage may be regulated or limited, where a “user pays” Page 19 of 38

system may be uneconomic or could be socially unpopular. PPPs allow the provision of infrastructure to be accelerated, and are more cost efficient in situations where risks can be adequately be transferred from the public to the private sector. PPP financing includes the investment of private sector equity and the raising of third party debt (via either the bank or capital markets).

The structure of public-private partnerships may open up further innovative funding opportunities, such as the recent example of cashing in future Transurban concession notes in respect of CityLink to help fund the Calder / Tullamarine interchange.

Producer Levies. This covers a variety of charges levied directly on the supply or production of infrastructure, including developer charges. This might include a transport levy charged on newly released blocks of land in areas where transport links have been significantly improved, increasing land values. Producer levies are generally not very efficient or fair and involve significant compliance costs. Moreover as a source of finance they are susceptible to the vagaries of the building and construction cycle, and are unlikely to be able to provide funds on a larger scale.

Summary and Call to Action

The Committee for Melbourne believes that these three initiatives – completing the road network, upgrading the bus system, and reform of road user pricing, charging and funding - are critical to sustaining Melbourne’s livability and prosperity. Melbourne is facing a crisis today and urgent action is needed.

Transport’s role in securing Melbourne’s future is not sufficiently acknowledged, much less reflected in investment in transport infrastructure and services.

A failure to act will mean loss of jobs to other capitals and overseas, accident rates stuck at high levels, no progress against greenhouse gas emissions from transport, and a worsening outlook for those outer suburban residents with limited access options.

End of background Page 20 of 38 Attachment 2 Agenda Item 5.8 Planning and Environment Committee 6 September 2005

East-West Integrated Transport Proposal

August 2005

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East-West Integrated

Transport Proposal

Author: Peter Doupé

Checker: William McDougall

Approver: William McDougall

Date: August 2005

This report has been prepared for in accordance with the terms and conditions of appointment for dated July 2005. Peter Doupé Pty Ltd (ACN 113 155 605) and Sinclair Knight Metz Pty Ltd cannot accept any responsibility for any use of or reliance on the contents of this report by any third party.

Peter Doupé Pty Ltd Sinclair Knight Merz Pty Ltd ACN 113 155 605 ACN 001 024 095 ABN 79 813 153 283 ABN 37 001 024 095 11 Golf Avenue, Rosanna Vic 3084 590 Orrong Road Armadale Vic 3143 Tel: +61 (0)407 004 162 Tel: +61 3 9248 3455

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Contents

1 Summary...... 1

2 Introduction ...... 2

2.1 Objectives ...... 2 3 Outline of proposal...... 4

4 Strategic context ...... 6

4.1 Transport strategy ...... 6 4.2 Triple bottom line outcomes...... 6 5 Transport impact...... 9

5.1 Public transport...... 9 5.2 Freight transport...... 10 5.3 Private transport...... 10 6 Impact on other routes ...... 11

7 Implementation...... 12

7.1 Staging ...... 12

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1 Summary

This report discusses a proposal for an East-West Integrated Transport Project (EWITP) to provide improved accessibility to and from Central Melbourne and address a number of perceived key transport shortcomings. The report is an evolution of the ideas recently put forward by the Committee for Melbourne (CfM). It is designed to provide transport infrastructure and services that will enable the continued development of Central Melbourne as the key activity centre in the Metropolitan Area, with improvements for public transport, car traffic and freight traffic in an integrated approach that is consistent with Government and Council long term planning and development objectives, as well as community expectations. It should be clearly understood that the primary purpose of the project is to provide wider transport choice and improved public transport mode share. It is not intended to relieve road traffic congestion, because this is in itself is an important factor in promoting use of more sustainable transport modes. Surface road ‘space’ created by the road tunnel and rail components of the EWITP will need to be re-allocated to road-based public transport and ‘green’ modes (walking and cycling) as an integral part of the project. Projects that attempt to relieve traffic congestion have always proved to be short- lived in this respect, because the extra road space they create induces additional traffic, thus eroding the benefits to existing users and simply creating more and more congestion. This is no longer seen as the solution to urban transport issues and should not be pursued. In this climate the EWITP will dramatically improve the ‘menu’ of travel choices available; travel demand management principles will be used to ensure that use of different modes of transport is balanced, and that the dependence on car travel is reduced. Melbourne City Council’s Integrated Transport Strategy is currently being developed and is expected to support the EWITP. The proposal is consistent with the principles and strategic directions of Council’s recently-updated City Plan 2010.

