AUSTRALASIAN RAILWAY ASSOCIATION SUBMISSION

Transcription

1 AUSTRALASIAN RAILWAY ASSOCIATION SUBMISSION To Infrastructure Victoria On Victoria s Draft 30 Year Infrastructure Strategy

2 THE ARA The Australasian Railway Association (ARA) is a not-for-profit member-based association that represents rail throughout Australia and New Zealand. Our members include rail operators, track owners and managers, manufacturers, construction companies and other firms contributing to the rail sector. We contribute to the development of industry and government policies in an effort to ensure Australia s passenger and freight transport systems are well represented and will continue to provide improved services for Australia s growing population. The ARA thanks Infrastructure Victoria for the opportunity to provide a submission to Victoria s Draft 30 Year Infrastructure Strategy. For further information regarding this submission, please contact Emma Woods, General Manager Passenger and Member Services via ewoods@ara.net.au or GENERAL COMMENTS Whilst the ARA acknowledges that the recommendations put forward require further detail and investigation, the ARA commends Infrastructure Victoria s establishment of a pipeline of initiatives to better drive growth and meet the forecast needs of the population throughout the state. Timing of recommendations Noting that population growth is a key element that the Strategy aims to meet the needs of, in regards to the timing proposed in the Strategy, the ARA recommends Infrastructure Victoria consider the Western Australian Government s approach as outlined in its Perth Transport Plan. The Perth Transport Plan proposes an innovative approach to project timeframes by aligning these to population figures, rather than by year. Typically strategies or plans of this nature are implemented or structured by years but the ARA believes the 2

3 link to population growth is an innovative and practical approach and one Infrastructure Victoria should consider. Funding The ARA appreciates that that the 134 recommendations are yet to be costed and are anticipated to be around the $100 billion price-tag in total that will need to be delivered through a mix of funding mechanisms. The ARA notes the suggestion of a developer levy but highlights the need to consider an on-going revenue source rather than a one-off payment as the preferred approach. The ARA has been a long-time advocate for innovative funding, including beneficiary charges or value capture. A lot can be learned from overseas experiences where, for decades, innovative revenue-raising tools have been used to generate hypothecated funds for transport infrastructure and service improvements. Jurisdictions throughout the United States draw on a variety of 28 taxes that are dedicated sources of public transport revenue. These range from property taxes to car parking levies, fuel taxes and casino taxes, and the revenue from these is solely dedicated to funding public transport. The ARA s paper Innovative Funding and Financing for Public Transport explores mechanisms currently implemented around the world to fund and finance public transport infrastructure. The paper is available from the ARA website at: In brief, the funding tools explored in the paper are: Value Capture: capitalising on the increased value that public transport provides for nearby commercial and residential properties, value capture recoups part or all of the increased value transport improvements provide to nearby properties. With regards to value capture, the ARA recommends: - Projects are assessed on a case-by-case basis as experience shows there is no consistent increase in property value. - Value uplift revenue recouped by government must be hypothecated and reinvested transparently in public transport. 3

4 - Governments should develop value capture policies that include greater use of TODs to provide supporting revenue for public transport systems. - That revenue recouped through value capture is collected at a State level. Transit-Oriented Developments (TODs): as well as acting as a tool to encourage greater patronage, property developments at and around public transport stations are being increasingly utilised to generate long-term revenue to support public transport operations. Congestion Charging: a user-pays demand-management approach where road users pay to access roads or areas, generating funds for reinvestment in public transport and providing incentives for drivers to switch to public transport. Payroll Tax: employees or employers are levied a small percentage of their taxable income that is then hypothecated to fund public transport investments. Sales Tax: a percentage of the purchase price is added to the purchase price of goods and services and then drawn upon for public transport investment. Fuel Tax: a percentage is added to fuel prices and hypothecated for transport investment. The paper highlights that the success of these (and other) tools relies on common criteria that must: Keep pace with inflation: it is vital that any revenue raising mechanism rises with CPI to continue generating sufficient funds as the economy grows. Failure to do so (Australian and United States Federal fuel excises are examples of this) stalls the revenue generating capabilities of the mechanism, effectively decreasing the revenue raising abilities with each CPI rise. Be hypothecated for transport uses only: the benefit to providing a reliable and dedicated source of revenue is that long term planning can then occur. Hypothecating, or dedicating the revenue from a specific revenue-raising tool provides certainty and allows long-term planning and commitments to be made. The two common models of value capture are: Tax Increment Financing: where a certain increase is forecast within a region or district around the development and a percentage, or increment is agreed to be 4

