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Transcript of MM PRESENTATION 20160223 Business Case ... 2016/02/23 ¢  Microsoft PowerPoint - MM...

  • MELBOURNE METRO BUSINESS CASE BRIEFING February 2016

  • BACKGROUND

  • • Continuing population growth • Increasing demand on public transport • Changing economy – shift to central Melbourne

    CHALLENGES FACING MELBOURNE

  • MEETING THE CHALLENGE OF POPULATION GROWTH

    12.6

    14.4

    24

  • POPULATION GROWTH

    Source: Plan Melbourne

    POPULATION GROWTH WILL BE CONCENTRATED IN THE NORTH, WEST AND SOUTH EAST Figures indicate forecast population growth between 2011 and 2031.

    POPULATION GROWTH WILL BE CONCENTRATED IN THE NORTH, WEST AND SOUTH EAST Figures indicate forecast population growth between 2011 and 2031.

    WESTERN +420,000

    NORTHERN +450,000

    EASTERN +180,000

    SOUTHERN +450,000CENTRAL+270,000

  • AVERAGE GROWTH BY INDUSTRY 2001-2013 (SIX LARGEST SECTORS)

  • NEW BUSINESS GROWTH

    Source: Plan Melbourne

    A CHANGING ECONOMY IS HAVING AN IMPACT ON WHERE PEOPLE WORK

    A CHANGING ECONOMY IS HAVING AN IMPACT ON WHERE PEOPLE WORK

    Over 500 businesses

    250-500 businesses

    125-500 businesses

    51-125 businesses

    Professional

    Manufacturing

    NEW BUSINESSES 2001–2011

  • FUTURE RAIL NETWORK PATRONAGE

    • Population growth • Inner city jobs • Road congestion • Parking costs • Environmental impacts

    • Population growth • Inner city jobs • Road congestion • Parking costs • Environmental impacts

  • THE IMPORTANCE OF MELBOURNE’S CBD

    • State’s economic and cultural hub – home to many iconic institutions, destinations

    • Economy evolving towards inner-city produced, knowledge-based services

    • Manufacturing relocating to the west of Melbourne

    • CBD needs to continue to grow and realise its full job growth potential

    “CENTRAL MELBOURNE IS SET TO BECOME AUSTRALIA’S LARGEST BUSINESS CENTRE WITH JOBS PROJECTED TO GROW TO ALMOST 900,000 BY 2051”

  • BUSINESS CASE RECOMMENDATION

  • Melbourne Metro: • Meets a pressing need to increase capacity of the metropolitan

    rail network • Represents the best option identified to deliver the objectives of

    rail investment • Is economically viable and backed by a strong strategic case • Is deliverable within the cost and timeframes proposed • Fits with the strategic policy objectives of Federal, State and

    Local Governments • Delivers substantial social, environmental and economic

    benefits • Is widely supported by stakeholders and the community

    BUSINESS CASE RECOMMENDATION

  • • Benefit to Cost Ratio of 1.1 • Benefit to Cost Ratio of 1.5 when

    wider economic benefits are included

    • Creates 3,900 additional jobs (net) across Victoria and 4,700 jobs (net) nationwide at the peak of construction.

    • Expected to increase Victorian GSP by $7 billion in present value terms

    ECONOMIC CREDENTIALS

    “A BCR GREATER THAN 1.0 INDICATES BENEFITS OUTWEIGH COSTS FOR EVERY DOLLAR SPENT; MELBOURNE METRO WILL DELIVER A NET ECONOMIC BENEFIT TO THE VICTORIAN COMMUNITY”

  • • Detailed financial model used to assess Melbourne Metro

    • A $10.9 billion transformative infrastructure project for Melbourne and Victoria

    • Rolling Stock - Government has committed $1.3 billion to build a new fleet of 37 HCMTs to operate on the Cranbourne / Pakenham Line.

    COST

  • SCOPE

  • ACCESS TO STRATEGIC LOCATIONS

  • ARDEN

  • PARKVILLE

  • CBD NORTH

  • CBD SOUTH

  • DOMAIN

  • KEY BENEFITS

  • BENEFITS OF MELBOURNE METRO INCLUDE:

    • Enhancing Melbourne’s liveability and Victoria’s prosperity by improving access to jobs, education, health, sport and culture

    • Expanding the inner core of the rail network to meet demand in the growth corridors to the north, west and south-east of Melbourne

    • More evenly distributing passenger flow and easing overcrowding in the inner core of the network

    • Creating education and job opportunities in city’s inner west for Melbourne’s key population growth corridor to the north-west

    • Improving access to the CBD and Parkville to support Victoria’s growing knowledge economy

  • BENEFITS OF MELBOURNE METRO INCLUDE:

    • Upgrading rail capacity into and out of five existing and emerging national employment clusters (Parkville, Monash, Dandenong South, Sunshine, and East Werribee)

    • Reshaping travel demand to enable a future opportunities for the tram network by moving services to the west of the CBD

    • Relieving tram crowding and congestion on St Kilda Road and Swanston Street

    • Improving capacity, reliability and punctuality for rail passengers

  • CAPACITY BENEFITS IN NUMBERS

    • From day one of Melbourne Metro’s opening, 39,000 extra passengers will be able to travel on the rail network during each peak period

    • Capacity for around 12,000 of the extra 39,000 passengers delivered directly on the new stand-alone Melbourne Metro (Sunshine – Dandenong) line; remaining 27,000 uplift achieved on other lines – Upfield, Craigieburn, Werribee, Sandringham and Frankston

    • Melbourne Metro will create different travel patterns for commuters, leading to a 20% decrease in crowding across existing CBD stations

  • NEXT STEPS

  • NEXT STEPS

    • Environment Effects Statement – on exhibition • Procurement • Major early works (site preparations) in 2017 – subject to

    planning approval • Major Works in 2018

  • QUESTIONS?