Monash Freeway Upgrade Stage 2

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Melbourne south-east and outer south-east congestion
High Priority Project
Infrastructure Category
Proposed By
Victorian Government
Near term (0-5 years)
Melbourne, Vic
5_Monash Freeway Upgrade Stage 2

Problem to be addressed

The Monash Freeway is a critical transport link to Melbourne’s south-east and outer south-east regions, carrying over 470,000 trips per day. It provides access to the growing Monash and Dandenong National Employment and Innovation Clusters.

Currently, there is insufficient capacity along the Monash corridor to support growing freight and commuter demand, particularly where the Monash Freeway intersects with the Princes Freeway, and at entry and exit ramps on the Monash Freeway. This leads to slower and less reliable trip times, and higher crash rates at peak times, relative to an uncongested freeway.

Rapid population and employment growth is expected in Melbourne’s south-east and outer south-east. This will lead to increased traffic at the western end of the Monash Freeway, and significantly more traffic on the outskirts of Melbourne. Demand growth will exacerbate the existing capacity constraints on the Monash Freeway over time.

Project description

The Monash Freeway Upgrade Stage 2 works comprise additional freeway lanes to the west of Eastlink and east of Clyde Road, extension of managed motorway technology, and improved connections to the freeway at Beaconsfield. These works complement the works currently underway between EastLink and Clyde Road, Berwick (Stage 1).

The project is consistent with the priorities set out in the 2017 Victorian Infrastructure Plan, which includes:

  • making the most of existing assets
  • building for the future
  • developing smarter transport solutions.

Economic, social and environmental value

The project would provide faster and more reliable journey times for private and commercial users and would help lower crash rates.

The proponent’s stated benefit-cost ratio is 4.6, with a net present value of $1,871 million (7% real discount rate).

Capital cost of initiative as stated by proponent (2018 business case) $711 million (P90, nominal, undiscounted) | Australian Government contribution (Stages 1 and 2) $500 million | State government contribution (Stages 1 and 2) $500 million | Private sector contribution N/A