Submission on the Proposed NSW Transport Blueprint · The proposed NSW Transport Blueprint provides...

Submission on the Proposed NSW Transport Blueprint

September 2009

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Infrastructure Partnerships Australia – Submission on the NSW Transport Blueprint

Contact Brendan Lyon Executive Director Infrastructure Partnerships Australia P | 02 9240 2050 E | [email protected]

Photographs, except p. 18 and 19, copyright Larry McGrath 2009

Larry McGrath Manager, Transport Policy Infrastructure Partnerships Australia P | 02 9240 2056 E | [email protected]

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Contents

Foreward ............................................................................................................................ 3

Recommendations.............................................................................................................. 4

1. Introduction.................................................................................................................... 51.1 – About Infrastructure Partnerships Australia ..................................................................... 5 1.2 – About this Submission ..................................................................................................... 5 2. Transport in NSW �– History and Challenges .................................................................... 72.1 – Overview of Sydney’s Transport ..................................................................................... 7 2.2 – A burgeoning, mobile population ..................................................................................... 8 2.3 – Freight task to triple by 2050 ........................................................................................... 9 2.4 – Regional NSW Transport .............................................................................................. 10 3. Transport Framework ................................................................................................... 133.1 – Integrated Land Use and Transport Planning ............................................................... 13 3.2 – The role of the Private Sector ........................................................................................ 14

3.2.1 – Project Delivery ...................................................................................................... 15 3.2.2 – Service Delivery ..................................................................................................... 16

3.3 – Innovative Funding Models ........................................................................................... 17 3.4 – Pricing and Demand Management ................................................................................ 18 3.5 – A Staged Plan Linked with Budget Processes .............................................................. 18 3.6 – Building for Future Capacity .......................................................................................... 18 3.7 – Preserving Corridors for Future Infrastructure ............................................................... 19 4. Building NSW for the Future ......................................................................................... 214.1 – Critical transport priorities (in no particular order) ......................................................... 21

4.1.1 – M4 East .................................................................................................................. 21 4.1.2 – A Metro Network for Sydney .................................................................................. 22 4.1.3 – Freight rail upgrades .............................................................................................. 22 4.1.4 – F3 to Sydney Orbital Links ..................................................................................... 23 4.1.5 – Sydney Orbital Motorway Capacity Upgrades ........................................................ 23 4.1.6 – M5 East Duplication ............................................................................................... 24 4.1.7 – CityRail Network Upgrades and Extensions ........................................................... 24

4.2 - NSW Transport Pipeline Priorities .................................................................................. 25 4.3 – Map of Transport Priorities for Sydney .......................................................................... 30 5. Conclusion .................................................................................................................... 32

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Foreword Long-term, integrated transport planning is the key to delivering the best transport infrastructure projects, at the best value to taxpayers and commuters. This kind of planning in New South Wales is well overdue. New South Wales urgently requires a new, rigorous and joined-up approach to planning future transport infrastructure networks. This new planning paradigm would fully link infrastructure development and land-use planning. Bold decisions are required around where Sydney will grow – the densities that will be required – and the transport infrastructure which will support this growth. The sheer level of infrastructure investment that will be required means that New South Wales must have all procurement and financing options available to deliver the next generation of transport projects. These options must include the extension of Public Private Partnerships to new projects; and must also consider new models to fund major projects. New South Wales needs to have an implemented plan that drives political and community consensus about the future shape and direction of the State’s economic infrastructure. To achieve consensus, the NSW Transport Blueprint must assess, analyse and sequence major transport projects with transparency and rigour. And the proposed plan should look at a long-term horizon of 50 years. This submission therefore recommends a suite of major projects which should be analysed and sequenced over a 25 year time frame. Further thought and planning should form the basis of a 50-year intergenerational infrastructure plan. However, the economic cost of current shortfalls means that a range of projects must also form an immediate and urgent priority for delivery. Critical and urgent projects include:

The M4 East Motorway Upgrades to the state freight rail network The F3 – M2 connection Widening and capacity enhancements across the Sydney Orbital Motorway Network. Duplication of the M5 East Upgrades of, and extensions to, the existing CityRail network; and An integrated metro network for Sydney

The development of a long-term transport plan also presents an important opportunity to reform the management and operation of existing infrastructure to drive value for money and service quality improvements. Options that must be considered include ways to introduce contestability and competition into the operation of public transport. In spite of a disappointing history of variable, changing transport priorities, it is in the national interest that New South Wales addresses its infrastructure shortfalls. Infrastructure Partnerships Australia is therefore pleased to be able to contribute to the public debate about the principles and projects that will enhance functionality, economic growth and prosperity in New South Wales.

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Recommendations The proposed NSW Transport Blueprint provides a long overdue opportunity to fully integrate land-use planning, population growth and previously disparate transport plans into a single, cohesive document which clearly articulates the transport infrastructure and service priorities for the decades ahead. Key Principles for Inclusion With regards to the principles required to encourage an efficient and effective transport framework, IPA contends that the proposed Blueprint should:

Articulate a process for greater involvement of the private sector in both asset and service delivery, to ensure the best quality transport at the best value to taxpayers;

Provide a strong focus on urban passenger transport infrastructure, including public transport, to ease congestion and cater for urban growth;

Promote an evolutionary shift in procurement to utilise private financing, such as PPPs, and investigate innovative procurement models such as land value capture;

Increase density in urban areas and ensure that transport infrastructure is integrally linked with land-use planning;

Provide a focus on introducing contestability in public transport service delivery; Commit to better freight transport across the state, including expediting upgrades of

major highways and ensuring rail freight plays a more central role in the future; Commit to delivering critical priority projects over the short-term, and undertake

corridor reservation for future transport requirements; Consider and articulate reform options for better pricing the use of infrastructure to

change behaviour and increase equity in transport use; Be a staged plan which provides firm timelines for project delivery, and which

includes predicted costs of projects; and Be integrally linked with Budget processes and commitments.

