Inquiry into the operations of toll roads in Queensland

Transurban Queensland submission—August 2018 01

Transport and

Public Works Committee

Inquiry into

the operations

of toll roads

inQueensland

Transurban Queensland submission

7 August 2018

“Fantastic service.

Went beyond my

expectations to

ensure customer

satisfaction.”

What Queenslanders are saying

about toll roads

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland

“Practical and

relatively

economical and

a no-fuss way

totravel.”

“Convenient

and essential.”

“Saves time and

makes for easier

less stressful

driving.”

“It makes

getting to my

destinations a

lotquicker.”

“Makes travel

easy.“

Transurban Queensland submission—August 2018 1

Contents

Terms of reference

SECTION WHERE ADDRESSED

A The operation of existing toll roads in South-East Queensland Section 1

Section 2

B Toll pricing and incentive options to deliver better outcomes for Queenslanders Section 3

C The operation of the existing complaint process and current statistics Section 4

D Possible measures to continue to improve customer service standards Section 4

E The existing relationship between the Tolling Customer Ombudsman and the

Queensland Ombudsman

Section 4

Executive summary 2

About Transurban Queensland 4

Evolution of Brisbane’s toll roads 6

Section 1: Brisbane’s toll roads—

a multi-partisan achievement 7

Integrated transport approach 10

Almost $30 billion in benets to localeconomy 11

Value of private-sector involvement in roads 12

Section 2: Toll-road use in Brisbane 14

Toll road growth ve times higher than

broaderroad network 16

Vital river crossings 16

Benets for the freight operators 17

Targeted upgrade projects to cater for growth 18

Safety benets 20

Community benets 21

Section 3: Toll prices in Queensland 22

Delivering value for Queenslanders 24

How toll prices are set 25

Annual toll and fee increases 25

Targeted customer pilot campaign 26

Tolling discount/subsidies 26

Funding reform inevitable for broader

roadnetwork 28

Section 4: Making it easier for customers 29

Customer service performance 31

Linkt brand 32

Resolving customer issues 34

The tolling process 36

Assisting customers with payment diculties 39

Conclusion 40

Appendices 41

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland2

Executive summary

When Transurban Queensland (TQ) purchased the State-owned Queensland Motorways in a competitive

tender process in 2014, itwas one of the most signicant investments in Australian infrastructure history.

At $7 billion, it was an investment that reected our condence in

Queensland’s growth and prosperity. In 2016, we invested a further

$2 billion, by acquiring AirportlinkM7.

South-East Queensland’s population is expected to exceed

vemillion by 2041, so an ecient transport network that

combines public transport and free-owing roads will be vital for

Brisbane to retain its enviable status as one of the world’s most

liveable cities.

Brisbane toll roads, which comprise critical and well-established

arterial routes such as the Logan and Gateway motorways and

newer tunnels built with room to support a growing population, play

a fundamental role in moving people, goods and services eciently

around the city.

Over the past decade, trac on toll roads has grown at a rate

vetimes faster than the broader road network.

Every work day, almost 470,000 trips are taken on Brisbane’s toll

roads. Trac volumes have increased by 50 per cent over the past

seven years. Put simply, that is 470,000 vehicles removed from local

streets every work day.

The layout of Brisbane’s toll roads was forward thinking and

deliberately diverted trac around the city, preventing unnecessary

trips through the CBD. Every work day more than 176,000 vehicles

use tolled routes to specically bypass the city. This means at least

176,000 fewer vehicles are travelling on streets in the CBD.

Brisbane’s toll-road users are seeing the benets with faster,

safer and more reliable journeys. Collectively, they save nearly

70,000hours each work day. And that means more time doing what

they want or need to do.

At the time of TQ’s purchase, we had around one million customers.

Today we have more than 1.6 million customers and the toll prices

they pay are among the lowest on a per-kilometre basis in Australia.

The government sets and regulates toll prices and increases. The

annual increase is based on the Brisbane Consumer Price Index to

keep pace with general cost increases in Brisbane.

While the toll prices are set, we are always looking at ways to

increase value both on and o the roads for our customers.

In the past four years, we have invested $1 billion on road upgrade

projects, road maintenance and improvements in customer

operations and service.

We are working in partnership with the Queensland and Federal

governments and Brisbane City Council on critical projects to

improve areas of the road network that have become congested to

give motorists a better and safer journey.

These projects include the Gateway Upgrade North and Inner

City Bypass Upgrade projects, along with the $512 million Logan

Enhancement Project, which was the rst Market-led Proposal under

the Queensland Government’s innovative framework. Projects such

as these will ensure Brisbane’s transport network continues to cater

for economic and population growth for years to come.

Transurban Queensland submission—August 2018 3

Our investment also includes $70 million to overhaul and transform

our customer systems and ensure our interactions with customers

are as seamless and easy as possible. To achieve this we have:

• implemented a new back oce and customer system

• launched our retail tolling brand Linkt, with a new user-friendly

website and online-support

• introduced two smart phone apps including a GPS-enabled app

for occasional users

• increased proactive communication with customers, and

• introduced new programs and policies to assist customers

facing hardship.

We have also focused on reducing fees for customers. TQ does not

make a prot from its fees and, in fact, we would prefer no one paid

a fee.

To make this happen, we have worked in partnership with the

Queensland Government and Brisbane City Council to signicantly

reform legislation. Asadirect result, there has been a sharp decline

in fees for customers with unpaid tolls and we estimate that

1.7million fewer demand notices will be issued each year.

This change and other initiatives have led to a signicant decline

in the number of people moving into the infringement process. All

infringement notice revenue is retained by government and TQ is

not reimbursed for the unpaid toll or fees incurred.

We are proud that our eorts are realising real improvements for

our customers. The metrics that we use to measure our customer

service have all seen substantial improvement.

We have also seen a reduction in the number of customer service-

related complaints. Our policy is to resolve any customer queries in

their rst contact with our organisation. We do this 94 per cent of

invested since 2014 on

infrastructure projects,

road maintenance and

customer operations

$1B

invested in initiatives

to improve customer

experience

upgrade projects

toease congestion

hotspots

apps and enhanced,

user-friendly website

to make it easier

forcustomers

$70M 3 2

Our commitment to Queensland

Great cities need ecient and

integrated transport networks and we

look forward to continuing to play our

role in achieving that for Brisbane.

the time. While we make every eort, we recognise that with more

than 30 million customer interactions a year, we may not always get

it right the rst time.

The number of complaints to the Tolling Customer Ombudsman,

who provides an independent dispute resolution process for toll-

road customers, has also been consistently declining. Over the

past year the number of complaints has fallen by 32 per cent.

These results highlight our commitment to the successful resolution

of customer disputes and reinforce the importance placed on

fast and eective complaint resolution. We are condent that the

number of complaints to the Tolling Customer Ombudsman will

continue to decline.

As a business, we are privileged to be given the responsibility to

operate a critical part of Brisbane’s transport network. But we

know that the only way we can be successful is by delivering great

outcomes for our customers, government, communities as well as

our investors.

Since making our investment four years ago, that is exactly what we

have been striving to do.

From the trac control room operators with eyes on the road 24/7,

to the customer-service professionals, to the trac planners who

are looking at where a congestion hot spot could be in a decade’s

time, it’s our business to help make travel easier and safer for

Queenslanders.

Great cities need ecient and integrated transport networks and

we look forward to continuing to play our role in achieving that

forBrisbane.

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland4

About Transurban

Queensland

Transurban Queensland (TQ) is a leading provider in Queensland’s

transport infrastructure sector, managing 81 kilometres of tolled

roads, bridges and tunnels which are critical transport corridors that

help Brisbane retain its status as one of the world’s most liveable

and productive cities.

upgrade projects

482

lane kilometres

undermanagement

operating assets

5.6M

kilometres travelled

perday

~470,000

trips per work day

~70,000

hours of travel time saved

perwork day in FY18

~280

employees

~1,000

trac incidents

managed monthly,

includes breakdowns,

out of fuel, debris

clean up

1.6M

customers

Transurban Queensland

innumbers

TQ is owned by a consortium comprising

Transurban (62.5 per cent), AustralianSuper

(25 per cent) and Tawreed Investments, a

wholly owned subsidiary of the Abu Dhabi

Investment Authority (12.5per cent).

The Transurban-led consortium acquired

Queensland Motorways, owner of

Brisbane’s Gateway and Logan motorways,

Go Between Bridge, Clem7 and Legacy Way

tunnels, in 2014 for $7.057 billion.

Transurban assumed responsibility for the

operations of the Queensland Motorways

business on behalf of the consortium due

to its unparalleled history of operating

toll roads and working with government

and communities to deliver best-in-class

transport solutions.

In January 2015, the Queensland

Motorways corporate brand was

permanently transitioned to the

Transurban Queensland brand, to reect

the integration of its operations with the

wider Transurban Group. Since then, TQ

has expanded its operations in Queensland

with the acquisition of AirportlinkM7 in

April 2016 for approximately $2.0 billion.

TQ’s long-term concessions with

government create a strong incentive for

it to actively manage these roads with

a view to not only meet today’s needs,

but the future needs of communities

and customers. As manager of TQ

operations, Transurban has a business

vision “to strengthen communities through

transport”, which means it consistently

seeks ways to create a signicant and

lasting contribution to the cities and

communities where it operates.

1 Including stamp duty and transaction costs

TQ is working in partnership with the

Queensland Government and Brisbane

City Council to deliver a number of critical

infrastructure projects, including the

Gateway Upgrade North and the Inner

City Bypass Upgrade. It is also delivering

the Logan Enhancement Project, the rst

Market-led Proposal under the Queensland

Government’s innovative framework. The

Queensland Government has also awarded

TQ the contract to provide tolling services

to the Toowoomba Second Range Crossing.

TQ has more than 1.6 million customers

who depend on its toll roads for reliable,

safe and ecient travel around the city. In

May 2018, TQ launched the Linkt retail-

tolling-brand to replace the go via brand,

providing its customers with initiatives

including a new mobile app, an improved

website, reduced and improved fee

structure, enhanced communication and

promotion of the GPS-tolling app LinktGO.

