Ports and Transport SPECIAL REPORT Photo: Stockphoto businessnews.com.au Ports and transport FEATURE Rail projects head infras tructure investment Transport investment is budgeted to be $11.7 billion through to 2024, but not all proposals offer obvious value. investment through this finan- cial year to June 2024. Added to that will be $5.5 bil- lion on roads, while a $4.5 billion port development in Kwinana is expected in the longer term. Just weeks out from the elec- tion, the state opposition has alternative priorities: building an extension of Roe Highway, Matt Mckenzie sinking part of the Freman- [email protected] tle Rail line, and subsidies to @Matt_Mckenzie_ encourage uptake of hydrogen 8-PAGE FEATURE and electric vehicles. The two main parties have T is about 120 kilometres both promised higher subsidies from Yanchep to Mandurah, for public transport users. I destinations that will mark The Liberal Party said it the northern and southernmost would introduce free public points of Perth’s rail network transport for school kids and when the newest track exten- seniors, at a cost of $56 million LENGTHY: The rail extension to Yanchep will stretch Perth’s public transport network. Photo: Gabriel Oliveira sion is completed. a year. And the journey could cost a Labor has promised to reduce maximum of $4.90, with a public Perth’s nine public transport further move away from a user- disproportionate number of Western Australia $3.6 billion transport fee cap from January zones to two, and cap fees at pays system public transport users and in 2031, double the level of 2016. 2022 promised by Labor WA if it $4.90. The PTA received $830 million make up the largest group of The cost of public transport wins the March state election. That would increase subsi- from the government in the 2019 public transport users overall,” congestion was also forecast to As a point of contrast to dies to the Public Transport financial year and earned only the organisation said. rise, to $159 million by 2031. demonstrate the spread of the Authority by about $60 million $230 million from ticket sales. It is understood the PTA has The biggest beneficiaries of Perth network, a direct route annually, and perhaps shows While it is commonly believed not surveyed ridership income the fare cap will be those who from Charing Cross in London a change in thinking from the cheaper public transport sup- levels. travel to and from outer suburbs. to the coastal town of Dover in past election. ports low-income households, Committee for Perth chief PTA data obtained by Busi- south-east England is 115km, In the 2017 election, a portion the evidence is less clear. executive Marion Fulker said ness News shows about 17 per with a one-way ticket costing of the Metronet rail package A 2019 report in the European the fee cap was a good move. cent of weekday ticket pur- £11 ($A19.65) was to be financed through Transport Research Review “In light of COVID-19 and chases before COVID-19 were Given Perth’s standing as value capture, where land assessed subsidies in the Nor- declining public transport rid- for three zones or more, 4 per a low-density city, stretched developments close to the new wegian capital of Oslo. ership, any incentive to get cent were day riders, and 22 per along the coastline, investment rail lines would pay a levy. While public transport was people back [is good],” Ms Fulker cent were student trips. to connect those new areas has The levy is financed by the generally used by lower-income told Business News. The broader theme of den- been a priority for the state price rise of the properties groups, higher-paying jobs were “We’ve gone back to more sity versus urban sprawl was government. driven by service improvements, usually found in the city centre, driving because we want to be the subject of debate among The aforementioned rail meaning those who benefit well served by public transport, in a cocoon.” planners, according to Curtin extension from Butler to most from the infrastructure while lower paying jobs were As new infrastructure was University associate professor Yanchep, a $520 million project contribute more to its cost. in outer suburbs with poorer being built, such as Metronet, of spatial sciences Cecilia Xia. to build 14.5 kilometres of track, The government has since connections. it was important to ensure Associate Professor Xia said is one example. reverted to a more traditional Infrastructure Victoria high-capacity utilisation, she longer-term plans in Perth There are five new railway position, where the capital recently wrote that, on aver- said. suggested a move towards com- lines under way or planned, investment is covered more age, public transport users had Increased