Key Projects for Inclusion IPA has provided details of many projects for inclusion in the Blueprint. Some of these warrant immediate prioritisation and funding over the forward estimates period, while others require further investigation and feasibility analysis. The most critical and pressing projects requiring immediate prioritisation are:

M4 East; An integrated metro network for Sydney; Upgrades to the state freight rail network; F3 – M2; Widening and capacity enhancements on the Sydney Orbital Network; Duplication of the M5 East; Upgrades of, and extensions to, the existing CityRail network.

The entire list of pipeline priority projects are outlined in Chapter 4.

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1. Introduction

1.1 �– About Infrastructure Partnerships Australia Infrastructure Partnerships Australia is the nation’s peak infrastructure body. Our mission is to advocate the best solutions to Australia’s infrastructure challenges, equipping the nation with the assets and services we need to secure enduring and strong economic growth and importantly, to meet national social objectives. Infrastructure Partnerships Australia therefore has a direct interest in the delivery and operation of transport across all modes. Infrastructure is about more than balance sheets and building sites. Infrastructure is the key to how we do business, how we meet the needs of a prosperous economy and growing population and how we sustain a cohesive and inclusive society. Infrastructure Partnerships Australia seeks to ensure governments have the maximum choice of options to procure key infrastructure. We believe that the use of public or private finance should be assessed on a case-by-case basis. IPA also recognises the enhanced innovation and cost discipline that private sector project management and finance can deliver, especially with large and complex projects. Our Membership is comprised of the most senior industry leaders across the spectrum of the infrastructure sector, including financiers, constructors, operators and advisors. Importantly, a significant portion of our Membership is comprised of government agencies. Infrastructure Partnerships Australia draws together the public and private sectors in a genuine partnership to debate the policies and priority projects that will build Australia for the challenges ahead.

1.2 �– About this Submission Reforming freight and passenger transport networks across New South Wales is a national priority. New South Wales is the largest State economy in the country and the functionality of the State has a direct impact on national productivity and prosperity. This submission was developed after an invitation from NSW Transport and Infrastructure to provide guidance into the Blueprint process currently underway. This submission begins by providing an overview of Sydney’s current transport network and the challenges to be faced over the coming decades. It then discusses the key principles which the infrastructure sector contends should form part of the Blueprint. Finally, the submission suggests a range of projects which will be required over the short and medium term, and other pipeline projects which warrant further assessment on a case-by-case basis, to ensure New South Wales can meet the challenges ahead.

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Transport in NSW

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2. Transport in NSW �– History and Challenges

If projected growth occurs without substantial, sustained, integrated and

complementary transport infrastructure development, New South Wales will see

dramatic reductions in its liveability, productivity and sustainability.

2.1 �– Overview of Sydney�’s Transport Sydney’s transport network is comprised of an extensive legacy suburban rail network with some recent additions; a complex bus network; an orbital motorway system with an East-West spine; an underutilised ferry system; an under-developed light rail route, and a network of congested untolled roads. These assets combine to create a complex transport environment, creating challenges for the development of meaningful and integrated transport plans to reduce urban congestion. Similarly, Sydney’s geography makes the city unique in its transport challenges, due to a number of demographic, sociological and physical features, including:

A mix of low and high density – Sydney’s suburbs sprawl to the fringes and are commonly of a very low density, with post-war land use planning defined by the prevalence of the ‘quarter-acre block’. However some areas in the inner city are relatively high density, leading to an unusual mix of land uses.

Dependence on motor vehicles – As with other cities, the motor vehicle has long

been identified as the primary transport mode for Sydney. This has led to a city which has been planned around road development at the expense of an integrated public transport network.

Undulating terrain – a commonly overlooked feature of Sydney is that it is a

relatively hilly city, particularly in the inner suburbs. This topography provides unique challenges to road and public transport infrastructure provision - often requiring tunnelling, and also serves to discourage cycling and walking.

A vibrant and productive, but non-central CBD – Sydney’s CBD remains a key

economic and employment hub. The growth of Sydney’s outer regions means that the CBD is no longer geographically central, extending the length of journeys for many workers accessing the CBD.

A wide harbour – the width and breadth of Sydney Harbour presents unique

challenges for the city, making the use of bridges problematic and expensive. The Harbour’s reach westward also creates issues for tunnel boring and road network development.

These issues - and many more besides - must be taken into account when planning transport and land-use for the future of Sydney. Despite the best intentions, it is neither practical nor desirable to retrofit a ‘European-style’ transport planning or operational framework into the city. Sydney’s challenges are unique and require a tailored solution. In many areas of the network, Sydney’s rail system will not be able to cope with forecast demand over coming years. Already, a number of rail lines regularly operate over-capacity

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during peaks, and while the Government has ordered 626 new carriages for the CityRail network, these will not go far enough in terms of new network capacity. For the most part, Sydney’s bus network functions relatively efficiently and effectively. Nevertheless, the major stumbling blocks are primarily the lag time in bus procurement (and the inability of manufacturers to keep up with demand) and the lack of effective bus priority measures on roads, meaning buses often provide a slower means of travel to driving. Additionally, buses also require access to the road estate, adding to peak time road congestion. Adding complexity to the issue, buses are both hindered by, and themselves contributors to, significant CBD congestion, reducing trip time certainty. Sydney’s ferry network is grossly underutilised and, although only accounting for a small proportion of current travel, the network has a critical future role to play in servicing the harbour suburbs. It is clear that compared to roads and rail, the Harbour has significant spare capacity for new services and routes, as well as major service quality improvements. There is therefore a clear requirement for a new, modern public transport system for Sydney. This network must be capable of high capacity movements, to future-proof the city for growth and to alleviate growing urban congestion. The NSW Government has begun work on implementing a Metro rail system for the city, with the first portion being an inner-city spine from which future extensions will flow. It is expected that this initial route will be complete by 2015, but future extensions will likely be under planning, development and construction for several decades. The second section, a ‘West Metro’ from the city to Westmead along the Parramatta Road/M4 corridor is currently on exhibition. On current estimates, a high proportion of public investment in transport will be dedicated to a Metro network. This investment must not come at the expense of major augmentations and expansions to Sydney’s heavy rail and motorway networks. The next generation of major road projects have been planned for many decades and are now urgently required. Sydney’s orbital motorway network is complete – though in many areas, at capacity – however ‘missing links’ which would connect other roads to that network continue to hinder optimal road network performance. Passenger and freight vehicles alike are therefore forced to use congested roads, when efficient alternatives such as the F6 Extension, F3-M2 or M4 East have been planned for a very considerable amount of time. Similarly, the orbital network could function more efficiently if the tolling system was used to guarantee a level of service and provide clear price signals reflecting cost of use, rather than merely to repay the construction costs of the infrastructure.

