Eight tram route extensions needed to support new homes and jobs in Melbourne’s established suburbs

New transport modelling shows the extended tram routes could provide nearly 45,000 additional weekday boardings by 2031. Infrastructure Victoria also recommends the government add around 300 peak hour services on key tram routes to help reduce crowding, road congestion and transport emissions. 

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. 

Infrastructure Victoria Chief Executive Dr Jonathan Spear said: “These 8 tram extensions along key routes and near activity centres will give developers the confidence to build new homes in these precincts. The extensions will also support local jobs and create better connected communities.” 

Infrastructure Victoria estimates the tram extensions would cost up to $5.7 billion over 5 years for the following routes (see Figure 1 below): 

Arden: Swanston St to Kensington (route 3); Spencer St to Flemington Bridge (route 5) 

Benefits include:  

• 14,600 additional weekday boardings by 2031
• 17,000 additional weekday boardings by 2041. 

Fishermans Bend: Anzac train station to Fishermans Bend North (route 11); Southern Cross Station to Fishermans Bend South (route 67) 

Benefits include:  

• With new tram stops, 19% more people could reach Fishermans Bend within 45 minutes. This means an extra 251,000 people could access the employment precinct by 2041.  
• 13,100 additional weekday boardings by 2031 

• 33,000 additional weekday boardings by 2041. 

Middle suburbs: East Malvern to Hughesdale via Chadstone (route 3 – south); East Brighton to Moorabbin (route 68); Melville Road to Batman train station in Coburg (route 58); Wattle Park to Burwood East (route 70) 

Benefits include: 

• 16,100 additional weekday boardings by 2031 

• 17,500 additional weekday boardings by 2041. 

Key routes where trams are already very crowded and more homes are planned, like the 86, 96 and 109, are also identified in the strategy as needing more services.   

The 30-year strategy identifies 2 more tram projects in Melbourne’s inner west for the government to consider delivering from the mid-2030s, once it has delivered the first 8 projects. These projects would support more new homes in Melbourne’s inner west:  

• an extension from Airport West to Melbourne Airport 

• a new route from Highpoint to Sunshine.   

Residents could reach up to 52,000 more jobs in 45 minutes. All public transport journeys to Melbourne Airport would be 10% faster. 

“The Victorian Government has made big investments in roads and public transport over the past decade,” Dr Spear said.  

“Tram extensions to key destinations and activity centres mean more Victorians can live and work closer to their jobs, services, family and friends.”  

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 8: Extend Melbourne's trams to encourage more new homes nearby 

Increase services on key tram routes in activity centres that the government selected for more housing development. Extend trams in Melbourne’s established suburbs in areas that can support more new homes. Rezone land around the extended tram lines so more homes can be built. 

Figure 1: Tram extensions can make the most of Melbourne’s tram network and support priority precincts and activity centres.