Transurban, as an Australian-owned

and operated company listed on

the Australian Securities Exchange,

represents one of the most signicant

infrastructure investment opportunities

available to Australians and its stable

and growing returns make it an attractive

investment for superannuation funds.

Seventy per cent of Transurban’s security

holders are Australian superannuation

funds and individual security holders. Its

largest shareholder, UniSuper, manages the

retirement savings of 420,000 education

sector workers, including more than

70,000in Queensland.

AustralianSuper, as a 25 per cent owner

of Transurban Queensland, is Australia’s

largest industry superannuation fund,

with more than 2.2 million members,

including more than 270,000 members

inQueensland.

Transurban Queensland submission—August 2018 5

Brisbane

Airport

Port of

Brisbane

Clem7

Logan

Motorway

Legacy Way

BETWEEN

BRIDGE

BETWEEN

BRIDGE

Gympie Arterial Road

Bruce Highway

Port of

Brisbane

Motorway

Southern Cross Way

Western Freeway

Ipswich Motorway

Warrego Highway

Cunningham Highway

M15

Centenary Motorway

Paciﬁc Motorway

Mt. Lindesay Highway

Australia

TradeCoast

BRISBANE CBD

Gateway

Motorway

AirportlinkM7

Inner City Bypass Upgrade

Gateway

Upgrade

North

Logan Enhancement

Project

Brisbane Metropolitan Area

Transurban Queensland asset

Motorway

Current works/upgrades

Tunnel

Gateway Upgrade North project

• Delivering government-funded project in

partnership with Department of Transport

and Main Roads

Inner City Bypass Upgrade project

• Managing and delivering $60million project

for Brisbane City Council under its Innovative

Proposal Policy framework

• Operations, maintenance and incident

response services post upgrade

Logan Enhancement Project

• Delivering $512 million project

• First Market-Led Proposal with Queensland

Government

Toowoomba Second Range Crossing

• Providing end-to-end tolling and back-oce

services for theproject

CORPORATE HIGHLIGHTS FOR FY18

Dow Jones Sustainability Index (DJSI) World Leadership listing in FY17

DJSI Asia Pacic Leadership Index recognition for 11th year

Top 10 rating for Employee Awareness and Support by the Australian Centre for Corporate Responsibility

Rated as “leading” for sustainability reporting by the Australian Council of Superannuation Investors for the ninth year

Logan Enhancement Project rated as “excellent” by Infrastructure Council of Australia (ISCA)

Gateway Upgrade North projected rated as “excellent” by ISCA for the design phase of the project

Signatory to the Voluntary Tax Transparency Code

Workplace Gender Equality Agency citation for the fourth year

Top 20 rating (internationally) for employer gender equality by Equileap

Brisbane’s toll roads and projects being delivered by Transurban Queensland

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland6

Transurban Group

motorway assets in

Australia and North

America

20+

years delivering

major projects

2,000+

employees

andcontractors

$10B

committed project pipeline

creating 17,500 jobs

$26B

market

capitalisation

70%

of investors

are Australians

10%

security holders located

in Queensland

13.43%

of securities held

by UniSuper

†

AustralianSuper

2.2M

members

270,000

members in

Queensland

$130B

of members’

savings

>$13B

invested in

infrastructure and

toll-road assets

Tawreed Investments Limited

19%

ownership stake in

Port of Brisbane and

20% in NSW Ports

Wholly owned subsidiary

of Abu Dhabi Investment

Authority

Focus on globally diversied

portfolio of infrastructure

assets with strong

market-leading positions

e.g.tollroads, ports,

airports, freight rail and

utilities, such as water, gas

and electricity distribution

and transmission companies

Gateway and Logan motorways

begin tolling operations

Logan Motorway duplication

(IpswichMotorway to Wembley Road)

Gateway Motorway Extension opened

Logan Motorway duplication

(WembleyRoad to Pacic Motorway)

Transurban Queensland acquisition

of Queensland Motorways (July)

AirportlinkM7 acquisition

byTransurbanQueensland (April)

Logan Enhancement Project announced

Second Sir Leo Hielscher Bridge

opened as part of the $2.1 billion

Gateway Upgrade Project (May)

Clem7 opened

Go Between Bridge opened

Go Between Bridge and Legacy Way

acquisition (December)

Clem7 acquisition (December)

AirportlinkM7 receivership

Legacy Way opened (June)

Inner City Bypass Upgrade announced

Dened Benets Fund acquisition

ofQueensland Motorways (March)

Road Franchise Agreement

takes eect (April)

Clem7 receivership

1986–2000

2014

2016

2011

2010

2013

2015

2017

2018

Evolution of Brisbane’s toll roads

Transurban Queensland

Consortium

* As at 31 July 2018

† As at 24 July 2018

Transurban Queensland submission—August 2018 7

Section 1:

Brisbane’s toll roads—

a multi-partisan achievement

Key takeouts

2 Economic contribution of Australia's toll roads, KPMG 2015

• Visionary transport planning provided a solid foundation to meet population growth challenges

• Brisbane population forecast to double by 2060

• Maintaining future-focused approach vital to Brisbane’s continued prosperity and liveability

• Integrated transport approach critical with toll roads complementing public transport

• Toll roads deliver $29.2 billion over 10 years in benets to Brisbane’s economy

Brisbane’s liveability is the envy of the world. Competitive wages, aordable housing, great weather, and

manageable congestion are all reasons why Brisbane is such a popular place to live. Brisbane’s attractive

credentials are in part due to the visionary transport master plans.

In 1965 American engineering consulting rm Wilbur Smith

produced the Brisbane Transportation Study, which proposed a

‘ring-radial’ freeway system for Brisbane. Some of those roads, the

Logan and Gateway motorways as well as the Riverside Expressway,

are now major corridors. In 2004, the Brisbane City Council’s

TransApex Plan was developed as the next step towards a better-

connected Brisbane. It laid out a system of roads which combined

to form an inner-city ring road, increasing vital river crossings and

creating missing links to allow trac to bypass the city, including:

• Clem Jones Tunnel (Clem7)

• Go Between Bridge (Hale Street Link)

• Airport Link Tunnel (AirportlinkM7)

• Northern Link Tunnel (Legacy Way), and

• East-West Link Tunnel.

Since the plan launched, four of the ve tunnels and bridges have

been built under public-private partnership agreements, with only

the East-West Link yet to progress. The other toll roads are the

result of successive governments from both major parties delivering

on the vision outlined in these types of plans (Figure 1, page 8).

Brisbane now has an orbital toll-road network t for purpose,

with room to grow. As a result, it is less congested than other

major Australian cities. In TomTom’s Trac Index, which measures

congestion in nearly 400 cities worldwide, Brisbane ranks 96th,

while Sydney comes 29th and Melbourne 58th.

“Congestion in the largest capital

cities in Australia has been growing

with rising population. Toll roads

have helped ease this congestion by

allowing road infrastructure to be

provided earlier than would have

been possible under the traditional

model of road provision.”

Bureau of Infrastructure,

Transport and Regional Economics, 2017

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland8

Gympie Arterial Road

Bruce Highway

Gateway Motorway

Port of Brisbane Motorway

Southern

Cross Way

Ipswich Motorway

Warrego Highway

Cunningham Highway

M15

Centenary

Motorway

Paciﬁc Motorway

Paciﬁc

Motorway

Mt. Lindesay Highway

NR13

CENTENARY HIGHWAY

DAYBORO ROAD

SR58

MT SAMSON ROAD

SR22

MT NEBO ROAD

SR31

SR22

SR47

CUNNINGHAM

HIGHWAY

A15

BRISBANE VALLEY

HIGHWAY

A17

WARREGO

HIGHWAY

SIR LEO

HIELSCHER

BRIDGES

Inner City Bypass

Port of Brisbane

Australia

TradeCoast

Brisbane Airport

AirportlinkM7

Legacy Way

Go Between Bridge

Logan Motorway

Clem7

Gateway Motorway

Bligh (2008)

Newman (2012)

Newman (2011)

Quirk (2015)

Bjelke–Peterson (1987)

Ahern (1988)

Bjelke–Peterson (1980)

Bjelke–Peterson (1986)

Gateway Bridge duplication

Newman (2007)

Newman (2010)

Newman (2006)

Newman (2010)

Project commissioned by

Project opened under

Beatie (2006)

Bligh (2010)

BCC: Brisbane City Council

State Labor

State Liberal

State LNP

BCC Liberal

BCC LNP

State Nationals

However, with Brisbane’s population rapidly growing and set to

more than double by 2060

, road and public transport networks

arebeginning to feel the pinch, particularly in peak periods.

Population growth spans far beyond Brisbane with the greater

South-East Queensland area expected to increase from 3.5million

to 5.3 million by 2041. Ipswich is expected to double, while the

GoldCoast, Sunshine Coast and Logan-Beaudesert region are

forecast to have at least 50 per cent more residents over the next

25 years—and all are within 50 kilometres of Brisbane (Figure2).

Formany in those regions, their daily commute will be into the

Brisbane City Council (BCC) area. The proportion of people

commuting into the BCC area is predicted to rise by more than

10per cent in the next 25years.

Based on that population growth, Transurban Queensland

modelling forecasts that in 20 years, commute times in Brisbane will

increase by 40 per cent in peak periods and trac speeds across

the day will reduce by 20 per cent. This means a driver commuting

to the CBD during the morning peak from Ipswich can expect to

spend an extra 40 minutes behind the wheel compared to today.

While the considered development of Brisbane’s infrastructure

projects has served the city well, maintaining the visionary

approach will be vital to its continued prosperity and liveability

andensuring congestion does not rise to the levels of other cities.

3 Australian Bureau of Statistics, Population Projections, Australia 2013

4 Shaping South-East Queensland, August 2017

“Clem7, Go Between Bridge, AirportlinkM7

and Legacy Way are four major road

projects that have eectively helped ease

trac congestion in Brisbane’s inner and

middle suburbs, reduced trac delays

and improved travel time reliability by

allowing trac to bypass the CBD to travel

across the city.”