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2 Introduction

This report has been commissioned by the City of Melbourne to further develop ideas for improving transport in and around central Melbourne, as presented in the Committee for Melbourne (CfM) ’s draft paper, Melbourne’s Worst Transport Crisis Points. It is a strategic positioning document that presents a broad transport proposal benefiting a larger part of the Melbourne metropolitan area with transport infrastructure proposals from Doncaster in the east to the Sunshine-Deer Park area in the west. The proposal, dubbed the East West Integrated Transport Proposal (EWITP), whilst primarily east-west, will also have an impact on north-south routes and routes from the south east through to the north and north-west areas of Melbourne and beyond. The EWITP integrates many improvements to public transport, recognising the importance of allocating appropriate trips to appropriate modes of transport and achieving an integrated transport solution for Melbourne. A key strategic focus of the proposal is to improve environmental conditions on surface roads by relocating rather than increasing existing traffic capacity, thus providing scope for improved public transport and traffic management and remaining consistent with Government and Council objectives to improve public transport, cycling and walking relative to car travel. Travel demand management will also be used to ensure that the transport infrastructure and services are used as efficiently and equitably as possible. The project is not intended to reduce per-journey road traffic congestion. It is however intended to reduce individuals’ travel times and costs, through improving the principal road links but also, importantly, through providing more competitive choices to car driver travel. This in turn (and in conjunction with other initiatives like road pricing) will reduce reliance on private vehicle travel, so that the overall quantum of road congestion will be reduced as car users transfer to other modes of transport.

2.1 Objectives The objectives of the EWITP are shared with those of the CfM proposals, however this document has not revisited the issue of charging mechanisms. Nonetheless it is acknowledged that congestion charging or other forms of road pricing will become an important issue in the future, and the EWITP proposal enhances the opportunities for this. Key areas where the EWITP differs from the CfM proposals are: - the Eastern Freeway-Tullamarine Freeway link is included in the EWITP, however the EWITP continues further to the west connecting to the Western Ring Road (WRR) in the Deer Park Bypass/Western Highway area. - the need for and/or the timing of additional capacity in the West Gate Bridge corridor can be reassessed, as the EWITP will satisfy some of this demand. It also introduces a different philosophy by actively improving and promoting

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alternatives to car travel, thus encouraging a mode shift that will reduce the pressure on the existing road network. - the need to link the Metropolitan Ring Road at Greensborough with the Eastern Freeway through the Eltham-Bulleen corridor can be reassessed, because the EWITP can be expected to beneficially alter traffic patterns in this corridor.