public transport pacted developments. worth a combined $4.7 billion broadly through the budget and household incomes 8 per cent use could help reduce road High density was a cultural (see table, page 26). federal grants. higher than non-users. congestion, with a 2019 Infra- trend, bringing mixed land use, In total, the state budget The bipartisan pledges to “Those in the top 20 per cent structure Australia audit productivity improvements, and provisioned $6.2 billion of rail lift operating subsidies are a of income earners make up a forecasting traffic would cost agglomeration benefits, she said. 22 | February 15, 2021 February 15, 2021 | 23 PB | February 15, 2021 February 15, 2021 | PB FEATURE Ports and transport FEATURE Rail projects head infras tructure investment Transport investment is budgeted Business News they will con- independent umpire were the In light of COVID-19 and declining tinue to fund the $481 million Bindoon bypass (benefit ratio to be $11.7 billion through to project, in a 50-50 split. of 3.4), and Armadale road public transport ridership, any incentive Six level crossing removals bridge (3.0). 2024, but not all proposals offer proposed as a package on the Three rail projects scored to get people back [is good] - Marion Fulker inner Armadale rail line had a moderately. obvious value. benefit-cost ratio of 0.36 and a The Forrestfield airport rail said locations such as Yanchep community benefit against the shortfall of $569 million. link, launched by the previous were considered strategic in cost to deliver a project. A third project, the Albany state government, had a ratio of investment through this finan- Perth’s future development. Projects with a score below ring road, posted a benefit cost 1.4, while the Morley-Ellenbrook cial year to June 2024. A further equity impact is one are not considered an effec- ratio of 0.71 and shortfall of rail line was 1.1 and the Thorn- Added to that will be $5.5 bil- through property values. For tive use of funding, with at least $38.3 million. lie-Cockburn link 1.2. lion on roads, while a $4.5 billion example, it has been reported three WA projects failing to While those three were For the Ellenbrook line, IA port development in Kwinana is property prices close to meet the criteria. rejected, some projects scored said benefits might be over- expected in the longer term. station precincts on the Man- All were rejected by Infra- highly. stated and would likely be close Just weeks out from the elec- durah rail line rose up to 40 structure Australia when The Yanchep rail line was to the costs. tion, the state opposition has per cent over the course of nominated for its priority list. assessed as a high-priority pro- For comparison, when the alternative priorities: building that project. Analysis of the Byford rail ject in October 2018, with the Roe 8 highway extension was an extension of Roe Highway, extension submitted by the state’s business case showing a assessed in 2015, it scored 2.5. Matt Mckenzie sinking part of the Freman- Value judgement state government showed benefit ratio of 2.6. While that may be heartening [email protected] tle Rail line, and subsidies to Business News’s Data & a benefit-cost ratio of 0.45 Benefits include travel time for a Liberal opposition that @Matt_Mckenzie_ encourage uptake of hydrogen Insights shows 11 major rail and shortfall of $380 million savings on public transport and wants to revive the project, 8-PAGE FEATURE and electric vehicles. projects, including stations (measured by net present roads, fewer accidents, environ- another of the party’s proposals The two main parties have and new rail cars, under way or value). mental outcomes, and reduced came under fire. T is about 120 kilometres both promised higher subsidies planned, worth about $7 billion. Even that may be optimistic, crowding on buses. In January, the Liberals prom- from Yanchep to Mandurah, for public transport users. Both federal and state gov- Infrastructure Australia said in While IA said it was confident ised $5 million for a master plan I destinations that will mark The Liberal Party said it ernments have touted rail and an October review. benefits would exceed costs, it to sink up to 1km of the Freman- the northern and southernmost would introduce free public road construction as a COVID- The low benefit ratio indi- warned against encouraging tle rail line near City West, to points of Perth’s rail network transport for school kids and 19 recovery stimulus. cates other projects should be people to live in outer urban spur urban revitalisation and when the newest track exten- seniors, at a cost of $56 million LENGTHY: The rail extension to Yanchep will stretch Perth’s public transport network.