5 levied to fund the infrastructure investment overtime or return a portion of the project cost back to the government. Kansas City Light Rail is an example of this. Joint Property Development: when government partners with infrastructure developers, or establishes infrastructure development capabilities within the government that allows the developer to recoup part of the value uplift through its own property development as a revenue source to fund transport projects or reinvest in the system. Hong Kong s MTR is an example of this. Overseas Experiences London Jubilee Line the missed opportunity of value capture London Property Developer Don Riley penned a book Taken for a Ride: taxpayers, trains and HM Treasury in which he reviewed the construction of the London Underground s 3.5 billion Jubilee Line Extension which linked Central London with East London. The underground rail line extension was funded through a public-private partnership. Riley estimates that in the 10 years ( ) following the extension, properties within a 1000 yard radius of the new stations increased in value by approximately 13.5 billion collectively yet no mechanism was in place to return any of this value to the government. This has become a common example of why governments should consider value capture as a mechanism to fund major transport infrastructure investment. CrossRail, UK CrossRail in the UK is constructing 21km of new rail tunnels and 10 new stations between Central London and its South East that will link into 30 existing stations in London. 1 The project is forecast to increase rail capacity in Central London by 10 percent and provide an additional 1.5 million people with a 45 minute commute or less to London's key business districts. 2 With a total project price tag of 14.8 billion, the Greater London Authority introduced its Business Rate Supplement (BRS) in 2010 to assist with funding. A form of value capture, the BRS identified that London properties are expected to increase per cent as a result of CrossRail. Over a 24 to 30 year period, the BRS is expected to generate 8.1billion for 5

6 CrossRail by capturing 2 percent of the uplift from commercial properties with an annual rental over 55, Interestingly, the BRS received minimal opposition from property owners. This is attributed to the fact that the project had been on the agenda for 20 years and so the public was familiar with the proposal and its anticipated benefits and because the business community was well informed of the financial benefits they would receive as a result of CrossRail. 4 Downtown Kansas City, Missouri Tax Increment Financing After unsuccessful attempts to fund a city-wide light rail network, the Kansas City local government established the Transportation Development District (TDD), an area around a proposed two-mile streetcar route that was identified to directly benefit from the project. The local government then put a land value capture, or increment tax within the TDD up for public vote. On 12 December 2012, residential and commercial property owners within the TDD voted in favour of land value capture to contribute funds towards the construction of the Downtown Kansas City Streetcar. 319 voted yes, 141 voted no 5. A 1 percent sales tax and car parking levy within the TDD was also approved. 6. The system will commence operation in 2016 with plans underway to fund phase 2 of the project through an expanded TDD. Figure 2 illustrates the initial TDD that received a 60 per cent supporting vote and permitted the project to proceed. It also illustrates the proposed expanded TDD that will be used to fund the following stages of the project by expanding the area included paying the value capture, 1 percent sales tax and car parking levies. Figure 1: Phase II Streetcar TDD Proposed Boundary

