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

7. 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. ”

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

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

13. 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

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

15. 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

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

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

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

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

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

21. Contribution to Victorian economy Summary of project benefits $M

22. 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

23. Shifting the trajectory Victorian population growth strategies

24. 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