Victoria’s integrated transport network

Victoria’s integrated

transport network

Over the past few years, the Victorian Department of Transport has been transformed to ensure we can deliver on our commitments and services for Victorians. This transformation has allowed us to put integration at the heart of transport infrastructure decision-making.

A key benefit of integration has been the recent transport planning reforms. For example, there have previously been different rules for roads and rail in the planning system, however, we are now planning for the whole system and are not mode-specific.

This helps protect the transport system while land use changes, and allows for streamlined planning approvals, including a priority pathway to the Minister for Planning for other transport infrastructure.

The planning reforms also allow us to do things faster with clearer decisions. We can provide greater clarity around the transport outcomes we want to achieve and have a network-wide view that encourages more local investment and economies of scale.

Building Victoria’s future transport network

Victoria is a hub for producing rolling stock. We are the only state manufacturing both trains and trams locally, and we were the first state to introduce a minimum 50 per cent local content for all new rolling stock orders in 2015.

Since then, we have been steadily increasing quotas as part of new rolling stock contract negotiations, with our newest orders now above 60 per cent.

For industry, this provides confidence to invest in facilities, new technology, processes, supply chains and enhanced skills.

It also builds our workforce for the future, encouraging the TAFE sector to invest in training programs and means workers from industries in decline – such as auto manufacturing – have relevant new career options with minimal retraining required.

We are supporting jobs through our major infrastructure projects. Early works commenced in June this year on the Suburban Rail Loop, the biggest infrastructure investment ever undertaken in Victoria.The early stages of the works will create 800 direct jobs. In addition, we are supporting the industry’s future, with 14 per cent of all hours worked on Suburban Rail Loop East early works to be done by trainees, cadets and apprentices.

Our updated Rolling Stock Strategy – Made in Victoria, for Victoria – reaffirms our commitment to a strong pipeline of work for our local rolling stock supply chain.

The Victorian Government has invested a record $8 billion in rolling stock and supporting infrastructure since 2015 to meet growing demand across the state. Our minimum local content standards have meant we have continued to support Victoria’s local rolling stock supply chain. This work has ensured Victoria’s place at the forefront of the Australian rolling stock industry.

With an ageing fleet and record investment in transport infrastructure projects, we need to continue to invest in new rolling stock to make sure our fleet meets the future needs of our state.

Maintaining our fleet

We are also investing in maintenance and stabling to support our upgraded fleet.

A new maintenance facility for the Next Generation Tram fleet will be built in Maidstone in Melbourne’s inner west, along with upgrades to maintenance and stabling facilities around the state.

The Department has also considered feedback from its infrastructure partners and has redesigned its models to address various risks and challenges.

Our climate goals

Victoria has a target of net-zero emissions by 2050, requiring a rapid transition to zero-emission technology. To achieve its net zero goals, the Department will ensure that from 2025, all new bus purchases will be Zero Emission Vehicles (ZEVs).

We are trialling 50 battery electric buses and two hydrogen fuel cell buses on Victoria’s bus network, with all ZEVs to be locally manufactured in Australia.

Innovating our procurement models

We have focused on evolving the way we work with industry to:

• get the best from the market

• have a procurement process that supports well-developed solutions, and

• have reasonable commercial settings that support a sustainable market.

We have moved to specialist delivery authorities for the design, procurement and delivery of projects, and we are working with industry to tailor procurement approaches to risk profiles and alter procurement processes to foster greater private sector investment.

The North East Link Program’s central package is a case study of this renewed approach. We have developed a procurement model based on market feedback, which has the best features of a Public Private Partnership, while strengthening collaboration. It includes a robust and targeted performance regime which encourages alignment of interests during delivery.

The right procurement model is key to successful project delivery.

For example, we are increasing our investment in the Roads Prequalification Scheme by introducing a new accreditation program to create a consistent approach to traffic management across Victoria. This is creating better turnaround times for applications and access for all levels of industry.

We are introducing non-price criteria in capital works tenders, which recognises other factors beyond tender price, such as prior performance; as well asimplementing the Victorian Roads Maintenance Contract across the state to have clear and consistent commercial and performance models across all areas.

These changes provide certainty and allow successful contractors to invest in their people, diversify skill sets, reduce procurement time and costs, and improve project planning and delivery integration.

For the industry, it means more sustainable supply opportunities for small, medium and large companies, with improved cost certainty, approach to risk allocation, and a more streamlined procurement process.

Navigating our port futures

Victoria’s commercial ports are the conduit for approximately $26 billion worth of locally produced and manufactured exports and handle almost a quarter of Australia’s total food and fibre exports.

With freight volumes expected to more than double by 2050, the importance of our ports will only grow.

The recently released Navigating our Port Futures: The Victorian Commercial Ports Strategy is the Victorian Government’s 30-year strategy, vision and action plan to position our ports system to grow and thrive.

Industry and stakeholder feedback has shaped the final objectives and actions that will guide us in achieving the strategy’s vision. Transport is a major contributor to Victoria’s economy and its liveability. An integrated Department of Transport has facilitated the design and implementation of strategic and structural changes to improve network-wide outcomes. In turn, this will ensure the Department can deliver on its vision of simple, safe connected journeys for all Victorians.