Urbis congratulates Infrastructure Australia (IA) on the release of the paper Corridor Protection: Planning and investing for the long term. The paper looks at the potential net benefits of early corridor protection for Australia’s future priority roads and rail corridors.
All Australian cities, but Sydney and Melbourne in particular, are experiencing rapid population and economic growth that is placing strains on much of our transport infrastructure. Further, housing affordability is being constrained because some land release areas have inadequate connections to work centres. The seven priority corridors modelled by IA are all aimed at addressing these issues.
While many of the routes will not commence for some time yet, we have all seen the tremendous economic and social costs associated with compulsory acquisition of homes and businesses, or the need to tunnel, because of the failure to plan for and secure required infrastructure corridors.
The logic of corridor protection lies in understanding that land costs will rise faster than the cost of borrowing in areas where land will be rezoned to facilitate future urban expansion, so preservation now in such areas will ensure better economic outcomes for taxpayers and less social disruption. Preserved land can be leased for limited periods for a return without impacting the long-term infrastructure delivery.
IA has estimated that protecting parts of the seven priority corridors could save more than $10 billion dollars in current dollar terms. Given the challenges facing state and federal governments in balancing budgets over the long term, this represents a significant potential benefit.
Earlier this year, Urbis was engaged by IA to peer review the corridor Cost Benefit model, including advising on future planning and land use assumptions along the corridors. It is pleasing to see the careful thought put into future corridor planning and the potential economic and social benefits of doing so.