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3 Outline of proposal

A general description of the EWITP is as follows (see Figure 1 for an illustration of infrastructure elements): - A passenger rail corridor from Doncaster would continue through to the northern side of the Melbourne municipal area, servicing Melbourne University and the Parkville hospital precinct and linking with other rail systems at Clifton Hill and/or North Melbourne station, or entering the CBD from the north1. There would also be other integrated rail elements which improve accessibility to the city. - An east-west road and rail tunnel from the end of the Eastern Freeway to the Western Ring Road connecting around the Western Highway/Deer Park Bypass area. The tunnel will service light and heavy vehicles accessing Tullamarine Freeway, the CBD, City Link, the Western Ring Road and the Western Highway. - A new freight tunnel will replace the Bunbury Street rail tunnel which is currently too shallow for double stacking of containers. The tunnel will provide another option for freight movement to and from the docks. - Traffic management measures on surface roads to encourage use of the tunnel and redirect through traffic out of local streets. - ‘Green’ transport mode improvements (road based public transport priority measures, improved cycling and walking facilities) to make best use of the surface road space ‘freed’ by traffic using the tunnel. - The whole plan would be knitted together with a travel demand management strategy (using such tools as pricing, travel behaviour change and traffic management) to ensure that the various elements of the transport system are used in a more balanced, equitable and sustainable way. The main cost differences from the Eastern-Tullamarine Freeway Link will be the longer tunnel, the rail service to Doncaster and other rail options (to the West), as well as the accompanying traffic management and ‘green’ transport mode improvements. It is clearly a much more significant investment commitment than the Eastern-Tullamarine Freeway Link, and would require significantly greater public funding than a tolled road tunnel, but it is considered that such a commitment is imperative to the future development of Melbourne; the road tunnel alone cannot provide the same benefits. It is also important that the EWITP includes priority for road-based public transport, cycling, walking and amenity improvements on surface streets that are relieved by the EWITP. It should not be seen as a project to increase vehicular traffic capacity

1 There is a much larger possibility, to develop a new underground north-south rail link through the CBD to link the Doncaster and possib ly the Upfield rail lines through Carlton and the CBD to St Kilda Road and the priority light rail lines south of the city. This would reduce the need to upgrade the existing city rail loop and provide much-improved public transport between the north and south. The choice between heavy or light rail can be determined in the future given the availability of dual voltage rail vehicles and the possible future consideration of integration with the light rail network.

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(and hence reduce congestion), but rather to provide an opportunity to improve the balance between transport modes by taking definite steps to make more sustainable use of the surface road ‘space’ created by the tunnel and rail components.

Figure 1 - Outline of EWITP Infrastructure Elements

Source: City of Melbourne. Diagram does not depict accompanying road-based public transport, traffic management and travel demand management initiatives.

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4 Strategic context

4.1 Transport strategy The EWITP services public transport, freight transport, commercial transport and private motorists. Consideration across all transport modes provides balance and an assessment of the needs of most road user groups. The plan will benefit pedestrians and cyclists through reallocation of surface road space to cycle lanes, pedestrian facilities and so on; these details will need to be considered through more detailed planning and design. It is important to manage the benefits from the EWITP particularly from the east- west traffic volumes that are reduced from city and surrounding streets with the tunnel, the benefits must be protected so that additional traffic does not fill this volume reduction opportunity. The CfM strategy proposed enhanced bus services and other improvements; this is supported in the EWITP as are pedestrian and cycling improvements mentioned above. Importantly, the EWITP is a plan that can be implemented in stages with visible incremental benefits as the plan is developed. However it is vital that commitment is made to the plan in its entirety, and that its funding, design and implementation is progressed as an integrated whole. Whilst this is acknowledged to be very ambitious, it should be an essential precondition to Council’s support for the concept.

4.2 Triple bottom line outcomes Table 1 compares the broad effects of the Eastern-Tullamarine Freeway Link and the EWITP against typical social, environmental and economic objectives consistent with State Government, Council and community expectations. The appraisal demonstrates the importance of an integrated and comprehensive set of initiatives; if any of the EWITP elements are ignored or rejected, they will have an adverse effect on the desired outcomes of the project as a whole. It also demonstrates that the road tunnel proposal alone will not provide the wider benefits of the EWITP. Table 2 compares the east-west tunnel and EWITP against City Plan 2010 strategic directions. It illustrates that the EWITP will contribute significantly towards the recently-updated directions of City Plan 2010, in ways that the Eastern-Tullamarine Freeway Link alone will not. Given the scope of these potential benefits it is considered important to commit to a wider vision rather than giving priority to a single project that may provide significant short-term financial gains for investors, but will not alone provide the broader community benefits that are sought.

