Cityshaping infrastructure Jarrod Dobson Director Economic Evaluation The

City-shaping infrastructure Jarrod Dobson, Director - Economic Evaluation The Impact of Major Transport Investment

What do we mean by city shaping anyway? “Major infrastructure projects can, quite literally, resculpt the pattern of metropolitan development. ” “Major transport investments are a powerful and, perhaps, the pre-eminent policy lever for determining metropolitan structure. ”

The Infrastructure Projects The City Loop City. Link The Western Ring Road 8

City Shaping Impacts • Set up the Central City for growth • Restructured the Freight Network • Opened up Melbourne’s north west PAGE 12

Central City Growth City Loop – expanded rail footprint City Link – reduced CBD traffic Walk time pre-City Loop Walk time post-City Loop Traffic reductions post-City. Link

Central City Growth Impact on financial and insurances services businesses. NET CHANGE IN FINANCIAL & INSURANCE ESTABLISHMENTS BY POSTCODE, 2000 -01 TO 2010 -11 PAGE 14

Restructuring the Freight Network Together, the Western Ring Road and City. Link enabled freight, logistics and manufacturing firms to move to more accessible locations that were more suited to their business needs and better connected to producers and export gateways like the Port of Melbourne and Melbourne Airport. MODELLED IMPACT ON FREIGHT & LOGISTICS JOBS PAGE 15

Restructuring the Freight Network Impact on freight and logistics businesses NET CHANGE IN TRANSPORT SERVICES BUSINESS ESTABLISHMENTS BY POSTCODE, 2000 -01 TO 2010 -11 PAGE 16

Opening up Melbourne’s north and west Historical growth pattern The shift Inner city revival

Opening up Melbourne’s north and west Western Ring Road Impact on population-serving jobs Impact on knowledge-intensive jobs No diff in green

Opening up Melbourne’s north and west City. Link Impact on effective job density Impact on overall employment PAGE 19

Opening up Melbourne’s north and west Impact on suburban house prices City. Link Western Ring Road

Contribution to Victorian economy Summary of project benefits $M

Other Impacts Impact City. Link Western Ring Road City Loop New Jobs 70, 300 24, 900 74, 000 New Households 58, 200 17, 400 n. a. $14 m $5 m n. a. $29, 646 m $10, 174 m $21, 139 m Human Capital Land Value Improvements 22

Shifting the trajectory Victorian population growth strategies

Implications City Shaping Power - Major infrastructure projects are a very powerful policy lever for determining metropolitan structure. Investment Appraisal Tools – Conventional Cost Benefit Analysis don’t account for the full benefits of city shaping projects