Connecting Western Sydney. Submission to the Australian Government Western Sydney Rail Needs Scoping Study

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1 Connecting Western Sydney Submission to the Australian Government Western Sydney Rail Needs Scoping Study October 2016

2 Table of Contents Executive Summary... 3 About the Committee for Sydney... 4 Introduction... 4 What problem(s) are we trying to solve?... 4 Closing the loop: A metro befitting a metropolis... 7 Financing the future Discussion Paper Questions Answered Connecting Western Sydney Page 2

3 Executive Summary The Western Sydney Rail Needs Scoping Study is both welcome and timely. The collaboration of the Commonwealth and State Governments in the planning and delivery of public transport has long been a missing ingredient in the sustainable development of our cities, especially Sydney. We also welcome the focus on Western Sydney, our fastest growing urban region and the area most in need of public transport investment. Ending the spatial and social imbalances which divide our city, especially accessibility to services and employment in western Sydney, is critical to the long-term sustainability of Sydney as a whole, and for Australia s continued prosperity. Equally welcome is the way the collaboration is structured and the approach being adopted by each Government. The Committee is particularly supportive of the methodology being used to assess each option and the focus on city shaping and social inclusion rather than the traditional metrics of Cost Benefit Analysis. While the Committee supports certain key Options now from those set out in the Scoping Study the Committee stresses that some other options should also be pursued over the long term. This is because Western Sydney needs not just one or two new rail alignments, but a strategic modal shift towards public transport which only a comprehensive new rail network can deliver. There are currently two Sydneys: the compact one of Eastern Sydney within 10kms of the CBD, which is higher density and comparatively well serviced by public transport, and the sprawl city located further out, which is characterised by lower densities. Going forward, two out of every three new Sydneysiders will live in these lower density suburbs of Western Sydney most of them west of Parramatta while most jobs are being created east of Parramatta. We need to raise the employment and residential density of Western Sydney and radically increase the proximity of jobs to homes. Rebalancing Sydney s economic and development model to become a more productive, sustainable and equitable city, requires better and faster rail connectivity, both to and across Western Sydney. Only such a network can make a virtue of Sydney s intrinsically polycentric nature, maximising the potential of Parramatta, Liverpool, Penrith and Campbelltown and the new centre at Badgerys Creek, while also enabling the most productive synergy between the Sydney and Parramatta CBDs. Only a modal shift of this magnitude and efficiency will attract the higher density residential development Western Sydney needs, combined with the connectivity and amenity required to attract knowledge workers and high quality commercial investment. Only such a network will enable Western Sydney to achieve its population growth targets without exacerbating congestion. So in its response the Committee is suggesting a two-stage approach to prioritising projects: Those projects we need now and which can be delivered in the next ten years; Option 1, Option 6, Option D, Option E and Western Sydney Light Rail; and, Those projects which will be needed to support a Sydney of 8 million and which can be delivered over the next 35 years, Option 2, Option 5 and Option 3 and C. The Committee also considers finding new sources of finance to support this investment in public transport, including value capture/value sharing levies as well as a broad based, metropolitan wide Land Tax. Connecting Western Sydney Page 3