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Table 1: Achieving triple bottom line outcomes Goal Eastern-Tullamarine Fwy link EWITP Social: Improve amenity and liveability by: Significantly reducing the «« Smoother flow for traffic using the tunnel, ««« Smoother flow for traffic using the tunnel impacts of noise and air removal of traffic (incl trucks) from surface components, removal of traffic (incl trucks) from pollution from transport roads will reduce noise/pollution from traffic surface roads and mode shift to public transport, cycling and walking will significantly reduce noise/pollution from traffic Improving safety – reducing «« Reduced conflicts between vehicles and ««« Reduced conflicts between vehicles and fatalities/casualties to or pedestrians through greater segregation of pedestrians through greater segregation and beyond state targets through traffic safer integration of through traffic, public transport, cycling and walking Significantly enhancing urban «« Significant opportunities to enhance urban «« Significant opportunities to enhance urban landscape and heritage amenity, especially in areas like Royal Park amenity, especially in areas like Royal Park values in key areas Minimising through traffic on «« Traffic management measures to relieve «« Traffic management measures to relieve local local streets local streets of inappropriate traffic, streets of inappropriate traffic, es pecially in especially in Parkville and North Fitzroy Parkville and North Fitzroy Improving access and travel « Limited impact unless accompanied by ««« Substantial improvement in public transport in choices for residents, visitors public transport improvements the Doncaster corridor and inner areas through and workers, including priority measures and reallocation of road space disadvantaged groups Providing facilities for people « Limited impact unless accompanied by ««« Particular opportunities to provide improved with mobility disadvantages public transport improvements access to public transport, especially platform access to trams on surface roads and to rail vehicles in the Doncaster corridor project Environmental: Protect and enhance environmental sustainability by: Ensuring a contribution to « Subject to analysis, emission reductions «« Subject to analysis, the main effect will be the overall reductions in from reduced congestion may be cancelled shift of demand to more sustainable and energy- greenhouse gas emissions out by induced traffic efficient modes of transport Reducing anticipated car use «« Significant amounts of through travel will be ««« Significant amounts of through travel will be for travel through, to/from and relocated into the tunnel. Unlikely to have a relocated into the tunnel, and public transport, within the inner north significant effect on public transport use cycling and walking improvements will increase the use of these modes in preference to car Substantially increasing « Road tunnel will not increase public ««« A key objective and target of the project – public transport mode share transport mode share; it may even reduce it provided it includes all public transport elements, including reallocation of surface road space to tram and bus services/infrastructure Increasing the use of walking « Not an integral part of the project ««« Positive reinforcement and improvement of and cycling cycling and walking facilities is integral Protecting and enhancing «« Reduced surface vehicular traffic should «« Reduced surface vehicular traffic should enable biodiversity enable environmental enhancements eg environmental enhancements, eg Royal Park Royal Park Economic: Support growth in economic activity, especially in and around Melbourne’s CBD, by: Enhancing access for «« Improved road transport accessibility with ««« Improved accessibility for all transport modes, commercial activities tunnel will have some effects but not especially public transport, which is arguably the including tourism and focussed on CBD most important mode for tourists and recreational recreation activities Catering for increased «« Reduced through traffic will accommodate ««« Reduced through traffic and improved public residential population in the more local travel and accessibility to sustain transport will accommodate more local travel and inner north and surrounding increased residential populations accessibility to sustain increased residential areas populations Providing for commercial «« Limited route improvements for road freight ««« Specific route improvements for road freight to travel movements, including to accommodate increased demand, and accommodate increased demand, and improved safe, efficient primary routes improved segregation of freight traffic from segregation of freight traffic from local traffic and for freight local traffic and people movements people movements Efficiently serving travel «« Road tunnel will significantly improve ««« Road and rail tunnel components as well as needs through, to/from and transport efficiency in the inner area public transport improvements will substantially within the inner north improve transport efficiency in the inner area Maximising the economic « Economic analysis of tunnel showed a «« Economic returns of tunnel and rail projects will return on investment in benefit-cost ratio of about 1 in NCCCS – be considerably enhanced by attendant public transport and land use substantially less than usually accepted for transport and traffic demand management initiatives road projects initiatives (subject to quantification) NB - Objectives are adapted from the Northern Central City Corridor Study (DOI, 2003)

