Hobart Central Bus Interchange Study – Executive Summary

Hobart Central Bus Interchange Study – Executive Summary

September 2013

Hobart City Council, Department of Infrastructure, Energy and Resources, Metro Tasmania, TasBus

Parsons Brinckerhoff Australia Pty Limited ABN 80 078 004 798

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1. Background, aims, and methodology The Hobart Central Bus Interchange Project is a joint partnership between the Hobart City Council (Council), Department of Infrastructure Energy and Resources (DIER), Metro Tasmania (Metro) and the Tasmanian Bus Association (TasBus); and has been awarded funding from the Australian Government under the Liveable Cities Program (LCP). The project aims to:

identify optimal arrangements for public transport access across the Hobart CBD, including location of a central interchange and bus stops

improve the amenity of bus travel, by providing for a high level of passenger comfort, safety and security while waiting for buses and transferring between bus services in the Hobart CBD

provide public transport access points that better meet the needs of public transport users

improve the travel time reliability of bus services travelling into and through the CBD

integrate regular passenger (bus) transport services into a single interchange facility or set of adjacent facilities

increase patronage on public bus services travelling to and through the Hobart CBD.

A map of the study area under consideration is shown in Figure 1-1.

This report is titled the Executive Summary Report and provides an overview of the key findings. A separate Technical Report has also been prepared, which contains the detailed assessment and findings of the Study.

Hobart Central Bus Interchange Project

PARSONS BRINCKERHOFF EXECUTIVE SUMMARY

Figure 1-1 Study Area

1.1 Project Objectives

The purpose of the study is to analyse and recommend short, medium and longer term facility arrangements to create a more effective central and integrated transit interchange for public transport services in Hobart.

The study provides the project partners with:

a comprehensive picture of current bus arrangements in the Hobart CBD servicing the greater Hobart region

an understanding of current passenger movements and future passenger needs

a series of bus interchange recommendations for short term (1-3 years), medium term (between 3-10 years) and long term (beyond 10 years)

project concept arrangements ready for public consultation and implementation.

1.2 Options assessment process

The bus interchange options assessment process follows the Australian Transport Council (ATC), National Guidelines for Transport System Management in Australia three-stage appraisal process. This process is shown in Figure 1-2 and has been refined to meet the scope of the study.

Figure 1-2 Options assessment process



1.3 Strategic considerations and context

Current bus operations throughout Hobart are operated primarily by Metro Tasmania, a state owned company. Metro’s metropolitan network is supplemented by three main privately owned operators; O’Driscoll Coaches, Tassielink and Redline, with Tassielink and Redline also running regional coach services.

The current central bus interchange at the Elizabeth Street Bus Mall/Franklin Square is utilised by inner and outer metropolitan services from all four major operators1. Tassielink and Redline regional services operate through independent terminals, which cater well for longer distance passengers.

A range of relevant background reports were reviewed as part of this study to gain an understanding of the relevant existing policies and projects and the opportunities/constraints associated with them.

A summary of the relevant policies, strategies, plans and projects that have been reviewed as part of this study is shown in Table 1-1.

Table 1-1 Summary of background review

Document Date Current status Relevance

National Urban Policy – Our Cities, Our Future

May 2011 Policy

All of these policies recognise the need to improve bus interchange facilities within Hobart

Tasmanian Infrastructure Strategy

Jun 2011 Policy

Sustainable Transport Strategy

2009 Policy

Tasmanian Urban Passenger Transport Framework

Jan 2010 Policy

Hobart inner city action plan

2012 Funding required Consideration for the recommendations outlined as part of the ICAP bus interchange project

Hobart transit corridor planning

2012/2013 Further investigation underway

Consideration for how the transit corridors may access the Hobart CBD bus interchange

Greater Hobart Passenger Transport Network Plan

Feb 2011 Funding required Consideration for how the recommended principal routes may be integrated with the CBD bus interchange, within a 10-year horizon

Hobart - Glenorchy Light Rail business case

2013 Funding required Integrated light rail/bus interchange option to be considered in the options assessment process

Bus depot optimisation study

Jan 2012 Funding required Consideration to be given to the recommendation for a new Hobart CBD bus depot

Hobart CBD Paramics model

Aug 2012 Project complete Model was considered to be suitable for use as part of the bus interchange study to test traffic impacts

1 It should be noted that Redline only operate their Airporter services through the central bus interchange

2. Existing conditions This Section of the study defines issues and opportunities for the Hobart Central Bus Interchange. These findings of the existing conditions assessment were used to determine passenger needs, operational needs, and functional requirements and provide a strong basis for determining the preferred bus interchange option.