4 About the Committee for Sydney The Committee for Sydney is an independent think tank and a champion for Greater Sydney, developing innovative evidence-based policy beyond the electoral cycle. Helping Australia's leading global city maintain its crucial role for the state and nation, it plays an advocacy role in promoting Greater Sydney s interests and future prosperity. The Committee has members from across the private, public and not for profit sectors and engages with business leaders, politicians, government and other stakeholders in policy discussions that affect the global competitiveness of Sydney as a business centre and as a place to live. The Committee s focus is on making a good city great. Introduction The Commonwealth and New South Wales governments are to be commended for their foresight in undertaking this Scoping Study. The Committee has long championed the need for joined up Government when it comes to meeting the pressing needs of our growing cities, especially Sydney. The narrow, often politically driven decision-making of the past has been one of the greatest dangers confronting our cities, with pet projects often being supported when better options are available. We also welcome a true collaboration from each tier of government as the best way to overcome the often siloed and narrow focus of many infrastructure agencies. Too often we have supported projects that are the priorities of individual agencies, regardless of their wider merits or an assessment of alternative modes. The simple action of both Governments collaborating on a needs-based assessment and prioritisation of transport needs is both welcome and timely. We also welcome the focus of this collaboration on the transport needs of Western Sydney. Western Sydney is one of the fastest growing economies in Australia. Supporting this growth and strengthening its economy with transport that improves connectivity across Western Sydney - and with the world (through the new Airport) - has long been a priority for the Committee. We are also very pleased with the methodology and criteria used to assess each of the options. The Committee has long been concerned about the narrow approach favoured by traditional methodologies, like Cost Benefit Analysis. The inclusion of such metrics such as connectivity and city-shaping, productivity and social inclusion are just as important, if not more so, then financial stability or risk. The Committee will shortly be publishing an issues paper on infrastructure methodology and appraisal. Finally, we welcome the emphasis on public transport. Sydney needs to manage its growth while minimising congestion. The future of Sydney will be built around a handful of high density centres. These will be strategic centres that can support agglomeration of jobs and people, businesses and entertainment, services and lifestyle. However, these high-density centres would be unworkable without high-capacity mass transit. That s public transport, especially rail. What problem(s) are we trying to solve? Before deciding on which option to prioritise, we should first think about what problems we are trying to solve. What are the key issues that we need to address in Western Sydney? What are the main obstacles and which are the best opportunities? Defining the problem will help determine the right solution. The Rail Needs Study highlighted three primary problems needing to be addressed: 1. Connectivity to the Western Sydney Airport site Connecting Western Sydney Page 4

5 2. Connectivity between Western Sydney and other parts of Sydney, specifically the CBD 3. Capacity of the transport network in Western Sydney. The Committee agrees with these challenges, but would add two more significant problems confronting Sydney that should be addressed, namely: The mismatch between where most Sydneysiders live (i.e. Sydney s west) and where most of the high value jobs are located (Sydney s east); and, Supporting our rapid and continuous population growth. There are currently two Sydneys: the compact one of Eastern Sydney within 10kms of the CBD, which is higher density and comparatively well serviced by public transport, and the sprawl city located further out, which is characterised by lower densities. Going forward, two out of every three new Sydneysiders will live in these lower density suburbs of Western Sydney most of them west of Parramatta while most jobs are being created east of Parramatta. We need to raise the employment and residential density of Western Sydney and radically increase the proximity of jobs to homes. Figure 1. Number of residents within 30 minutes by public transport (Arup) Western Sydney did not happen by accident; we planned it. For eighty years, we have seen Greater Western Sydney as predominantly a dormitory suburb, a place to house our growing population and to free us from overcrowding in the inner city. We actively supported a model of urban development called sprawl. The main focus of each tier of Government was to ensure an adequate supply of new land for more and more detached housing. If ever land supply fell short, several Government interventions were on hand to increase supply, whether it be NSW s Landcom or the Whitlam Government s sewerage augmentation programme. While we planned for houses, we never really planned to stimulate jobs growth in Western Sydney. While some land was set aside to support manufacturing, little effort was put into supporting other industries. The few centres built in Western Sydney were predominantly set aside for retail use. A handful of local services such as local lawyers, GP s and Post Offices were available, but each centre was planned to be predominantly a shopping precinct. It is Connecting Western Sydney Page 5

6 no accident that every centre in Western Sydney has at its heart a large shopping centre. We planned it that way. Our land use planning was matched by Government investment to support the sprawl model. All our transport investments, from the Harbour Bridge onwards, were focussed on bringing people from dormitory suburbs to jobs in the City. With few exceptions, all our transport projects for 80 years were dedicated to this task. The result is now a spectacularly unbalanced metropolis. Compounding this imbalance are changes in the composition of the Australian economy. We have transitioned away from an economy with a large manufacturing sector to one based on services. Manufacturing was one of the few generators of jobs in Western Sydney in the past and its decline is being felt more severely here, than elsewhere. Service jobs, however, tend to cluster around higher density, higher amenity areas, especially in, or close to, the CBD. This transition is only going to accelerate and we need to plan our metropolis accordingly. The result of our planning, and these economic changes, is a relentless commute of hundreds of thousands of people from Western Sydney to jobs outside the region and far from where they live. Each day some 300,000 people leave Western Sydney for jobs located elsewhere. The reason for that is illustrated in Figure 2, which shows that many more jobs are accessible in the well-connected inner city. This has many obvious social, environmental, and economic consequences. A long term and comprehensive rail plan for Western Sydney should have as its objective supporting jobs growth in Western Sydney, especially in the main town centres, and relieving the costs of this commute. Figure 2. Effective job density, a measure of relative job accessibility to all the jobs in Sydney (SGS) The second issue we need to address is managing and supporting population growth. Sydney will double in size over the next few decades; we will become a city comparable to the size of London today. A city this size cannot rely on the existing transport system which Connecting Western Sydney Page 6

