Overcrowding, cost blowout warning for Melbourne’s free tram zone
As rail operators grapple with financial fallout from coronavirus restrictions, it’s been revealed a bid to expand Melbourne’s free tram zone would add a cost of almost $15 million a year and create widespread overcrowding issues.
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Expanding Melbourne’s popular free tram zone to include the MCG and other key sites would cost the government and Yarra Trams almost $15 million a year, it can be revealed.
Modelling from the Department of Transport prepared for an inquiry into expanding the policy revealed any move to extend the zone would be expensive. Each year, $240m in myki revenue is allocated back into the tram network.
The Department of Transport’s former head of transport services, Jeroen Weimar told the inquiry the current free tram zone already cut revenue by $10 to $13m a year.
“We estimate then that the extension of the free tram zone would take a further $15m — $14.8m — out of the existing fare box,” he said.
“So we are then looking at an environment where we are looking at probably around $28m coming out of the fare box, that is an over 10 per cent reduction of fare box, to support an extended free tram zone.”
It comes as rail operators grapple with the dire financial implications of coronavirus restrictions, and the government has already bailed out Metro and Yarra Trams in response to the first lockdown. Mr Weimar said the move would also add 13,700 passengers to the tram network a day and could create overcrowding problems across the network.
He said the current free tram zone added to congestion for regular commuters.
“Frankly, there is a significant displacement of people who are travelling home into the inner suburbs by tram, who are being displaced by people who are taking a free trip within the CBD,” he said.
“We know we are at beyond capacity at particularly a number of times a day.”
The Public Transport Users Association said the free tram zone had made crowding worse on the busiest part of the network.
“While simultaneously starving the network of funds for upgrades that would improve services for passengers,” the association said.
“More and bigger trams, more accessible tram stops, better traffic priority and extensions of the network are all higher priorities than extending the free tram zone.
“Free inner-city tram rides only benefit a minority of Melburnians, because most passengers have paid a daily fare.
“For paying passengers, the free tram zone actually makes conditions worse, often forcing people to wait longer for a service they can squeeze onto just to get home.”
The parliamentary inquiry is preparing a report that will be provided to government.
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