Transport Project Costs and Funding - Incl. (PPP, BOT, DBFO)

Currently in Auckland transport infrastructure delivery, public transport services, and transport planning is managed by Auckland Transport, a council controlled organisation which seems more or less equivalent to translink but with the infrastructure and planning powers of Brisbane city council, but apparently the mayor has been unhappy with this arrangement and wants to delegate the infrastructure and planning powers like setting speed limits and planning bike lanes to more local community boards within the Auckland region, some people including the mayor have been annoyed at construction and bike lanes by Auckland transport especially.

This is interesting and I think it is relevant as the current situation is pretty close to what we have been advocating for as a forum in regards to the administration of public transport and the relationships between different authorities like translink, Brisbane city council, and QR. But even if we do achieve this I think there is a significant risk that it may be undone if people in power get annoyed due to the actions of a new amalgamated authority and dissolve or redelegate powers under the guise of ā€œlocal controlā€.

What do you guys think? I feel that this is something we should consider while we are advocating and maybe do more education on the benefits of having a unified plan even if it comes with temporary inconveniences.

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Thanks for posting this. A long-form response follows.

Auckland and NZ is an interesting case because like Brisbane, the City of Auckland was formed through the mass merger of multiple local councils over a wide area. The mass merger occurred in 2010, forming Auckland Council.

Governance context
There are also some key differences between Australia and NZ. Australia is a federation of independent states, whereas in NZ it is a unitary (central government) model.

You can think of it to being similar to how local governments within an individual Australian state can be added, altered or deleted by simple changes passed by Parliament, but applied to the national level.

The other key difference in NZ is they have a fourth layer of government - these local boards you’ve mentioned. There are 21 within Auckland. They are a bit like your local neighbourhood association, but with public powers and responsibilities.

Transport
Auckland Transport is a council controlled organisation. Essentially, Auckland Council created a publicly owned agency or corporation and devolved urban and transport planning and operations to it. This might seem a bit unusual to Australians, as we’re used to direct service provision, but it would be similar to how some local councils might own and operate water or electricity utilities through companies or agencies.

IF the proposal is to have local boards run PT, this will probably not work because these local areas are the size of say three or four suburbs, and PT will be crossing the boundaries of most of these areas. They also don’t have the budget, by themselves.

What this means for Queensland

We don’t have local boards in Australia, although Brisbane City Council came close to something like it with Neighbourhood Planning being introduced around 2008 with the Newman BCC Administration.

A dedicated PT authority could solve some major issues with consistent policy and planning in Queensland. A big one is BCC buses not going to train stations either because the route has been designed to avoid the train station so that it provides a single-seat to the CBD (e.g. the situation on Coronation Drive) or there is no proper interchange at the train station and both BCC and the Queensland Government want the other party to pay for it (e.g. the situation at Indooroopilly train station, the lack of Queensland Government funding for the Brisbane Metro BRT project).

They key thing is that for a dedicated PT authority to last, it absolutely needs to be formed from the merger and incorporation of the existing agencies. This is the WA PTA model that works in Perth.

If it is just a third attempt at a co-ordinating style agency such as the Metropolitan Transit Authority (MTA) or the Translink Transit Authority, it will not last.

In terms of Local Government funding and contribution, it would help if LGAs started funding regular PT operations. Currently, LGAs fund every other mode of transport (walking, cycling, roads) and PT is the exception. Lots of LGAs are also producing transport plans for which they have no way to execute, other than the roads and walking/cycling part. The effect of this is that most of an LGA’s transport budget is being spent on roads.

Queensland is a big state, and LGAs exist so that the powers and responsibilities of the State Government can be administered more effectively locally. When you think about LGAs outside of SEQ, PT is essentially non-existent. In a European country, these regional cities and towns would have decent PT, even if it were only provided by buses.

IMHO a lot more cities and towns across Queensland, and even surrounding Brisbane would have much better PT services if LGAs were funding operations.

Notes

This is a thread on transport funding to express ideas and highlight recent proposals, projects and models.

I know transport is a state responsibility but if you look at the federal government funds, we arent getting our fair share. Most federal funding is pouring into other states including Sydneys new metro and Airport, Perths Metronet program and the gov is clearly happy to give the victorians even more for their suburban rail loop east. Yet why has Queensland always had to fight and stand our ground to the federal government for funding. crucial projects like Sunshine Coast Rail, or Bruce Highway safety program etc dont get enough attention. And even worse, North Queensland gets virtually nothing in terms of infrastructure. Does this have to do with uncertainty regarding developments up here or is it simply because council/state gov are the blue team and the federal gov are the red team?.