2.2 �– A burgeoning, mobile population By 2056 Australia's population is expected to reach 37 million and the number of people living in cities is projected to increase from 13 million to 23 million1. Sydney is predicted to have six million people by 2036. About 69 per cent of the projected population growth will be due to natural increase, with net migration comprising the

1 IPA (2009) Meeting the 2050 Freight Challenge

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remaining 31 per cent. To cater for this growth, the Sydney region will need to provide for 640,000 additional homes and 500,000 additional jobs. To compound this problem, around 90 per cent of that growth will need to be accommodated through infill development in existing urban areas. A further consideration is that people are travelling more. The recent CBD Metro Environmental Assessment notes, “the growth in demand for travel in Sydney is already outstripping population growth. The number of daily trips has grown across Sydney in the past two decades, with a 30 per cent increase in average weekday trips”2. On top of this, within 10 years the demand for travel in the Sydney CBD is projected to increase by almost a third. If this projected growth occurs without substantial, sustained, integrated and complementary transport infrastructure development, Sydney will see dramatic reductions in its liveability, productivity and sustainability.

2.3 �– Freight task to triple by 2050 IPA recently undertook a major report with PricewaterhouseCoopers – Meeting the 2050 Freight Challenge – modelling the national freight task to 2050. The modelling, undertaken by IBISWorld, showed that the freight task will double by 2020 and triple by 2050. That report also found that without reform, the recent trend towards a dominance of road transport is set to continue in the medium-term, showing that rail freight and coastal shipping may experience renewed growth beyond 2030. In addition, our modelling shows that there will be an increased modal diversity across jurisdictions. The growth in freight is set to be driven primarily by non-bulk container freight. It is forecast to grow by 350 per cent by 2050, to 630 billion tonne kilometres. Figure 1: Australia’s domestic freight growth, 1961 – 2050 (Data Source: IBISWorld)

2 NSW Government (2009) CBD Metro Environmental Assessment, Sydney Metro Authority

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Supply chain costs remain a significant cost to New South Wales businesses, with up to 10 per cent of the final cost of a product derived from its transportation. Continued capacity constraints including those on the north south freight corridor and those affecting Sydney’s Port Botany will therefore have significant impacts on the national and State economy. There is a critical need to make freight transport more productive, and this could be best achieved through measures of double-stacking containers on appropriate rail transport routes, and undertaking bridge, road and rail strengthening to ensure vehicles can operate with higher axle weights. Figure 2: Modal share in the domestic freight task (Source: Productivity Commission, 2006)

2.4 �– Regional NSW Transport The proposed Blueprint must bring a strong and legitimate focus on solving transport challenges across the Greater Sydney region; but it must not neglect the significant and important infrastructure backlog in regional New South Wales. Regional New South Wales has benefited from significant long-run investments by the RTA and its predecessor organisations. More recently, with support from Commonwealth funding programmes such as AusLink – major interurban corridors such as the Pacific and Hume Highways – as well as major regional roads have received valuable investment. However, the rapid acceleration of the duplication of the Hume and Pacific Highways remains a national priority. On current construction timetables, these major interurban freight and passenger road corridors will not be finished until 2012 and 2016 respectively. Completion of these projects will deliver both significant productivity uplifts by easing freight movements, and important safety outcomes for motorists. Another major priority is regional passenger rail – primarily provided by the CountryLink rail (and bus) network. This network has suffered from decades of underinvestment and offers a mode which cannot compete with the private motor vehicle, on either speed or comfort.

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Similarly, there remain significant issues with regard to interstate freight rail networks. The upgrade of freight rail will underpin improved services, allowing it to compete with road freight. The requirement to move road freight onto rail is more than just about increasing efficiency – it will also deliver a significant safety dividend, with rail transport up to 20 times safer than road transport3. Sydney and its surrounding regions will continue to remain the economic powerhouse for the State. It is therefore logical that this region forms the greatest focus for the proposed NSW Transport Blueprint. However, improving regional freight networks, upgrading regional and intercity passenger rail, and the completion of road upgrades including major highway duplications, should also form a basis of long-term transport planning.

3 IPA (2009) Meeting the 2050 Freight Challenges

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Transport Framework

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3. Transport Framework

Best quality of service at best value to taxpayers must be the central tenet of public

transport into the future.

The focus on a renewed long-term, integrated transport plan is welcome. The priority of providing long overdue linkages between land use planning and transport infrastructure and services represents an important step to deliver better transport for New South Wales. Land use and population dynamics are the fundamental drivers of transport demand, however for some time New South Wales has failed to properly integrate these issues into a single, cohesive and integrated plan. In moving to sustain and increase the liveability of Sydney, New South Wales must primarily seek to address the issue of urban congestion. Urban congestion is more than a mere inconvenience – congestion costs Sydneysiders over $12.3 million each and every day4. Infrastructure Partnerships Australia considers that real and legitimate long-term infrastructure planning must be a key priority for New South Wales. Therefore, we consider that the opportunity exists for this proposed Blueprint to clearly articulate some of the key guiding principles required to create an efficient and productive transport market in New South Wales. This chapter provides guidance around the sort of principles that will create a much needed and sustainable transport framework.

