Billions can be saved on infrastructure with targeted investment across Melbourne and regional Victoria over the next 5 years

Infrastructure Victoria Chief Executive Dr Jonathan Spear said: “New infrastructure will be needed as Victoria grows, but government can also do more to make better use of its nearly $400 billion of existing assets.” 

Victoria’s infrastructure strategy 2025–2055, released today, makes 45 recommendations to the Victorian Government across infrastructure sectors including transport, health, housing, energy, social infrastructure and the environment. It also identifies 8 future options for the government to consider.  

The updated strategy offers practical, evidence-based advice on the projects, policies and reforms most critical to Victoria’s growth and resilience over the next 3 decades. New evidence and analysis, together with stakeholder and community feedback, have directly informed updates to the strategy. 

The strategy finds around $200 million over the next 5 years is needed to better manage and prioritise maintenance of existing infrastructure. 

Wider use of digital technologies across government infrastructure is also recommended. 

“Digital technology can save money, boost productivity and improve worker safety,” Dr Spear said. 

For example, investing in modern traffic control technology can improve traffic flow for all road users, including pedestrians. It delivers benefits of up to $14 for every dollar invested. 

Infrastructure Victoria also recommends the government reduce total project costs by preparing now for longer-term major infrastructure projects. This includes expanding water desalination capacity, reconfiguring the City Loop and preparing for Melbourne Metro 2, a port at Bay West, the outer metropolitan road and rail corridor and the western intermodal freight terminal.  

“Planning now reduces total project costs, prevents conflicting land use and allow others to plan better,” he said.   

By partnering with the Australian Government and other organisations, along with smarter use of existing government land, the Victorian Government can implement the strategy’s 45 recommendations at a cost of around $60 billion. 

“Our recommendations lay out how the Victorian Government can reduce the costs of providing infrastructure over the next 3 decades and generate over $166 billion worth of benefits for Victorians,” Dr Spear said. 

Infrastructure Victoria is required to develop and update Victoria’s 30-year infrastructure strategy every 3 to 5 years. This is the second strategy update since Infrastructure Victoria was created 10 years ago. 

Victoria’s infrastructure strategy 2025–2055 will be tabled in the Victorian Parliament this week to inform the policies of all parties. The Victorian Government is required to respond to the strategy recommendations within 12 months. 

Media enquiries:  

Mandy Frostick mandy.frostick@infrastructurevictoria.com.au Ph: 0419 546 245 
Madeleine Brennan madeleine.brennan@infrastructurevictoria.com.au Ph: 0402 715 577 

Victoria’s infrastructure strategy 2025–2055 recommends: 

Recommendation 7: Rezone locations near existing infrastructure for more home choices 

Change all relevant planning schemes to rezone for more homes in Victoria’s cities and reach housing targets. More homes should be close to public transport and open space, with good access to services. 

Recommendation 14: Make off-peak public transport cheaper and simplify regional fare zones 

After upgrading the myki ticketing system, charge lower fares for off-peak travel on Victoria’s buses, trains and trams. Simplify fares and reduce the number of regional fare zones. 

Recommendation 36: Prepare and publish infrastructure sector plans to shape Victoria’s cities 

Agree a set of assumptions for future population, jobs and land use for more compact cities. Require each department that owns infrastructure to develop an infrastructure sector plan as soon as possible, based on these assumptions, and publish strategic-level plans. Use the finished sector plans to decide infrastructure project funding. 

Recommendation 38: Improve asset management of all government infrastructure 

Fund asset managers to better understand the condition, use and performance standards of all government infrastructure. Use this information to develop asset management strategies and prioritise funding. 

Recommendation 41: Use digital technologies to better design, build, operate and maintain government infrastructure 

Pilot digital technologies on government infrastructure projects and report on their progress. Use building information modelling on major infrastructure and housing projects. Improve capabilities in government agencies and review procurement processes to promote greater use of digital technologies. 

Recommendation 42: Use modern traffic control technology for efficient and safe journeys 

Further extend modern traffic control technology like sensors and cameras along arterial roads in Victoria’s largest cities. Begin expanding smart motorways into Melbourne’s growth area freeways. 

Recommendation 45: Create and preserve opportunities for future major infrastructure projects 

Create and preserve opportunities to build major infrastructure projects that might be required in the long term. This includes expanding desalination capacity, more hospital capacity in Melbourne’s outer north, City Loop reconfiguration, extending and electrifying metropolitan trains to north and south-east Melbourne growth areas, Melbourne Metro 2, the Bay West port, the outer metropolitan road and rail corridor and connecting western intermodal freight terminal.