Traffic on our roads is a sign of mobility and of a dynamic economy. However, excessive congestion has a range of undesirable consequences including increased costs to the community and businesses through longer, less predictable travel times, lost productivity, additional running costs of vehicles, and environmental pollution.
In 2006, the Victorian Competition and Efficiency Commission estimated the economic costs of Melbourne's congestion ranged from $1.3 billion to $2.6 billion per year, and that this was likely to double by 2020.
Trends over the past 10 years demonstrate that Melbourne's traffic congestion is increasing. Specifically, road use, the duration of morning and afternoon peak hours, and the time spent in traffic have all grown substantially over the past decade, while the average travel speed on inner city freeways has steadily declined.
Congestion is generally worse in inner Melbourne than outer areas, with travel to and from work and school representing one of the most significant contributors. Other key causes relating to both supply- and demand-side factors include: