Thompsons Road upgrade would help create 140,000 jobs, bring $58 billion boost
Number and locations of jobs potentially created by the Thompsons Road upgrade and extension
UPGRADING and extending a road in Melbourne’s southeast would facilitate the creation of 140,000 jobs and increase economic output by more than $58 billion, according to a new report.
The report – by REMPLAN, a national economic, planning and demographic specialist group – said more than 80,000 jobs would be created directly as a result of investment facilitated by the upgrade and extension of Thompsons Road, creating a high-capacity route from Carrum through to Pakenham.
The road is currently underdeveloped, congested and comes to a full stop at a single-lane T-intersection at Smiths Lane in Clyde North, neighbouring an important jobs precinct on the border of Casey and Cardinia Councils.
The report, Thompsons Road Upgrade and Extension: Economic Impact Assessment, said jobs in the region would be unlocked more quickly over the next 30 years in the following ways:
· More than 80,000 jobs would be unlocked along the Thompson Road, as a result of new commercial buildings and new operating businesses (see map below)
· About 40,000 flow-on jobs through ‘business to business’ supply chain effects
· About 20,000 jobs in the local economy through increased household consumption as new workers make local purchases, and
· 703 jobs during the road upgrade and construction.
The report – commissioned by Casey and Cardinia Councils – found the new commercial and industrial activity facilitated by the upgrade and extension would support private investment to Casey and Cardinia that would diversify and strengthen the regional economy.
If started in 2024, the project would deliver a $90 billion net benefit over a 30-year period.
Greater South East Melbourne Councils (GSEM) Chair Simon McKeon said: “It is clear from the report that the Thompsons Road upgrade and extension – whenever it is started – will provide a massive economic boost to the region, state and the country. The sooner it is started the sooner, those economic benefits will be delivered.”
Upgrading and extending the road would spur investment by employers that would see the region’s output increase by more than $58.2 billion by 2060, the report authors found.
With the population of the Casey Cardinia region predicted to reach almost 700,000 residents by 2036, prioritising the extension of Thompsons Road will support much needed jobs and residential land development.
Residential building activity would create further economic activity and jobs.
Importantly, the report found that Casey and Cardinia have the only remaining industrial land supply in the Greater South East Melbourne region.
Opening up access to that industrial land would benefit existing and future workers in nearby local government areas including Frankston, Greater Dandenong, Kingston and the Mornington Peninsula.
Starting the project in 2024 brings the highest level of net benefit. “Prioritising the Thompsons Road Upgrade and Extension returns $4.40 in benefit for every $1.00 of cost, and $90 billion in net benefit,” the report said. The net benefit is far greater than deferring the project to 2030.
The total cost of the upgrade and extension, excluding land acquisition costs, is estimated at $785 million.
Cardinia Shire Council Mayor Cr Jeff Springfield and City of Casey Chair of Administrators Noelene Duff PSM, said in a joint statement that they consider the upgrade and extension of Thompsons Road as one of the region’s highest transport priorities.
Cr Jeff Springfield said:
“It is clear from the REMPLAN study – with the project starting in 2024 and returning $4.40 in benefit for every $1.00 spent – that there are compelling economic, employment and social cases for the upgrade and extension of Thompsons Road.
“The early start will boost economic output by more than $58 billion and deliver a $90 billion net benefit over a 30-year period.”
“Tackling congestion has significant positive social and environmental benefits, with commuters able to spend more time with their families rather than sitting in vehicles.”
Chair of Administrators Noelene Duff PSM said:
“It is imperative that work begins as soon as possible so that we can attract the investment that will create those much-needed, 100,000 local jobs.”
“As the report points out, about 110,000 residents currently leave the region for employment. Many spend up to 90 minutes commuting on congested roads each way every work day.
“The future of work is to have a shorter commute time. This is better for workers’ health, better for families, better for employers – whose workers will be less stressed – better for the environment and better for the economy.”
“Of course, we are aware that resources are constrained but Government should begin this work as a matter of priority.”
Thompsons Road upgrade and extension will deliver
· Up to 140,000 jobs closer to where people live
· $90 billion net benefit over a 30-year period, if started in 2024 (or $61 billion if delayed to 2030)
· $58 billion increase in gross revenue
· $32 billion in gross regional product
· 703 jobs during construction
· Residential development opportunities across the region
· Commercial and industrial development and activity across the region
About Thompsons Road upgrade and extension
It is understood that the Department of Transport has completed a business case for the project, including costings, timeframe and route which would support project planning and enable expedited delivery.
While awaiting this information to be made public, the REMPLAN report provides invaluable insights to the broad benefits of beginning work on this project as a matter of priority.
The project can be broken into stages for efficient, cost effective delivery in any order that suits government and budgets.
Suggested stages are:
Stage 1: Berwick-Cranbourne Road to Cardinia Road and Cardinia Creek bridge: $525 million
Stage 2: Cardinia Road to McGregor Road: $200 million
Stage 3: McGregor Road to Koo Wee Rup Road: $60 million
Download the Thompsons Road key employment zones map
Download the Thompsons Road Upgrade and Extension: Economic Impact Assessment report