Brisbane City Council

Draft Transport Plan for Brisbane—Strategic Directions 2017

Figure 1: Development of Brisbane’s toll roads

Figure 2: Brisbane growth and employment areas

Transurban Queensland submission—August 2018 9

Ipswich

Logan

Redland

Moreton Bay

Port of

Brisbane

Airport

Clem7

Logan

Motorway

Legacy Way

BETWEEN

BRIDGE

BETWEEN

BRIDGE

Gympie Arterial Road

Bruce Highway

Port of Brisbane

Motorway

Southern Cross Way

Western Freeway

Ipswich Motorway

Warrego Highway

Cunningham Highway

M15

Centenary Motorway

Paciﬁc Motorway

Mt. Lindesay Highway

Australia

TradeCoast

BRISBANE CBD

Gateway Motorway

AirportlinkM7

“As long as we keep up and

don’t take our eye o the ball

we can continue to absorb

quite high levels of growth …

but really it’s keeping up with

the infrastructure that’s the

keychallenge.”

Population demographer

Dr Elin Charles-Edwards

University of Queensland

ABC News, 15 May 2018

+141,000

+155,000

+118,000

+35,000

2016 2041

Brisbane

1,184,200 1,571,000

Gold Coast

576,900 928,000

Moreton Bay

438,300 656,000

Logan

313,800 586,000

Sunshine Coast

303,400 495,000

Ipswich

200,100 520,000

Redland

152,000 188,000

All other SEQ areas

†

293,700 404,000

† Includes Toowoomba, Noosa, Scenic Rim, Lockyer Valley and Somerset

Source: Shaping South-East Queensland, August 2017

Projected population growth

forSouth-East Queensland

Brisbane Metropolitan Area

Transurban Queensland asset

Employment growth centre

Population growth centre

Motorway

Source: Connecting Brisbane, Queensland Government, June 2017

Projected increase in commuters to Brisbane CBD by 2041

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland10

ASSET ROUTE PATRONAGE (ANNUAL EST.)

Logan Motorway P142, P546 215,000

Sir Leo Hielscher Bridges, Gateway Motorway 590, 598/599 1,100,000

Go Between Bridge 425,430, 435, 450, 453, 454 1,490,000

Legacy Way P443, P426, 431, 446, P455, P456 410,000

AirportlinkM7 330, 310, P341 1,985,000

Clem7 77 170,000

Figure 4: Bus routes with free travel on toll roads

Figure 3: Toll roads help ease congestion by allowing 176,000 vehicles to bypass the CBD every work day

Integrated transport approach

To continue to meet Brisbane’s growing needs, an integrated

approach to transportation will be vital.

The layout of Brisbane’s toll roads network is designed to divert

trac around the city and prevent unnecessary trips through the

CBD. This allows 176,000 vehicles to bypass the city every work day

in free-owing conditions (Figure 3).

Considered transport planning has led to toll roads and public

transport networks that complement each other. By providing a

bypass to the city, toll roads are freeing up routes to give public

transport better access to the CBD.

However, with the city being a major employment hub, four-in-

ve vehicles still access the CBD every day leading to congestion

hotspots building up.

The Queensland Government and Brisbane City Council are

working to improve public transport networks into the CBD through

the Cross River Rail and Brisbane Metro projects.

The private sector’s investment in toll roads has allowed the

government to focus on public transport solutions and direct much-

needed funding into this sector (Pages 12 and 13).

Brisbane’s toll roads also support public transport with free travel

for buses across the network, (Figure 4). AirportlinkM7 alone carries

more than 1,985,000 bus passengers every year.

Bike and pedestrian paths on Logan Motorway, Go Between Bridge,

and Sir Leo Hielscher Bridges also support active transport options

such as cycling and walking with nearly 80,000 cyclists using the

bike paths alongside Sir Leo Hielscher Bridges every year.

Brisbane

CBD

Tolled routes and Inner City Bypass

Brisbane

CBD

Transurban Queensland submission—August 2018 11

Queensland’s toll roads have

directly contributed

$29.2 billion

in social, environmental and

economic benets over 10 years

Direct benet to households/

welfareimprovement

Queensland households have directly

beneted from personal travel-time

savings, reliability gains and vehicle

operating cost savings

$16.5B

Direct environmental

benets

In reduced environmental

emissions

$208M

* All $ values are reported in present value terms using Infrastructure

Australia recommended real discount rate of 7 per cent, which equates to

anominal discount rate of 9.7 per cent. Excludes wider economic benets.

Source: Economic contribution of Australia’s toll roads, KPMG 2015

Direct benet to business/

productivity improvement

Queensland businesses have directly

beneted from travel-time savings,

reliability gains, vehicle operating cost

savings and wider economic benets

$12.6B

Economy-wide, total impact (direct

and ow-on) of direct productivity

improvements

3,100 jobs

every year

$4,098

increase in GSP

per person

$19.4 billion

increase in GSP

Almost $30 billion in benets to

localeconomy

Brisbane’s toll roads have been a boon to the state’s economy,

directly contributing nearly $30 billion in economic, social and

environmental benets over 10 years.

KPMG Australia

has estimated that annually, this comprises

almost$3 billion of road-user benets, including reduced travel

times, reduced vehicle-operating costs and improved travel-time

reliability as well as another $861 million in wider economic benets.

Almost 45 per cent of the annual benets of Brisbane’s toll roads

are productivity benets, providing a $19.4 billion boost to the

Gross State Product over 10 years.

By enhancing access and transport connections, toll roads have

also supported the development of growth corridors and the

establishment of new commercial precincts and communities.

The most signicant impact has been to the south and east

of theSir Leo Hielscher Bridges where the Business Eective

Density—a driver of the impact of accessibility on economic

activity—has increased 90 per cent due to the tolled crossing.

5 Economic contribution of Australia's toll roads, KPMG 2015

Annual benets of toll roads in Queensland

Vehicle operating costs

Travel time

Reliability

Environmental externalities

Total conventional beneﬁts

WEB1

—

Agglomeration economics

WEB3—Increased output

Total WEBs

Total beneﬁts

WEB2—Labour market

$772m

$50m

$39m

$861m

$3.9B

$1.1B

$3.0B

$1.7B

$164m

$28m

$0B

$0.5B

$1.0B

$1.5B

$2.0B

$2.5B

$3.0B

$3.5B

$4.0B

$4.5B

Undiscounted benets ($2014)

Source: KPMG analysis

“The Gateway Motorway,

Gateway Extension Motorway

and Logan Motorway—connect

major employment nodes, and

have largely shaped Brisbane

over the last 30 years.”

KPMG, 2015

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland12

Transurban Queensland’s

nancial contribution to

infrastructure projects,

roadmaintenance and

customeroperations

Value of private-sector

involvement in roads

Private-sector investment in toll roads has:

• removed construction and patronage risk from governments

and taxpayers—a major issue highlighted by the nancial

collapse of Clem7 and AirportlinkM7 tunnel projects

• freed up government budgets for spending in other areas

including public transport

• given community access to the roads sooner.

Private-sector investment in toll roads

through public-private partnerships

(PPPs) with the Queensland Government

and Brisbane City Council has allowed

all levels of government to free up their

balance sheets for social infrastructure

and other priorities such as public

transport.

Since purchasing Queensland Motorways

in 2014, Transurban Queensland has

invested almost $580 million to progress

two upgrade projects—the Logan

Enhancement Project and Inner City

Bypass Upgrade—without the need for

agovernment contribution.

There is strong evidence that the

discipline, project governance and risk

arrangements instilled through a PPP

arrangement improves their cost and

time performance over traditionally

procured projects.

A 2007 study found that non-PPP projects

had cost overruns of 14.7 per cent

compared with only 1.2 per cent for PPPs.

PPP projects have been delivered

3.4percent ahead of their construction

schedule (on a value weighted average),

while non-PPP projects were being

delivered 23.5 per cent behind time,

thestudy found.

Private-sector investment has also

allowed governments and communities

to benet from critical infrastructure

without government taking on the risk

or nancial burden. The risk is signicant

with well-documented failures in the

sector (Page 13).

6 Infrastructure Partnerships Australia,

Performance of PPPs and Traditional

Procurement in Australia 2007* Since July 2014

3,000

billion

equals

new six-carriage

trains

paramedics

and one year

of funding for

the Queensland

Ambulance

Service

years

investment

in Success

Program for

state schools

years of

drought-relief

funding for all

Queensland

farms

Transurban Queensland submission—August 2018 13

Lessons learned—

Clem7 and AirportlinkM7

The nancial failure of projects such as the Clem7 and

AirportlinkM7 tunnels hold lessons for investors and

governments alike.

In both instances the initial trac levels substantially

underperformed against expectations, resulting in the

assets being placed into receivership. Subsequently,

Queensland Motorways successfully bid for Clem7

when a competitive sale process was conducted in 2013.

Transurban Queensland acquired the concession rights for

AirportlinkM7 in a competitive sale process in April 2016.

The use of PPPs to develop these assets protected

government and taxpayers from the nancial impact and

motorists continued to benet from access to world-class

infrastructure.

However, private investors lost equity when the projects

failed to meet the overly optimistic patronage forecasts.

Transurban Queensland believes that private-sector

operators with long-term investment in the roads have

a stronger alignment of interest in ensuring accuracy of

trac forecasts over the life of concession as they have a

vested interest in an asset’s ongoing success and value for

customers, clients and investors.

A misalignment of interest between potential fees that

nancial sponsors and contractors stood to gain upfront

from winning a project is one factor that is believed

to have contributed to the original aggressive trac

forecasts for theseprojects.

Figures 5 and 6 demonstrate the trac forecasts that

Transurban Queensland developed prior to buying these

assets compared with the original owners’ forecasts.

Trac on those assets is now growing in line with

our expectations, meaning these assets will serve

Queenslanders long into the future.

Similarly our concession agreements in Queensland

span the next ve decades, and we plan on serving

Queenslanders over the long term, making decisions

thatreect today’s needs and beyond.

Figure 6: AirportlinkM7 toll road forecasts—actuals

Figure 5: Clem7 toll road forecasts—actuals

As a publicly listed company with investors

ranging from some of Australia’s largest

super funds to individual “mum and dad”

retail investors, Transurban is focused on

making business decisions that lead to

growing returns for our security holders and

the long-term sustainability of our business.

