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There is a strong consensus between Australia’s policymakers, the business community and the public about the need for more (and bett er) infrastructure.
The public debate is increasingly focussed on two broad themes; Australia’s declining producti vity and growing ‘cost of living’ pressures that are impacti ng households and businesses. The focus on these themes is fundamental to Australia’s global competi ti veness; however these themes are really a discussion of the symptoms, rather than the lack of infrastructure investment and ineffi cient uti lisati on of existi ng infrastructure that is causing these impacts. In short, the broad consensus about the need for infrastructure soluti ons has yet to mature into an honest public debate about the diffi cult reforms that are available to solve these challenges.
In the roads sector, the need for meaningful and sustained investment and bett er regulati on is fast becoming acute. Already, road network congesti on costs the nati onal
economy more than $10 billion per annum. Figure one, below, shows the cost per kilometre of congesti on in Australia’s capital citi es. Without substanti al investment and reform, recurrent avoidable congesti on costs are expected to exceed $20 billion by the end of this decade. (See Figure 1)
The case for reform toward an effi cient transport market is unequivocal, parti cularly when current impacts are considered in the context of rapidly growing demand drivers.
Figure 2, below, shows IPA’s modelling of nati onal populati on growth to 2050. Our research fi nds that Australia’s populati on will reach 37.8 million people over the coming four decades. More people will naturally place much greater demands on Australia’s transport networks. Aft er all, more people will mean more freight, more journey-to-work demands and a greater call on Australia’s road and rail networks. (See Figure 2)
IPA’s research fi nds that the nati onal freight task will double by the end of the present
Australia needs a more honest debate about how it canclose the gaps in its transport infrastructure and underpinnational productivity, including a real discussion aboutdeveloping a rational transport market, argues InfrastructurePartnerships Australia’s Chief Executive, Brendan Lyon.
Figure 1: Average unit cost of congestion for Australian metropolitan centres, current and projected
Figure 2: Figure Australia’s population growth, 1850 – 2051
Forecasts (IBISWorld)2005 2020
Source: Bureau of Infrastructure, Transport & Regional Economic, Working Paper 71, 2007
Figure 1
Uni
t C
ost
s (c
/km
)
0
2
4
6
8
10
12
14
Metropolita
in
Average
Sydney
Melbourne
Brisbane
AdelaidePerth
Hobart
Darwin
Canberra
38
Mill
ion
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
1850
2050
1860
1870
1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
decade; and will triple to more than 1,540 billion tonne kilometres by 2050. Figure 3, below, shows the forecast growth across both bulk and non-bulk freight. (See Figure 3)
The growth in the broader freight task will also place a much greater call on Australia’s road network. Figure 4, below, shows that the tripling in the freight task will have a corollary tripling in demand on the nati on’s roads. The Federal Government anti cipates that the tripling of the freight task will be accompanied by an even greater growth in the passenger task, with an expected four-fold increase in demand for passenger transport over the same period. (See Figure 4)
The substanti al growth in the nati on’s passenger and freight transport task will demand signifi cant and sustained investment in new network capacity. Figure 5 (page 4) below shows IPA’s esti mates of transport infrastructure investment requirements to 2050. Our research fi nds that Australia will need to fund at least a quadrupling of current
Source: Urban Transport Challenge: Driving reform on Sydney’s roads, Infrastructure Partnerships Australia, 2009
Year ended June
Figure 2
Developing a rational transport market
Photo courtesy of Transurban
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investment levels to more than $64 billion per annum by 2050, if we are to maintain current levels of capacity and producti vity across the transport network. (See Figure 5.)
As with any capacity constraint, there are two fundamental responses; adding capacity and/or managing demand. Historically, Australia’s response has been limited to the supply side of the transport equati on, with new road capacity added to deal with increased demand. But the sheer scale of the challenge and the inability to effi ciently add supply to high demand areas, such as Australia’s capital citi es and major freight corridors, will logically drive reform toward a rati onal market for transport.
In 2010, Infrastructure Partnerships Australia issued a major discussion paper examining the role that rati onal road pricing could play in addressing our transport infrastructure challenges. Our paper put forward a model that would remove the array of oft en inconsistent, ineffi cient and invisible road user charges, such as vehicle registrati on, licensing and the fuel surcharge; replacing them with a ti ered charging scheme based on the ti me, locati on and distance travelled by a vehicle.
Our modelling found that the aboliti on of all existi ng road user imposts in favour of a transparent road pricing scheme – including a modest increase in the average cost per kilometre – could liberate up to $10.8 billion each year for investment in transport infrastructure.