3.1 �– Integrated Land Use and Transport Planning The importance of integrating transport and land-use planning cannot be overstated. The development of new land – whether residential, commercial or other types – has an inevitable impact on the transport requirements of the surrounding regions. For instance, the establishment of a new residential development will generate commuter journeys to and from the workplace, deliveries to local commerce, trips to sporting fields and other leisure activities. Despite this well-established and well-understood link between development and transport demand, the formal planning link between urban land-use and transport planning remains ad hoc - and at times peripheral to the central planning process in both streams. Recent experience of land-use and transport planning strategies in various states and territories, including the NSW City of Cities Strategy and the Urban Transport Statement, illustrate a clear disconnect between the planned population growth strategies and the development of new, supporting transport infrastructure. Furthermore, subsequent policy announcements have substantially deviated from previous and established growth strategies, meaning new thinking or in some instances, simply better explanation of the new strategy is required. By contrast, the Queensland Government’s Southeast Queensland Regional Plan, which incorporates the Southeast Queensland Infrastructure Plan and Programme, provides a long-

4 BTRE (2007) Estimating urban traffic and congestion cost trends for Australian cities, p. 109.

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term integrated strategy closely linking land-use planning with the development of transport and other infrastructure. The proposed Blueprint should not merely limit itself to simply providing a new, better articulated and more transparent link between land use and transport planning for new areas. Done well, this process provides an intergenerational opportunity to leverage current and planned transport infrastructure to alter land-use accordingly – an example could be utilising the CBD Metro to create a Transit Oriented Development at White Bay. Given the population growth expected across Sydney, there is a pressing need to increase density across the urban region, and to co-locate employment, leisure and residential precincts, alongside convenient and high-quality mass transit. Land-use planning must also be effectively linked with planning and development of freight transport, to ensure intermodal hubs and major freight corridors are effectively located, and similarly that transport infrastructure is in place to cater for major freight growth. It is essential that the proposed NSW Transport Blueprint sets Sydney on a path towards a more sustainable future. It must therefore fully incorporate and explain the land-use linkages of major transport infrastructure projects. Similarly, our future transport infrastructure should be linked to land-use planning to support higher-density development along transport corridors and provide adequate transport links to underserviced parts of the city - and to future growth areas.

3.2 �– The role of the Private Sector New South Wales has historically led Australia in the procurement of major urban road and public transport projects through the use of Public Private Partnerships. It is important that future plans for the State recognise the central role of the private sector in financing, delivering, servicing and operating the next generation of transport infrastructure. Figure 3 – PPPs have become more attractive in the US as a result of the GFC5

5 McGraw Hill (2009) Public-Private Partnership: Accelerating Transportation Infrastructure Investment.

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3.2.1 �– Project Delivery From the WestLink M7 to RailCorp’s PPP for new rolling stock, the private sector’s expertise and capital contributions have been crucial to the recent development of Sydney’s transport network. The private sector will continue to play an important role in the delivery of publicly funded transport projects, like the Pacific and Hume Highways and the Inner West Busway. However, given funding constraints and the inherent value of private sector risk transfer and innovation - it is also prudent that government prioritises a greater role for the private sector in delivering and maintaining new infrastructure through PPPs. It is therefore pleasing to see that the Sydney Metro Authority has identified a preference for a PPP model to deliver that project’s operation and supporting infrastructure. Harnessing private investment in appropriate public infrastructure projects allows limited public capital to be directed toward the delivery of other critical projects – like the completion of Sydney’s motorway network and the augmentation and enhancement of the heavy rail network. To achieve this aim, New South Wales must continue to adapt and evolve an appropriate and rigorous gateway model which extends beyond the current, limited scope to include variations of PFI and other innovative procurement models. Procurement gateways allow governments to assess the value and validity of alternative procurement models on a project-by-project basis. While IPA appreciates that the reform of procurement process is beyond the scope of this proposed Blueprint, it nevertheless remains a priority for the State. Figure 4 – Level of Private Sector Risk in Infrastructure Delivery

Private Sector Risk

Public Sector Risk

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3.2.2 �– Service Delivery

Transport service delivery is a key area for reform. Private sector delivery of public transport services is significant in other areas across Australia. In Melbourne, the former Victorian Government franchised its heavy and light rail services to the private sector, seeking to reduce costs and improve service levels. This model has been overwhelmingly successful with both the tram and train networks recently refranchised. Brisbane too has benefited from franchised public transport delivery – the most notable case being that of Brisbane Ferries, a joint venture between the council and a private company. In 2004/05, Sydney Ferries patronage grew by just 0.6 per cent, while Brisbane Ferries increased 33 per cent. Since Bret Walker handed down his report recommending the franchising of Sydney’s Ferries almost two years ago, Brisbane Ferries have 8.2 per cent more people using its service, compared to 1.4 per cent for Sydney Ferries. Sydney also has positive experiences from the private delivery of public transport services. The most notable example is the extensive contracting of private bus service providers in metropolitan Sydney. Other, more modest examples include the Monorail, Sydney Light Rail and the limited use of private ferries on the Lane Cove River – and more recently to service the Manly-Sydney route. IPA considers that the development of the proposed Blueprint provides an important opportunity for New South Wales to examine ways to provide better quality services, at better value to taxpayers. The national infrastructure sector contends that the Government’s guiding principle for public transport must be providing the best possible services, at the best value for money to taxpayers. Figure 5 – Indicative diagram of public transport service proposition

Availability

Punctuality

Reliability

Satisfaction

Customer Transport Provider

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3.3 �– Innovative Funding Models

There is significant scope for the NSW Government to investigate and implement innovative funding models for transport infrastructure. The subsequent chapter will highlight the level of transport infrastructure required to 2036 – however a key challenge remains the capacity of governments at all levels to contribute to funding these projects. Section 3.2 discussed the role of the private sector in helping meet this burden, but there are also a range of other methods which governments should consider.

