Melbourne’s Major Infrastructure project: an overdue necessity to boost Australia’s economy

According to some of Australia’s best infrastructure consultants, Melbourne’s recent $10.9 billion rail project is said to help boost the Australian economy whilst also being placed as one of highest projects of the nations priority.The new infrastructure will feature two nine-kilometer rail tunnels running beneath the city of melbourne, and will join Kensington to the South Yarra. This will free up space in Melbourne’s City Loop to be able to run more trains more often,


The body’s project evaluation has backed the benefits will out weigh the huge cost thats been invested once the new infrastructure is under way, saying they’re “confident that the benefits will exceed its costs” and “will provide a net benefit to the Australian economy”


This has placed more pressure on Turnbull’s government to raise funding given to major project in Victoria, and has created some what of a dispute between the Andrew and Turnbull government. Malcom Turnbull recently stated that “The metro project has merit but the business case needs work”, he also stated specifically that the value capture of the porject hadnt been evaluated to its full extent. As with this, it was found that the infastructure was getting all of 77 cents in every $10 allocated from the federal budget, despite the rapid growing population and desperate need for such projects to take place and be built. Melbournes population is said to increase by nearly 30% in the next 15 years to come.

With this in mind, why wouldnt the so called keen public transport user Mr. Turnbull fund more to major projects needed to improve our economy and keep up with the rapid increase in population? Victorian Public Transport Minister stated the assesments done by Australias infastructre team was what the government had already known, and that Turnbull simply needs to give “Victoira its fair share of infastructre funding”

The last environmental assessments have been completed and and early works have begun on the major project.



  1. Although it’s benefits may outweigh the cost of production, there are also negative externalities that may not have been considered yet such as environmental stresses. This factor may be why the Turnbull government is so hesitant to provide funding for the project.

    Liked by 1 person

    1. Public transport is usually better for the environment as the more efficient it gets more people would be willing to take public transport to work. This leads to less cars on the road which would produce less co2 and actually help the enviroment. The new train system would also increase the productive efficiency as people would be able to get to work quicker instead of spending time waiting in traffic or waiting for delays of trains.

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  2. There would be too many negative externalities for the project to be beneficial for the general populace thus not recieving much funding by the government

    Liked by 1 person

  3. This project would hopefully Improve liability of trains and even though this project might have to a lot of negative externalities, but it might be worth it

    Liked by 1 person

  4. The ‘hesitation’ of the liberal federal government is far more to do with politics and state proiritisation than any issue with the project’s benefits or business case. On one level, the Turnbull governemnt’s decision to fund less than Victoria’s ‘fair share’ of infrastructure can be explained by Victoria’s current strong economic growth, strong governemnt revenues and low debt. However, this project is something the Liberal government won’t touch with a 10 foot pole politically. It was created to deal with melbourne’s population growth, a problem Liberal governments prefer to tackle with increased road funding as oppose to public transport. The project also uses funds that would have been used for the East-West Link, the cancelled road project signed by the previous state Liberal government under dubious circumstances shortly before the state election. As far as the Liberal Government is concerned, this is the project the Labor state government choose instead of their solution, goes against their beleifs and represents one of their major failings which argueably cost them the election. No suprise then that federal funds aren’t exactly ‘forthcoming’.

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  5. Australia’s rail project is immediately boost Government’s budget at the same time the Gorvernemnt will consider how to reduce the spending in other public areas like education, healthy care or public gardens to contract the spending. And It will decrease households’ living standard. At the same time if finish the rail project could increase the pollution and negative impact the environment development and decrease people non-material living standard. As for passengers the rail project will incentive the price of the tickert. In particularly negative affect who need to take the public transport everyday, increase households’ pressure and likely decrease material & non-material living standards.

    Liked by 1 person

  6. I think this would lead to a significant increase in productivity, but there seems to be a high level of negative externalities that could occur. Additionally, building the network initially will lead to high levels of disruptions.

    Liked by 2 people

  7. The most common problem the governments may be facing is the opportunity cost of this project, as it will take so long and be so costly to execute, the Turnbull Government may fear that other states may not be happy with this decision and subsequently he could potentially lose votes despite gaining many in Victoria if the project goes ahead

    Liked by 1 person

  8. It’s a long term project that if built well will service Victorians for a very long time into the future although I reckon the money would be better spent on a rail way to the airport

    Liked by 1 person

  9. It is very important for a developed country to invest in its infrastructure. Infrastructure is one of the main factors separating developing and developed countries and if we fail to maintain ours we may fall behind on the international stage. The economic benefits of a savvy investment into infrastructure is always good for a nation. However, they more often than not seem to be white elephants. Another reason why democratic oversight is so important.

    Liked by 1 person

  10. I think this project is a real necessity with the growing population of Australia, or public transport system is already struggling as it is.

    Liked by 1 person

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