A range of background information has been obtained, site visits and stakeholder meetings have also been undertaken to complete a review of the existing conditions. For the purpose of this study the following definitions are provided:

Hobart CBD Bus Mall – refers to the Elizabeth Street bus only street, located between Collins Street and Macquarie Street

Hobart Central Bus Interchange – refers to the overall CBD bus interchange, including the Elizabeth Street Bus Mall and Franklin Square bus zone.

2.1 Existing conditions summary

The key general existing conditions findings from this study have been summarised in Table 2-1 to guide the development of the recommended bus interchange plan.

Table 2-1 Summary of existing conditions

Category Summary

Policy All relevant policies reviewed as part of this study recognise the need for improvements to be made in relation to a central Hobart Central Bus interchange

Previous projects

All previous relevant projects reviewed as part of this study are likely to be impacted upon by any changes to the Hobart Central Bus Interchange and therefore need to be considered as part of the study

Metro Tasmania

Metro Tasmania is a state owned bus operator, responsible for operating the majority of urban bus services in Hobart, Launceston and Burnie. Metro operate 119 routes, across three main service areas (southern, northern and eastern). The majority of Metro bus services use the Hobart Central Bus Interchange.

Redline Coaches

Redline Coaches operate the following three main routes through Hobart from their terminal at 230 Liverpool Street and at CBD bus stops on Liverpool and Bathurst Streets: Launceston to Hobart (continuing to Devonport and Burnie), Hobart Airporter shuttle and Hobart to Sorell/Dodges Ferry. Only the Airporter shuttle buses use the Bus Mall

Tassielink Tassielink operate bus routes to Devonport, East Coast, Campania, West Coast, Huon Valley and Tasman Peninsula from their terminal located at 64 Brisbane Street. Only Huon Valley, Campania and East Coast services stop within the Hobart Central Bus Interchange.



Category Summary

O’Driscoll Coaches

O’Driscoll Coaches operate bus routes from Hobart to New Norfolk, Ellendale and Bothwell. These routes originate/terminate at the 103 Macquarie Street bus stop near the Bus Mall, which they share the stop with some of the Tassielink services.

Hobart CBD Bus Interchange

The Hobart Central Bus Interchange has the following key issues and opportunities:

dispersed terminals of different bus and coach operators around the CBD, creates confusion and increases walking distance for passengers who want to transfer between services

operational in-efficiencies within the bus interchange, increase dead-running, add to congestion and create confusion for passengers

the one-way street network within Hobart results in additional service kilometres being required to reach the bus interchange, also adding to the travel time

capacity constraints within the bus interchange are likely to become greater issues in the future, as frequency improves

some bus stops in the interchange are under-utilised, based on a review of timetable and patronage data

the recovery time that Metro buses are given in the Hobart Central Bus Interchange increase the utilisation of these stops, providing the opportunity for efficiencies to be gained from potential through-routing of services

there is a lack of passenger and urban amenity within the bus interchange, as a result of inadequate bus waiting facilities and shelters, information provision and passive surveillance.

Hobart CBD activity centres

A high proportion of key activity centres in the Hobart CBD are closely located to the existing bus interchange

Demographics A summary of key Hobart demographics, includes:

Population growth in Tasmania from 2001-2011 was 8.4%, compared with 15% nationally

Public transport mode share is 5.4% in Hobart (2011) The greater Hobart area is experiencing an increase in the proportion of

the population aged over 55

Crash data A total of two bus related crashes were reported to have occurred within the Hobart Bus Interchange within the most recent five year period. There was a total of eight crashes reported occurring within the Bus Mall, including at the intersections with Macquarie Street and Collins Street, during this period. It is not clear if all of these crashes involved buses. A pedestrian was also recently hit by a bus when crossing on a ‘don’t walk’ signal across Collins Street.