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Table 2: EWITP contributions to City Plan 2010 strategic directions Direction Eastern-Tullamarine EWITP Fwy link 1. Connected and accessible city Ensure that the City’s transport infrastructure is world-competitive and supports the « ««« Victorian economy, whilst minimising its impact on local neighbourhoods Build international relationships that consolidate Melbourne’s capital city role and «« ««« promote social equity, environmental quality and economic prosperity Ensure a sustainable and highly integrated transport system services the needs of the « ««« city and its people Increase public transport services and use « ««« Enhance the network of Melbourne’s parks and gardens to include a wide range of « « diverse landscaped areas that are well connected to the community and reflect community values Improve connections between Docklands, the Central City, the Yarra River and key City « ««« attractions Environmentally responsible city Reduce greenhouse gas emissions, promote renewable energy and maintain air quality « «« in the City of Melbourne Encourage improved water quality, reduced water consumption and sustainably manage « « waste in the City of Melbourne Protect and enhance the City’s biodiversity « « Demonstrate and encourage leadership in sustainability « ««« Create a sustainable built form for the City « ««« Inclusive and engaging city Welcome and facilitate all sectors of the community to participate in City life « «« Encourage social equity, inclusion and wellbeing « «« Deliver and provide access to facilities and services to support those living in, visiting « « and working in the City Promote, celebrate and further develop the City of Melbourne as a culturally rich capital « « city which encompasses its key strengths in art and sport Enhance the liveability and diversity of local areas « «« Protect and promote Melbourne’s distinctive physical character and ensure it continues « «« to develop a strong sense of place and identity Enhance the quality of the existing public and private built form and further develop the « «« City as an exemplary urban environment Increase metropolitan, rural, national and international tourism « «« Attract, facilitate and maximise benefits of major City events and festivals « « 2. Innovative and vital business city Increase Melbourne’s performance and recognition as an international, entrepreneurial « «« and competitive ‘knowledge city’ Foster a civic and business culture that encourages entrepreneurship and innovation « «« Promote and extend the City’s role as Victoria’s principal centre for business and trade « «« Develop and sustain a world-class retail experience within the City « «« Enhance the City’s role as a ‘start-up city’ by supporting the establishment and growth of « «« small to medium businesses Develop sustainable business clusters in advanced manufacturing and logistics « «« This is acknowledged as a subjective assessment, but nonetheless demonstrates the greater potential strategic fit of the EWITP compared with the Eastern-Tullamarine Freeway Link.

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5 Transport impact

The transport implications of the EWITP have not been modelled or analysed in any detail at this stage. Views expressed herein on what the impact might be are the professional views of the authors, having taken into account the current traffic conditions, growth predictions and other available information.