7 Hong Kong Joint Property Development Unlike most public transport systems in the Western world, Hong Kong s metro is not subsidised by Government. The system is self-funded through the fare box, commercial station retail rent and residential and commercial property developments, which use a combination of joint property development value capture and TODs. First announced by the government in 1973 at a cost of HK$ 500 million, by 1982 the Hong Kong metro system was generating a profit, partly due to land value increases 8. Hong Kong land is State-owned. MTR Corporation, operate and manage the system and adopted a Rail+Property approach to fund investment. In a joint property development approach, MTR leases land adjacent to rail extensions from the government and develops the land into commercial and/or residential properties. MTR pays the government the value of the land without the rail line, allowing MTR to capture and profit from the value the rail generates. As well as removing the need for government subsidies, MTR is a publically listed company that returns dividends to its shareholders. MTR compliments its Rail+Property strategy with TODs. According to the MTR website, our use of transit-oriented development enables us to self-finance our day-to-day railway operations, establish reasonable fares and ensure sustained patronage of the system 9. A 2010 review of the Hong Kong metro and 25 of its TODs found that an MTR station with a TOD added around 35,000 weekday passengers to the system 10. Smoothing construction and rollingstock orders The ARA has long-advocated for State Governments to smooth project construction and rollingstock orders to benefit governments and industry alike. The ARA commends Infrastructure Victoria for noting that one of the main drivers of this exercise has been to smooth capital expenditure for government and the recommendation to implement a cycle for the continuous build of new rollingstock. The Victorian Government will benefit financially, making considerable savings through economics of scale. Australia s rail manufacturing industry will benefit through certainty and consistency that secures its future on our shores. A national approach to passenger 7

8 rollingstock procurement will smooth orders to a more manageable level and allow Australia s rail manufacturing capabilities to remain in Australia. This will provide surety to rail manufacturing companies, allowing businesses of all sizes to maintain and invest in their workforce, supporting Australian jobs and regional development while achieving improved productivity in the manufacturing process and providing customers with a wellcoordinated supply chain and increased innovation for the industry. Victorian passenger rail operators (metro rail, heavy rail in cities, heavy rail in regions and light rail) will also benefit through coordinated long-term planning and funding commitments from state governments. Ultimately, the ARA hopes this can be achieved on a national level For background to this priority of the industry, in November 2013, the ARA commissioned Deloitte Access Economics to identify improvement opportunities for passenger rollingstock procurement in Australia 11. The study found: - Over the next 30 years, approximately $30 billion will be spent by state governments on the procurement of heavy rail passenger rollingstock to meet the increasing patronage demands and replace ageing fleets. - During this time, improved procurement processes and planning, such as improved scale, reduced planning and design costs and harmonised componentry could save state governments almost $6 billion. - The study estimated that 3,000 rail cars will be needed within the next 10 years at a cost of $9 billion ($3 million per passenger car). This is broken down as: o o 1,900 new cars to replace the ageing fleet 1,100 new cars to meet anticipated patronage growth. - By 2043, projected public transport patronage growth will require the passenger rail fleet to be almost tripled (from 4,000 to 11,000 cars). - Given low current cost recovery levels for public transport (average of 25 % nationally), there are increased pressures to achieve greater efficiencies in rail. - Assuming Australia s domestic production reduced to just 30 per cent of current levels, changing procurement to smooth demand has the potential to maintain 8

9 $15.5 billion in economic activity which could support the continuation of existing rail manufacturing hubs. Although these figures may have changed slightly since 2013, they clearly identify the significant opportunity that national collaboration between governments and the rail industry could achieve. Starting in Victoria though, the Victorian government and industry will also benefit considerably. RECOMMENDATIONS Development in established areas (1.1.1; ; ) / Development in/around employment centres (1.1.2; ; ) The ARA welcomes the proposed investigations to better understand the capacity of the tram network. As part of this investigation, the ARA recommends that the work undertaken and planned by Yarra Trams to transition from a tram network to a segregated light rail network should also be considered as a light rail system will increase the speed and therefore capacity of Melbourne s service. To achieve each of the above-mentioned recommendations, the ARA recommends Infrastructure Victoria acknowledges the role that transport or transit-oriented developments (TODs) are proven to play in to stimulating urban growth, revenue and patronage on the public transport systems that they are located above or near as well as providing an innovative funding source. TODs are increasingly popular commercial, residential and retail spaces located at or within walking distance of transport hubs that stimulate urban development and if managed by the transport authority, generate revenue to fund or support transport investments. TODs can be newly constructed or redevelopments of existing structures. Similarly, air-rights to construct a TOD above a station can be sold to property developers as a one-off means to fund a transport development. Alternatively, the transport operator or authority develops and manages a TOD to provide ongoing funding for the transport system. 9