ASSET

OPENING DAILY TRAFFIC VOLUME

(ORIGINAL OWNER FORECAST)

OPENING TRAFFIC VOLUME

(DAILY ACTUAL—FIRST MONTH AFTER TOLL-FREE PERIOD)

Clem7 60,000 22,100

AirportlinkM7 145,000 52,200

Trac comparison—forecast vs actual

RiverCity Motorway Group 2004 bid Transurban bid 2014

Actual

BrisConnections 2006 bid Transurban bid 2016

Actual

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY10 F Y11 FY12 F Y13 FY14 F Y15 FY16 F Y17 F Y18

Trips

50,000

100,000

150,000

200,000

250,000

F Y11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Trips

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland14

Section 2:

Toll-road use in Brisbane

Key takeouts

• Approximately 70,000 hours in travel-time savings for motorists every work day

• Approximately 470,000 trips taken on Brisbane’s toll roads every work day

• Trac on toll roads has grown ve times faster than non-tolled roads over the past 10 years

• Benets to freight operators estimated at $6.1 billion over 10 years

• The rate of crashes on Brisbane’s toll roads is 53 per cent lower than on similar roads

Brisbane’s toll road projects have addressed genuine accessibility needs, reduced travel times, improved

travel-time reliability and created a smoother ow of trac across the entire road network.

Each work day, motorists in Brisbane collectively save around

70,000 hours in travel time (Figure 8) by choosing to use the toll

roads over alternate routes, which means more time doing what

they want or need to do, rather than sitting in trac.

And more people are choosing to take toll roads than ever before

as they realise the value and reliability of travel-time savings.

Every work day almost 470,000 trips are taken on Brisbane’s toll

roads. Trac volumes on Brisbane’s toll roads have increased

by 50per cent over the past seven years, which is an average of

6percent annual growth (Figure 7).

This means that since 2011, more than 135,000 extra trips per day

are taken on toll roads over local roads.

KPMG

has estimated the benets to non-commercial motorists

using Brisbane’s toll roads at $16.5 billion over 10 years. This

includes $10 billion in travel-time savings, $5.5 billion in vehicle-

operating costs and $900 million in travel-time reliability benets.

Reduced travel times also benet bus passengers.

For example, after a successful trial, ve morning-peak bus services

have now been redirected through the Legacy Way tunnel. Travel

times on the P443 Moggill to city bus service via Legacy Way

have reduced by up to 13 minutes. Patronage has increased by

40percent as a result.

7 Economic contribution of Australia's toll roads, KPMG 2015

Average work day time savings (FY18)

Logan Motorway

Travel time saved 70,000 hours

Brisbane

AirportlinkM7

Clem7

30,300

Gateway Motorway

Go Between Bridge 1,100

Legacy Way 1,900

22,900 5,100 4,500

2016

2013

2018

2017

2014

2011

2012

2015

CAGR

4% p.a.

(>16% since 2014)

CAGR

6% p.a.

(50% since 2011)

* CAGR: Compound annual growth rate

Gateway Motorway Logan Motorway AirportlinkM7

Go Between Bridge Clem7 Legacy Way

Figure 7: Brisbane toll-road trac by asset

Figure 8: Approximately 70,000 hours saved on work days by Queensland toll road users in FY18

Transurban Queensland submission—August 2018 15

Legacy Way

From Warwick

Untolled

alternate

Sandgate

Road

Airport Drive

AirportlinkM7

Brisbane Airport

Western Freeway

Route

chosen

Gateway Motorway

Paciﬁc Motorway

Case study

A farmer from Warwick is picking up

visitors from Brisbane Airport and takes

Legacy Way and AirportlinkM7 to avoid

the city.

$10.57

Estimated

time saving

min

Toll

up to

Port of

Brisbane

Motorway

AirportlinkM7

Sandgate

Road

Gateway

Motorway

Paciﬁc

Motorway

Untolled

alternate

Route

chosen

Eight Mile Plains

Case study

Working parents from Eight Mile Plains are

running late to pick up their children and

take the Gateway Motorway to avoid the

child care centre’s $1 per minute late fee.

$4.55 $30.00

Estimated

time saving

min

Toll

Personal

cost saving

up to

Logan Motorway

Paciﬁc Motorway

Granard Road

Ipswich Motorway

Kessels Road

Riawena Road

To Ipswich

Yatala

Untolled

alternate

Centenary Highway Gateway Motorway

Route

chosen

Case study

$12.08 $58.40

A truck driver is transporting a load from

Yatala to Ipswich during the evening peak

hour and takes the Logan Motorway.

Estimated

time saving

min

Toll

Operational

cost saving

up to

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland16

Toll road growth ve times higher than

broader road network

Trac volumes on toll roads have increased well in excess of

Brisbane’s population growth and exceeded growth on local roads.

Trac data over the past decade (2007 to 2017) shows trac

throughout Brisbane has grown by 21 per cent.

In contrast, trac on toll roads has grown by 106 per cent, arate

vetimes general trac growth.

A number of toll roads have opened during this time which has

contributed to the more than doubling of tolled trac and shows

also that drivers are realising the value of using these roads.

In the past three years, trac growth on toll roads has averaged

4.6 per cent, which is well in excess of Brisbane’s population

growth of 2.1 percent in that time.

2007–2017

COMPOUND ANNUAL

GROWTH RATE

TOTAL

GROWTH

General Brisbane roads 1.9% 21%

Toll roads 7.5% 106%

Vital river crossings

One-in-four vehicles uses a toll road to cross the Brisbane River,

easing trac on alternative river crossings.

Trac growth on the tolled river crossings—Sir Leo Hielscher

Bridges on the Gateway Motorway, the Go Between Bridge and

Clem7—has been 60 per cent higher than other routes, including

the Pacic Motorway (Captain Cook Bridge), Story, Victoria,

WilliamJolly, Walter Taylor and Centenary bridges, the Moggill Ferry

and MtCrosby Road.

The tolled crossings carry 44 per cent of all trucks crossing the river

and 76 per cent of all larger trucks including articulated trucks/semi-

trailers and all B-Doubles.

AirportlinkM7 corridor

AirportlinkM7 carries one third of all trac in

the Sandgate Road/Lutwyche Road corridor. This

enables those two arterial roads to better serve

their community needs with easier property access,

better on-road bus facilities and more amenable local

shopping and commercial centres/community hubs.

Legacy Way corridor

Legacy Way, which opened in 2015, has removed one

in every seven vehicles from the Coronation Drive/

Milton Road corridors, allowing these corridors to

serve the recent major residential developments in

Toowong, Indooroopilly and Milton. Without Legacy

Way, the extra trac from those developments would

have crippled trac around the Toowong Tower and

the Toowong roundabout at MtCoot-tha.

Travel times on Milton Road now average seven

minutes faster in the morning peak than in 2014

meaning Brisbane residents can get to work faster,

spending less time in trac and saving 31 hours a

year in commuting time. For users of Legacy Way,

travel times are an additional eight minutes faster in

the morning peak and over 12 minutes faster in the

afternoon peak. Drivers can now save more than 80

hours per year in commuting time, the equivalent of

two working weeks.

AVERAGE

WORKDAY

2015

PRE LEGACY WAY

2015

POST LEGACY WAY

Total trac 138,600 148,600

Milton Road 57,40 0 50,500

Legacy Way – 19,100

Coronation Drive 81,100 79,000

TQ trac share – 13%

Figure 10: Average daily commercial trac on Queensland toll roads

Transurban Queensland submission—August 2018 17

Benets for the freight operators

For freight operators, toll road routes mean quicker and more direct

and reliable travel. This, in turn, means lower costs in fuel, wages

and vehicle wear and tear.

On average, 95,000 commercial vehicles—including 44,000trucks—

use Brisbane’s toll roads every day.

This is a 60 per cent increase since 2011, or an average of 7 per cent

per annum (Figure 10).

Truck volumes have increased 40 per cent, averaging 5 per cent

perannum.

KPMG

has estimated the benets of roads such as the Gateway

and Logan motorways to business and freight users at $6.1 billion

over 10 years. This includes $3.2 billion in vehicle-operating costs,

$2.6 billion in travel-time savings and $300 million in travel-time

reliability benet.

The Transport and Infrastructure Council publishes values of

time and operational cost savings for freight. This indicates that

one hour saved in urban trac is worth $50.79 for a heavy rigid

truck, $71.38 for an articulated truck and $95.83 for a B-Double

(Figure9).

The Queensland Government has identied both the Logan and

Gateway motorways as fundamental to the State’s transport

network, forming part of the priority east-west freight route.

The Gateway Motorway is the major north-south route to the east

of the Brisbane CBD, forming part of the National Land Transport

Network and is the main east coast route connecting Sydney to

Cairns. It also services the Brisbane Airport, Port of Brisbane and

the Australia TradeCoast precinct.

The 30 kilometre Logan Motorway connects Ipswich in the west,

theGold Coast in the south, and the Port of Brisbane in the north,

while also providing access to Logan City.

8 Economic contribution of Australia's toll roads, KPMG 2015

* Does not include Legacy Way, which opened in 2016

Light commercial vehicle Heavy commercial vehicle

* Cost-benet Analysis Manual, Department of Transport and Main Roads, 2011 and Transurban analysis

Trips

30,000

50,000

70,000

90,000

20,000

10,000

F Y11

FY12

FY13

FY14

FY15

FY16 FY17 FY18

40,000

60,000

80,000

100,000

27,73031,394

31,516

35,759

38,917

41,878

46,629

48,389

51,454

33,591

36,412

37,611

38,197

39,802

42,633

44,243

65,107

59,124

72,171

76,528

80,074

86,430

91,021

95,697

“Road users have benetted from

toll roads in the form of reduced

travel time and vehicle-operating

costs, and improved safety. Studies

by consultants have found that toll

roads have made a net positive

contribution to the economic

wellbeing of the country.”