5.1 Public transport The Doncaster corridor has long been considered public transport disadvantaged and the provision of a rail service along the Eastern Freeway has also been frequently advocated (indeed the freeway median was originally designed to include space for a transit link of some form). Patrons from the Doncaster area preferring rail travel into the city either travel to Heidelberg, Eaglemont or Ivanhoe stations on the Hurstbridge line (both in Zone 1) or to the Lilydale-Belgrave line at Box Hill, Blackburn or Mitcham, depending on where they live, the time they want to travel, and the likelihood of finding a parking space. The 109 tram from Box Hill is a long journey to the CBD compared to the heavy rail alternative, as is the 48 tram from North Balwyn along Doncaster Road and High Street. The Doncaster corridor is primarily serviced by buses that use a variety of east-west routes, primarily via the Eastern Freeway to the City and bus lanes are provided on the freeway, Hoddle Street and Victoria Parade. However, buses are extensively delayed by other traffic where they do not have exclusive use of road space, and the capacity limitation of a bus-based system is such that it could not achieve the share of transport demand that is required for the corridor. Provision of a rail service (heavy or light) in a dedicated reservation, well-served by integrated bus services, walking and cycling links and park-and-ride as appropriate, will enhance the integrated transport offering in the corridor and is the only real way to provide a quantum shift in public transport mode share in the eastern corridor. The City Loop rail line is congested and with headway times currently at their maximum, constrained by the current signalling system. The EWITP could provide an additional outer northern rail loop, and/or a new north-south rail system linking the inner north with the inner southern suburbs through the CBD. This will be another option for passengers depending on their destination and could be designed to enable additional train routes and timetabling options for the rest of the metropolitan system as well. There are a number of other rail alternatives for consideration which can connect into the city fringe heavy or light rail grid from the north and east and also provide a through connection beyond the city area to address a number of current capacity and operation problems on the rail network enhancing the rail service offering to existing and future patrons. Key destinations currently not well serviced by public transport will be provided with direct connection from the east. These include Melbourne University, the hospital precinct (the Royal Children’s, Royal Melbourne, the relocated Royal Women’s), and the Biotech precinct. Page 9

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It is noted that the Parkville Precinct Master Plan current under development and led by the Department of Innovation, Industry and Regional Development will provide improved data and growth forecasts for this area which, whilst reasonably close to public transport, public transport services need to be improved to discourage car based transport options into this important location on the city fringe.

5.2 Freight transport The EWITP east-west tunnel proposal and also shorter trips using the tunnel via the intermediate interchanges will save freight transport time and money. These and the environmental benefits to the community by reducing the volume and effects of heavy vehicles on surface roads will be measurable. Currently, road-based freight traffic coming from the north-east uses the Eastern Freeway and either continues west through the inner north to access the Western Highway, or uses the Hoddle Street/Punt Road/Swan Street route (or City Link) to the . This has detrimental economic, environmental and social costs on the wider community as the freight vehicles are travelling through heavily congested areas which remain congested for most of the day. The EWITP east-west tunnel will provide an alternative route to freight traffic travelling east-west and to/from the south west as well. It is anticipated that the tunnel option will also assist in north-south traffic patterns, as freight traffic will determine the costs and benefits of particular route options provided by the long tunnel.

5.3 Private transport The EWITP will provide an alternative east-west link across Melbourne and partially relieve congestion in the West Gate Freeway corridor, as well as reducing through traffic on roads in the inner north (eg Victoria Parade, Hoddle Street, Brunswick Road and Bell Street). The long tunnel may satisfy the requirement for additional capacity at the West Gate Bridge for a period. The timeframe for this will need to be tested through future year strategic modelling and build on the recent modelling work undertaken by VicRoads. There will not necessarily be a resultant reduction in peak hour travel times which would not be desirable as this would encourage a shift from public transport. The plan will include proposals to reallocate surface road space for other uses such as dedicated peak hour public transport lanes and more full time bicycle lanes. It is intended that the EWITP will provide a strategic blueprint consisting of measures to encourage greater use of more sustainable transport and alleviate traffic bottlenecks, thus protecting economic prosperity whilst at the same time promoting environmental responsibility. Private motorists will benefit from the project either by using the new road linkages provided, from the changed road environment created by the new infrastructure or by transferring to improved public transport as a more viable alternative.

