Roads Australia
The release by the Henry Tax Review of an independent paper looking at transport and road taxes (see story below) was given comprehensive coverage in yesterday’s Australian Financial Review.
In an exclusive story ahead of the release of the report, the AFR focussed heavily on consideration of distance-based tolling for motorists and increases in fuel taxes, just two of a broad range of proposals and ideas canvassed in the report.
One of the report’s authors, Professor Harry Clarke, was quoted in the AFR article as saying roads was the last area of the transport economy to be exposed to market-related reforms, and that such reforms promised big efficiency gains right across the economy.
The Fin Review speculated that the release of the report was further confirmation that Dr Henry was ‘strongly considering’ a user-pays system for roads in his final report, due in December.
As part of the Henry Tax Review, Treasury has this week released a wide-ranging paper on the reform of road and transport taxes.
The paper, A Conceptual Framework for the Reform of Taxes Related to Roads and Transport by Harry Clarke and David Prentice from the School of Economics and Finance at La Trobe University, examines how transport services in Australia should be charged for, how such charges can contribute to economic efficiency, and how capital works in the transport sector should be funded.
Among other issues the paper examines road-user charging as a means of addressing congestion, noting that “...the case for using comprehensive electronic pricing of all urban vehicle travel in currently congested cities using telematic technologies is strong.”
It continues: “If intermediate policies are sought they should concentrate on cordon pricing of congested cities with traffic density dependent tolls on major ring roads and arterials. Parking policies provide an imperfect though useful additional intermediate way of addressing congestion."
The paper also calls for more research on congestion modelling charging technologies.
On the issue of road funding, the paper notes that road supply decisions are currently not related to demand but more often engineering-based and politically driven.
“One proposed reform is to relate road supply decisions to forecast demands based on user charges – particularly user charges related to the road damages caused by heavy vehicles.
“User charges that reflected the actual costs of using roads would also help provide better usage decisions that reflected the value of different freight tasks.”
The full copy of the report can by downloaded off Treasury’s tax review website.
Meantime the Transport Worker’s Union yesterday issued a statement warning that proposals in the report would lead to small businesses in the industry being weighed down with red tape, while major clients would escape the costs.
TWU national secretary, Tony Sheldon, said that while the industry was waiting for the Federal Government to implement a system of safe rates, it was premature to be talking about any reform to transport charges across the country.
“This plan we have seen reported today will only look after the big end of town. The hyper-competitive nature of the industry, which is driven by client pressure, will still see drivers end up carrying the bill,” Mr Sheldon said.
“This proposal is not a user-pays system. The fact that we pay excise on every litre of fuel we buy at the moment means the user is paying for their road use. It is short-sighted to think another tax on drivers will see anything change.”
Two joint ventures have been invited by the NSW RTA to submit detailed tenders for the upgrade of the Pacific Highway from Sapphire to Woolgoolga.
Federal Infrastructure and Transport Minister, Anthony Albanese, and NSW Roads Minister, Michael Daley, announced last week that an Abigroup Contractors - Thiess JV and a Leighton Contractors - Fulton Hogan JV had been shortlisted for the job.
"These companies will have three months to prepare tenders that include a concept design, management plans and costs,” Mr Daley said.
"The preferred contractor will then be announced in the first half of 2010, with work on the upgrade expected to start shortly after.”
Meantime, the RTA last week called for tenders for Stage 2 of the $167 million Woodford to Hazelbrook upgrade on the Great Western Highway.
Infrastructure Australia has posted a useful summary of Australia’s PPP pipeline on its website.
The resource seeks to provide interested players with information on projects that are being delivered, are in the process of being procured, or that governments have identified as potential candidates for PPPs.
The site is at http://www.infrastructureaustralia.gov.au/project_pipeline/index.aspx
Leighton Contractors, in an alliance with the Queensland Department of Transport and Main Roads, SKM and AECOM, has been awarded a combined $282 million contract to deliver the Eastern Busway – Buranda to Main Avenue to expand Brisbane’s unique busway network.
The Eastern Busway Alliance will design and construct the 1.05 kilometre section of busway, including new busway stations at Stones Corner and Langlands Park, along with a combination of tunnels and bridge structures.
The Eastern Busway – Buranda to Main Avenue promises commuters a congestion-free run on fast, frequent and reliable public transport. By 2016, this section of busway will carry 7,000 passengers in the morning peak – two extra traffic lanes would need to be built along Old Cleveland Road to carry the same number of passengers by car.
The Eastern Busway forms part of the Queensland Government’s $465.8 million project to extend the busway network from the South East Busway at Buranda to Main Avenue, Coorparoo.
This week’s Victorian Government announcement that legislation is now before Parliament to speed up the delivery of major transport projects is a good step forward, according to RACV.
The Government says the Major Transport Projects Facilitation Bill will significantly reduce the time to plan, approve and deliver major transport projects, and provide savings for taxpayers and private investors.
RACV General Manager Public Policy, Brian Negus, said there was a long list of critically needed major transport projects in Victoria, and moves to streamline the planning and construction process would be welcomed by travellers stuck in unnecessary road and rail congestion.