There is a variety of funding mechanisms that governments can employ, beyond traditional procurement and PPP procurement mechanisms. These include, but are not limited to:

General government (e.g. taxation) Specific government (e.g. levies) User pays (e.g. pricing, tolls) Communities / beneficiaries (e.g. value capture) Third party (e.g. advertising)

Externality captures and development levies have previously been used to fund infrastructure in fringe development (rather than urban infill) areas. However, as the previous chapter has shown, infrastructure additions and upgrades will be required in infill areas, and these will need to be funded in some way.

Land value capture mechanisms, such as tax increment financing (TIF), have not been actively pursued in Australia, but may be a feature of future government policies. A simple description of TIF is that:

TIF allows a government jurisdiction (usually local government in the US) to take tax revenues derived from increases in property values within a prescribed development area (the ‘TIF District’) and use those ‘incremental’ tax revenues to fund the infrastructure and renewal projects that led to (or at least significantly contributed to) this property appreciation. For the property owner, there is no new tax or rise in property tax. A TIF represents a reallocation of part of the growth in property taxes from State Treasuries to the TIF authority6.

Given the potential of a future metro system to encourage urban densification, there is also merit in the development of a new model of capturing increased value. One possible model is for a system whereby building height limits could be increased around transport nodes and corridors, and a special levy is placed on development only if this increased height limit is taken advantage of. The funds generated could then contribute to the cost of the transport project.

Infrastructure Partnerships Australia is currently undertaking research into these various models, but this research will not be finalised until after the proposed Blueprint process has completed its public consultations. It is clear that the scale of required infrastructure investment demands a thorough investigation of alternative funding models for transport infrastructure.

6[1] PricewaterhouseCoopers (2008) Tax Increment Financing to fund infrastructure in Australia: For the Property Council of Australia

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3.4 �– Pricing and Demand Management Demand management might also present a policy option available to ease chronic urban congestion. New South Wales has undertaken some demand management practices, such as the successful implementation of time-of-day tolling on the Sydney Harbour Bridge and Tunnel. However, depending on the appetite of policymakers, further reform in this area is possible.

It is therefore important that the proposed Blueprint notes the current inquiries of the Henry Tax Review in regard to road access pricing. Infrastructure Partnerships Australia is also undertaking research into the options available for road user charges; however, this work will not be completed in the limited timeframes of this inquiry. Active consideration of the use of price signals for road use could offer significant benefits in terms of encouraging modal shifting to mass transit; and could also provide additional revenue streams for the augmentation of road and public transport networks in New South Wales. However, such radical reform demands a seasoned and thorough public debate.

3.5 �– A Staged Plan Linked with Budget Processes The proposed NSW Transport Blueprint is more likely to be the subject of informed debate and community acceptance if it avoids being viewed as a project ‘wish list’. It is therefore the view of Infrastructure Partnerships Australia that the proposed NSW Transport Blueprint should be integrally linked to annual State Budget planning. The sector also contends that the Blueprint should adhere to published and scrutable timelines and milestones for infrastructure development. Other state transport plans, such as the Victorian Transport Plan and the Connecting SEQ: 2031, provide both cost estimations and potential timelines for delivery. Linking the proposed NSW Transport Blueprint with budget processes will be crucial to the plan being viewed as achievable, legitimate and necessary.

3.6 �– Building for Future Capacity In recent decades, Australian infrastructure has been planned and delivered without the level of capacity to provide for long-term growth. This means the urban transport network must now duplicate recently delivered infrastructure because of a failure to plan for growth. However, another problem exists whereby infrastructure with latent capacity in the early years of operation, such as the Cross City and Lane Cove Tunnels or the Sydney Metro, are criticised for low or relatively low patronage numbers. When the Sydney Harbour Bridge was planned and constructed in the 1920s, the road was planned with significant road, light and heavy rail capacity to provide for a rapidly growing city. The benefit of foresight is clear – it was 72 years before the harbour tunnel was required, and Sydney’s CityRail system still operates with the same cross-harbour capacity as it did in the 1930s. There is a need to rethink the way governments plan and incentivise infrastructure for future growth. Part of this must involve a public debate to articulate that ‘building big’ is a desirable and necessary thing to do, and that having transport infrastructure which is at capacity during the ramp-up period, such as the M5 East or the Warringah Freeway, is a poor long-run outcome.

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3.7 �– Preserving Corridors for Future Infrastructure Many transport projects which may be required in the long term are known now, and steps should be taken to preserve the corridors for these routes to future-proof the State and ensure costly land acquisition is not a burden on the balance sheet. For instance, the F6 Extension corridor was preserved many years ago and will undoubtedly be required in the future to provide road and mass transit links. The proposed Blueprint presents a prudent opportunity to specify corridors which will be required in the future, such as that for an M9 and F3-M7 in Sydney, a metro network and potential CityRail corridors through the Sydney CBD, and for an interstate fast train network. Corridors reserved for transport development can also be utilised for other purposes, in essence bundling services on corridors. Such corridors may well add value in due course as routes for communications links, utilities, cycleways, parks and wetlands and even power generation, as well as being multi-modal transport corridors. Figure 6 – Photograph showing latent capacity on the Sydney Harbour Bridge (date unknown)

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Building NSW for the Future

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4. Building NSW for the Future

“Projections by the… Transport Data Centre indicate the transport network has

limited spare capacity, particularly in the medium to longer term. These transport

growth projections indicate that the entire transport system requires significant

support and enhanced investment to maintain and improve the infrastructure and

services required as Sydney continues to grow”7.

There is no doubt that the transport challenges faced by Sydney and rest of New South Wales require increased and sustained infrastructure investment to meet future demands. Some transport improvements in the State can be achieved through better management of assets and service improvements, however much of the issues relate to capacity and require long-term investment in major transport infrastructure. Infrastructure Partnerships Australia therefore submits that the following projects must be assessed and considered by the NSW Transport Blueprint for sequenced inclusion in the transport plan. IPA has not prioritised these projects, other than to first discuss those we consider immediate and critical priorities – and believes that the sequencing of projects should be undertaken after a rigorous and arms length assessment process.

