There is light at the end of the tunnel for those hoping for reform across Sydney’s expensive toll road network. It may still be some time away, but moves are being made to make it more affordable for all road users to get from point a to point b in one of Australia’s most congested cities.
Or is there?
For all the news of Sydney’s road toll reform in recent weeks, details surrounding how these changes will impact the heavy vehicle sector have remained tight-lipped, and with recommendations being implemented from the recent independent review, could heavy vehicle operators actually suffer as a long-term result?
Regardless of what it looks like, toll road reform in Sydney is absolutely needed. Its 13 toll roads are a jumbled mess of government run and independently operated routes with price rises that have spiralled out of control for no rhyme or reason.
Legislation has already been changed to create a new government department – NSW Motorways – to oversee all public toll road pricing, and a new ombudsman will be put in place to ensure private toll road operators like Transurban do not overstretch their fees.
However, key in the independent recommendations was the largening of the current heavy vehicle multiplier from three times the light vehicle toll rate to a 3.5 times multiplier.
Now, if toll road prices plummet, the change could still see companies and operators save money – but it would still be a grossly unfair outcome according to NatRoad CEO Warren Clark.
“The trucking industry has not been listened to,” Clark said upon the release of the 2023 NSW Independent Toll Review.
“The suggested increase in the toll multiplier to 3.5 is unjustified and mocks the essential role of trucking in our economy and supply chain.
“Our industry simply cannot absorb these unfair and unnecessary costs, nor can we simply pass them onto customers.”
Clark, however, has also been complimentary about other implementations of the report, including the creation of NSW Motorways.
ATN reach out to NSW Minister for Roads John Graham in regard to any potential increase to the toll multiplier, and received a response from a Transport for NSW spokesperson who said the current two-year truck multiplier trial will inform the effectiveness of cheaper road tolls in removing trucks from local roads.
“The Independent Toll Review recommended the NSW government further explore refining tolling classes in NSW and to continue to apply toll multipliers to vehicles exceeding Class A vehicle dimensions,” the spokesperson said.
“A two-year trial Truck Multiplier rebate is underway for trucks travelling on the M5 East and M8 Motorways. This rebate reduces tolls by one third for trucks, effectively a multiplier of two, not three.
“The trial runs from 1 January 2024 to 31 December 2025, costing $54 million, to encourage trucks to use motorways instead of local roads and to reduce the impacts on local communities and support the efficient movement of goods.
“Transport for NSW is monitoring traffic on key alternative routes to assess the effectiveness of the trial and utilise the data on behaviour to inform related reform options.”
Despite the presence of the trial over the past almost 12 months, one transport company has been reported to have spent in excess of $7 million on Sydney’s toll roads this year.
With the amendments to legislation and the creation of NSW Motorways, transport companies are holding out hope that such bloated expenses will be, at least, eased, and any profit made by the reform will, at the very least, be put back into the toll system.
“NSW Motorways will oversee any future revenue adjustments arising from a move to a network-wide pricing structure – but also ensure any windfall gains that stem from toll reform go to the NSW public, rather than private operators,” the spokesperson continued.
“The amendments also provide for independent monitoring of toll prices by IPART and the creation of an independent tolling customer ombudsman to deal with disputes and complaints between road users and the operators of toll roads.
“The law now allows the Independent Pricing and Regulatory Tribunal to monitor toll prices in Sydney, as well as facilitating the establishment of an industry toll customer ombudsman.”
On the other side of the coin to the road users thankful that toll road reform is on the horizon are the private companies whose profits may suffer as a result, like Transurban.
Following the announcement of the impending reform, Transurban released a statement in which it said it has invested $36 billion into Sydney’s toll road network in the past 20 years.
A huge chunk of that investment came in the form of the $3.9 billion Rozelle Interchange, which was the final stage of the wider $16.8 billion WestConnex toll road network which is privately operated by Transurban, which has since been slammed for making road congestion in the region worse.
A later inquiry found the WestConnex model was based on maximising the company’s sale value, and there had been a lack of transparency and accountability for the design, with promises to the community remaining unmet.
Transurban currently has a contract to run WestConnex until 2060, and with the new amendments not impacting existing contracts, it could be decades before the full scope of the reform is felt.
Included in those private contracts are key connecting routes of the Sydney Harbour Bridge and tunnel, Western Harbour Tunnel, and M6 Stage 1.
“Transurban remains committed to working collaboratively with the NSW governments and its investment partners in Sydney’s motorways on reforms to improve outcomes for motorists while protecting the significant investment it has made in the state,” a Transurban statement reads.
“Transurban and its investment partners have invested $36 billion in the state’s motorways over two decades which have provided significant value to Sydney’s motorists, including faster travel times and safer, more sustainable trips.
“The government also continues to express its preference for a negotiated outcome with the industry for toll reform through its direct deal process.”
Given the farcical nature of the Rozelle Interchange construction and resulting worsened congestion, it is easy to take Transurban’s statement regarding the improvements it has made for motorists with a pinch of salt.
However, at the very least, it looks set that all who set toll road rates – from private companies to the NSW government – will be held somewhat accountable for any potential price hikes.
Much like the recent discussions around Sydney’s toll reform, the discussion of the impact on heavy vehicle operators and transport companies has remained muted, much like when the weekly $60 caps were implemented earlier this year.
On January 1, 2024 – in tandem with the heavy vehicle multiplier rebate trial – NSW introduced a $60 weekly cap for use of the state’s toll roads.
However, that cap only applies to personal customers, and the 40 per cent toll relief rebate only applies to personal customers and sole traders.
Written in bold on the Linkt website is the statement “rideshares, taxis, cars registered with businesses and heavy vehicles are not eligible for the rebate”, with the TARE weight cap listed at 2794kg.
The toll rebate scheme is also only running until June 30, 2025.
If NSW Motorways, the independent ombudsman and IPART can work together to ensure a fairer outcome for all road users, then the work and time taken to implement the toll reform on Sydney’s 13 – soon to be 15 – toll roads will have been worth it.
But if the heavy vehicle and road transport sector is forgotten or cast aside, then it could be that no real change is implemented for those who count on the roads to earn their living.
Until then, only time will tell.
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