Friday, November 22, 2019
Economic appraisal

Compass Connect can deliver over $4 billion in rail productivity and related benefits in today's terms.




Compass Connect will achieve a higher benefit cost ratio (BCR) than comparable rail projects, as it:


  • requires relatively little capital investment to realise a significant increase in rail capacity,
  • will increase transport productivity by better utilising infrastructure and transport corridors, and
  • avoids compulsory property acquisitions.

The BCR of Compass Connect is expected to range from 2.0 to 2.5.


Compass Connect will deliver additional economic benefits from the related development of the roads network and extension of the public transport system proposed in the Connecting Sydney design.

Value for Money

Compass Connect will provide excellent value for money for the people of NSW.


Compass Connect requires less investment than similar infrastructure projects to increase rail capacity and train services to the city.




Compass Connect also reduces the investment and financial risk associated with delivering large infrastructure projects, and will generate significant dividends from gains in transport productivity.


Delivery of Compass Connect can also save the Government over $1 billion in planned expenditure, which can be redirected to accelerate the delivery of the Sydney Metro West.

Justification
Investment in Compass Connect Stage 1 is justified by net present value analysis.


Every 1% increase in passenger trips is forecast to add $16 million in value in today's terms.


Significant opportunity exists to offset these costs through delivery of city shaping benefits and accelerated delivery of new road and rail connections to heavily congested areas.

Reinvestment

Compass Connect Stage 1 can generate over $2 billion in productivity benefits, budget savings and value capture.


These benefits can be reinvested to accelerate delivery of key transport and infrastructure initiatives, including:


  • integrated transport services for the Bays Precinct,
  • improvements in suburban and regional roads,
  • a Western Harbour Tunnel, and
  • the Sydney Metro West.

Proposals for these strategic projects are included in the Connecting Sydney design.