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

What do we mean by city shaping anyway? “Major infrastructure projects can, quite literally, re- sculpt 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 8 The City Loop CityLink The Western Ring Road

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

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

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

Together, the Western Ring Road and CityLink 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. Restructuring the Freight Network PAGE 15 MODELLED IMPACT ON FREIGHT & LOGISTICS JOBS

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

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

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

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

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

Contribution to Victorian economy Summary of project benefits $M

Other Impacts 22 ImpactCityLinkWestern Ring RoadCity Loop New Jobs70,30024,90074,000 New Households58,20017,400n.a. Human Capital$14m$5mn.a. Land Value Improvements$29,646m$10,174m$21,139m

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