Customer satisfaction

The following key results were recorded in the most recent Metro Tasmania customer satisfaction survey:

ease of transfers between services: 40% satisfied personal safety at the bus stop: 64% satisfied

Category Summary

overall service provided by Metro: 69% Stakeholder consultation

Individual meetings were undertaken with all key stakeholders for the project, with the following key issues raised:

it is clear that different operators, provide different types of bus services and therefore have differing requirements for interchange facilities

interchanges between Metro and private operator services requires improvement

dead-running should be minimised within the CBD the Bus Mall experiences congestion during peak periods and some

stops are under-utilised within the bus interchange area passenger waiting facilities within the Hobart Central Bus Interchange

are inadequate



3. Hobart Central Bus Interchange Options In order to ensure that the best solution for a bus interchange in central Hobart is identified, it is important to consider a range of initial options. This helps to remove prejudice from the decision, as all options are given due consideration at varying levels of detail in accordance with the ATC guidelines process.

This Section identifies a comprehensive list of alternative locations for the Hobart Central Bus Interchange. The development of the long list of options was informed by the functional requirements for a bus interchange in the Hobart CBD and the assumptions that defined the scope of the options identification.

3.1 Options development

An initial long-list of bus interchange options, shown in Figure 3-1 was developed with input from stakeholders. The purpose of the long list was to identify all potential alternatives so as to ensure a robust analysis was undertaken.

Figure 3-1 Initial Options Map

4. Options assessment The bus interchange options assessment process follows the Australian Transport Council (ATC), National Guidelines for Transport System Management in Australia three-stage appraisal process, as shown in Figure 1-2 and has been refined to meet the scope of the study, including the following key assessment phases:

Strategic merit test

Multi-criteria assessment

Rapid cost benefit analysis.

4.1 Strategic merit test

The purpose of the Strategic Merit Test (SMT) is to assess the initial list of potential interchange options through a high level filtering process. This will discount any options that do not achieve a strategic fit with the objectives of the study and the key functional requirements. These discounted options will therefore not proceed to the more detailed Multi-Criteria Analysis stage of assessment.

The results of the SMT were discussed with key stakeholders in a workshop held on 19 April 2013. The discussion in this workshop resulted in the confirmation of the short-listed options shown in Table 4-1.

Table 4-1 Short-listed options summary

Option No. Option name Description

Low cost – surface level options 1 Base case No change in location or operation from the existing Hobart

Central Bus Interchange and dispersed regional operators terminals (including Tassielink and Redline). This option represents the base case, ‘do nothing’ option that will later be used to compare alternative options to.

Ownership: On road (Council owned/managed roadway)

2 Elizabeth Street /Franklin Square (consolidated)

All four bus operators to be located within the existing Elizabeth Bus Mall and Franklin Square zones, under improved operational scenario and utilising kerb space on Elizabeth Street outside the town hall Ownership: On road (Council owned/managed roadway)

3 Elizabeth Street spine

All four bus operators to be located on both sides of Elizabeth Street from Collins Street to Morrison Street (exclusive of the kerb space adjacent to the Council building)

Ownership: On road (Council owned/managed roadway)



Option No. Option name Description

Integrated into existing buildings – surface level options

5 City Hall All four bus operators to be located at a re-developed bus interchange located within the City Hall building or on the site. City Hall building to be mostly retained. Ownership: Hobart City Council

High cost – sub surface options

10 Below Franklin Square

All four bus operators to be located inside a re-developed bus interchange underneath Franklin Square

Ownership: Hobart City Council

High impact – surface level options 19 Dunn Place car

park New Hobart Central Bus Interchange, including all four bus operators within the area of the existing Dunn Place car park and surrounding streets

Ownership: Hobart City Council

20 Collins Street (central)

All four operators to be located on Collins Street between Murray Street and Argyle Street Ownership: On road (Council owned/managed roadway)

4.2 Multi-criteria assessment

The purpose of the Multi-criteria Assessment (MCA) is to assess the short-listed options shown in Table 4-1 to determine a preferred Hobart Central Bus Interchange option for the short, medium and long-term horizons.