Bureau of Infrastructure,

Transport and Regional Economics, 2017

Figure 9: Value of travel time on urban roads

for Queensland freight operators

TOTAL HOURLY OPERATION COST

Cars Commercial $20.79

Rigid trucks All types $50.79

Articulated trucks All types $71.38

Combination vehicles B-Double $95.83

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland18

Targeted upgrade projects

to cater for growth

While Brisbane’s toll roads have capacity to cater for South-East Queensland’s growing population,

a signicant increase in trac volumes has seen the need for expansion projects to relieve

congestion hot spots and cater for further growth.

Transurban Queensland is working

in partnership with governments,

Brisbane City Council (BCC) and other

local councils to deliver a number

of critical infrastructure projects,

including the Gateway Upgrade North,

Inner City Bypass Upgrade and Logan

Enhancement projects.

The Gateway Upgrade North project

(pictured above) provides signicant

upgrades to the Gateway Motorway

between Nudgee and Bracken Ridge,

which carries more than 83,000 vehicles

each work day.

TQ has been engaged by the Department

of Transport and Main Roads to assist

with the delivery of the $1.143 billion

project.

Construction is also under way on TQ’s

$512 million Logan Enhancement Project

to ease congestion hot spots and enhance

connectivity with other major roads.

Proposed by TQ, the project is the rst

Market-Led Proposal to be approved in

Queensland and will create signicant

value for residents and businesses.

TQ is also delivering the Inner City Bypass

(ICB) Upgrade, a BCC initiative to cater for

trac growth and improve connectivity

to the wider road network.

This project is being delivered under

BCC’s Innovative Proposal Policy

framework.

ICB is operating at up to 90 per cent

capacity, with more than 105,000 vehicles

using it every work day. Without the

upgrade, it is expected to exceed capacity

by 2021.

The ICB is critical to the city’s economic

growth, providing a vital link in the road

network with connections to Lutwyche

Road, AirportlinkM7, Clem7 and

LegacyWay tunnels.

The upgrade will deliver an additional

lane in both directions between the RNA

tunnel and Legacy Way, as well as a new

on-ramp from Bowen Bridge Road to the

ICB west-bound. A number of bus priority

measures to improve public transport

options and travel times will make it

easier for people travelling to and from

the western suburbs.

“The Logan Enhancement

Project will signicantly

relieve congestion and make

it easier for heavy vehicles

to enter and exit the Logan

Motorway, which will benet

the nearby industrial and

distributioncentres.”

Queensland Trucking Association CEO

Gary Mahon

Transurban Queensland submission—August 2018 19

up to

“With the Logan Enhancement Project

in place, travel-time savings and

improved reliability will mean less

time in the car and more time spent

together as a family.”

Greenbank resident and Linkt customer

Logan Enhancement Project

Signicant growth in trac volumes and commercial

vehicle road usage leading to severe congestion,

delays and safety concerns for motorists on the Logan

Motorway, prompted Transurban Queensland to put

forward a proposal to expand the motorway.

In the past 14 years, trac volumes have doubled along

the Logan Motorway. Commercial vehicle volumes have

increased eight-fold and one in 12 vehicles is a B-Double

or a semi-trailer.

Congestion is estimated to be costing approximately

$435million in lost productivity for freight and business

users, with high population growth forecast exacerbating

those challenges. The number of crashes resulting in

casualties within the upgrade area was also signicantly

higher, with congestion often the cause.

The $512 million project will widen the Logan Motorway

from Berrinba to Parkinson as well as the Gateway

Motorway Extension between Kuraby and the Logan

Motorway. Italso includes new tolled south-facing ramps

at ComptonRoad.

Construction started in June 2017 and is expected to take

approximately two years.

The project will support 1,300 direct jobs during

construction and is forecast to generate approximately

$1 billion in economic benets for Queenslanders over

30years. Other project benets include:

• up to 90 per cent reduction in travel times

• more reliability in travel times

• more than 50 per cent reduction in accidents due to

reduced merging/weaving and stop-starting

• reduced vehicle operating cost with less stop-start

driving reducing fuel consumption and improving eet

productivity

• enhanced connectivity with new optional south-

facing ramps connecting more motorists to the road

network, and reducing rat-running on Compton and

Beaudesert roads.

The project will unlock the economic potential of the

Logan region as well as the business/freight hubs in

Brisbane’s west and north by providing a safer and more

ecient motorway network.

9 From Wembley Road to the Logan Motorway (eastbound PM peak)

Project benets

reduction in

traveltimes

>50

reduction in

accidents

1,300

direct jobs during

construction

$1B

in economic benets

over 30 years

* On average

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland20

Safety benets

Research has shown that the rate of crashes on Brisbane’s toll

roads is 53 per cent lower than on similar roads.

The research conducted by Monash University Accident Research

Centre in Victoria, analysed crashes on Transurban’s Australian

roads and compared performance to similar roads.

Transurban Queensland monitors toll roads 24/7 and has a eet

of incident response vehicles so if a vehicle breaks down or is in

anaccident, a response vehicle will be sent to attend immediately.

Over the past year, TQ’s incident response crews have attended

to 9,593 incidents on the open roads and 2,396 incidents in the

tunnels. The average response time for incidents in the tunnels

wasve minutes.

We know one incident can cause heavy congestion across our

roads. Our safe clearance model is focused on the rapid arrival of

response personnel and clearance ofincidents to reopen all trac

lanes quickly.

We have a comprehensive maintenance program to ensure the

roads, tunnels and surrounds are in excellent condition. This

includes road surfaces, noise walls, fences, guardrails, lighting

andsignage.

2,396

tunnel

incidents

5 min

response time

in tunnels

9,593

open roads

incidents

10 min

response time

for open roads

“A big shoutout to the incident response

team—I was impressed at the professional

manner, service and safety they provided

during the recovery of my vehicle. I really

appreciated it.”

Transurban Queensland customer, June 2018

“The incident response team were friendly and

helpful in what was a stressful situation for us

and they also took the extra step of oering us

additional water for our family and even our

dog which was greatly appreciated given the

temperatures yesterday.”

Transurban Queensland customer, February 2018

Incident response June 2017 to June 2018

Transurban Queensland submission—August 2018 21

Community benets

TQ supports Brisbane communities through a range of

programs and initiatives. Over the past three years alone, TQ’s

CorporateCharity Day has raised more than $450,000 to support

Ronald McDonald House South-East Queensland in providing a

home away from home for families with a seriously ill child seeking

hospital treatment. This year will be the sixth consecutive year we

have run the event.

TQ also has a Community Grants Program to assist communities

that neighbour our roads. We have awarded more than 50 grants

to community organisations that generate social or environmental

benets.

Run twice yearly, the grants program oers community groups and

not-for-prot organisations the opportunity to apply for grants of

up to $5,000 to support initiatives such as school projects, youth

education, road safety and environmental programs.

Community Legacy

As part of the Logan Enhancement Project, TQ has committed

$2million to fund a community legacy initiative.

One option under consideration is a community centre as a meeting

space for local residents with a exible oorplan to cater for small

groups as well as large functions of up to 125 people.

TQ is working with the Queensland Government and Brisbane City

Council to progress the delivery of an initiative.

“Ronald McDonald House South-East

Queensland is incredibly privileged to

partner with Transurban Queensland

who do a wonderful job of raising

funds and awareness for our charity

as well as participating in our

corporate volunteering program.”

Preshni Pillay

Ronald McDonald House SEQ

“The team at Transurban have done

a wonderful job in progressing this

development through the planning

and community consultation.”

Member for Algester

Hon Leeanne Enoch

TQ has committed to a community legacy project as part of our

LoganEnhancement Project

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland22

Key takeouts

10 Includes some small/medium enterprise commercial usage

• Queensland toll prices per kilometre among the lowest in Australia

• More than 85 per cent of consumer account holders pay less than $40 a month

• Government sets toll prices and regulates toll increases

• TQ conducted a campaign to encourage toll road use and enhance customer value and experience

• Results showed no lasting impact on driver behaviour, were unfair to existing loyal customers and

werenotcommercially viable

Section 3:

Toll prices in Queensland

$0.00

$0.50

$1.00

$1.50

$2.00

cost per km

Sydney

Harbour

Bridge

M4 CityLink M2 M5 Gateway

Motorway

M7 Logan

Motorway

EastLink

Distance (km) 2.25 7.5 22 21 22 23.1 40 38.7 39

Toll $4.00 $4.74 $9.23 $7. 30 $4.70 $4.55 $8.08 $7. 24 $6.25

$0.46 avg toll per km

All tolls shown on charts above are GST inclusive. Gateway includes toll points on the Sir Leo Hielscher Bridges and

Kuraby. Go Between Bridge excluded from chart due to low trac volumes. The toll on the Go Between Bridge is

$3.13 and its distance is 300 metres.

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

cost per km

Cross City

Tunnel

Sydney

Harbour

Tunnel

Eastern

Distributor

Legacy

Way

Lane Cove

Tunnel

AirportlinkM7 Clem7

Distance (km)

2.1 2.3 6 5.7 3.8 6.7 6.8

Toll

$5.70 $4.00 $7. 39 $5.11 $3.31 $5.46 $5.11

$1.29 avg toll per km

On a cost-per-kilometre basis, Queensland toll prices are among the lowest in Australia and Transurban

Queensland’s customers are spending less on tolls per month than motorists in any other Australian city.

Seventy-ve per cent of our consumer account holders pay less

than $20 per month on tolls. More than 85 per cent pay less than

$40 a month, that equates to less than $10 a week.

In the Brisbane metropolitan area, toll roads account for around

10per cent of motorways and less than one per cent of all roads.

The Gateway and Logan motorways comprise two of the four

longest toll roads in Australia, while Clem7, AiportlinkM7 and

LegacyWay are the three longest tolled tunnels.

Travelling on the Gateway Motorway costs 20 cents per kilometre,

which is below the national average of 46 cents (Figure 11). While

at 19 cents per kilometre, travel on the Logan Motorway is among

the cheapest in Australia. These prices are a fraction of the cost

of travelling onAustralia’s most expensive toll road, the Sydney

Harbour Bridge ($1.78/km).

A cost analysis of Australia’s tolled tunnels tells a similar story,

with Brisbane’s Clem7, Legacy Way and AirportlinkM7 oering

some of the cheapest prices per kilometre (Figure 12). Tunnels are

more expensive to build and operate than open roads and this is

reected in the average toll per kilometre cost of $1.29 in Australia.

Clem7 oers the best value in Australia at 75 cents perkilometre

followed by AirportlinkM7 (81 cents/km), Sydney’s Lane Cove Tunnel

(87 cents/km) and Legacy Way (90 cents/km).

Figure 11: Comparative price of tolled open roads Figure 12: Comparative price of tolled tunnels

Average monthly tolling costs—consumer account customers, including commercial

Transurban Queensland submission—August 2018 23

44.94%

48.96%

61.38%

14.31%

13.94%

14.81%

14.68%

11.12%

14.83%

7.15%

4.57%

4.16%

7.39%

6.99%

6.92%

6.66%

3.42%

5.62%

0.91%

3.97%

0.43%

0.38%

2.45%

0.08%

0.05%

0.18%

0.11%

% of Transurban consumer accounts, includes some small/medium enterprise commercial usage

≤$10

$10–$19.99

$20–$39.99

$40–$59.99

$60–$99.99

$100–$199.99

$200

–$499.99

$500

–$749.99

≥$750

* Tolls, fees and charges are inclusive of GST

† AirportlinkM7 toll prices increase 1 January 2019

New South Wales Queensland Victoria

Toll prices by toll point from 1 July 2018

TOLL POINT ASSET

CLASS 1

MOTORCYCLE

CLASS 2

CAR

CLASS 3

LIGHT COMMERCIAL

CLASS 4

HEAVY COMMERCIAL

Murarrie Gateway Motorway $2.28 $4.55 $6.83 $12.05

Kuraby Logan Motorway $1.35 $2.68 $4.03 $7.11

Loganlea Logan Motorway $0.86 $1.72 $2.59 $4.57

Heathwood/Paradise Road Logan Motorway $1.42 $2.84 $4.25 $7. 51

Clem7 Clem7 $2.56 $5.11 $7.67 $13.54

Go Between Bridge Go Between Bridge $1.59 $3.19 $4.78 $8.45

Legacy Way Legacy Way $2.56 $5.11 $7.67 $13.55

Bowen Hills to Kedron/

Toombul

†

AirportlinkM7 $2.73 $5.46 $8.19 $14.47

Kedron to Toombul

†

AirportlinkM7 $2.05 $4.09 $6.14 $10.85

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland24

$15 0M

on maintaining

pavement

800

open road

incident

responses

a month

10 min

response time

for open roads

$100M

maintaining

structures and

equipment

200

tunnel incident

responses a

month

5 min

response time

in tunnels

Delivering value for Queenslanders

Road maintenance and repair

Incident response services

* Average number of times motorists assisted/incident cleared and response times

* Investment since 2015

~110 k

components

maintained

perannum

$70M

investment

since 2014

Enhanced

website with

web chat

New apps

including

GPS-enabled

tolling app

Customer services

trac control

room operators

1,693

security

cameras in

tunnels

240

security

cameras on

open roads

Keeping trac moving

1, 5 0 0 +

maintenance

tasks each

month

~1 in 5

Australian workers have an

investment in Transurban through

their superannuation fund

Investor returns

$1.00

$0.90

$0.80

$0.70

$0.60

$0.50

$0.40

$0.30

$0.20

$0.10

$0.00

0 10 20 30 40

5% Per Annum Funding Cost

Years

Figure 13: Current worth of one dollar received over

a 40-year concession period

Transurban Queensland submission—August 2018 25

Annual toll and fee increases

In Queensland, toll and fee prices increase annually in line with the

Brisbane Consumer Price Index (CPI) to keep pace with general cost

increases. The CPI increase was 1.7per cent on 31March 2018, and

wage growth was up to two per cent.

A tolling escalation schedule imposed by the government underpins

condence in the sustainability of a project and regulates toll prices

so they cannot escalate outside of the framework.

Toll roads are often considered as having characteristics similar

to a residential utility for the purpose of comparing customer-

service standards, price and regulatory structures. Comparing

price increases across dierent utility sectors shows the value in

regulating increases in toll prices in the concession arrangements

road operators hold with government.

Australian residential electricity prices have increased between

80and 90percent (in real terms) in the last 10 years. This large

price increase has not been matched by increases in prices in other

areas of the economy, nor in wage growth.

Figure 14 indicates that

between 2007 and 2017, electricity prices had a compound annual

growth rate of eight per cent, which was more than twice that for

wages (3.1 per cent ) and Australian CPI (2.4 per cent). Similarly,

market commentators have warned that volatility in Australia’s gas

supply may cause prices for residential customers in Brisbane to

increase by more than 50 per cent by 2020.

11 ACCC Retail Electricity Pricing Inquiry, Preliminary Report, September 2017

12 National Australia Bank, Gas and LNG Market Outlook: January2017

How toll prices are set

Governments set toll prices and the regulatory regime through

the concession agreements with the toll road operator. These are

generally determined before construction commences (some years

before a road opens) or before the road is acquired.

In setting the initial toll price and escalation rates, the government

decides how to best meet the objectives of funding the project and

providing a value-for-money toll proposition that will make paying

the toll attractive to motorists.

Factors considered include:

• the value the project delivers for the community and how it helps

progress government transport priorities

• complexity of the project—tunnels cost more to build, maintain

and operate than open road projects

• the project design and associated delivery costs

• forecast level of trac.

There are four main nancial levers for government:

• length of the concession period

• toll prices

• toll price escalation schedule

• contribution the government will make versus the contribution

the private sector will make and recoup over the life of the

concession.

To create a commercially viable project that is attractive to

the private sector, the capital and ongoing operational and

maintenance costs of the project need to be able to be recouped.

Therefore, the lower the initial toll and/or future toll escalation rate,

the longer the concession agreement length and/or the higher the

contribution required from government. However, there is a limit

to how much value longer concession terms can contribute to the

funding mix due to the impact of time on the value of money. The

more long dated the cashow, the lower in value it is in today’s

dollars (Figure 13).

Toll roads are “long-life” infrastructure so the cost of debt arranged

to build these assets can be spread over a long period. However,

it should be noted that no revenue is generated until after the

road opens, with construction taking a number of years. In the

meantime, the interest on debt accumulates.

Source: ABS, Consumer Price Index 6401.0 and ABS, Wages Price Index 6345.0, Australia

Electricity Wages CPI/tolls

120

160

200

100

140

180

220

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Figure 14: Electricity price growth compared to

wages and CPI/Queensland tolls

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland26

Tolling discount/subsidies

The NSW Government has implemented two subsidy programs

to help address cost of living issues in Sydney. The Carr Labor

Government introduced the M4/M5 Cashback scheme in 1997.

More recently, the Berejiklian Liberal Government introduced the

Toll Relief scheme on 1 July 2018.

While the incentives piloted have been embraced by Sydney

motorists, they have created signicant cost implications for the

NSW Government. The latest cost estimates put running both

programs at around $200 million annually.

Last year following a NSW parliamentary inquiry into road tolling,

one of the recommendations asked the NSW Government to

investigate the costs and benets of implementing a capped tolls

scheme. In response, the government stated that “moving to a

capped network-wide tolling arrangement would require a lengthy

and complex renegotiation of all concession agreements, with the

Government assuming the risks involved and taxpayers bearing

increased costs.”

While we note the importance of nding solutions that support

policy objectives in the short-term, as a long-term operator of road

infrastructure, we urge the government to also take a longer view

ofthe operation and funding of transport infrastructure (see reform

of road funding, Page 28).

Targeted customer pilot campaign

In 2016/17, Transurban Queensland explored a number of potential

initiatives to reward and incentivise our customers.

In coordination with the Department of Transport and Main Roads,

we undertook a pilot campaign of agreed incentives for a select

group of toll-road users to understand:

• whether specic groups could be incentivised to increase their

usage of our toll roads,

• the commercial impacts of such targeted campaigns on

tollrevenue.

The campaign targeted groups of customers with scope for

behaviour change and included:

• Return trip—return trips discounted by 50 per cent for

customers who mostly made one-way trips

• O-peak work day—discount of 50 per cent for travel outside

peak times for customers with a low proportion of o-peak trips

• O-peak weekend—discount of 50 per cent on weekends for

customers with a low proportion of weekend trips

• Multi-trip oer—every fth trip free for casual customers

• Two value plans—pre-purchase toll credit and bonus credit to

be used each month (similar to mobile phone plans)

• Trial—one week trial oer for new accounts.

The key ndings were that the campaign did not lead to lasting

changing behaviour and was not commercially viable. The campaign

was also considered unfair to existing loyal customers.

Based on the results of the pilot campaign, we concluded that:

• people use toll roads for a variety of reasons and that travel

behaviour is mainly driven by need (i.e. if people don’t have a

reason to make a trip, a nancial incentive won’t prompt them

tomake one)

• existing customers (especially regular users not eligible for the

campaign) felt that incentives that benetted only certain groups

were unfair, and

• the targeted campaigns were not commercially viable for us,

particularly when including regular toll road users.

Any broad-based tolling discounts would only be possible through

the creation of a government subsidy.

Other than during the above targeted customer pilot campaign,

Transurban Queensland does not engage in toll discounting

as it adversely impacts the commercial viability of our

shareholders’ investment and introduces additional risk to our

debtcommitments.

“Moving to a capped network-wide

tolling arrangement would require a

lengthy and complex renegotiation

of all concession agreements, with

the Government assuming the risks

involved and taxpayers bearing

increased costs.”

NSW Government, 2017

Transurban Queensland submission—August 2018 27

NSW Government M4/M5

Cashback scheme

In 1997, the Carr Labor Government introduced the

M4/M5 Cashback scheme. The scheme allows NSW

residents to claim back the value of tolls (excluding GST)

paid while using a vehicle registered in NSW for private,

pensioner or charitable use on the M5 South Western

Motorway—refunds for the M4 have now expired.

In 2016, it was reported that the lifetime cost of the

scheme was going to hit $1.6 billion, with annual costs

set to amount to more than $100 million a year.

15 16

14 Federal Register of Legislation

15 Sydney Morning Herald, December 2016

16 Transport for New South Wales, Roads and Maritime Services,

Annual Report 2017–17, Volume 1

NSW Government Toll Relief

In November 2017, NSW Premier Gladys Berejiklian

announced a Toll Relief initiative. Toll Relief provides

free vehicle registration for toll road users who spend

$25 per week or more in tolls, or $1,300 over the year.