7 was built to support a city of only 2 or 3 million. A city of 8 million can only function if it is supported by a comprehensive, high frequency, mass transit system. Closing the loop: A metro befitting a metropolis In responding to the Government s Scoping Study, the Committee will outline its suggestions for which investments should receive priority. We accept that funds are limited and we cannot have everything we want right now. However, we believe that over the next 35 years, many of the projects listed in the Options Paper will be needed, and potentially some not currently listed. In tailoring our response and informing our preference for which options should receive priority, we call on Government and the Sydney community to always think about what the Sydney of 8 million people will need, to think long term and get the big picture right - then work back from there to design and implement the projects needed to get there The Committee believes that to close the divide which has plagued Sydney we need a major, city-shaping intervention that links all sectors of Sydney with each other and connects all communities to the high value jobs of the future. This is the 30-minute city, where all citizens can access the services they need within a travel budget of one hour. This is more than just being 30 minutes to your job. It s about getting everywhere you want to go in a reasonable time. The kids school or university, a GP or hospital, your leisure activities, shopping, restaurants, public open space, friends. The Committee will shortly be releasing an issues paper on the 30 Minute City. In achieving this goal, the Committee believes we need to do two things firstly, we need to create more viable and mixed-use centres throughout Sydney where people can live, work and play, and secondly, we should continue to expand and enhance our transport networks to link people to those centres and to join the centres together. The existing train, bus and ferry network will continue to be the workhorses of our transport system. In many areas, these can be extended and be made more much more efficient. We will need to sweat these assets harder, but minor improvements are not enough. Taking a long-term view, the Committee sees the need for two important rail transport solutions for Sydney s future liveability & prosperity: 1. an integrated, Metro-style, orbital rail loop linking each region of Sydney; and 2. a high speed and high capacity east-west Metro-style line linking the CBD, Parramatta and Western Sydney Airport. Connecting Western Sydney Page 7

8 Figure 3. Vision of an integrated orbital rail loop, a high speed east-west line and a north-south rail link Together, these two pieces of infrastructure would form the transport backbone needed to support a city of 8 million people, by linking major centres in a single integrated network and enabling the essential high-speed commerce between major CBD s at Sydney, Parramatta and the West. This is a huge, intergenerational project. It will take time and money to realise, but the beginnings of the scheme are already being put in place. The Committee believes all levels of Government, and the Sydney community, should commit to realising this ambition and that in setting our priorities it should be directed toward eventually achieving it. A Metro Network for Sydney: The Loop and an East West Line This Loop is a Metro, with high frequency, high capacity and high speed trains. The beginning of the Loop is already under construction or in the planning stage with the North- West Metro to open in a few years and its first extension at the planning stage. To realise the Loop, we need to build some of the missing links one to the north of Western Sydney Airport which would link the Airport to the NW Metro (which will soon terminate at Rouse Hill) and then on to the CBD; and a second to the south of Western Sydney Airport which could either connect to Liverpool with a new link to Bankstown and on to the CBD of Sydney, or could connect to Leppington and then on to Sydney Airport and the CBD. Connecting Western Sydney Page 8