4.1 �– Critical transport priorities (in no particular order)

4.1.1 �– M4 East

An upgrade of the road network from the proximal end of the M4 at North Strathfield to the east and south of Sydney is a critical project to enhance productivity and liveability in the city. The M4 East has been mooted for many years in various iterations. The key issues requiring resolution are the capacity of the road network around the port and airport precinct, in the face of pronounced containerised freight growth, and the congested routes between the end of the M4 motorway and the rest of the orbital network. These requirements necessitate an underground roadway of at least two prongs – one connecting the M4 with the Anzac Bridge, and a branch line from the M4 East to the port precinct in the south (either through a Marrickville Tunnel, Inner West Tunnel or Annandale Tunnel alignment). The Roads 2000 plan set in place a strategy to promote three expressway grade links to the CBD from the city’s West. The M4 Corridor is only remaining one of the three which has not been completed, following commissioning of the Lane Cove Tunnel in 2007. A recent paper by Evans and Peck, Delivering the Missing Links to Sydney’s Motorway Network, proposed a new North-South spine referred to as the Inner West Bypass. This link certainly has potential to ease congestion, and should also be assessed when considering a motorway link on this busy corridor.

7 NSW Government (2009) CBD Metro Environmental Assessment, Sydney Metro Authority

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4.1.2 �– A Metro Network for Sydney

Metro rail will be a critical component of Sydney’s transport future. States the size of New South Wales warrant three tiers of urban rail – regional, suburban and metropolitan. Currently, New South Wales only has the first two of these, through CountryLink and CityRail respectively. The opportunity to develop a metro system offers a new way of considering urban transport – one which is predicated on customer service, frequency and passenger needs; rather than on limited network capacity and legacy system weaknesses. The approach to planning metros should be predicated on a number of themes, generally focussing on inner-city growth, encouraging density and providing a mode for rapid travel over short to medium distance. In Sydney, it appears route identification has been undertaken by identifying areas without rail services where buses will not be able to provide for future demand; and substituting capacity on rail lines which will be oversaturated by future patronage growth. The West Metro is the proposed second stage of the system. There is a need to relieve the critical Western Corridor, which is where greatest overcrowding can be foreseen, however the route will also service areas with currently poor transport links, such as Five Dock and Sydney University, and provide a catalyst for increasing density and amenity. It is crucial that the West Metro is followed (or paralleled) with an extension from Rozelle to Epping. IPA has included in its transport priorities the current proposal for Metro Line 1 (from Epping through the city, then out to Westmead/Parramatta) and Metro Line 2 (from Dee Why through the city via a Military Road alignment, then out to Malabar via Moore Park and UNSW). In the longer term, there may be merit in a link along the lines of the NSW Government’s initial metro scoping for a ‘Chatswood Connector’, linking Dee Why to the North Shore line, and providing those in that region with ready access to the North Shore’s largest edge city. Similarly, there is potential for future metro expansion from Parramatta to the surrounding region, creating a web system for Sydney’s second CBD. The most obvious first step of this would be to Epping, and potentially to Hurstville. IPA also considers that a CityRail extension to the South West and a line to North West are important for meeting future employment and housing patterns. It is the industry’s view that the South West Rail Link should proceed as planned. The North West Rail Link could proceed either as a CityRail extension or Metro.

4.1.3 �– Freight rail upgrades As the last chapter noted, Australia’s freight task is projected to triple by 2050. To meet this future demand, a significant upgrade to the New South Wales rail system is required. It will not be feasible for road transport to take up the projected growth in freight traffic alone, but equally it will not be possible for the rail network to play a greater role without significant capacity and intermodal upgrades.

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Key in these projects is a significant upgrade of the North South rail corridor, particularly in the regions immediately north and south of Sydney. A freight train can spend up to 11 hours travelling through the Sydney rail network, which undermines the respective value of rail over road transport. There is also a critical requirement to upgrade intermodal terminals in New South Wales, particularly in the Greater Sydney area. As Port Botany’s expansion comes online, a greater level of freight movements will be required, and freight rail will need to contribute to this task. Dedicated heavy rail links between the port and intermodal terminals should form a part of this solution.

4.1.4 �– F3 to Sydney Orbital Links For some time, the development of a road (or roads) between the F3 north of Sydney and the Sydney Orbital Network has been in planning. In 2004, SKM undertook a study of route options on the potential corridor, concluding that a route under Pennant Hills Road would be the best solution.

In 2007, a Federal Government review undertaken by the Hon. Mahla Pearlman AO concluded that SKM’s assumptions in this study were valid, and made recommendations for the development of this road.

The recommendations of the study were that a link between the end of the F3 at Hornsby to the M2 Motorway be designed, assessed and planned immediately; and that a ‘Type C’ Corridor, that is a link between the M7 and the F3 near Kariong, be planned and the corridor reserved.

Regarding the first stage of the project linking the M2, the review concluded “there is a need for the link now”8. Since August 2007 when the report was released, the road remains no closer to being constructed. The need to provide a freeway-grade link to the major northern road corridor is a critical and urgent priority for New South Wales, while it would be prudent to begin planning and corridor reservation for the long-term F3-M7 link in the short term.

4.1.5 �– Sydney Orbital Motorway Capacity Upgrades There is a pressing and urgent need to upgrade the existing Sydney Orbital Network to provide for future freight and passenger transport capacity, particularly on the M5, M5 East and M2 motorways. The M5 motorway has required widening for some time. Provision was made during the original construction of the M5 to allow for widening of the road to three lanes in each direction for the full length of the motorway, and this has now become an important priority for New South Wales. Similarly, the M2 motorway is suffering from severe congestion during peak periods and requires a solution involving widening. While the M7 does not require widening now, it may in the medium-term, and planning for this should commence in the short term.