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6 Impact on other routes

A high level overview of the impact on other routes is possible given the strategic nature of this paper. More detailed strategic modelling will be required to test and verify the EWITP at a more detailed level. If financed through road user tolls, the level of toll charges will also influence the attractiveness of the link, to private motorists in particular. Some of the impacts will include: - Reduced traffic demand in the inner north, including Alexandra Parade and Elliott Avenue, Victoria Parade, Brunswick Road and even (to a lesser extent) Bell Street. - Reduced traffic and freight transport demand on the West Gate Freeway and feeder roads to and from the bridge. - Increased public transport patronage from the Doncaster area, with the addition of an east-west rail link, an outer rail loop and other rail enhancements. - Additional public transport choices for Melbourne University and the Parkville hospital and Biotech precinct. Other impacts that will have to be tested through more detailed modelling include: - The requirement for extending the Metropolitan Ring Road through Greensborough and Eltham, the need for this infrastructure may be reduced or avoided by the EWITP. - How to incorporate the Doncaster rail link into the city’s public transport system, by addressing capacity constraints at Clifton Hill and / or North Melbourne station or elsewhere, depending on the scheme adopted. - The management of demand in the West Gate Freeway corridor and the effect on the requirement for increased capacity such as bridge duplication or consideration of tunnel options. - Capacity constraints on the Western Ring Road in the area of the Deer Park Bypass where the EWITP would link. Additional capacity may be required depending on the configuration of the connection. - Changes to north-south traffic patterns which result from the impact of the EWITP on individuals route choice. Route choice will be determined from a complex mix of origins and destinations, toll charges and vehicle type (ie. freight, commercial or private). Work done during the government’s Northern Central City Corridor Study showed that the east-west route in the inner north performs a significant distributive role for north-south movements as well as east-west traffic.

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7 Implementation

The EWITP can be divided into discrete work packages and this will be advantageous for implementation and costing purposes. However as stated several times already, the benefits of the package come from the complete integrated solution which is represented by the EWITP. The integrated elements can be described as: - The rail link from Doncaster to North Melbourne rail station including a passenger rail service in the tunnel from the end of the Eastern Freeway to North Melbourne, stations at suitable locations along the link servicing strategic locations. - A new outer rail loop, an/or a north-south rail connection through the CBD connecting the existing rail network to the tunnel or other integrated rail elements to improve accessibility to the city ands reduce reliance on the existing city loop. - A new freight tunnel to replace the Bunbury Street rail tunnel which is currently too shallow for double stacking of containers. The tunnel will provide another option for freight movement to and from the docks. - The Clifton Hill and/or North Melbourne rail station will become an even more important transport interchange and hub with the possible addition of the Doncaster rail link termination point. - The east-west tunnel from the Eastern Freeway to the Western Ring Road and the interchange configuration and locations.

7.1 Staging The east-west tunnel and the Doncaster rail link are the items that will provide the greatest community benefits, and will also provide the means to rebalance the use of existing surface road infrastructure. They are also the highest-cost items in the proposal. Possibilities to stage the east-west tunnel are: - Eastern Freeway to City Link; - City Link to Geelong Road; and - Geelong Road to Western Ring Road. Possibilities to stage implementation of public transport are: - Doncaster to the Epping-Hurstbridge line at Hoddle Street (or the light rail in Nicholson Street) - freight tunnel to replace the Bunbury Street rail tunnel; - public transport in the tunnel from the end of the Eastern Freeway to North Melbourne station interchange/ the outer loop (end of the Eastern Freeway to North Melbourne station).

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Page 35 of 38 Attachment 3 Agenda Item 5.8 Planning and En vironment Committee 6 September 2005 East-West Integrated Transport Proposal: Summary

The East-West Integrated Transport Proposal (EWITP) is a transport infrastructure proposal linking Doncaster in the east to the Sunshine-Deer Park area in the west. The proposal aligns a series of road and rail projects along one corridor which has the capacity to address a number of perceived key transport shortcomings.

The EWIT P includes the following elements:

1. A passenger rail corridor from Doncaster would continue through to the northern side of the Melbourne municipal area, servicing Melbourne University and the Parkville hospital precinct and linking with other rail systems at Clifton Hill and/or North Melbourne station, or entering the CBD from the north. This could be either heavy or light rail or a hybrid of both.

2. East -west road connection from the end of the Eastern Freeway to the Western Ring Road connecting around the Western Highway/Deer Park Bypass area. Whilst primarily utlising tunnels, there is opportunity for construction at -grade on some sections. The road connection will service light and heavy vehicles accessing Tullamarine Freeway, the CBD, City Link, the Western Ring Road and the Western Highway.