10 TODs are proven to generate significant funds that can be reinvested in public transport. As well as providing ongoing sources of revenue for transport services and infrastructure investment, TODs have been shown to encourage public transport patronage and reduce road congestion by encouraging people to walk and ride public transport instead of drive. Although TODs exist in Australia, there is scope to expand. The Australian and NSW Governments could follow Hong Kong s example and establish property developments around transport hubs to help provide long-term revenue for transport infrastructure and service investment. These could either be sold as air rights, given to property developers to manage, or public transport operators could diversify as has been done in Hong Kong where the public transport operator manages some developments. Either way, the TOD value increase provides a value capture opportunity for government. Fisherman s bend tram link (1.2.1; ) The ARA supports and welcomes Infrastructure Victoria s recognition of the urban renewal capabilities of light rail to regenerate areas and drive residential and commercial property developments. Growth area local buses (1.3.2) The ARA supports investment into all modes of transport. In regards this recommendation, the ARA notes the connection with other trunk services and local train stations. Integration between transport modes is vital to the success of any transport system, particularly public transport. Integration of all modes of transport so that a seamless transport journey is available helps position public transport as a viable alternative to the car. When car travel is not a viable option, the integration of public transport systems is even more important. Victorian growth areas will only continue to prosper with continued improvements and expansion of existing public transport systems and the seamless integration with alternative modes of public transport. Geelong/Werribee/Wyndham rail (1.3.4; ; ) The ARA acknowledges that further work is required to scope and sequence this recommendations but welcomes its inclusion. 10

11 Melton rail electrification (1.3.6; ) / Wallan rail electrification (1.3.7; ) Electrifying rail corridors provides a service that is more environmentally friendly, with locomotives emitting less carbon monoxide than diesel locomotives. Electric trains provide a faster and quieter service for a more customer-friendly commute. An improved service offering will assist in encouraging greater use of the rail services on these routes. Clyde rail extension (1.3.8; ) The ARA supports the recommendation to extend the Cranbourne rail line to Clyde but queries the timeframe and as outlined in Timing of Recommendations, urges this to be aligned to population growth requirements rather than a set date range. Regardless of the timing though, preservation of the corridor must be achieved in the immediate future to ensure the extension can be easily constructed in future and for a lower cost. Wollert transport links (1.3.9; ) AS per the Clyde rail extension, once the feasibility study is complete, the ARA recommends that the corridor of land is preserved as a priority to secure the required land and ensure the project can progress when the population requires. Government service/infrastructure planning (1.5.1) The ARA supports this recommendation in full. Cycling end-of-trip facilities (4.1.1) The ARA supports the provision of additional bike-housing facilities and recommends that train stations are included as key locations to provide bicycle lockers. These should be locked and accessible to only those registered to use the facility and equipped with CCTV footage to provide security assurance to its users. Green infrastructure (4.2.3; ) The ARA recommends consideration is given to adopting the key principles of the Infrastructure Sustainability Council of Australia (ISCA) through the IS rating scheme. ISCA is a member-based, not-for-profit council that provides it s IS rating scheme as an industry- 11

12 compiled voluntary sustainability performance rating scheme to evaluate the sustainability (including environmental, social, economic and governance aspects) of infrastructure projects and assets. 12 The ACT and South Australian Governments, as well as light rail operator, Keolis Downer are current industry members. The ARA recommends consideration is given to the IS rating scheme to assess and improve the IS rating of future transport infrastructure projects. This would need to be implemented from the design stage of a project and fed through all stages. Further, modern light rail systems and enhancements to heavy rail train stations lend themselves to tree planting and green spaces to help contribute to green infrastructure. Universal design (6.1.1) / Transport interchanges (6.1.2) / Public transport accessibility (6.1.3) The passenger rail industry exists to transport the community and thus it views its role in providing access for all in the community with the utmost importance. As complete access cannot be achieved immediately, Australia s rail industry continues to be committed to achieving continuous improvements. This ensures rail is actively enhancing the access provided for all individuals in our communities throughout the year as operators and state entities implement their respective Disability Action Plans. Passenger rail operators have made a commitment to continuously improve the accessibility of passenger rail systems. This includes improvements to infrastructure and rolling stock and the customer experience as a whole for those with disability. Over the past two decades, significant investment has delivered accessibility improvements at rail premises and to rolling stock. Passenger rail operators have consulted with the disability sector individually and collectively regarding accessibility plans and investment decisions to ensure that all accessibility improvements are developed in collaboration with those with disability and their representative organisations. Considerable investment is still required to ensure legislated targets for accessibility are met by passenger operators. Prioritisation for these types of upgrades is based on a number of factors, including station patronage, local demographics, access to educational and health services, parking, bus services, shopping, tourism and how stations form a network or provide interchange opportunities. 12

