With the Government committing $50b to 2-19-20 to significant...

With the Government committing $50b to 2-19-20 to significant new investments in essential infrastructure across Australia, I wonder what others thoughts are with the vast array of future projects that are potentialy coming on board for Transurban.

As a person with experience as a Transport Economist, it is widely accepted that investment in well-conceived transport infrastructure generates economic benefits that exceed costs. A study by the BITRE estimated that public investment in 128 road and rail projects in Australia returned $2.65 for every $1 invested and had a present value of net benefits of $62 billion. Pretty powerful!

Further, over 80 per cent of Australians living in urban areas and over 80 per cent of economic activity takes place in cities, people need to travel to work. The mode preference of choice for trips is cars across Australia, with 84% of all trips done by Car. With Congestion costed as an externality now at $16.5b up from $12.8b in 2010, a 30% increase, the need for additional supply is a ticking time bomb. Or the need to charge user charges at a WTP rate, especially during the Peak where people weight avoiding Congestion at x2 the standard WTP of $13.25. Therefore if Road Tolls were charged at c$26.50 p/hr to avoid congestion, imagine the revenue stream. Take M7 at c$12 one way, revenue in AM peak could increase 220%.

Transurban Project Pipeline
- Western Distributor ($1.4b in funding given to PPE by VIC Govt). With a 12 yr extension to CityLink, also given s part of the proposed funding arrangement, it as been estimated to provide Transurban with an additional $20 to $30 billion in tolling revenue. Yes $2.5b extra in revenue a year! (Source: Schneiders, Ben, Miller, Royce)
- Logan Enhancement (Total CAPEX $281m 50/50). $1.1b in Economic Benefits.
- Inner City Bypass (Total CAPEX $50m)
- Express Lanes (Total CAPEX $275m - $325m)
Bidding
- 95 Express Lanes (known)
- 66 Express Lanes (known)
Potentials
- West Connex (potential known with Macquarie Atlas)
- Bruce Highway - Caloundra Road to Sunshine Motorway (IA potential)
- Adelaide North-South corridor upgrade (IA potential)
- Road connection between West Gate Freeway and Port of Melbourne and CBD North (IA potential)
- Connection between VIC Eastern Freeway and CityLink (IA potential)
- Outer Sydney Orbital road and rail / M9 (IA potential)
- Extend M1 from Waterfall to Sydney Motorway Network (IA potential)
- WestConnex Stages 4a and 4b: Western Harbour Tunnel and Beaches Link (IA potential)
- Complete Metro Ring Road from Greensborough to the Eastern Freeway (IA potential)
- Perth major east-west and southern corridor capacity upgrades (IA potential)
Committed
- North Connex
- Tulla Widenning
- WEBB Dock Access
- Monash Freeway