“Moves to cut the red tape means that the benefits of major road and rail projects can be realised months, perhaps years earlier than otherwise would be the case,” Mr Negus said.
“Victoria has no shortage of major transport projects that are needed immediately to relieve congestion and improve safety for Victorian motorists and public transport users.
“We expect this new legislation will speed up planning for the big ticket projects in the Victorian Transport Plan including the Tarneit Regional Rail, Melbourne Metro Rail and the North East Road Link, together with the much needed East West Tunnel project to relieve congestion in inner Melbourne and provide opportunities for improvement of public transport and urban amenity,” he said.
Mr Negus said it was important that the legislation provided appropriate opportunity for community discussion about major projects.
“Major projects provide huge benefits to the community, which is why fast-tracking their planning is crucial. But it’s also important that those in the community with valid concerns still have the opportunity to state their case.”
The Queensland Government has announced the preferred alignment for the Bruce Highway south of Townsville.
Main Roads Minister, Craig Wallace, said today the Southern Access Corridor Study had identified a final alignment for the upgrade of 22 kilometres of the Bruce Highway, from Stuart Drive to Killymoon Creek.
“After more than 15 months of detailed design and community consultation, the State Government has endorsed an alignment for the highway, known as the Hybrid Alignment,” Mr Wallace said.
“The Hybrid Alignment involves upgrading part of the old highway as well as building new sections of highway, and is the best long-term solution for managing traffic growth on the Bruce Highway, south of Townsville.
Construction of the alignment will be progressively rolled out to respond to future residential and commercial development, the Minister said.
Another major milestone on the Hume Highway in southern NSW was passed this week with the opening of the Olympic Highway interchange.
Federal Infrastructure and Transport Minister, Anthony Albanese, described the Olympic Highway interchange, north of Albury, as a vital part of the Hume Highway duplication project.
“As part of the project, five kilometres of new road has been built for southbound traffic from south of the Olympic Highway interchange to Table Top,” he said.
"This new road duplicates the existing highway and connects with the existing road between Table Top and Albury."
NSW Roads Minister Michael Daley said the work was part of the duplication of 67 kilometres of the Hume Highway between the Sturt Highway and Table Top.
"Another part of the Hume Highway Duplication - the $179 million Coolac Bypass - will also be completed soon," Mr Daley added.
Road projects and RA members have figured prominently in the 2009 Public Domain Awards announced this week.
Conducted by RA member, Cement Concrete & Aggregates Australia, the Awards recognise innovative applications of concrete found in the public arena across a number of categories, including streets, precincts, bridges, walls and public artworks.
RA members were involved in a number of winning and commended projects, including:
In addition, RA member Boral was also involved in providing concrete to a number of the winning and commended projects.
Meantime a project team led by the Queesland Department of Transport and Main Roads received a major honour at the 2009 Civil Contractors Federation (CCF) Earth Awards, held in Brisbane in July.
The Tully Alliance team - comprising the Department of Transport and Main Roads, BMD Constructions, Albem Operations and Maunsell AECOM - picked up the top prize in the ‘over $75 million’ category for delivering a $133 million federally-funded upgrade on the Bruce Highway in North Queensland.
John Holland has won the Large Bridges category and the overall Gold Award at the 2009 Austroads Bridge Awards for the delivery of the Eleanor Schonell Bridge in Brisbane. The award was received at the 7th Austroads Bridge Conference held in Auckland, New Zealand.
John Holland was the design/build contractor for the $56 million project, working closely with GHD, Brisbane City Council and the University of Queensland to ensure delivery within budget and ahead of schedule. The project team also exceeded all original safety, environmental and quality targets.
“The Eleanor Schonell Bridge was delivered early, under budget and demonstrates the best in design, engineering and construction practices,” said Glenn Palin, John Holland’s Group Managing Director. “I congratulate the project team, particularly Project Director David Balmer, for this outstanding achievement.”
The 390 metre Eleanor Schonell Bridge links Dutton Park with the University of Queensland over the Brisbane River. It is the first Australian bridge to be exclusively designed for pedestrians, buses and cyclists, with the final design adopting a significant number of environmental design features.
As part of 75th anniversary celebrations, RA member Thiess is planning a reunion of its past employees at Queensland’s Wivenhoe Dam on Sunday October 25.
The venue is a fitting location, having been built by Thiess and situated in that part of Queensland from where Sir Leslie Thiess and his four brothers set about making a name for themselves.
Earlier this year Thiess 75th Anniversary Project Manager, Jane Shea, established the Thiess Networkers program which has been designed to locate past Thiess employees. Along with many names Jane also found a treasure trove of memorabilia.
“We found that quite a few past employees live now in regional Australia and they have great stories to tell about how some of the nation’s biggest infrastructure projects came about. We’re also publishing a book to capture these stories” Jane said.
“Some amazing finds included a ballad written about the founding five Thiess Brothers by Stan Coster who at one stage was teamed up with Slim Dusty. The last remaining Thiess brother, Bert, is still alive at 96 and he has the most amazing collection of tractors and heavy machinery. ”
For further information on the anniversary and reunion, contact Jane Shea on 0428 987 716.
Submitted by Mark Bowmer on Friday August 14th 2009 1:24pm
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