Yan Yean Road lacks sufficient capacity to accommodate the population growth in the surrounding Northern Growth Corridor. Yan Yean Road accommodates peak hour volumes that are 40% higher than the road’s theoretical design limit. It provides a single carriageway with limited infrastructure for pedestrians and cyclists, falling short of modern arterial road standards.
Strategic Fit
The business case presents a clear need for the upgrade as road capacity has not kept pace with the rate of residential development in the Mernda-Doreen area of northeast Melbourne. The project will service recent housing growth in Mernda and Doreen while improving transport connections to future development in the Northern Growth Corridor.
Assuming benefits are maintained beyond the current available estimates to 2031, the project is expected to improve the quality of life for residents and commuters while supporting future housing growth by reducing road congestion, improving safety, improving access to services and Mernda Town Centre, and increasing active transport options. It is not clear how long the project will satisfy demand or when further upgrades might be needed.
Deliverability
The Victorian Infrastructure Delivery Authority (VIDA) has a demonstrated track record of delivering this type of project and their Program Delivery Approach is a mature procurement model which has been used for the delivery of other packages in the broader Suburban Roads Upgrade program.
Land acquisition planning is underway and planning and environmental approvals have been obtained which supports project-readiness. The contract for the Northern Package has been awarded for $88.07 million and the contract for the Southern Package is expected to be awarded in early 2026.
Infrastructure Australia recognises the need to alleviate congestion in Melbourne’s Northern Growth Corridor and deliver the Yan Yean Road Upgrade Stage 2.
We recommend the Victorian Government develop a project-specific benefit management plan with updated baseline and target performance indicators to reflect the timing of completion and measurement of benefits.