The Rudd Government will immediately provide $12 million towards a joint Commonwealth and Victorian Government $30 million study of projects that improve East West connections across Melbourne.
The study will assess the projects identified in the recent report, Investing in Transport: East West Link Needs Assessment, that proceed to the feasibility stage following the current consultation process.
These projects have the potential to keep Melbourne's mantle as one of the world's most liveable cities.
Rapid population growth and increasing travel in the city outstrip current and planned infrastructure capacity - increasing congestion and undermining Melbourne's liveability edge.
Patronage on Melbourne's trains increased by 23% over the past two years.
Without action, urban congestion is projected to cost families and businesses in Melbourne $6.1 billion a year by 2020, with many working parents spending more time in their cars and less time at home with their kids.
The Rudd Government will therefore examine these major nation-building projects that have the potential to transform the way Melbournians get around, tackle traffic congestion and reinforce Melbourne's world-renowned liveability.
Two innovative rail proposals include:
* A new 17 kilometre Melbourne Metro rail tunnel linking Melbourne's booming western and south-eastern suburbs and providing a major increase in the capacity of the rail network
* A new rail connection from Werribee to Sunshine (the Tarneit link) to significantly improve the frequency and reliability of services from Werribee, Geelong, Ballarat and Bendigo
These projects are estimated to cost between $7.5 billion and $8.5 billion.
A decision on which projects proceed to feasibility stage will be made by the Victorian Government following community consultation by the end of the year.
The Commonwealth Government will invest in feasible projects that meet strict criteria through the new $20 billion Building Australia Fund, outlined in last week's Budget.
The Building Australia Fund is designed to invest from next year in nation building projects that address infrastructure bottlenecks and ease traffic congestion in our cities and towns.
The Government believes it is time to invest in long-term nation-building, with a horizon that takes us beyond the incremental changes thrown up by political cycles.
The Investing in Transport: East West Link Needs Assessment study was prepared for the Victorian Government by Sir Rod Eddington, who is also Chair of the Commonwealth Government's Infrastructure Australia advisory council.
This study takes a 30-year perspective and concludes that doing nothing on urban congestion is not an option.
The Commonwealth Government's commitment to examine new nation building projects is on top of its substantial existing investment in Victorian transport infrastructure.
In 2008-09, the Commonwealth Government is investing almost $500 million in road and rail projects in Victoria, including:
* $53 million for the Deer Park bypass and Leakes Road Interchange;
* $24 million for the Geelong Ring Road; and
* $26 million for the Dynon Port Rail Link.
The Government is also investing $51 million in 2008-09 to make an early start on delivering its election commitments, including:
* $25 million to start the Westgate Bridge rehabilitation;
* $6.5 million to start the 4A section of the Geelong Ring Road; and
* $5 million to start the Western Highway duplication planning.