Improving cost-benefit analyses to achieve best value for money

Overview

Action 5.4: Promote use of active transport cost-benefit analysis methodologies and tools in transport project assessment and prioritisation to capture the economic benefits of cycling infrastructure.

Lead agency: Department of Transport and Main Roads

Status: Complete

Achievements

In 2019, we developed a new, easy-to-use online tool to analyse the economic costs and benefits of investment in active transport infrastructure. The tool allows planners and analysts to make cost-benefit analyses of proposed infrastructure or assess recently completed projects, including standalone active transport projects or as part of larger transport projects.

In early 2022, we released and promoted an updated version of this tool that includes several improvements, including:

• the ability to include e-mobility devices like e-bikes and e-scooters
• greater consistency with the Australian Transport Assessment and Planning Guidelines (M4 Active Travel)
• improved sensitivity testing.

Analysts can enter the details of their project, such as length, cost, number of people walking and bicycle riding and safety impacts. The tool will produce a benefit to cost ratio in about 30mins.

The tool is making it easier for projects to estimate the value of investments to make sure projects achieve the best value for money.

Next steps

We will continue to promote use of the tool in road, public transport and active transport projects and monitor its use so that further improvements can be made.