4.2.1 Assessment criteria

The assessment criteria have been grouped under the following three headline criteria:

transport system benefits

cost & implementation

environmental, economic & social.

The development of bus interchange functional requirements, provide a foundation for the development of the assessment criteria, used for the MCA. These functional requirements capture how each component of the interchange will need to perform to ensure that it functions efficiently. Consideration has been given as to which of these functional requirements were suitable for use as assessment criteria by being able to provide an understanding of the difference between alternative interchange location options.

4.2.2 MCA results

A summary table of the key results is shown in Table 4-2. It should be noted that the options were re-numbered from the original numbers that were assigned to them in the SMT. In order to determine the relative percentage difference in average MCA score between the alternative options, the highest scoring option (Option 3) from the MCA, has been used as the benchmark to compare all other options back to. Therefore a percentage score change of -6% as shown in Table 4-2 for Option 2 is defined as having an MCA average score of 6% lower than the highest scoring alternative option, indicating that this option is slightly less advantageous to Option 3 across all of the assessment criteria considered.

Table 4-2 MCA summary results

Option No.

Option Description % Score Change from (Option 3 )

1 Existing Hobart Central Bus Interchange (base case)

-

Alternative options to the Base Case (Option 1)

2 Consolidated operators located in the existing CBD interchange

-6%

3 Consolidated operators located in Elizabeth Street spine

-

4 City Hall -14%

5a Below Franklin Square (deep tunnel) -19%

5b Below Franklin Square (cut/cover tunnel) -20%

6 Dunn Place car park -27%

7 Collins Street central -23%

The results of the MCA indicate that with all criteria awarded equal weightings, Option 3 (Elizabeth Street spine) ranked as the highest of all the alternative options.

Although the Base Case (Option 1) appears to score well in the MCA, it is not proposed as a viable bus interchange recommendation, as it does not address the existing interchange issues. The decision to include the existing interchange as a (base case) option to be assessed in the MCA creates the following consequences:

the assessment criteria will not be able to focus on the advantages or disadvantages of the functioning of the existing interchange location in any depth. This is because the knowledge about how alternative locations will function will be less than what is known about the existing location. The assessment criteria need to be chosen to give a fair comparison

due to the greater knowledge about the existing interchange it is likely to receive a higher score on the rating scale for on any particular criteria because the present situation is known.

Additional investigation in relation to more detailed consideration that could not be measured in the MCA, shows Option 3 is a superior bus interchange option to that of the existing



arrangement (i.e. Option 1). It is valid to select Option 3 as the preferred bus interchange location.

Option 2 was ranked second highest of the alternative options, scoring a 6% lower score than Option 3. The Option 2 and Option 3 results indicate that the three highest ranking bus interchange location options (including the base case) were all centred around the existing Bus Mall and Franklin Square bus zone. These results highlight the importance associated in maintaining the bus interchange in its current location, together with a range of other improvements.

It is also worth noting that if cost was given a higher weighting in the MCA, Options 2 and 3 would likely score even better than all other alternative options, given the low comparative cost of these options.

It is also important to note that Options 2 and 3 considered the continuing use of the Bus Mall and Franklin Square bus zones, as these areas provided buses with unimpeded flow, free from private vehicle delays. This results in improved safety and operational reliability for buses as a result of reduced delay from private vehicle conflicts.

5. Recommended bus interchange plan The draft bus interchange plan provides a recommendation for the preferred location of a Hobart Central Bus Interchange and associated infrastructure, which is a result of the findings of the MCA and consultation with key stakeholders.

As outlined in Section 4 above, the highest ranking central CBD bus interchange location option from the MCA was determined to be Option 3, which included retaining the existing Elizabeth Street Bus Mall and Franklin Square Bus Zone and also developing a new shared regional bus/coach terminal in close proximity to the central bus interchange, with the specific location yet to be confirmed.

Further investigation will be required to confirm the preferred site for the terminal, however it is important to highlight the need for this to be located in close proximity to the Bus Mall and Franklin Square Bus zones to provide integration between all bus operators.

5.1 Hobart Central Bus Interchange Vision

The ultimate vision for the Hobart Central Bus Interchange is essentially an on-street interchange with supporting passenger services and infrastructure, which includes operational changes to improve reliability of bus services and capacity within the interchange. The interchange is comprised of the following key areas, as shown in Figure 5-1:

Elizabeth Street Bus Mall

Franklin Square Bus Zone

Macquarie Street Bus Zone

Regional bus operators terminal (actual site to be confirmed within shaded area).



Figure 5-1 Hobart Central Bus Interchange Vision

Similar to a large public transport station with a long concourse, a recommended Elizabeth Street pedestrian spine will provide a link between each of the different areas of the CBD bus interchange and will enhance the integration between services run by different bus operators. Differing infrastructure facilities will be provided in each of these areas, which will be dependent on the types of bus services operated in each area and the needs of the passengers.

The recommended bus stops within the central CBD bus interchange will be premium facilities with the highest level of service to passengers provided. The existing facilities are recommended to be upgraded to be comfortable, sheltered waiting places suitable for seated and standing passengers. Kerb heights and facilities have been recommended to be fully DDA compliant and enable the services to be accessible to all.

The streets nominated for the CBD interchange should be treated as an “open air station” where pedestrians, motorists and passengers are aware that they are in a shared space where public transport is the modal priority. This is particularly important at the ‘entrances’ to the distinct interchange areas and intersections of Macquarie Street, Elizabeth Street and Davey Street.

Table 5-1 provides a summary of the key recommendations for the Hobart Central Bus Interchange in the short, medium and long term horizons.

Table 5-1 Hobart Central Bus Interchange Recommendations Summary

Interchange Element

Short Term (<3 years)

Medium Term (3–10 years)

Long Term (>10 years)

Infrastructure:

Shelters/seating Toilets/parenting room Lighting CCTV

Kerbs and streetscape

Driver amenities Non-bus requirements:

Cycle parking

Taxi rank Kiss and Ride

Systems:

Information systems Real-time information

Integrated ticketing

Bus operations:

Bus stop consolidation Bus network improvements

Bus scheduling

Bus priority measures

Bus layover

5.2 Short/medium term bus interchange plan

The short/medium term bus interchange plan recommendations, shown in Figure 5-2 facilitate a staged approach toward the ultimate long term recommendation for the CBD interchange as discussed in Section 5.1. These recommendations continue working towards the key aims of the Study, including the integration of the four main bus operators in a Hobart Central Bus Interchange.



The short/medium term plan includes a range of enhancements for the existing bus interchange to address the deficiencies highlighted in the existing conditions stage of this study (Section 2 of this summary).

The key difference between the short/medium and long term recommendations is the absence of a shared regional bus terminal. In the short/medium term the existing Tassielink and Redline terminals are not recommended to be re-located.

Figure 5-2 Recommended short/medium term bus interchange plan

5.2.1 Recommended short/medium term bus interchange layout

The recommended Hobart Central Bus Interchange layout for the short/medium term is shown in Figure 5-3. A summary of the key benefits, includes:

improved legibility for passengers through concentration of all bus operators in close proximity (i.e. centrally located stops for regional bus operators, however terminals to remain dispersed)

enhanced opportunity to transfer between services of the different operators, due to the proximity of bus stops

reduced cost of providing higher quality bus stop infrastructure, due to the consolidation of stops within a smaller footprint

improvements to bus interchange infrastructure, including improvements to: seating, shelter, information provision, wayfinding, amenity, safety and lighting.