8 Pearlman, M. (2007) Review of the F3 to M7 Corridor Selection

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4.1.6 �– M5 East Duplication Duplication of the M5 East has become necessary and pressing due to the existing tunnel reaching capacity, particularly in light of future freight growth from Port Botany. Given the recent completion of the feasibility study, progression of this project remains a crucial priority for the NSW Government. IPA considers this project should be prioritised within the short-term to meet future growth. This project also emphasises the need to plan the next suite of projects with latent capacity so they are future-proofed to meet projected demand.

4.1.7 �– CityRail Network Upgrades and Extensions

There remains a pressing need to continue with major upgrades of, and extensions to, the existing CityRail network. Such extensions include the South West Rail Link, continuing to the next stage of the Clearways project, separating freight from passenger rail across the network, untangling the CBD rail lines to provide greater capacity across the entire network, and undertaking major upgrades of Wynyard, Central and Town Hall stations. A rail link to the North West is also a major priority, and could be undertaken as part of the CityRail or a future Metro network.

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4.2 NSW Transport Pipeline Priorities

PROJECT OUTLINE STATUS

(Sep 09)

West Metro (Metro

Line 1)

Design, procure and construct the West Metro from Central to

Westmead, potentially as a PPP. Proposed

Rozelle-Epping

Metro (Metro Line

1)

Extend Metro Line 1 from Rozelle through Drummoyne,

Gladesville and to Epping. This project could be planned and

procured during construction of the West Metro.

Proposed

North West Rail

Link

Build the North West Rail Link from Epping to Rouse Hill, utilising

either the existing CityRail network or the new metro system,

and linking with the ‘Epping Metro’ and the ECRL.

Former

Proposal

Clearways 2 and 3

Complete the Rail Clearways program to ensure better

performance from the CityRail network. Investigate and commit

to the third stage of the Clearways program to further untangle

rail lines and create discrete rail network segments.

Planned

South West Rail

Link

Construct the 13km line between Glenfield and Leppington,

with associated park and ride developments, and then extend

the line to Bringelly, in line with demand and housing growth.

Proposed

Increasing CityRail

Capacity within

the CBD

‘Untangle’ the CityRail network between Redfern/Eveleigh and

Wynyard utilising the CBD stub to increase network capacity

across the entire CityRail system.

IPA Proposal

CBD Rail Station

Upgrades

Refurbish and renew Central, Town Hall and Wynyard to provide

for better platform access, greater vertical movements, ease

station crowding, improve train paths, reduce distances

between platforms and stimulate urban renewal. Potential for

PPP-style contracts.

IPA Proposal

Ferry Fleet

Replacement

Replacement of the entire Sydney Ferries fleet to fewer classes

of vessels. This was a key recommendation of the Walker Inquiry,

yet remains on the drawing board. There is strong potential for a

PPP procurement mechanism.

Proposed

Ferry Service

Improvements

Continue with the competitive tender process, with a view to

expanding the reach of the ferry network and improving

reliability, cost efficiency and customer service.

Proposed

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Extend Light Rail

Plan and examine potential for extensions of Sydney’s existing

light rail network through Barangaroo to Circular Quay and west

to Dulwich Hill.

Examination

underway

Metrobus Network

Expansion

Expand the Metrobus network, as announced, initially with five

new lines and investigate new routes for the future. Proposed

Fare Reform

Undertake fundamental reform of the public transport fare

system, rationalising and integrating the fares to simplify the

customer experience and ease the implementation of

integrated ticketing.

IPA Proposal

Integrated

Smartcard

Ticketing

Delivery of integrated ticketing using a smartcard for Sydney. Proposed

Public Transport

Information and

Priority System

(PTIPS)

Following the roll out of PTIPS, implement a real-time customer

information system for buses and ferries. Proposed

South East Metro

(Metro Line 2)

Metro from the CBD to Malabar, via Oxford Street, Moore Park,

Randwick Racecourse, UNSW and Maroubra. If funding for this

project is not available, Government should test the market for

this important line.

Proposed

Dee Why Metro

(Metro Line 2)

Continue the South East Metro under Sydney Harbour to North

Sydney and then further to the Northern Beaches on a Military

Road alignment, terminating at Dee Why.

Proposed

Parramatta

Branch Metros

In the long-term, consider Metro branch lines from Parramatta,

commencing with a metro line to Epping to link with the North

West Rail Link and the Epping Metro, and potentially others such

as to Hurstville.

IPA Proposal

Chatswood

Connector Metro

Investigate a Metro line connecting the northern tip of Metro

Line 2 at Dee Why with Chatswood and through to North

Sydney via Crows Nest.

IPA Proposal

Eastern Suburbs

Rail Revitalisation

Consider either: extending the existing Eastern Suburbs line to

Bondi, opening Woollahra railway station and investigating the

long-term potential of converting the line to Metro; or providing

a Metro branch line from Metro Line 2 to Bondi via a

Paddington, Bondi Junction, Bondi Rd alignment.

IPA Proposal

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Central Coast Rail

upgrades

Significantly upgrade the rail lines North of Sydney to improve

passenger travel times to and from the central coast. IPA proposal

New Regional

Trains

Replace all CountryLink XPT and Xplorer trains with a new, single

class of train to improve service quality and reliability, and

increase service frequency. Strong potential for PPP

procurement with ongoing service contract.

IPA Proposal

Casino to

Murwullimbah

Solution

Investigate public transport options for the Casino to

Murwullimbah Line, particularly giving consideration to linking

with Gold Coast Light Rail in the long term.

IPA Proposal

Regional Fast or

Very Fast Trains

Reserve corridors for an emerging fast and/or very fast train

network from Sydney to the surrounding region such as

Wollongong and Newcastle, with potential for expansion to

neighbouring capital cities in the very long term as demand

increases.

IPA Proposal

M4 East

Extend the M4 Motorway underground from Strathfield to the

ANZAC Bridge, with a diversion to Sydney’s port and airport

precinct and to Victoria Road through Drummoyne.