By all accounts I have read, QLD is very poor at business case development. It tracks given how many half baked projects we end up with.

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Other states seem to do a better job with their project submissions to IA. Qld does get part federal funding for many projects. e.g B2N stage 1, LGCFR, GC Light Rail Stage 3, the Wave stage 1. Big investment for the Bruce Highway safety program feds are putting in $7.2billion. The sore point for me is no federal funding for Cross River Rail, basically the states fault though. They had a chance to resubmit the business case around 2017 to IA, but decided to go it alone.

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Submitting business cases to the Independent agency Infrastructure Australia with BCR values of below 0.5 (ideal >1), negative NPV indicators, having a track record of project costs being 2x greater than when initially announced, all works against major infrastructure project funding.

If you look at the business cases coming out of the WA PTA, they are solid, even under the more stringent 7% discount rate. And they are open about 15 min service all day from day 1.

In contrast, if you ask how many minutes say LGFR will save, you will get an ambiguous, deflecting non-answer. It’s fair to say the time saving will be <5 min. There is a lack of openness, and this can only increase risk it would seem.

The other thing is that projects that require Priority A ROW have gone up in cost per km massively. The length of track or busway you get from $1b is not much.

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Our projects are poorly managed and both the unions and the construction companies are charging prices through the roof here. And then there’s the whole ā€˜remember this is Queensland’ thing going on.

We may win the state of origin. We may of won both the NRL and AFL last year. But we don’t win in terms of business cases and transit planning. I think the reason infrastructure Australia are holding off is clearly due to the lack of certainty regarding our projects. And I don’t blame them frankly for that. I think we should seriously consider putting the blame on the state government.

Federally funded projects usually need at least matched funds from the state governments. Our state government/s have a poor appetite for PT spending, therefore there’s the feds have nothing to match.

I think that’s a poor argument, considering the cost of CRR.

A starting point [at least in terms of SEQ], away from any political colours, would be to establish and fully resource a proper transit authority…getting that ā€œin houseā€ requirement DONE is the start of better PT outcomes!

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You mean like something like Metronet or big build

You have to remember that WA is wealthy and benefited from the GST re-structuring that’s being reviewed again by the Productivity Commission. They also do not have as many large remote populations as Qld has. Yes they have remote communities, but not the numbers you have in Qld (and we have some of the poorest remote communities in Australia).

This is not a dig at WA, just a point that Australia has an extremely bad vertical fiscal imbalance that has been compounded by the horrible GST formula changes of the last Federal Government. There’s a raft of reform across the three tiers that’s required.

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Agreed, it starts with good governance and having a one stop shop agency instead of three.

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If Queensland has some of the poorest people in the country, then care to explain why we are the most expensive state for real estate. Yes, if you subtract the cluster around Greater Sydney and the NSW Central Coast, we are the most expensive state for real estate.

Probably because we have very high internal migration, including to regional areas, having poorer people doesn’t mean that real estate is necessarily cheaper, and with how things are going now Perth is probably going to experience similar things soon in regards to real estate.

The state may have some of the most expensive housing in the country (driven by a lack of dense housing around transit, among other things) but the remote communities we’re talking about don’t. Queensland has a truly monstrous number of tiny, remote townships scattered throughout the state in various states of either stagnation, decay, or outright collapse. Don’t get me wrong, some are doing well but a huge number are not.

The industries out there are mostly agrarian or mining and, as much as I do love that landscape, the land is largely dry and desolate. It’s exceedingly hard to attract people to move there - Julia Creek was offering half a million a year + a free house for a GP and it didn’t work, and a house is only worth money if you have someone to sell it to. A lot of the wealth people in these communities do have is tied up in their homes and properties, which means that even if they’re worth a decent amount on paper their day to day experience is pretty close to poverty.

Idk all I know with real estate is if a young person like myself wants any chance owning a home, I may have to pack up my whole life here and flee the country or at the very least, leave Brisbane

Numbers/areas of low socio-economic residents does not equal the provision of inexpensive housing.

If anything, the increasing cost of housing in many areas is one of the things that is leading to the worsening socio economic standing of many families.

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WA IS Perth and perth IS WA! Something like approx 85% of the state’s entire population lives in the Greater Perth area!

All a WA state govt has to do to retain power at an election, is look after the people in that region. If you’re living outside the Greater Perth area, you’re literally an after-thought!