Department 
            of Main Roads
 
Professor 
            David Hensher
 
Bruce 
            Judd, DMR 
           
        
        Department of Main Roads (pp. 
          D2, 10,11)
        Transportation planning for the Sydney 
          area and the State, is an on going activity conducted through the Ministry 
          of Transport and the TRANSAC Committee.
        TRANSAC is a committee of the head of 
          the Ministry of Transport, State Rail Authority, Urban Transit Authority, 
          Department of Motor Transport, Department of Main Roads, Department 
          of Environment and Planning, Maritime Services Board and the Treasury.
        The committee essentially reviews the 
          reports prepared by the Ministry of Transport in conjunction with the 
          Department of Environment and Planning, the Department of Main Roads, 
          the Urban Transit Authority and the State Rail Authority. This co-ordination 
          of background planning provides for a consistent development of transport 
          infrastructure by the member groups...
        The DMR has recently completed a major 
          study of road needs of NSW, entitled "Roads 2000". Part of the strategy 
          for the Sydney Region is the development of an orbital route, the eastern 
          most part of which comprises the Harbour Bridge and a second Harbour 
          crossing in close proximity to the Bridge.
        "Roads 2000" provides several strategies 
          for developing the Sydney road network, in particular the stategy for 
          catering for growth in the outer areas of the City. But another important 
          part of the strategy is to improve access in the Sydney CBD and to provide 
          bypass routes to remove through traffic from the City Centre to foster 
          its role as the focal point for the Sydney region.
        "Should not the land use pattern be 
          planned to match transportation constraints rather than remove transportation 
          constraints to match a land use pattern. In other words, cannot transport 
          constraints be seen as a legitimate planning mechanism?"
        A balance must be achieved between land-use 
          development and transport links. Currently, the development on both 
          sides of the Harbour exceeds the development of the cross Harbour transport 
          links. There is little point in ignoring the needs of a large number 
          of people who demonstrate the desire to travel by road across the Harbour.
        At one extreme it could be argued, on 
          this "land-use" basis, that no rail or road Harbour crossing should 
          have been built. At the other extreme some may argue that much more 
          capacity should be provided than is currently proposed. It is not a 
          simple matter to decide the "correct" choice between extreme viewpoints 
          and unanimity of opinion is never achievable. If the Bridge had not 
          been built, it would be incorrect to assume today that, because it isn't 
          in existence, no such facility would be needed. Similarly, because it 
          does exist, it is not correct to assume that it has exactly the best 
          capacity to suit Sydney's existing and future needs.
        Land-use does respond to transportation 
          constraints, such as the Harbour Bridge, but it does so slowly and at 
          considerable economic cost. If it is desirable that future land-use 
          patterns in Sydney should be different from today, there are more efficient 
          means of achieving such a pattern than by relying on the delays and 
          cost to business and individuals resulting from transportation constraints.
        ...back to 
          top
        Professor David Hensher, 
          University of Sydney
        Q: To what extent was the need for the 
          tunnel is addressed in the Environmental Impact Statement ?
        Very narrowly, like many impact statements 
          they should ask the broader question about what are the broader set 
          of transport needs. Transport can't be isolated from land use. In Sydney 
          we have a very good example of our transport system having broken down 
          due to the fact that the land use has not been properly considered. 
          It's the reason why we have got this low density situation with a lot 
          of traffic congestion, people dependent on their cars because low density 
          means that public transport is very hard to justify. Consequently you 
          find that there were much better ways in which the dollars could have 
          been spent had they asked broader question, where could we optimise 
          the use of our scarce transport dollar rather than simply being sucked 
          in, if you like, by an outside organisation that claimed that there 
          could be many benefits from this investment without asking the question 
          that there is better investment potential by putting that money elsewhere.
        Q: Can you tell us whether the tunnel 
          was part of a broader transport strategy?
        Certainly can, I think that the basic 
          answer is no. The question that should have been asked at the beginning, 
          when any major investment like a tunnel or whatever is being considered, 
          is what are our priorities from an overall planning and strategic land-use 
          transport point of view? That question was never asked in the context 
          of this tunnel. The tunnel indeed was fairly low down in terms of the 
          priority list for the government. 
        Their priority was really a major radial 
          circumferential road system that linked north to south, east to west, 
          but it was further out west where the crying need is, where benefit/cost 
          ratios were something like 8, 9, 10, 12:1. A tunnel - you were struggling 
          to get a benefit/cost ratio really above 1.5. There is an unwritten 
          rule around that you don't normally even comtemplate an investment if 
          the benefit/cost ratio is less than 2:1. This one came nowhere near. 
          
