NSW Australia investing in transport

Australia’s New South Wales (882 NSW) Government has outlined its massive transportation investment in the WestConnex project. This will be the largest urban transport project in the history of New South Wales. Some A$1.8 billion will be invested over four years from Restart NSW, the state’s new infrastructure fund. to finance the WestConnex project. And A$111 million will be committed in 2013-14 to get work underway on the 33km motorway. The NSW Government will fund the initial sections of the motorway. Private sector capital will be raised against tolls to fund the next phase of motorway construction. In its Budget papers, the Government notes that raising private capital once traffic volumes are known can significantly reduce traffic forecasting risk. In turn, this would reduce the required rate of return for private investors and lenders, and lower the project’s cost of capital or enable additional capital to be raised. The WestConnex project was the key recommendation of last year's Infrastructure NSW report into the State’s infrastructure needs. The project aims to ease congestion and improve travel times on the city’s major transport routes between Sydney’s west, south west and the Sydney Airport and Port Botany Precinct. The Sydney Motorways Project Office is currently finalising the business case to be delivered to the NSW Government in the coming weeks, which will detail the scope and the timing of phases. The Government says it will also engage with the private sector on the reference financing strategy and potential alternatives to ensure value-for-money financing of WestConnex.

In all, the NSW Government will invest A$5.1 billion to build and maintain critical road and maritime infrastructure across NSW in the 2013-2014 State Budget. This year’s roads budget provides A$2.6 billion for new roads infrastructure, A$1.5 billion for maintenance, A$238 million for road safety and A$62 million to ease Sydney’s congestion.

As part of the A$1 billion investment in the Pacific Highway, A$220 million has been allocated to continue work on the dual carriage, 17km upgrade of the highway between Tintenbar to Ewingsdale, north of Ballina. There is also A$180 million for the section between Frederickton and Eungai, north of Kempsey. To the south of the State, A$115 million has been allocated to continue work on the Princes Highway Gerringong upgrade between Mount Pleasant and Toolijooa Road.

The NSW Government will invest around A$2.7 billion of Restart NSW funds to growing and improving the state’s road network over the next four years, with A$553 million to be spent in 2013/14. The funding will support the WestConnex Motorway, WestConnex Enabling Works in the Port Botany and Sydney Airport Precinct, the Pacific and Princes highways, Bridges for the Bush, and addressing congestion pinch points in Sydney. The Budget also includes funding for the Stage 3 assessment of 891 Transurban's unsolicited F3 to M2 proposal, and reserves a Restart NSW contribution of up to A$400 million should the proposal pass the final hurdle.

Major commitments announced in the Budget include A$145 million to continue work on the dual carriageway upgrade of the Pacific Highway between Coffs Harbour (Sapphire) and Woolgoolga (State and Federal funded). They also include A$140 million to continue work on the dual carriageway upgrade of the Pacific Highway between Nambucca Heads and Urunga (State and Federal funded). For the Princes Highway, A$115 million will be for Mount Pleasant to Toolijooa Road as part of the Gerringong upgrade and A$19 million for the Foxground and Berry bypass. The Newell highway will benefit from A$5 million for overtaking lanes, while A$47 million will continue work on the four lane upgrade of the Great Western Highway between Station Street, Woodford and Ferguson Avenue, Hazelbrook (State and Federal funded). In Western Sydney, A$32 million will help to continue work on the upgrade of Camden Valley Way to four lanes between Ingleburn Road and Raby Road. And A$30 million will help to continue work on the upgrade of Camden Valley Way to four lanes between Bringelly Road and Ingleburn Road. Some A$222 million will help to complete work on the Hunter Expressway between the Pacific Motorway (F3) at Seahampton and the New England Highway at Branxton (State and Federal funded). There will be A$30 million to complete the Newcastle Inner Bypass between Shortland and Sandgate. Another A$165 million over four years will help to support Road Freight Safety and Productivity including Bridges for the Bush. And A$111 million will to start the WestConnex Motorway.