3. East -west freight rail line connecting the Port of Melbourne to the west, under Footscray, replacing the Bunbury Street rail tunnel which is currently too shallow for double stacking of containers.

The proposal would bring about the following benefits:

1. Service the eastern region with a passenger rail service to realise a modal shift from road to rail and create capacity on existing modes.

2. Maximise the life and efficiency of the Port of Melbourne with the provision of direct access to a road/rail link at its doorstep linking in all directions.

3. Maximise the potential of Footscray as a Transit City by releasing land to be used for development and improve amenity by alleviating through rail and road traffic from the heart of the activity centre.

4. Relieve road congestion at the city-end of the Eastern Freeway and the inner north generally, which will be exacerbated in 2008 on completion of the East-link project. The EWITP would enable easier movement by local traffic, tram, bike and foot and improved amenity between the CBD and the inner northern suburbs.

5. Complete a parallel road corridor with the Monash/Westgate Freeway to enable management of congestion across the road network.

6. Possibly provide an alternative to duplicating the Westgate Bridge, which would exacerbate existing congestion issues during construction. Construction of the EWITP would also avoid the need for high bridging of the Yarra River for shipping purposes.

7. Improved public transport options to Melbourne University and the Parkville medical and bio-technology precinct, both of which will incur considerable growth in visitation in coming years.

To maximise the effectiveness of the corridor, the following elements would be employed:

1. Traffic management measures on surface roads to encourage use of the road tunnel and redirect through traffic out of local streets.

2. Alternative travel mode improvements (road based public transport priority measures, improved cycling and walking facilities) to make best use of surface road space ‘freed’ by traffic using the tunnel.

3. The whole plan would be knitted together with a travel demand management strategy (using such tools as pricing, travel behaviour change and traffic management) to ensure that the various elements of the transport system are used in a more balanced, equitable and sustainable way. Legend Proposed Freeway East West Transport Corridor Proposed Road Tunnel (Tolled) Proposed Doncaster Passenger Rail Line (at grade) To Bendigo Rail Tunnel Melbourne University Station North Melbourne Station Proposed Freight Rail Line

North Melbourne Station will be a transport interchange for Eastern Freeway Rail line feeding the City Loop.

Station to service Parkville Hospital, Biotech and Melbourne University Page 36of38 City Link road interchange To Ballarat Road and rail tunnel will serve vehicles and freight from Eastern Freeway accessing Tullamarine Freeway City Link, the CBD Proposed freight tunnel to (via City Link) and the replace Bundbry St rail tunnel Western Freeway.

To Eastlink

Western Freeway link is awaiting funding.

Road tunnel will replicate much needed freight link To Geelong provided by West Gate Bridge. Page 37 of 38 Agenda Item 5.8 Planning and Environment Committee 6 September 2005

FINANCE ATTACHMENT

COMMITTEE FOR MELBOURNE – TRANSPORT STRATEGY

Any funding requirements will be subject to the normal budget processes.

Joe Groher Manager Financial Services

Page 38 of 38 Agenda Item 5.8 Planning and Environment Committee 6 September 2005

LEGAL ATTACHMENT

COMMITTEE FOR MELBOURNE – TRANSPORT STRATEGY

Section 3C(1) of the Local Government Act 1989 (“the Act”) provides that the:

“primary object of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions”.

Section 3C(2)(a) of the Act further provides that in seeking to achieve its primary objective referred to above a Council must have regard to objectives including:

(a) to promote the social, economic and environmental viability and sustainability of the municipal district.

Section 3E(1)(d) provides that one of the functions of a Council is undertaking strategic and land use planning for the municipal district.

This report is consistent with these objectives and functions. There are no direct legal implications arising from the recommendation contained in the report.

Instrument of Delegation

On 16 December 2004 the Council resolved to delegate to the Planning and Environment Committee the power, duties and functions directly relating or ancillary to strategic planning.

Alison Lyon Manager Legal & Governance