9 The loop line would be supported by a high-speed, East-West metro that would link the CBD to Parramatta, via Homebush Bay and then on to the Western Sydney Airport. We believe this line should be a Metro so it can integrate seamlessly with the Sydney loop. However, we believe it should have a limited number of stations as a quick journey from east to west is essential to support both Parramatta and the Airport. Such a system would significantly improve the capacity of the existing transport system while also addressing much of the current imbalance that is plaguing Sydney s development, undermining our productivity and dividing us. As Sydney grows to be a city of more than 8 million people, and possibly more, it will need a world-class, mass transit system that links all the regions of Sydney. Advantages of the two-pronged approach This two-pronged combination of an orbital rail loop around Sydney and a high-speed crossloop link through Parramatta has a number of advantages: It aligns with the NSW Government s strategic directions in the Plan for Growing Sydney, the Western Sydney Infrastructure Plan, the Greater Sydney Commission s Greater Parramatta & Olympic Peninsula (GPOP) vision and Government policies in encouraging jobs in Parramatta, Western Sydney Airport and the western region. It delivers high quality customer-focussed services to two distinct markets connecting local trips for employees from western Sydney to the Western Sydney Employment Area (WSEA), and local businesses to the airport; but also connecting the two airports of Sydney together via the two biggest CBDs with a high-speed link that connects east to west in 27 minutes. It improves equity by providing all of Sydney with access to services and opportunities associated with the WSEA and the Airport. It encourages city-shaping development in the right places, to bring more jobs closer to home for all Sydneysiders as well as access to affordable housing for key workers. Our Response to the Scoping Study In crafting our response to the Scoping Study, the Committee assessed each of the options against key policy objectives and over two separate timeframes. The timeframes are simple. What do we need immediately to address the issues confronting Sydney, particularly the divide between the jobs-rich east and the burgeoning population in the west? In this, we are seeking to support several projects we believe Government can deliver in a ten-year timeframe. The longer-term projects we are supporting are those we see as being needed to support a sustainable and socially inclusive city of 8 million people. These we see as having a 35-year timeframe. The policy criteria we use are also relative simple. Which projects will drive and support the creation of jobs in Western Sydney and which projects will connect the people of Western Sydney to these jobs. We see an urgent need to connect Western Sydney to itself. In this, we see the focus to be reinforcing the three main town centres of Penrith, Liverpool and especially Parramatta while at the same stimulating the early development and expansion of the Western Sydney Airport. However, while these centres expand and start to attract their share of the service jobs, we also accept the need for several interventions to alleviate the current plight of the thousands of people who currently leave their region for jobs elsewhere. Each project is directed to eventually delivering the integrated Metro that Sydney needs. Connecting Western Sydney Page 9

10 Priorities for the first ten years: Connecting Western Sydney to Western Sydney and ending the Divide Figure 4. Options in Scoping Study Leppington to Western Sydney airport (Option 1): This is a straightforward first step with 7 km of heavy rail track on a route that is already planned and identified. The Committee believes that connecting the Airport at opening (or shortly after) to the Sydney rail network is critical to its long-term success. This area of Sydney is also experiencing significant population growth, which needs to be supported with public transport. A North/South Link (Option 6): Partially expanding on Option One, is to link the existing T5 Line at Campbelltown via WSA with the T1 Line at St Mary s. Preserving the corridor for this link is a priority. A north-south link would help connect the rapidly growing populations of the south west corridor with employment at the airport, while also supporting a new growth corridor South of Penrith towards the Airport. Option 6 should be planned and designed to enable a future connection to the Metro NorthWest currently under construction at Rouse Hill Connecting Western Sydney Page 10