Toll Relief provides savings of up to $715 for drivers

with a four-wheel drive or $127 for motorcycle drivers.

Ms Berejiklian has been quoted as saying the

registration rebate is a behaviour shifter that could

bring people back on to the roads.

The program started on 1 July 2018 and had a number

of eligibility requirements (e.g. private vehicles only).

While the NSW Government has budgeted $33 million

for the scheme in its rst year, Ms Berejiklian estimated

that could rise to up to $100 million, and grow further

in thefuture.

13 Sydney Morning Herald, 20 November 2017

The NSW Government has implemented two schemes that subsidise toll road use

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland28

Fuel-ecient cars and the increasing

take-up of electric vehicles are exposing

the currentroad funding system as

unsustainable, opaque and unfair.

Industry and government bodies

including the Productivity Commission,

Infrastructure Partnerships Australia

and the Australian Automobile

Association have been advocating for

more than a decade about the need to

replace thecurrent system.

Infrastructure Australia’s 15-year plan,

released in 2016, recommended that the

Government conduct a public inquiry to

identify a new funding model to replace

existing road taxes and charges with a

more equitable user-pays approach.

The Federal Government has agreed

and plans to announce an “eminent

Australian” to head the inquiry.

In 2015–2016, Transurban conducted

Australia’s rst real-world trial of

broad-based user-pays road charging.

The study was conducted in Melbourne

over 17 months with 1,635 motorists

travelling 12 million kilometres under

arange of charging options.

The study tested user-pays models such

as a charge per kilometre, charge per trip

and at rate charge as an alternative to

the current system of fuel excise.

It also tested two demand-management

charging approaches (time-of-day charge

and cordon/area charge).

The Melbourne Road Usage Study

ndings suggested that replacing the

current road funding model with a user-

pays system could work in Australia,

providing a sustainable, fair and exible

funding system that grows with demand.

Funding reform inevitable

for broader road network

The need for fundamental reform of Australia’s road-funding system has been apparent for some

time as its major revenue source, fuel excise, steadily dries up.

The study found that

60 per cent of participants preferred a

user-pays system after experiencing rst-

hand a more transparent way of paying

for their roaduse.

Participants were open to discussing

viable alternatives to the current system

and highlighted the power of information

sharing and practical experience.

The study was designed to oer valuable

insights for policymakers, industry

and communities in considering long-

term solutions to road funding and

managingdemand. Results are available

at changedconditionsahead.com

Transurban Queensland submission—August 2018 29

Section 4:

Making it easier for customers

FY18 volumes for existing channels

New channels based on projected annualised volumes (excl. app which is YTD)

Key takeouts

• 1.6 million customers, with more than 30 million interactions annually

• $70 million investment since 2014 in initiatives to improve customer experience

• 32 per cent decline in customer complaints to industry ombudsman in past nancial year

• Proactive engagement with customers including those facing hardship

Transurban Queensland has 1.6 million customers and manages more than 500,000 customer

interactions each week across our service channels.

TQ is committed to the continuous enhancement of customer

experience and since taking ownership in 2014, have invested

approximately $70 million to deliver on our core promises to make

iteasy, show we care and add value for customers.

Major initiatives have included a complete overhaul of the back-

oce system to create greater exibility for customers in how they

interact with us, comprehensive improvements to fee structures

and proactive mechanisms to communicate with our customers

and gather their feedback.

Through one initiative alone, the Voice of Customer program, TQ

has received more than 100,000 pieces of individual feedback from

Queensland customers in FY18. This program involves nine surveys

spanning dierent service channels and customer activities.

In May 2018, TQ introduced Linkt, a new tolling brand to replace

govia. Linkt represented another signicant enhancement in

customer service with a range of benets and initiatives for

customers. The introduction of Linkt also included limited

promotion of a week’s free trial to attract new account holders as

well as 20 prizes of a year’s free travel as an incentive for customers

to download the Linkt app.

IVR

†

511k

self-service

transactions

Outlets

234k

transactions

1.6M

accounts

Emails

124k

Phone

calls

1.5M

calls

answered

Web chat

72k

chats

Web

9.9M

sessions

Social

responses

App

~20 0k

downloads

* Call centre

† Interactive Voice Response

New channels based on projected

annualised volumes (excl. app

which is YTD)

Outbound customer communication

Inbound service channels

19.6M

emails

5.5M

mail letters

1.4M

SMS texts

500k

app notications

264k

outbound calls

$70 million investment in improving customer experience

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland30

2014 starting point

• System focused

• Constrained by pre-existing technology

The Linkt experience

• Customer-centric

• Digital rst

• Flexibility and choice

• Segmented and targeted communications

• Demonstrated value

• Intuitive and easy

Improving the customer experience—our initiatives since 2014

• Enhanced mobile-friendly website with improved

self-service and new web chat customer support

• New app for Linkt account holders

• LinktGO GPS tolling experience app for

occasionalusers

• New tier 1 call centre provider—increase in rst-time

call resolution

• Proactive and targeted customer communications to

help customers managetheiraccount

• First Time Forgiveness program to assist peoplewho

may have made a simple mistake

• Hardship Policy to assist customers innancialdistress

• Additional on-road signage

• Customer Service excellence training

• Voice of Customer feedback program

• Complaint process accreditation (AS ISO 10002–2014)

• Account management enhancements for commercial

customers, covering invoicing, reporting and eet

management

• Improved fee structure that targets a number

ofcustomer pain points

• Enhanced enforcement process—helped customers

avoid more than $100million in State enforcement

penalties in the last nancial year

• Demand notice aggregation estimated to result in

1.7million fewer demand notices being issued to

customers and a reduction of up to $36.5 million

peryear in fees

$70 million investment in improving customer experience Figure 15: Linkt Brisbane customer

service performance, FY18

Transurban Queensland submission—August 2018 31

Overall impression

of staﬀ

Overall satisfaction

with information

Ease of doing

business

Likelihood to

recontact

Likelihood to

recommend

75%

80%

85%

90%

95%

100%

Customer service performance

TQ's focus and investment in enhancing customer experience

is yielding tangible results for customers who are noticing

thechanges.

Call Centre ‘Grade of Service’ (percentage of calls answered within

30 seconds) has increased from 43 per cent in August 2014 to

81per cent in FY18. Over the past 18 months, TQ has consistently

exceeded our Grade of Service target of 70percent (Figure 15).

TQ is focused on resolving customer enquiries quickly and

eectively and has a policy to resolve enquiries during our rst

contact with our customers.

TQ's customer-service teams consistently close out 94 per cent

ofcustomer queries in the rst contact.

Compared with other tolling retailers across Australia, a recent

independent mystery shopper survey showed that Linkt was

considered to be one of the easiest retailers to “do business with”

(Figure16).

The survey results also showed that Linkt led the way in providing

the right kind and amount of information to customers and

scored above 90percent in all other criteria such as the overall

impression of sta and likelihood to recommend the call centre

tofamily andfriends.

First call resolution

(FY18)

Call Centre customer satisfaction (4.3 out of 5)

Average satisfaction based on 60,000 customer responses

Grade of service

Percentage of call answered within 30 seconds (target 70%)

Linkt Brisbane Other retailer one Other retailer two

Figure 16: Tolling retailer independent

mystery shopper results, April 2018

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland32

Linkt brand

The change from go via to the Linkt retail tolling brand was another

step change in enhancing customer experience. Key benets

included a new mobile app to help customers manage their

accounts on the go, an improved website, improved fee structure,

enhanced customer communication and promotion of the GPS-

tolling experience app, LinktGO.

Improved website

As part of the Linkt brand, an enhanced website was also launched.

The new website makes it even easier for customers to better self-

serve with intuitive tools and increased online support.

Key enhancements delivered as part of the refreshed

websiteinclude:

• an improved product selector—making it easier for new

customers to choose the product that best meets their needs

• concierge help—an advanced integrated help and search

function supported by machine learning

• improved travel tools, such as a toll road calculator that allows

customers to quickly estimate the cost of their trip when

planning their journey.

The refreshed Linkt website leverages signicant improvements

made to the previous go via website in November last year, which

included a complete redesign of the user experience.

This involved extensive changes to the website’s navigation, look

and feel, and tone. An enhanced login process also made it even

easier for customers to manage their accounts.

These changes were made in response to customer feedback

andpart of TQ’s commitment to continuous improvement of its

digital channels.

This focus on delivering high-quality digital interactions has led

to signicant increases in usage of digital channels since the

acquisition of the Queensland toll road business.

Total website sessions per month have increased from ~530,000 in

July 2014 to820,000 in June 2018.

The number of customers using the website who log in to manage

their account has also increased dramatically from ~175,000 in

July2014 to ~390,000 in June 2018.

Since the website redesign in November 2017, digital self-service

has increased from 66.7 per cent to 69 per cent. These statistics,

in addition to customer feedback received via all our channels, are

monitored very closely and feed directly into ongoing improvements

to the website.

Fee changes

The change to Linkt also delivered signicant improvements to retail

fees and charges in direct response to customer feedback. The

changes were designed to make fees simpler and easier.

Key changes included:

• removing the $1.19 retail service fee

• removing the $1.19 manual top-up fee

• reducing the tag non-return fee from $47.78 to $15

• reducing the fee for out-of-cycle statements from $3.59 to $2.75.

TQ introduced a payment card surcharge on 1 July 2018. The

Payment Card Surcharge is a straight pass through of costs from our

nancial institution relating to payments by credit and debit cards.

We have actively promoted fee-free options to customers such as

direct debit payments from their nominated bank account.

Improved customer communication

The Linkt brand saw a signicant improvement to the design and

layout of customer communication, as well as the tone and style

of language used. The changes aimed to make communication

to customers simpler, more intuitive and easier to understand,

particularly for people with English as a second language. The

changes also presented a warmer, friendlier and more engaging

brand to customers.

Major changes were also made to the content of customer

communications, with a much greater focus on segmented

messages. This ensures the information sent to customers is

relevant to their needs and better reects their preferences and

desired communication channels.