In a structural sense, this kind of model is far from revoluti onary. Australia has already largely reformed its other network infrastructure markets such as water, electricity and gas to refl ect actual cost of use. But we also recognise that this kind of change would make the cost of use of the road network visible to motorists and represents a substanti al change to the status quo. Australians pay an esti mated $22.8 billion each year in road-related fees and charges.
Under a rati onal model, prices could be set at a level that achieves revenue neutrality once existi ng road taxes and charges are removed; or at a level which increases revenue to allow expanded investment in the maintenance and constructi on of projects that promote a sustainable transport system, including road, rail and public transport.
By providing bett er price signals that refl ect users own impacts on the network, a rati onal pricing model presents a substanti al opportunity to address the demand side of the transport equati on and create the framework of an effi cient broader transport market.
The fi rst and most important step is in beginning a reasoned and mature public debate about the relati ve merits of a nati onal road pricing scheme – and its potenti al to change the way Australia funds and manages its transport infrastructure.
Australia’s policymakers will have to engage in a much bett er informed and honest public debate about the opti ons and trade-off s; there is no pot of gold at the end of the budget rainbow. New investment is criti cal but it is only half the soluti on. Rati onal road pricing will provide new capacity to fund projects, but also drive bett er uti lisati on of existi ng road assets.
Infrastructure Australia arti culated the challenge facing policymakers in its most recent report to COAG:
“As a country…we are reluctant to increase government debt…baulk at raising taxes…are uncomfortable with the user pays concept and against selling assets and using the proceeds to fund other infrastructure….yet we are concerned about congesti on, water, electricity and telecommunicati ons.
“There is a profound disconnect here.” Creati on of an effi cient transport market, including a rati onal road
pricing scheme is a real opti on to make meaningful inroads into Australia’s transport challenges. We need to see Australia’s governments, business leaders and the community engage with the concept so that we can begin a real debate about Australia’s transport future.
The fi rst and most important step isin beginning a reasoned and mature public debate about the relative merits of a national road pricing scheme – and its potential to change the way Australia funds and manages its transport infrastructure.
Source: Meeting the 2050 Freight Challenge, Infrastructure Partnerships Australia, 2008
Figure 3: Australia’s domestic freight task, bulk and non-bulk,1961–2050
Source: Urban transport challenge: Driving reform on Sydney’s roads, Infrastructure Partnerships Australia, 2009
Figure 4: Growth in Australian road freight, 1960-2051
Figure 5: Transport infrastructure investment, 1985-2050
Bulk Non-Bulk
Bill
ion
Tonn
e –
Kilo
met
res
1960
2055
2050
2045
2040
2035
2030
2025
2020
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
1400
0
200
400
600
800
1000
1200
650
Tonn
e-km
s (b
illio
n)
0
1960
2050
2045
2040
2035
2030
2025
2020
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
600
550
500
50
100
450
400
350
300
250
200
150
1985
Cap
ital e
xpen
ditu
re, $
bill
ion
(F20
08 p
rice
s)
0
10
20
30
40
50
60
70
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
Source: Meeting the 2050 Freight Challenge, Infrastructure Partnerships Australia, 2008
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Federal Transport Minister, Anthony Albanese, has used speeches to key industry associati ons to reinforce the government’s commitment to creati ng nati onal regulators for the road, rail and mariti me sectors, and its focus on reducing congesti on.
Mr Albanese told the Australian Logisti cs Council Forum on March 29 that it was hard to overstate the importance of the decision to create single nati onal regulators for the road, rail and mariti me sectors from 1 January 2013.
He said it would cut the number of transport regulators across Australia from 23 to three.
“It is indeed the most important microeconomic reform to the transport sector since Federati on; one that has been considered but never secured by generati ons of transport ministers.
“It will mean an end to the various and inconsistent state-by-state regulatory arrangements which have frustrated operators, sti fl ed effi ciency and acted as a handbrake on producti vity. This change alone will boost nati onal income by $30 billion over the next 20 years.”
Mr Albanese told the forum that reforming regulati on was part of the answer, but it needed to be backed by smart planning. He said that was where the Nati onal Ports Strategy and the Nati onal Land Freight Strategy came into play.
“Both strategies are important steps towards a seamless nati onal land freight system. The ulti mate goal is one nati onal integrated system that identi fi es existi ng and future roads, rail lines, intermodal terminals, ports and airports, all linking together, seamlessly.