13 The ARA welcomes the inclusion of these three recommendations and the reference to the Disability Discrimination Act 1992 but also highlights the existence of the Disability Standards for Accessible Public Transport (DSAPT) 2002 that the rail industry is actively working towards. As noted above however, some elements of the DSAPT are impractical due to legacy systems and cost. The DSAPT is currently undergoing a modernisation process which will amend the requirements. As these standards relate to all modes of transport, the ARA suggests that a reference to the DSAPT is also included in the Strategy. Transport modelling (10.2.2) The ARA welcomes the inclusion of transport modelling as this will ensure these key infrastructure investment decisions are based on fact, not anecdotal evidence. Transport network pricing (10.2.3) This recommendation could relate to reviewed public transport fares for users (fares currently do not accurately reflect the cost of service provision) and/or the introduction of a form of demand management charge. In relation to fares, the ARA urges that fares are no longer utilised as political levers to garner community support. Public transport fares are significantly subsidised by the government and as noted in the funding section of the Strategy, governments only have finite funds available. IN relation to demand management charges, by charging road users to access certain roads or areas of a city, congestion charging reduces road congestion and transportrelated emissions by encouraging road users to adopt alternative transport options. These systems generate significant revenue that should be re-invested in public transport offerings. Congestion charging systems have proven to be successful tools at reducing and managing road congestion, increasing public transport patronage levels, reducing emissions and generating substantial funds to reinvest into transport systems and infrastructure. There are four general types of congestion charging or pricing. 13

14 1. Cordon Area: Drivers are charged to enter a zone, or cordon area. The charge can be a fee each time a driver enters the zone, a flat daily rate or a variable fee depending on the time of travel and vehicle driven. Singapore and London both use cordon-based congestion charging to manage road congestion. A London case study is detailed below. 2. Single Facility: Charges are applied for the use of a single facility such as a specific road (or lane on a road), bridge or tunnel. Again, these charges can be a flat daily rate, variable depending on the vehicle and time of travel or a set fee each time the facility is accessed. 3. Toll ring road/s: Ring roads typically circle a city. A toll ring road can include either a single-facility toll where road users are charged to access a lane on the ring road in return for less traffic and a faster journey or, the ring road can act as the barrier to tolled roads entering the city. Norway uses toll road charging extensively which is discussed below. 4. Distance-based: Vehicles are equipped with a distance-monitoring system and road users are charged according to the vehicle type and distance driven within the charging zone. Congestion charging would be challenging to introduce in Australia as it would be likely to generate significant opposition. However, with strong political will, it could be done. The longevity of the systems around the globe, such as Singapore and Oslo, and the positive results the systems have achieved, are proof that a congestion charge can be a successful tool to improve the transport system of a city whilst providing a source of revenue for long term investment. In its June 2013 National Infrastructure Plan, Infrastructure Australia recommended seven funding reforms, one being user pays user says which made the case for users to make a direct contribution to infrastructure and in turn, get a say on the level of service provided. Introducing congestion charging within Sydney, Melbourne and Brisbane that are each particularly challenged by road congestion would not only improve the flow of traffic but also establish significant funds to invest in the transport systems of those cities. 14

