Council engaged Essential Economics Pty Ltd to undertake an Economic Impact Assessment of the proposed project to provide critical data to assist with future funding bids to the federal and state governments.
“The estimated cost of the Stage one of the Bypass is $260 million and we’re anticipating that as investors the federal and state governments will want to know about any potential return on investment in committing to the Bypass”, suggests Greater Shepparton City Council Mayor Cr Dinny Adem.
“The outcomes of the Economic Impact Assessment report clearly indicate that the construction of stage one of the Bypass will stimulate significant economic output and employment for Greater Shepparton and the broader region.”
The report details both construction and operational economic impacts. Construction phase impacts are assessed as:
- Increase in National Economic Output: $590 million (2016 dollars)
- Increase in Regional Economic Output: $465 million (2016 dollars)
- Increase in Economic Output in other locations: $125 million (2016 dollars)
- Increase in Value-Added National Output: $215 million (2016 dollars)
- Increase in Regional Economic Output: $160 million (2016 dollars)
- Increase in Economic Output in other locations: $55 million (2016 dollars)
- Increase in National Employment (direct and indirect): 3,170 jobs
- Increase in Regional Employment: 2,560 jobs
- Increase in Employment in other locations: 610 jobs
It is estimated after 10 years of the Bypass being in operation that:
- 6,410m2 of existing vacant CBD shopfront floor space will become reoccupied.
- 225 CBD jobs will be created directly and a further 180 jobs indirectly in the regional economy.
- $316.2 million (Net Present Value - NPV) over 25 years is generated in value-added output.
- Savings of $7.2 million (NPV) over 25 years in avoided freight costs associated with partial / total closure of Peter Ross Edwards Causeway due to incidents/maintenance.
The report goes further in detailing the actual benefits for Stage one of the Bypass for users over a 30 year period including, travel time savings up to $35.6 million (NPV), vehicle operating cost savings to the value of $9.9 million (NPV), crash cost savings of -$0.2 million (NPV) and even CO2 savings up to $1.3 million (NPV).
“The value of this report is that it further supports the case that the creation of the Bypass makes good economic sense. As well as reducing heavy traffic flows and improving safety, amenity and commercial performance of the Shepparton CBD; and catering for the long-term traffic growth including improving freight movements, Greater Shepparton and the region will also experience immense economic gains,” contends Mayor Adem.
“This piece of work will also complement the strategic transport modelling work currently being completed by AECOM. Collectively these reports further reinforce the critical nature of the Bypass project.”