“As a government and an industry, we’ve got to get this right,” Mr Albanese said.
He said since the launch of the draft Nati onal Freight Strategy last year, the government had received 75 submissions which it was working through.
Mr Albanese said a successful land strategy was nothing without seamless integrati on at the nati on’s ports — faciliti es that connected Australia with the world.
“Almost all our exports and imports fl ow through our sea ports. Our Nati onal Ports Strategy addresses the need for much bett er long term planning while acknowledging the strategic connecti ons between ports, transport corridors and shipping channels. The strategy will be considered by COAG shortly.”
Mr Albanese said logisti c soluti ons were like a Swiss clock, all parts must work perfectly and in unison.
“It’s a great metaphor for the work of the Australian Logisti cs Council — a nati onal, cross-modal body, bringing together diff erent parti es to focus on improving the enti re system. Government policy is the same — each of our reforms must link in with our investments to produce bett er outcomes.”
Image courtesy of abc.net.au
On March 14, Mr Albanese addressed the Bus Industry Confederati on Annual Dinner and told them congesti on was one of the greatest hand-brakes to Australia’s nati onal producti vity.
“That means reducing the hours Australians spend behind the wheel of a car goes to the core our decision-making. It points more than ever to the need for high-quality public transport that is so reliable, so frequent and so aff ordable that it becomes a far bett er choice than reversing the car from the garage.”
Mr Albanese said this saturati on and even downward trend in travel was not happening just in Australia. He said a report by the Bureau of Infrastructure, Transport and Regional Economics Traffi c Growth: Modelling a Global Phenomenon, analysed 25 countries and revealed declines in kilometres travelled per person in many of them including France, the United States, New Zealand and Italy.
“Buses are uniquely suited to help ease congesti on. You are the work horses of the public transport network. Figures, also from BITRE, show that people are taking to buses like never before.
“In 2010, Australians travelled more than six billion kilometres in buses and the trend is increasing. Your own report Moving People — Across Australia highlights that the coach sector contributes more than $5 billion to the Australian economy and supports almost 16 million nights of tourism.
“In the last fi ve years, Australia has produced $3 billion worth of buses,” Mr Albanese said.
The minister said one of the interesti ng things the confederati on had highlighted in its report was that buses provided an alternati ve to car travel, and also took up less space on the road.
“This is best highlighted by the oft en quoted fact that a single bus lane on the Sydney Harbour Bridge carries more people than all the other lanes combined. One bus can remove on average 50 cars from our roads.”
Mr Albanese said the government had committ ed to at least one major public transport project in every mainland state — in Queensland there were two.
“Such improvements free up our roads from congesti on making people’s daily lives easier, and giving them more ti me with their family, friends and at their workplace.”
Mr Albanese said keeping Australia’s communiti es connected across vast distances in the face of climate change and populati on pressures was not easy. He said through the Bus Industry Confederati on the industry sector had a strong and arti culate voice representi ng its interests.
“They are also the interests of the Australian people who need and deserve a fi rst class network connecti ng us within citi es, between citi es and all the towns along the way.”
The priorities of national regulators and reducing congestion
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The rapidly increasing concern with climate change has led to a marked increase in the number of organisati ons seeking to understand their carbon footprint and the road constructi on industry is no diff erent.
Historically, road agencies have developed their own greenhouse tools to suit local conditi ons; however, these tools do not allow for the benchmarking of road projects across the jurisdicti ons due to variati ons in the scope and methodologies applied.
Recognising the value of having a consistent approach across all jurisdicti ons, the Australian and New Zealand road agencies have jointly funded a project to develop a common approach to the assessment of greenhouse gas emissions associated with the design, constructi on and operati on of a road project.
The fi nal product is the joint eff ort of six road agencies:• Road Mariti me Services New South Wales; • New Zealand Transport Authority: • Department of Planning, Transport and Infrastructure South
Australia;• Department of Infrastructure, Energy and Resources Tasmania;• Main Roads Western Australia; and • VicRoads (Victoria).
It is anti cipated the product will be uti lised by all road agencies across Australia.
The project has involved two stages:• The development of a workbook to document the emission factors
uti lised and the assumpti ons made to develop a standardised approach for a suite of standard pavement designs over the whole- of-life of a road project; and
• The development of a user friendly calculator known as Carbon Gauge® to identi fy emissions associated with each stage in the life of a road considered to generate materially signifi cant amounts of greenhouse gas emissions, namely constructi on, maintenance and operati on (street lights and traffi c lights).Simon Renton, Project Manager of the initi ati ve, said the approach
adopted by the Australian and New Zealand road agencies is unique.Mr Renton, Senior Engineer Environmental Sustainability with
VicRoads, said that for the fi rst ti me, proponents can assess the whole of life emissions associated with a parti cular road constructi on project.