The recommended Hobart Central Bus Interchange plan is ideally located within 200m of the CBD centroid and also within close proximity to the Hospital, proposed Campbell Street education precinct and the Salamanca waterfront, as well as a number of other activity centres.

Figure 5-3 Recommended short/medium term bus interchange layout plan

Further details of the short/medium term recommendations are discussed in the main technical report, which include justification for why changes were made and also the potential impacts that the recommendations may have.

5.2.2 Walking and cycling

Providing good pedestrian access to and within the recommended Hobart Central Bus Interchange is a key focus of this study. This is due to the need to provide passengers with safe and efficient access between key CBD activity locations and the bus interchange, as well as providing improved pedestrian access to the waterfront.

It is recommended that further investigation be undertaken into the provision of an east-west pedestrian spine between the CBD and the waterfront, to be focused on Elizabeth Street. This corridor has two strong anchors, being the waterfront and the Elizabeth Street Pedestrian Mall. The activity of the proposed Hobart Central Bus Interchange will also



enhance the level of street activity in the pedestrian corridor. The western end of the proposed corridor is also in close proximity to the city centre.

A concept of what the Elizabeth Street pedestrian spine could look like and what impacts it may have, is shown in Figure 5-4.

Figure 5-4 Recommended Elizabeth Street pedestrian spine

This study has identified the need for additional bicycle parking infrastructure to be located in proximity to the recommended Hobart Central Bus Interchange, however further investigation is required to determine the demand for a dedicated bicycle storage and associated change facilities to be developed.

5.3 Long term bus interchange plan

A map of the recommended long term bus interchange plan is shown in Figure 5-5, which represents the ultimate recommendation for the Hobart Central Bus Interchange. The key addition to this plan from the short/medium term plan is the recommendation of a shared regional bus/coach terminal within the shaded area shown in Figure 5-5.

The shared regional terminal would provide an opportunity to integrate all bus operators into the central area, re-locating the existing dispersed bus terminals from their current locations, providing the following customer benefits:

Improved passenger legibility through a consolidated Hobart Central Bus Interchange, including all four main Hobart bus operators (i.e. centralising the existing dispersed bus terminals across the Hobart CBD)

a shared terminal for regional bus/coach operators, including waiting facilities and toilets that could also be used by other bus passengers using the interchange

reduced walking distance for passengers transferring from Metro bus services, who previously would have had to walk to the Tassielink or Redline bus terminals.

Figure 5-5 Hobart Central Bus Interchange – Long Term Plan



5.3.1 Shared regional bus operators terminal

The terminal facilities have been planned to provide an integrated shared waiting facility as well as separate lockable shopfronts, which can provide each operator with a secure and private area to use as a shopfront to operate their business from and interact with customers. Table 5-2 provides an indication as to what specific elements each of these two different areas may include to meet the needs of the passengers and bus operators.

Table 5-2 Regional bus/coach terminal – specific requirements

Central Waiting Facility Bus Operator Shopfronts

Indoor waiting area with seating available Separate lockable shopfronts (up to three separate shopfronts)

Toilets and parenting room Front desk for customer service/payment Adequate pedestrian access (including DDA) Backroom office facilities Proximity and visibility to on-street bus bays Toilets Proximity to other bus services (i.e. Metro) Kitchen area for staff use only Real time information provision Information systems, linked to the central waiting

facility Timetables and other tourist information Timetables and other tourist information Heating / air-conditioning PA system, linked to the central waiting facility Café (optional) or vending machines Heating / air-conditioning PA system for announcing arrivals/departures Proximity to central waiting facility (undercover

access preferred) CCTV (inside and outside) Advertising opportunities for branding signage Payphone Emergency help point

5.4 Bus interchange plan recommendations summary

One of the key aims of this study was to provide a Hobart Central Bus Interchange that provides a legible location and promotes the easy transfer of passengers between services provided by different operators. The recommended long term bus interchange plan addresses this key aim, through the shared regional bus/coach terminal for all regional operators. It should be noted that although a broad location for this terminal has been recommended, further investigations and consultation is required to select the preferred site.