11 (see Option 2 below). In support of this option, the Committee refers to the submission of the Western Sydney Rail Alliance. Increasing the capacity of the existing network by 20% (Option D): This is valuable under any scenario and is supported by the Committee. The existing heavy rail network will continue to be the workhorse of our transport system and improving its efficiency and capacity will have significant benefits for the whole metropolis. Extending the Metro from the CBD to Parramatta (Option E): A high-speed link would be of enormous benefit to the whole of Sydney. A city of 8 million cannot be supported by Sydney s CBD alone. We will need several major commercial centres and Parramatta is best placed to achieve this in the near term. As the scoping Paper identifies, the Parramatta- Sydney CBD is currently the most congested transport route in Sydney as well as the route experiencing the most growth. A high-speed metro will help accommodate much of the current demand. It will also encourage the relocation of jobs, construction of housing, urban renewal and increased liveability for all. This is of more value strategically than what can be achieved by any of the other options in the short to medium term. Western Sydney Light rail: Although not canvassed in the Scoping Study, the Committee has long stressed the importance of a Light Rail network centred on Parramatta. Parramatta needs to, and will, become a major business and employment centre. However, if it is to generate and support 400,000+ jobs it will need to be connected to a population over a million people. To do this it will need to operate in much the same way that the CBD does today, with most of the workforce getting to work in something other than a car. Connecting Parramatta by rail is part of the solution. Light rail is another. Connecting Parramatta CBD with the increasingly high-density suburbs that surround it can potentially attract hundreds of thousands of workers, many of whom currently commute to jobs elsewhere. Moreover, Light Rail will substantially improve the amenity of the CBD making it a more attractive place for companies to locate to. The Light Rail will also support the Parramatta CBD Metro by increasing the catchment of potential passengers from the greater Parramatta region. Priorities for the next 35 years: A city of 8 million As the Airport moves to capacity, a decade after opening, and as it develops as a centre in its own right, it will need a more robust transport system. We must ensure the Western Sydney Airport is a success. It offers to connect the Western Sydney economy (and people) to the world. A decade after it opens it will need to be linked to the (by then 3-4 million) people living in north west and southwest, as well as to Parramatta, by then a substantial CBD. In doing this, the Committee sees the main priority as completing the Metro network. Connecting the Western Sydney Airport to Sydney Metro North West and to the CBD (Option 2): Connecting the airport with a link to the north will help support the population growth currently planned for this part of Sydney. It also increases the accessibility to the Airport for (by then) nearly two million people. This also helps complete the orbital rail metro around Sydney, connecting all of Sydney to all of Sydney. Western Sydney Airport to Parramatta and the CBD (Option 5): This completes the highspeed Metro cross-regional link between the major centres of Sydney, Parramatta and WSA. This will be of optimum benefit when the airport reaches sufficient capacity and a new town centre is developed around the airport. However, it is important that this link is planned well in advance, not only to ensure appropriate corridors are reserved, but also to encourage the right kind of development in and around the airport. It is also important to restrict the number Connecting Western Sydney Page 11

12 of stations on this route. A short journey from the Airport to Parramatta and the CBD is critical to its long-term future. A South-western Loop (Option 3 and C): Another metro loop could be created by adding new rail lines from WSA to Liverpool (Option 3) and then Liverpool to Bankstown (Option C). Reinforcing and supporting these centres while also connecting the growing population in Sydney southwest to both the airport and the CBD. Financing the future The Committee welcomes the commitment from both the Commonwealth and State Governments to supporting an integrated rail network for Western Sydney. We also recognise that enormity of the task ahead and that the costs will be substantial for taxpayers. We believe that the return on this investment will be substantial as the productivity of Sydney is improved and the dividend it pays to the nation is enhanced. However, we also believe that Sydneysiders should accept the need to contribute to meeting this cost as well. We all should contribute to a sustainable and inclusive Sydney. In meeting these costs, the Committee has long supported using Value Capture mechanisms. Improving the connectivity and accessibility of Sydney will create significant uplift in the value of land, especially around new transit corridors. Much of this uplift can be captured through levies and charges and used to meet some of the infrastructure cost. Our current approach to fares is unsustainable, as the farebox only supplies about 25% of the total operating costs. London Underground fares, by contrast, recover some 90% of the operating costs of the system. We need to lead a civic dialogue about how much transport costs. The size and scope of the task ahead is of such magnitude that consideration should also be given to other funding methods. One option is a small, broad-based land tax on the metropolitan area. Such a levy may be politically and socially acceptable if it is hypothecated to supporting a 35-year investment in public transport. While Governments at every level have long forsworn any taxation of the family home, we believe a properly designed and apportioned land tax dedicated to public transport would be supported by most Sydneysiders. We should test this with a referendum. Connecting Western Sydney Page 12