A review of overseas literature identi fi ed a variety of greenhouse calculators available in the market or as propriety products for internal use by specifi c organisati ons. However, these calculators were limited to the constructi on stage of a project. The UK Highway Agency had adopted an alternati ve approach based on materials and fuels used in constructi on and maintenance acti viti es undertaken in any one year, but it did not enable whole-of-life emissions for a specifi c project.
Calculating the Greenhouse Footprint of Roads
“With increasing demand in Australia and New Zealand for emissions over the whole-of-life of a project to be esti mated for use in project approvals and/or Environmental Impact Statements, there was a clear need for a diff erent approach,” Mr Renton said.
“There was also an incenti ve to adopt a standard model to avoid duplicati on of eff ort from agencies, contractors and suppliers and to provide a more consistent platf orm for benchmarking.
“The result is a consistent and transparent approach to esti mati ng greenhouse gas emissions over the fi ft y-year life of any single road project.”
The approach adopted also follows the philosophy of the Nati onal Greenhouse and Energy Reporti ng Act for determining materiality.
The workbook identi fi es that the design phase of road constructi on is not material and is therefore excluded from the subsequent calculator.
Mr Renton said while it was widely acknowledged that decisions made in the design process (i.e. the alignment, gradients and materials or equipment selected) can have a signifi cant impact on the greenhouse gas emissions from the road during its life, the actual emissions associated with producing the design are not materially signifi cant. Similarly, the emissions associated with decommissioning a road are not included, as roads are rarely decommissioned.
“The workbook and the calculator do not address emissions from the use of vehicles on the road as other tools and processes exist to do this,” Mr Renton said.
“However, this emission source is able to be considered and included as an input. Over the 50-year life of a road, vehicle emissions are esti mated to be the largest source of emissions representi ng in excess of 90% of the total emission footprint.”
The workbook is available through the agency websites. In additi on, the Carbon Gauge® Calculator is being investi gated for its suitability to become a web-based online tool, which will ensure its ongoing integrity and avoid obsolete versions being used by interested stakeholders.
This will also enable capture of informati on for benchmarking purposes with the potenti al for setti ng targets for road constructi on projects into the future.
For further informati on contact the road authority within each State or the New Zealand Transport Authority. The designated contacts are:Robert Mitchell NZTA, NZ [email protected] Welsh DPTI, SA [email protected] Lambous RMS, NSW [email protected] Betti ni Main Roads, WA Louis.Betti [email protected] Shaw DIER, Tas [email protected] Renton VicRoads, Vic [email protected]
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Roads covered by fi rst ratingscheme for sustainable infrastructure Australia’s fi rst rati ng scheme for sustainable infrastructure projects can be applied to a broad range of infrastructure types including roads and bridges, ports, harbours and airports, energy infrastructure, water storage and supply, communicati on transmission and distributi on.
The Infrastructure Sustainability Rati ng scheme has been launched by the Australian Green Infrastructure Council and comprises a rati ng tool, assessment process and educati on and training programs. It measures the sustainability of infrastructure projects across the triple bott om line of economic, environmental and social criteria.
AGIC’s Technical Director, Rick Walters, said during a speech to launch the scheme that the council’s engagement with the infrastructure sector had told it that sustainability was starti ng to be recognised, but people didn’t know exactly what it was.
Mr Walters said the infrastructure industry wanted the scheme but struggled to describe it in frameworks, specifi cati ons and tenders. As a result, many infrastructure developers were “doing their own thing creati ng ineffi ciencies across the industry”.
He said the sector oft en operated in silos and didn’t consider the full infrastructure lifecycle, from planning and design, through constructi on to operati on and fi nally decommissioning or adaptati on.
Mr Walters said when AGIC was formed in 2008 such issues werebecoming more and more evident and the business case was crystallising.He said it was ti me for the infrastructure industry to at least “do its bit” or “lead the way to help Australia become more sustainable.”
AGIC commenced creati ng the scheme with a stakeholder workshop in 2008 where it developed the initi al framework. During that year the council appointed a Project Manager, and with initi al funding from the New South Wales Government developed the Climate Change Adaptati on category in 2010.
In September 2010 the council received more funding and started further tool development. It engaged category authors to develop the content of each of the categories and also engaged peer reviewers and a global review panel.