New mobile app

The Linkt account management app is the rst of

its kind in Queensland and has been incredibly well

received by customers who are increasingly wanting

to manage their toll-road travel through digital

channels. The app is available on both the iOS and

Android platforms.

Key features of the new mobile app include:

• simple login—supported by ngerprint and

passcode options

• quick payments—with a swipe option for

manualpayments

• ability to add and remove

vehicles and make updates to

personal details

• major incident notication

• visual trip history display.

The design of the app has

been shaped by extensive

research into customer needs

and preferences, and we are

committed to a program of

ongoing enhancements based

oncustomer feedback.

Response to the app has been

overwhelmingly positive with

more than 200,000 downloads

since mid-May.

Transurban Queensland submission—August 2018 33

LinktGO

LinktGO is a world-leading GPS-

enabled tolling app for infrequent

toll road users. Our research

found these customers are often

unfamiliar with toll road travel

and payment, and were looking

for easier ways to interact.

LinktGO allows drivers to see

their toll travel in real time and

pay trip-by-trip using their

smartphone, with no ongoing

commitment. Customers can

start driving just by registering

their vehicle and a credit card to

the app—no paperwork, start-up

costs or tag needed.

Real-time trip notications, along

with full transparency of trip

details and costs, give customers

detailed information wherever

and whenever they want, enabling value-driven choices. The app

uses location data to identify when a customer has travelled on

a toll road. Only data associated with toll road entries and exits is

retained, and this is stored securely.

LinktGO is designed to not require user interaction while driving.

In addition to safety warnings, LinktGO has built-in safety features

that temporarily freeze the app and delays trip completion

notications until the phone indicates the customer is no longer

moving at speed.

With LinktGO, customers are always covered to drive on toll roads

in Australia. Even if their phone’s GPS isn’t detected, or they forget

their phone or run out of battery, they’ll still receive a trip through

the app. Payment reminder notications help customers stay up

to date. This means no toll notices or nes. The 95-cent per-trip

service fee covers all administrative costs, GPS location services

and transaction fees associated with providing the trip-by-trip

payment channel.

Frequent users of the app receive proactive notications advising

them of products that may be better suited to their needs.

LinktGO’s innovative and customer-centric approach has been

recognised with multiple design and industry awards.

Voice of Customer program

TQ’s Voice of Customer (VoC) capability provides a systemic,

quantitative view of customer feedback, delivering un-biased

insights into our customers’ experiences and expectations of our

services, products and processes. VoC enables a greater focus

on data-driven decision making, supported by deeper insights

into customer sentiment. Insights from the program help ensure

investments in improved customer experience are made inareas

that will deliver the greatest value.

Through VoC, we have received more than 100,000 pieces of

individual feedback from Queensland customersin FY18. The

program includes nine surveys across various customer channels.

Improved digital experience customer feedback

Linkt mobile app

“ Love it!! Super-easy application! The new Linkt app

shows you at a glance what your balance [is] and

managing your account is a breeze!”

“ A very simple and intuitive app. Love the month to

month travel summary. Very easy to manage your

account details and a large in-your-face font means

you can clearly see your current balance.”

“ As a 67-year-old it took time to understand but

thehelp was there to get me through it.”

Website

“ It was so easy to use and all the information is there

and easy to understand. The management of the

account on the go will be so useful.”

“ Much easier to use than the old go via website.

Bigimprovement.”

LinktGO

“Gives me protection against toll nes.”

“ As someone who is both a new driver and not from

thecity, the thought of guring out tolls for the

rst time for a recent trip was quite daunting until

Idiscovered this app.”

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland34

Resolving customer issues

TQ is focused on resolving customer enquiries quickly and

eectively. TQ has a policy of rst-contact resolution, and our

customer service teams consistently close out 94 per cent of

customer queries in the rst contact with our organisation.

However, we recognise that with more than 30 million customer

interactions per annum, we won’t always get it right the rst time.

TQ undertook a signicant program of work during FY18 to improve

the customer experience. This included transitioning to a new Tier 1

call centre provider, implementing a new back-oce tolling system,

and retail brand. These changes delivered a new digital oering,

an account management app and changes to fees and charges.

Across FY18, complaints received by TQ continued to decline as the

changes were implemented and stabilised. While higher complaint

volumes were observed during the implementation of these

signicant changes, complaints have continued to decline quarter

by quarter across FY18. We have a comprehensive complaints

management process to facilitate speedy resolution of customer

issues and proactive management of formal complaints.

Our rst-contact complaint resolution policy

Linkt Brisbane’s Customer Resolutions team is independently

certied as compliant with the AS ISO 10002—2014 Complaint

Handling Standard.

A complaint can be lodged with us over the telephone, via email,

on our website, or in writing. Upon receipt of the complaint, the

Customer Resolutions team will send an acknowledgement to

the customer along with an expected time-frame for resolution.

A Resolution Advisor will review the complaint and perform a

comprehensive investigation.

The Customer Resolutions team has additional authority to resolve

complaints where a signicant nancial adjustment is appropriate.

Our focus through this process is to resolve the matter in a fair

andreasonable way that avoids the need for further escalation of

the complaint.

Importantly, as part of the complaint-handling procedure, the

resolution team provides feedback to the business around key

learnings and insights, ensuring opportunities for continuous

improvement are captured and actioned.

In the small number of cases where a complaint cannot be resolved

to a customer’s satisfaction by the TQ team, we actively encourage

customers to have their matter reviewed by the Tolling Customer

Ombudsman (TCO) at no cost to them.

The role of the Tolling Customer Ombudsman

The TCO has been in place for over a decade, providing an

independent alternative dispute resolution process for toll road

customers in Victoria, New South Wales, and Queensland.

As with all industry ombudsman functions, the scheme is fully

funded by toll-road operators and can be accessed by any user

of a toll road free of charge. Before TQ’s acquisition of Brisbane’s

toll roads, Queensland Motorways contributed to the funding for

theTCO.

While the TCO covers all aspects of the tolling provider’s operations

(including toll invoices and demand notices) the concession deeds

with government make it clear that the TCO’s jurisdiction does not

extend to infringement notices (nes) issued by either Brisbane

City Council or the Queensland Government. For these matters

customers will contact the Queensland Ombudsman (QO).

The TCO receives complaints directly from customers or through

referral by TQ. It is intended to be an option of last resort, accessed

when a customer has been unable to achieve a satisfactory

resolution with their tolling operator. As such, a customer will

be referred back to TQ if they have not attempted to resolve the

dispute before contacting the TCO.

Notably, in approximately 85 per cent of the customer complaints

recorded by the TCO, the matter was referred back to TQ for further

investigation as the customer had not provided TQ with a prior

opportunity to resolve the complaint.

Similar to other industry Ombudsman Schemes, the TCO has

the power to make recommendations and decisions regarding a

customer’s enquiry or complaint that falls within its jurisdiction and

any TCO decisions are binding on TQ, but not the customer.

The TCO can be contacted via phone, email, post or fax. Details are

available at tollingombudsman.com.au

Percentage

Transurban’s core customer promises

Make it easy

Everything we do

willbe easy to use

andunderstand

Show we care

We will listen,

betransparent

and exible

Add value

We will create

meaningful

experiences for

our customers

Complaints as a percentage of network trac received

byTQ FY18

0.000

0.002

0.004

0.006

0.008

0.010

0.012

Q1 Q2 Q3 Q4

FY18

Figure 18: Linkt Brisbane Tolling Customer Ombudsman referrals compared to customer accounts

Transurban Queensland submission—August 2018 35

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

100

110

120

Jul 15

Aug 15

Sep 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Mar 16

Apr 16

May 16

Jun 16

Jul 16

Aug 16

Sep 16

Oct 16

Nov 16

Dec 16

Jan 17

Feb 17

Mar 17

Apr 17

May 17

Jun 17

Jul 17

Aug 17

Sep 17

Oct 17

Nov 17

Dec 17

Jan 18

Feb 18

Mar 18

Apr 18

May 18

Jun 18

TCO complaints

The volume of complaints has been steadily declining for Linkt

Brisbane, with a 32 per cent reduction over the past nancial year

while our overall customer base has grown (Figure 18). In FY18

there were 369 referrals to the TCO, compared to 545 in FY17.

This equates to 0.02 per cent of the 1.6 million customer accounts

(Figure 18).

While we can always improve services, this metric is favourable

to any industry standard. When compared against the number

of complaints received by the Energy and Water Ombudsman

Queensland, the volume that the TCO received about Linkt Brisbane

is signicantly lower (Figure 17).

These results highlight TQ’s commitment to the successful

resolution of customer disputes and reinforce the importance

placed on fast and eective complaint resolution.

The role of Queensland Ombudsman

The role of the QO is to investigate complaints about the actions

and decisions of State Government departments and agencies as

well as local councils in accordance with the Ombudsman Act 2001.

This includes complaints relating to infringement notices issued

by either the Brisbane City Council or Queensland Government.

While the legislation does not extend the QO’s responsibilities

to TQ’s operations, the QO will endeavour to ensure customers

are directed to TQ (in the rst instance) or the TCO if the matter

relatesto the tolling provider’s operations rather than government-

issued nes.

Customers (millions)

Customer accounts

TCO referrals

Linkt Brisbane TCO Referrals Customers (millions)

Jul

‘17

Aug

‘17

Sep

‘17

Oct

‘17

Nov

‘17

Dec

‘17

Jan

‘18

Feb

‘18

Mar

‘18

Apr

‘18

May

‘18

Jun

‘18

200

400

600

800

1,000

1,200

Complaints referred to TCO compared to Energy & H2O Ombudsman

Energy & Water OmbudsmanTolling Customer Ombudsman

Tolling Customer Ombudsman Energy and Water Ombudsman

Source: ewoq.com.au/complaint-statistics-201718 (Complaint Statistics 2017–2018)

Figure 17: Tolling Customer Ombudsman complaint volumes

compared to Energy and Water Ombudsman Queensland

complaints

Figure 20: Paying tolls—process for customers with no account or pass

Transport and Public WorksCommittee Inquiry into the operations of toll roads inQueensland36

06 March 2018

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