The M4 East is a critical project, and the Government should

also assess the recent Inner West Bypass proposal.

Proposed

F3-M2

Design and construct a road tunnel between the end of the F3

at Wahroonga to the M2 Motorway, on a Pennant Hills Road

alignment.

Proposed

F3-M7 Link

Reserve corridor for an alternative northern route from the

Sydney Orbital, to include a new crossing of the Hawkesbury

River and linking with the F3 near Kariong.

Proposed

M5 Expansion Widen the M5 motorway to provide for greater traffic capacity. Proposed

M5 East

Duplication Duplicate the M5 East to provide greater capacity. Proposed

M2 Widening Widen the M2 Motorway to provide for enhanced capacity to

the growth areas of the North West. Proposed

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M7 Widening

The M7 Motorway may also require capacity enhancements

over the length of the Blueprint, and it would be prudent to

examine this (WestLink M7 was designed to be expanded to

three lanes as demand increases).

Proposed

F6 Extension for

road and mass

transit

Extend the F6 freeway along the already reserved corridor from

Waterfall to St Peters. Include an above-ground mass transit

option, such as a Perth-style metro.

IPA Proposal

Spit Bridge

Solution

Reconsider a solution for the Military Road and Spit Bridge

corridor, in tandem with planning Metro Line 2, and potentially

including a high bridge over the Spit.

IPA proposal

M9 Reserve corridors for a Sydney far-western orbital motorway. Proposed

Castlereagh

Freeway

Investigate medium-term potential for a motorway-grade

connection between the North West corner of the Sydney

Orbital and the North West Growth Centre, and potentially

linking to the proposed M9 or new North-South Freight Corridor.

IPA Proposal

Bringelly Road

Network Upgrade

Upgrade the roads that link precincts within the South West

Growth Centre. IPA Proposal

Separating

Passenger and

Freight Rail

Commit to a staged program to gradually separate a far

greater proportion of passenger and freight rail services. Freight

rail suffers from delays due to passenger service priority, and a

lack of capacity on existing rail lines.

IPA Proposal

Hunter Valley

Coal Chain

Increased rail infrastructure capacity to meet the growing coal

task between the Hunter Valley and Gunnedah Basin and the

Port of Newcastle.

Proposed

Pacific Highway

Duplication

Accelerate the Pacific Highway Upgrade to ensure the full

duplication of the road from Hexham to the QLD border.

Priorities include the Kempsey Bypass and the section north of

Hexham.

Proposed,

partially

underway

Northern Sydney

Freight Corridor

Undertake this project to separate freight and suburban

passenger services through network improvements such as

grade separation, amplification and bi-directional passing loops

at different points in the rail corridor between North Strathfield

and Broadmeadow.

Proposed

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Alternative North-

South Freight

Corridor

Consider the potential of a new North-South freight corridor,

with road and/or rail, running on a Western alignment,

potentially in place of the proposed M9.

IPA Proposal

Moorebank

Intermodal

Terminal

Develop the Moorebank Intermodal terminal with the private

sector to ensure greater urban freight mobility in the future.

Planning

underway

Port Kembla Outer

Harbour

Development

Expedite the reclamation of 52 hectares of land at the Port

Kembla site allowing for the construction of 7 new berths.

Consider the use of spoil from the CBD Metro for reclamation.

Planning

underway

Maldon –

Dombarton Rail

Link

Work with the Federal Government on the feasibility study, and

consider the findings of Infrastructure Australia’s upcoming Port

Strategy

Proposed

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4.3 �– Map of Transport Priorities for Sydney

M2 Widening Road Project

Parramatta Branch Metro

Public Transport Project

Future Metro Line

Future CityRail Line

Future Road

Key

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Conclusion

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5. Conclusion With concerted effort, the proposed NSW Transport Blueprint has the potential to effectively integrate transport development and land use planning into a single document, which will then drive the improvement of transport services across the entire State. Such a document is long overdue. A single strategic plan is needed to integrate freight and port strategies, population growth patterns, CityRail network constraints, a future Metro rail network, urban and regional road upgrades and other transport projects. IPA has consulted with its Members to provide some thought around the principles which should form the framework for the document, as well as highlighting the key challenges to be faced by New South Wales as its heads towards 2036. IPA has also provided a list of projects that the infrastructure sector considers to be essential to meet future growth and provide better quality transport in the future. The extent of this list highlights the scope and scale of investment required in the State. There is no feasible way that New South Wales taxpayers can finance and deliver these projects alone in the timeframe required. The State must therefore robustly engage with the Commonwealth Government – backed with long-term, integrated strategic infrastructure plans which include rigorous analysis of the scope, scale, costs and benefits of proposed projects. New South Wales must also find new ways to harness the investment and innovation of the private sector toward delivering new infrastructure and better transport services. Infrastructure Partnerships Australia has determined that, along with the major projects outlined in this submission, there are a number of important transformative principles needed to reshape transport in New South Wales:

Greater involvement of the private sector in both asset and service delivery, to ensure the best quality of transport at the best value to taxpayers;

A stronger focus on urban passenger transport infrastructure, particularly public transport, to ease congestion and cater for urban growth.

An evolutionary shift in procurement to promote the use of PPPs and investigate innovative procurement models such as land value capture; and

A commitment to increase densities across the urban areas and ensure that transport infrastructure is better linked with land-use planning; and

Better freight transport across the state, including expediting upgrades of major highways and ensuring rail freight plays a more central role in the future.

The passenger travel and freight growth predicted to occur in New South Wales is massive. If this projected growth occurs without substantial, sustained, integrated and complementary transport infrastructure development, the State risks dramatic reductions in its liveability, productivity and sustainability.

Infrastructure Partnerships Australia A division of Advocacy Services Australia Limited

8th

Floor, 8-10 Loftus Street, Sydney NSW

T 02 9240 2050 F 02 9240 2055 E [email protected] W www.infrastructure.org.au

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