By mid-2011, a draft tool was produced ready for initi al piloti ng and two rounds of trials were undertaken between August and December last year. Altogether, 16 projects have been involved in pilot trials – representi ng a range of infrastructure types, locati ons, phases and sizes.
The Infrastructure Sustainability Rati ng Scheme is a voluntary sustainability rati ng scheme incorporati ng a rati ng tool. There are 15 categories across 6 broad themes ranging from environmental issues such as energy and carbon, to social issues such as stakeholder parti cipati on, to management issues such as procurement and purchasing.
There is a process for assessment, independent verifi cati on and certi fi cati on. Mr Walters said while projects or assets could use the tool for self-assessment, they must seek a certi fi ed rati ng from AGIC to gain the right to publicly adverti se their rati ng performance. Importantly, he said, the scheme covered the infrastructure lifecycle, from project to operati ng asset.
Mr Walters said the council off ered three rati ng types:• A Design rati ng awarded at the end of the design process which
assessed the sustainability of the design and the planning for constructi on. This is an ‛interim’ rati ng and must be replaced by an As Built rati ng aft er constructi on.
• An As Built rati ng which assessed the design, the measured sustainability performance during constructi on and what was built into the infrastructure asset. This rati ng may be awarded aft er practi cal completi on of the project.
• And an Operati on rati ng based on the measured sustainability performance of the operati ng infrastructure asset. Both new projects and existi ng infrastructure assets are eligible to apply for an Operati on rati ng.Mr Walters said the scheme used a system of three benchmark levels
for each credit providing a “fi rst step in the sustainability journey for some, while also rewarding those who lead the industry”.
“IS is designed to be practi cal; it uses industry language, and it aligns to industry and government processes and requirements. Our Technical Manual provides guidance, and AGIC provides support throughout the assessment process,” he said.
Mr Walters said the council believed the scheme provided a range of benefi ts, including a common nati onal language for sustainability in infrastructure; support for tendering processes; risk and cost reducti on; resource effi ciency and waste reducti on; innovati on and conti nuous improvement; and reputati on building.
He said in the longer term, the council looked forward to sustainability being understood as more than just carbon, water and waste.
Mr Walters said the council anti cipated the long term view becoming the primary focus of decision making – using approaches like lifecycle analysis, whole of life costi ng and valuing externaliti es to make the future count.
He said AGIC also looked forward to:• The whole industry increasingly working together – designers,
constructors, operators, owners, supply chains, and customers – and the community as partners.
• Infrastructure projects being welcomed by communiti es because of the benefi ts they bring and the open parti cipati on they welcome. This resulti ng in approvals being streamlined and a social licence to operate being granted.
• Lower costs – in tendering, design, approvals, and lifecycle.• Bett er value – tenderers competi ng on an holisti c sustainability
basis, not just cost.• Bett er environmental protecti on – moving to enhance and
restore GHG reducti on eff orts, saving water and other resources.
• And greater social benefi ts – through stakeholder project input, enhancing livability, causing less disrupti on, and creati ng long term legacies.
Citywide... Working the roads
less travelled
Responsible for maintaining over 3400 kilometres of regional arterial road network throughout Victoria, Citywide is a leading authority when it comes to providing civil infrastructure services to regional Victoria.
Offering regional customers a diverse scope of works, Citywide provides a diverse range of services which includes road stabilisation, gravel road re-sheeting, road profiling, tree pruning, traffic management and drainage solutions.
A trusted partner in the growth and development of government and business enterprises, contact Citywide today for more information on our regional civil infrastructure services.
To find out more, visit us at www.citywide.com.au or call us on 1300 136 234
we shape sustainable landscapes
Infrastructure Environmental Open Space Regional Vic Advert.indd 1 6/02/2012 3:08:53 PM
Citywide... Working the roads
less travelled
Responsible for maintaining over 3400 kilometres of regional arterial road network throughout Victoria, Citywide is a leading authority when it comes to providing civil infrastructure services to regional Victoria.
Offering regional customers a diverse scope of works, Citywide provides a diverse range of services which includes road stabilisation, gravel road re-sheeting, road profiling, tree pruning, traffic management and drainage solutions.
A trusted partner in the growth and development of government and business enterprises, contact Citywide today for more information on our regional civil infrastructure services.
To find out more, visit us at www.citywide.com.au or call us on 1300 136 234
we shape sustainable landscapes
Infrastructure Environmental Open Space Regional Vic Advert.indd 1 6/02/2012 3:08:53 PM
