Infrastructure Australia says $748m could be saved if land bought now for Outer Metropolitan Ring Road

THE cost of one of the most important projects to keep traffic flowing around Melbourne - a whopping $7b road project - could be slashed significantly if the Victorian Government acts now. Here’s why.

The Outer Metropolitan Ring Road could take the pressure off Melbourne’s other arterials. Picture: David Crosling

VICTORIAN taxpayers could save as much as $748 million if the government starts buying up land needed for the proposed Outer Metropolitan Ring Road now.

The 100km highway is planned to run from Werribee and Melton through Tullamarine towards Craigieburn, Epping and Thomastown.

Construction is forecast to begin in a decade, but a new report from Infrastructure Australia says the State Government should start acquiring land now to reduce costs.

INFRASTRUCTURE BLUEPRINT RELEASED

SPECIAL SERIES: FUTURE MELBOURNE

A planning overlay was created in 2010 to allow the government to acquire properties along the road corridor.

Infrastructure Australia modelling shows the project’s price tag could be slashed from $7.1 billion to $6.3 billion with the early purchase of land.

Infrastructure Australia chairman Mark Birrell said this had been done successfully for the Monash and EastLink as far back as the 1970s.

“If we protect infrastructure corridors, we will reduce project costs and especially minimise the need for underground tunnelling, where the cost to government and therefore taxpayers can be up to 10 times higher than it would have been,” Mr Birrell said.

“State and territory governments historically have shown leadership in protecting infrastructure corridors, but more needs to be done now.”

‘IT’S A CONGESTION CRISIS AT THE MOMENT’

Infrastructure Australia’s report said Victoria had not reserved land for the proposed Western Interstate Freight Terminal, a 300ha site near Truganina which would connect to the Outer Metropolitan Ring Road.

It estimated purchasing land for the whole project now would cost $2.8 billion but that Victoria would reap $545 million in rental income before construction started in 2027.

The major road’s construction costs will rise if land cannot be acquired. Picture: Nicole Garmston

Construction of the road was tipped to cost $4 billion — but that figure would climb to $4.6 billion if land could not be acquired and tunnels were part of the route instead.

Infrastructure Victoria, the State Government’s hand-picked planning body, has previously recommended that construction begin on the Outer Metropolitan Ring Road within 15 to 30 years.

EAST WEST LINK HOMES FAILING TO SELL

“As a first step, there needs to be further consideration of staging and integrated land use planning, including defining trigger points for project commencement,” it said.

“Some sections may be warranted sooner, perhaps as arterial roads initially, while others may be deferred to the latter part of this period or beyond, particularly where they pose a risk of encouraging dispersed urban development.”

It said the highway would improve access to Melbourne Airport and employment hubs in growth corridors in the city’s west and north.

@tminear