Last month, Infrastructure Victoria warned that Melbourne is facing eternal gridlock as its population soars way beyond the capacity of the road system, and pushed for a new road pricing regime to better manage demand.
Yesterday, Infrastructure Victoria tabled in parliament its final 30-year Infrastructure Strategy, which has made 137 recommendations worth around $100 billion aimed at combating congestion, urban sprawl, and boosting housing affordability.
The plan includes all of the usual stuff, including:
Some new infrastructure projects, such as a $10 billion “Missing Link” road in the north-east and a $5 billion rail line to Melbourne Airport as priority projects for completion within the next 15 years.
The introduction of a congestion tax over the next 5 to 15 years to reduce road demand and forestall the need for more infrastructure investment. The report claims that around 20% of car trips between 7am and 9am are not related to work or education.
Denser development in areas where infrastructure is already well established, including Melbourne’s “leafy” eastern and southern suburbs, to stop Melbourne sprawling.
Of the 137 recommendations, around 35% are new projects and 45% are behaviour change/supply management initiatives. The remaining recommendations are about better planning and prioritisation and further investigation.
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This site has long supported congestion charging. In theory, it discourages drivers who make relatively low value trips. Those who aren’t prepared to pay will make the trip at another time, shift to public transport, or decide it’s not worth making at all.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.