15 CASE STUDY: Bergen and Oslo, Norway Norway implemented toll road charging, not to manage traffic demand but to fund and fast-track infrastructure improvements for more than 70 years ago and consequently, is the most commonly cited example of demand management. Bergen introduced Norway s first toll ring road in 1986, the first in the Western World. The system was introduced to raise funds to fast-track the implementation of a 1983 masterplan for the city which included additional parking and roads. Buses were exempt from the charge but other vehicles entering the tolled area between 6am and 10pm Monday to Friday were charged. Cars paid 5 Norwegian Krone (NOK) and trucks paid 10 NOK. The system was initially forecast to raise 35 million NOK ( 3.2 million) but by 2000 it was generating about 70 million NOK a year for the city. Approximately 20 per cent of the funds raised went to operating costs, whilst 70 per cent was used for road construction, and the remaining 10 per cent was put in a fund 13. Oslo followed and is now recognised globally for three toll packages it has implemented. The first toll ring scheme opened in February 1990 with a similar goal to Bergen, to generate funds for road construction and in doing so, reduce road construction times from 35 to 15 years per cent of revenue from package one was earmarked for public transport investments but this was revised to 20 per cent. The system was not designed to manage traffic and yet estimates suggest that the toll ring road charge resulted in up to 10 per cent of motorists rejecting car travel 15. Oslo s second package was introduced and run between 2001 and This included a shift in the allocation of funds with 45 per cent allocated to public transport. The 10 year package was said to generate 1.85 billion euros and was used to fund a new metro ring, new bus lanes, improvements to the reliability, user-friendliness and attractiveness of public transport networks as well as the modernisation of stations. Collectively these public transport improvements funded through Oslo s ring roads achieved a 7 per cent increase in public transport patronage and a 1.5 per cent reduction in vehicles on roads 16. Oslo s third and current package was introduced in 2008 and is scheduled to run until This package allocates 60 per cent of revenue to public transport improvements and 15

16 aims to promote environmentally friendly transport options that increase mobility levels of Oslo residents. Oslo s increasing allocation of revenue to public transport aligns with a global shift that recognises the wider benefits of public transport. CASE STUDY: London, United Kingdom In February 2003, according to the UK Department for Transport, Central London s traffic had slowed to speeds averaging 13 km/hr. 17 To reduce road congestion and increase travel speeds, a cordon area congestion charge was introduced on 17 February Using an Automatic Number Plate Recognition system, cameras photograph vehicles between 0700 and 1800, Monday to Friday that enter or exit the congestion charging zone (8 square miles, or 21 square kilometres inside the city s inner ring road in the London CBD). Commercial and private vehicles are charged once and can enter and exit multiple times without additional costs. Motorbikes, mopeds and bicycles are exempt, individuals who live within the zone receive a 90 per cent discount, and vehicles with nine or more seats or Ultra-Low Emission Vehicles status (cars emitting 75g/km of CO2 or less) 18 also receive a discount. 19 The flat daily fee commenced in 2003 at 5 20 and today costs if paid in advance or on the day. 21 The system was introduced to reduce congestion within the London CBD, improve London bus services, improve journey times and reliability for road users and the distribution of goods and services and encourage Londoners to travel by public transport. By UK Law, revenue raised through the congestion charge must be reinvested to improve London s transport offering. During the 2009/10 financial year, the congestion charge generated 148 million in net revenue, the majority of which was used to improve bus operations in Greater London. 22 Prior to the introduction of the scheme in 2003, London bus services were increased to accommodate transferring road users. According to the sixth Annual Impact Report, after the first two years of operation, the congestion charge achieved a 30 per cent drop in congestion (against pre-charging congestion levels in 2002) 23. More than a decade on and congestion levels are said to be 27 per cent lower than what they were in 2002, meaning 80,000 fewer cars in the area each day. 24 Cycling levels are also reported to be up 66 per cent since

17 The system has faced varied criticisms but continues to undergo review and public consultation. According to the Victoria Transport Policy Institute, the London congestion charging system could be improved by: - adopting a distance-based charging approach; - varying the fee according to time; - varying the fee according to location, ie higher rates for more congested roads; - reducing the high overhead costs; and - further improvements to the transit system (particularly the Tube). 26 Enhance and upgrade existing public transport infrastructure to maximise the efficiency and operation of an integrated multi-modal network (10.4) The ARA supports the inclusion of the multiple recommendations listed to achieve this headline recommendation. Where appropriate, the ARA recommends that any transport modelling (as per recommendation ) is linked to these recommendations. Metropolitan rollingstock (10.5.1) / 10-car metropolitan trains (10.5.2) The ARA welcomes and supports these two recommendations. See Smoothing construction and rollingstock orders for comments. Melbourne Airport rail link (10.9.2; ) Melbourne airport should have a rail connection. The ARA suggests that the timing of this is revisited to so that the project commences before the additional capacity on the airport bus has been exceeded rather than once the airport bus capacity has been exceeded as currently proposed. City loop reconfiguration ( ) / Melbourne Metro future stages ( ) The ARA welcomes the inclusion of these two recommendations but has no comments on the high-level information provided. 17