        On any criteria that one might consider 
          other than a false assumption that this is free money and hence everyone 
          would get benefits and there'd be no costs, it was really not something 
          that you would contemplate in the overall list of priorities.
        Q: Why do think that the government 
          went ahead with this project when there are other priorities in other 
          areas that are more important?
        Why did the government go into this 
          project? I believe that they went into this project because a very very 
          influential private sector organisation convinced the government that 
          this project would not cost the community any money.
        ...back to 
          top
        Bruce Judd, Department of 
          Main Roads
        Q: Do you have policies about priorities, 
          about which roads should be improved first?
        Priorities are always a major concern 
          because one has to work to a budget of course. The RTA's total budget 
          is slightly more than a billion dollars per year. Of that we'd be spending 
          a little bit under half on road construction work and then one has to 
          slot into that where we think is the best areas to best spend that money. 
          Priorities are most important.
        Q: So how do you work out your priorities?
        Priorities are worked out on a benefit/cost 
          ratio for the different projects that we are associated with, that's 
          the basis of the most of the priority ratings that we have.
        Q: So how do you compare one road to 
          another for improvement or development?
        For development we compare projects 
          by assessing how much each of those projects will cost and what the 
          benefits from each of the projects and then we attempt to put them into 
          a shopping list order as to which way we should be going.
        Q: So the projects with the highest 
          benefit to cost ratio are the ones that get priority?
        Projects with the highest benefit cost 
          ratios are at the top of the list but sometimes of course there are 
          other reasons why things have to be done at a very fast rate for different 
          projects. So one can't say as an absolute rule that that is the way 
          that projects are put into order, but in general it is the correct approach.
        Q: Had the government not been approached 
          by Transfield Kumagai would the Harbour Tunnel have had top priority?
        If the joint venture of Transfield Kumagai 
          had not come up with the proposal that they have and for the financing 
          of the Sydney Harbour Tunnel the project would currently not be going 
          ahead, the reason being is that the money that is being spent on building 
          the Sydney Harbour Tunnel is not part of the RTA budget. It is not part 
          of the money that we receive from the government each year. It is a 
          privately funded project outside of the Loan Council requirements. So 
          the project would not be going ahead now because in our budget we would 
          not have anywhere near the amount of money that we'd need to finance 
          a major one off project like the Sydney Harbour Tunnel. 
        Q: Is that because the benefit to cost 
          ratio would be higher for other roads and that you would be putting 
          your funds elsewhere normally?
        The main reason why the Sydney Harbour 
          Tunnel project wouldn't be going ahead, irrespective of what its benefit 
          cost ratio is, is that it would physically cost too much money, we just 
          could not afford the project. That project in capital cost terms in 
          1986 project money would use our entire year's budget. There is no way 
          that we could finance building the Sydney Harbour Tunnel unless it was 
          privately financed the way it has been.
        ...back to 
          top
         
        
        References 
        
        Department of Main Roads, Sydney 
          Harbour Tunnel: Report on Environmental Impact Assessment, DMR, 
          1987.
        Interview with Professor David Hensher, 
          University of Sydney, 1990.
        Interview with Bruce Judd, Department 
          of Main Roads, 1990.