The focus of the long-term plan for the Hobart Central Bus Interchange should be strongly directed towards the needs of bus passengers. Consequently further investigations are recommended to understand the travel patterns of the different market segments for the different types of bus services provided in Hobart. Understanding the demand for transfers should also be further considered, which is likely to increase if integrated ticketing were to be introduced.

6. Cost benefit analysis A rapid cost- benefit analysis (CBA) has been undertaken on the estimated costs and benefits resulting from the proposed short/medium term bus interchange improvements, following a methodology advocated in the Australian Transport Council’s National Guidelines for Transport System Management in Australia.

The purpose of the CBA has been to test the short/medium term improvements at the preferred site, rather than to evaluate alternative interchange locations.

The recommendation to retain the bus interchange at the current location in the Elizabeth Street Bus Mall and surrounding Franklin Square bus zone is likely to be significantly cheaper than constructing a new bus interchange in another location without delivering substantively different benefits. As a result the BCR generated is likely to be significantly higher if there were comparison with alternative interchange locations.

A rapid cost-benefit analysis has been undertaken on the interchange infrastructure improvements, using a high level cost estimate and valuation of benefits using the ATC National Guidelines for Transport System Management.

An initial high level review of the long term plan indicates that further economic benefits could be realised from better integration and co-location of metro, regional and long distance services. A detailed cost benefit analysis will be undertaken once the long term infrastructure design is developed further.

6.1 Short/medium term bus interchange plan – CBA results

The cost-benefit analysis has shown that the project is economically viable even allowing for the uncertainty in costs and benefits at this stage of project development. At the central discount rate of 7%, the analysis shows that the project would yield benefits of $4.10 for every $1 invested, indicating very good value for money. The results of the cost-benefit analysis are shown in Table 6-1.

Table 6-1 Results of cost benefit analysis (short/medium term plan)

Item Discount rate 7%

Present value of costs $2,504,473 Present value of benefits $10,275,553 Net Present Value $7,771,080 Benefit Cost Ratio 4.1 Note: 1. Values are in 2013 prices and have been discounted over 30 years at a rate of 7%.

The central case uses a very high contingency allowance on the cost estimate, to allow for uncertainty. Further investigation into costs is recommended (e.g. development of a functional design). However, the analysis shows that the project budget could increase to as much as $9m (with ca. $90,000 annual operating costs) and still achieve a BCR greater than 1.

Sensitivity analysis has been undertaken on the key uncertainties in the analysis, including the valuation of benefits, patronage growth, asset lives and discount rate. The resultant



BCR’s range from 2.5 to 7.6, showing that the project is economically viable under a range of scenarios and represents good value for money.

It should be noted that some infrastructure elements were not costed as part of the CBA, in particular the realigning of kerbs within the Bus Mall, as this work may become part of a separate project to create an Elizabeth Street pedestrian spine. While it is recognised that this work is likely to be expensive if it were included in the plan, the cost side can be increased substantially without reducing the BCR below 1. On the benefits side, the increased efficiency that the kerb re-alignment provides to bus operation and to pedestrian movements has also not been included.

As well as providing benefits to existing passengers, the reduction in generalised cost of public transport travel resulting from the improvements has the potential to influence car drivers and passengers to switch to public transport. Due to concerns for robustness of estimates these benefits were not included.

Patronage data was not available for the regional/long distance coach services to identify the number of passengers who would stand to benefit from consolidation of all bus departure points into the central interchange. However, the analysis shows that the benefit to passengers who transfer from city to regional services could be equivalent to a 10 minute reduction in their generalised cost of travel, which has the potential to attract patronage away from other modes.

6.2 Recommendations

Prior to making an investment decision on the recommended bus interchange plan, the following investigations are recommended to be undertaken:

further analysis of patronage, including analysis of patronage for long distance/regional services who would benefit from improved interchange with local bus services

further design of the interchange improvements and refinement of cost estimates and estimation of the benefits of elements not included in the above analysis

further investigation of measuring the benefits that might arise from mode shift to public transport.

Hobart Central Bus Interchange Study – Executive Summary

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