Congestion to cost $20bn by 2020

By Jennifer Perry

Federal infrastructure and transport minister Anthony Albanese released the State of Australian Cities report by Infrastructure Australia’s Major Cities Unit in Brisbane on March 5th.
Productivity growth in Australia’s 17 cities with populations greater than 100,000 is critical to the economy, however economic growth in major cities is slowing down, according to the report.
Urban congestion is a “major handbrake” on productivity, because productivity reliant on connectivity between businesses, people, goods and services, Albanese said.
According to the Bureau of Infrastructure, Transport and Regional Economics (BITRE) the cost of road congestion, estimated at $9.4bn in 2005, will rise to $20bn by 2020.
Albanese said that sustainability is an “essential component” of future urban policy direction.
“Transport emissions are projected to increase by 22.6% over the period 2007 to 2020,” he said.
“Efforts by all spheres of government, the private sector and communities to address sustainability have been increasing, but with variable success.”
Albanese signaled that the Federal Government would take an increasingly active role in urban planning, and the Major Cities report will form the basis of this. The report will also feed into a parliamentary inquiry into smart infrastructure which starts this week.
COAG also has a “strong interest” in urban policy and planning. A lack of alignment within some jurisdictions’ between metropolitan land use plans and infrastructure proposals submitted to IA last year led to the establishment of the COAG Cities Planning Taskforce. All states are currently working on city plans, to be put in place by January 2012, following a decision by COAG last December.
The Australasian Railway Association welcomed the Federal Government’s commitment to address urban congestion through effective transport planning and investment.
Chief executive Bryan Nye emphasised the importance for the government to show significant leadership” this matter.
“Having the right governance structure is essential for optimising transport,” Nye said.
“A key role for the Federal Government now is to develop a coordinated national passenger transport plan for people movement which integrates all modes of transport and is consistent with state-based strategies.
“A lack of foresight on this issue would inhibit long term and transformational planning.”
While Nye said that rail is an “integral part” of the solution to urban congestion and sustainability issues, in order for rail to achieve its “maximum potential”, greater participation from all levels of government in long term planning and investment “is a must”.

The State of Australian Cities report can be downloaded at: www.infrastructureaustralia.gov.au/mcu.aspx