13 Discussion Paper Questions Answered 1. What is the key challenge that should be addressed by rail services for Western Sydney? Connecting Western Sydney to jobs, services and amenity is important, but the real value of building the right rail infrastructure is the city shaping that it delivers. Done well and it should drive other decisions and actions, support new investment and businesses. Done well and it will reshape Sydney. We also would stress that the key challenge is not one of mobility but of accessibility. It s not about moving workers to jobs. It s about ensuring that all people have access to the things they want and need. 2. What areas of Western Sydney are most in need of new or upgraded rail services? Why? If we want to encourage jobs in Western Sydney, then we need to build on the existing centres. Jobs are the culmination of the right amenity, activation, people, business and liveability. We can t bypass the necessary city building activities and expect businesses to suddenly relocate because we build a transport line. Nevertheless, we can have a huge impact on economic development of places like Parramatta, Penrith, and Liverpool with new or upgraded rail services. 3. What rail services would help you access employment, health, business and education precincts in Western Sydney? Light Rail around Parramatta is a prime example of how a rail service can connect the surrounding population to health at Westmead, education at Rydalmere, residential/business at Parramatta and recreation/residential/business at Olympic Park. However, a metro orbital loop around Sydney would connect employment, health, business and education as never before. 4. What other challenges should the Scoping Study address? The Committee believes that rail needs to be supported by integrated land-use changes. Metropolitan and District Plans should seek to reinforce and support public transport. Consideration should also be given to how we can get funding for public transport on a more sustainable path, including taxation and value capture mechanisms. 5. How could governments best take an active role in encouraging greater use of public transport given the potential benefits to the environment and sustainability? Congestion charging is a clear policy initiative that has worked in other cities around the world to encourage people off cars and onto public transport. However it only works when the public transport alternatives are easy that is a well-connected, cross-linked rail network not a radial system where it only works well for one destination. With the development of more endpoint destinations on the network, public transport use will increase. At the moment, if my destination is not Sydney CBD, a car looks too attractive an option. For many Sydneysiders it is the only option. 6. What rail services should be delivered as the highest priority to service a Western Sydney Airport? A straightforward initial service would be connection to Leppington, but noting that this is not the highest value option in the longer term. 7. What other rail options should be considered in this study to service a Western Sydney Airport? No other suggestions. Connecting Western Sydney Page 13

14 8. What is the highest priority rail service required for the Western Sydney region? A high-speed connection between Sydney and Parramatta will drive investment in business and jobs for the whole western region. It will assist in balancing the equity divide between east and west and have spinoff benefits to other strategic centres such as Liverpool, Penrith and Blacktown. 9. What other rail options should be considered in this study to service other parts of the Western Sydney region? There is potential for another missing rail link to be considered, a north link from Parramatta to Epping/Hills. Such a rail option could be delivered in Light Rail initially, by joining the currently proposed Carlingford light rail line to Epping. This would take enormous pressure off the road network into Parramatta and connect knowledge jobs in the Macquarie Park area to knowledge workers in Parramatta and Westmead. It will also mean that our orbital rail loop has a north-south connector as well as an east-west one. 10. Should rail services to a Western Sydney Airport be prioritised over services to other Western Sydney locations? Why? Western Sydney Airport is a game changer for Western Sydney. The airport will be a significant generator of jobs in itself, but will also encourage businesses to locate in Western Sydney. The airport will connect western Sydney s economy and people to the world. Supporting this with public transport is a priority for the Committee. 11. If a rail connection is provided to the proposed Western Sydney Airport, should it be provided when the airport opens or when there is sufficient demand? An initial lower cost connection can and should be provided when the airport opens (or soon after) and a higher value higher speed link constructed to meet higher demand at a later stage. 12. Is it more important to be able to travel (by rail) to the proposed Western Sydney Airport or to other locations in Western Sydney? Why? Equally important. Rail changes behaviour, it influences land development, it encourages business and jobs in a way that roads do not. If we want development to occur around the airport as well as encourage airport use, then we need rail there. 13. What other assessment criteria should the Scoping Study consider? The study should absolutely consider the impact of the various options, not just in transport and connectivity, but also on city-shaping grounds. Improving the job imbalance between east and west and providing equity and amenity to all of Sydney are all considerations. 14. How do you think rail services in Western Sydney should be funded? a. Government funding Yes, because it not only recognises the non-financial benefits of the options, but government involvement provides the right signals to the private sector. b. Value sharing Yes, but it is recognised that value capture may not be sufficient to fund whole projects, it can be an important component. c. User pays Yes, but there is a limit. It has to be equitable and not penalise people in Western Sydney because of their location and it shouldn t be so high as to be a deterrent on demand. For example, the high charge on the Sydney airport line did not work and should not be repeated. d. A combination of the above Yes. e. How else could future rail services be funded? The Committee considers that a small broad-based land tax on the greater metropolitan area could help defray some of the costs. The Committee has outlined other options for value capture in our recent paper Are we there yet? Value capture and the future of public transport in Sydney. Connecting Western Sydney Page 14

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