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governance public transport service value for money

Understanding Transport – it is about service

One of the reasons transport outcomes have been so poor in Melbourne is a fundamental misunderstanding about transport itself, particularly amongst politicians who tend to think of transport and solutions necessary to improve transport outcomes in terms of infrastructure.

One of the reasons transport outcomes have been so poor in Melbourne is a fundamental misunderstanding about transport itself, particularly amongst politicians who tend to think of transport and solutions necessary to improve transport outcomes in terms of infrastructure.

Transport is a service industry and transport choices are made by businesses and people on the basis of service and options available to travel or move goods and services in a competitive market. People’s travel needs are diverse. In this sense there are many market segments but for the most part these needs can be defined in terms of convenience, safety, timeliness, comfort, journey time and for some in terms of cost/price and efficiency.

Most Melburnians drive their car by force of habit or lack of choice but many will walk, cycle or use public transport if these alternatives are attractive enough to meet their needs. In many situations these alternatives could be viable travel options for many more trips. They certainly are in many other cities, and will become increasingly important as people look for more travel options in a post covid world.

But as we have already seen the covid world is not business as usual and some of these options are also under pressure and present new challenges for government, particularly for public transport. Travel cost will become increasingly important if we enter an extended period of recession or depression. Depressed conditions also have implications for government as traditional sources of funding such as fuel excise, GST etc and even parking revenue come under pressure forcing State and local governments to look at new ways to fund transport services, infrastructure maintenance and renewal works which will inevitably be passed on to travelers and the broader community.

If politicians are serious about creating more travel options ie to compete with the car for more trips they need to approach this with a service focus. There are no simple or single fixes however. It will require a comprehensive service strategy and investment plan to match. Some service issues require infrastructure investment but many won’t. In situations where infrastructure investment is required it must be well targeted to ensure it supports the service plan.

Unfortunately much of the investment in Melbourne’s transport today, particularly for personal travel is on infrastructure without any reference to people’s service needs and invariably without a proper plan. Most of it is on monumental infrastructure projects that are focused more on creating jobs than addressing service needs and promoted for political purposes or by others with a vested interest in the outcomes. If we want to improve transport outcomes this thinking will need to change.

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