Introduction and overview
Global trends The macroeconomic environment and advances in the transport and infrastructure sector present opportunities as well as potential disruptions for our business.
economies during and since the pandemic, and increasing their investment in large-scale infrastructure projects. Total gross state debt in Australia has doubled relative to pre-pandemic levels. 8 And with debt of more than USD34 trillion 9 and higher interest rates, the US spends more to service debt than it does on transport, housing or higher education. 10 Infrastructure needs and funding Private investment through Public Private Partnerships (PPPs) is a funding mechanism that can relieve governments from the burden of up-front infrastructure spending. In NSW alone, Transurban and our partners have invested more than $36 billion into Sydney’s motorway network to support the city’s increasing population and connect economic and residential growth areas. Think tank Infrastructure Partnerships Australia highlights the historic importance of PPPs as a funding tool, stating that Sydney’s most significant and valuable road corridors could not have been built, or their delivery would have been delayed by decades, without PPPs. 11 A further pressure on government finances is declining revenue from fuel excise as vehicles become more fuel efficient and the uptake of low and zero emission vehicles, such as electric vehicles, increases. Governments around the globe have been grappling with how to create a funding model that stabilises public revenue collection for road infrastructure projects and is a fairer system for all motorists. 1 A ustralian Bureau of Statistics, 26 March 2024, Capital city growth the highest on record, accessed June 2024 2 U BS Global Research and Evidence Lab, 15 March 2024 3 R ACQ Annual Average Speed and Travel Time on Brisbane and Gold Coast (State/TMR) Roads, Annual Report 2023 4 R ACQ Annual Average Speed and Travel Time on Brisbane and Gold Coast (State/TMR) Roads, Annual Report 2023 5 2023 Population Statement, Australian Government, Centre for Population, accessed June 2024 6 A BC News, 15 April 2024, Australia’s biggest city has a car problem. What should Melbourne do to fix it? – ABC News accessed June 2024 7 TomTom Traffic Index, Washington traffic report 2023, accessed June 2024 8 Financial Review, June 19 2024, World-leading deficits: Australia’s state debts could hit $800b accessed July 2024 9 T he Department of Treasury and the Bureau of Fiscal Service, Fiscal Data. What is the national debt? accessed June 2024 10 C NN Business,17 April 2024, America’s debt problem could spell higher interest rates in the rest of the world accessed June 2024 11 Infrastructure Partnerships Australia, Submission in response to the NSW Government’s Independent Toll Review Interim Report 13 May 2024
Population growth in Australia’s capital cities has reached record levels, 1 driving demand for greater infrastructure investment to avoid traffic congestion undermining productivity and liveability. Independent data has shown congestion levels rose almost 10% in Sydney and 7% in Melbourne in the March quarter of 2024 compared to the previous year. 2 Similarly, research by Queensland motoring body RACQ found that more than half the roads in Brisbane were more congested in 2023 than pre-pandemic, in 2019. 3 Speeds on some sections of Brisbane motorways were at least 30 km/h slower than average free-flowing speeds. 4 In Melbourne, which is projected to be Australia’s largest city within a decade, 5 the rate of vehicle ownership has outpaced population growth since 2021, with more people opting to drive rather than taking public transport. 6
In the US, congestion in major cities continues to build with traffic in Washington, DC ranked the second-worst in the country. In 2023, commuters spent an extra 86 hours in the car during rush hour due to congestion. 7 To meet the needs of growing populations and retain liveability standards and prosperous economies, governments face competing demands, not only for more transport infrastructure, but also for affordable housing and essential services such as electricity, schools and hospitals. These public-spending demands also come at a time when governments are under pressure to deliver initiatives to relieve the rising cost of living and sustained high inflation. They also face increasing expectations to hasten and help fund the transition to lower carbon sources of energy. At the same time, many governments face burgeoning deficits after supporting their
CityLink, Melbourne
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