18 Transport interchanges (10.2.3) The ARA supports this recommendation, particularly the focus on integration between modes. Level crossing removals (11.2.4) The ARA has been a long-term advocate for level crossing removals but acknowledges that grade separation is an expensive solution. The ARA recommends that this recommendation is amended to be Level crossing removals and upgrades and that the use of modern technology as an alternate to full grade separation, particularly in regional areas is incorporated. Regional rollingstock (12.2.3) / Regional rail upgrades (12.2.4) / Long-distance rail services (12.2.9) / Regional rail eastern corridor (12.3.3) The Regional Rail Link project has been a huge success and should be used as a catalyst for further regional rail developments in Victoria. Thus, the ARA supports the abovementioned recommendations and their ability to drive population growth outside the city of Melbourne. Transport Modelling (13.1.1) / Transport network pricing (13.1.2) The ARA supports improved transport modelling tools being enhanced specifically to assist driverless vehicles and their role in an integrated public transport approach. In relation to road pricing the ARA has argued for many years for equity between the rail freight and rail freight industries in that both should have a mass distance location pricing regime. Freight precincts (13.3.1) / Port of Melbourne Rail Access (13.3.2) / Western Intermodal freight terminal (13.3.3) Longer term planning for freight precincts is essential. It is critical intermodals and distribution centres are brought together and are placed where they are needed. 18

19 The ARA believes rail access to the Port of Melbourne is a more critical issue that the recommendation suggests. The ARA believes the port access strategy MUST be delivered in less than three years. There is massive interest in getting rail into the Port of Melbourne and this requires serious infrastructure and regulatory intervention. In relation to the WIFT, this is essential for the inland rail project and work on this project, involving the private sector, should be a priority Regional Rail gauge standardisation (13.4.2) / High Productivity Freight Vehicles (13.4.3) The ARA supports standardisation where it can deliver benefits in terms of connectivity to ports for example. The recommendation is strongly supported. In relation to high productivity vehicles the rail industry believes any expansion should include a road pricing philosophy so that the heavy vehicle industry covers the cost of any road works or related infrastructure. Regional Rail eastern corridor (13.5.4) This recommendation is supported, noting it is more long term. The complex nature of any expansion if rail capacity is also noted. Public transport resilience (19.1.3) The ARA supports this recommendation. Transport control centres (19.2.4) The ARA supports the exploration of this recommendation as a longer-term recommendation, noting the operational, safety and security benefits that could be achieved. 19

20 CONCLUSION The ARA appreciates the opportunity to respond albeit at a relatively high level - to an, comprehensive and though-provoking infrastructure Strategy. The ARA and the rail industry would be interested in being involved further as the plan evolves CUTA, Case Study 5: Land Value Capture Tax Incremental Financing 4 CUTA, Case Study 5: Land Value Capture Tax Incremental Financing 5 sourced sourced Ernest & Young, Land value capture as a funding source for urban investment The Warsaw Metro System, sourced Hong Kong IQP, A Comparative Study of Transit-Oriented Developments in Hong Kong, February Deloitte Access Economics, Opportunities for Greater Rollingstock Procurement Efficiency (2012) Osmose, The Oslo Toll Ring (Norway) Case Study, Osmose, The Oslo Toll Ring (Norway) Case Study, City of Oslo Agency for Urban Development, Impact on public transport of the Toll Ring in Oslo Norway, October sourced Michelle Dix, Director of Congestion Charging, Transport for London, How much does the scheme cost: the London experience, date unknown sourced Transport for London, Demand Elasticities for car trips to Central London, September sourced Transport for London, Sixth Annual Impacts Monitoring Report, July Victorian Transport Policy Institute, London Congestion Pricing Implications for Other Cities, November