Funding and Financing

 Looks for ways to maximise whole government revenue.  Reduce on-going operational costs.

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The issue

We face an economic sustainability challenge to ensure adequate funding is available to provide and maintain infrastructure that delivers a safe and reliable network capable of meeting current and future customer demand requirements. There is a strong strategic imperative to expand the funding pool for investment in transport infrastructure.

The Transport @ 3.5 Plan for Perth outlines a suite of initiatives that will be required in the future to accommodate an expanding population. These initiatives remain unfunded and it is incumbent on us to proactively determine alternative mechanisms to fund capital and recurrent activity and identify opportunities to supplement revenue streams by investigating commercial approaches to delivery and service activities.

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The increased focus on delivering transport infrastructure requires the development of new approaches to generating revenue that will be accepted by Government and users. The chart above demonstrates the proportional share of transport funding is increasing which has implications across Government. An increased commercial approach to the provision of transport infrastructure will not only benefit us but also help to sustain other critical Government services.

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What we're doing

We are currently developing a Funding Policy that outlines the intent, principles, and responsibilities for the expansion of funding for activities through the identification, evaluation and implementation of alternative revenue, funding and financing opportunities. The Policy distinguishes between revenue, funding and financing to promote an understanding of the various principles and demonstrate linkages to asset management, investment planning and project programming.

We are currently instituting a series of commercial acumen workshops designed to improve the level of commercial acuity and awareness throughout the organisation.

We currently manages a Concessional Loading Road Maintenance Contribution Policy to ensure efficient freight access is balanced with an equitable charging regime for additional damage to the road network - see Case Study below.

We are currently developing a Heavy Vehicle Charge (HVC) as part of our Perth Freight Link project. The cost of the HVC to heavy vehicle operators will be offset by productivity saving from reduced travel times and lower vehicle operating costs.

We are participating in nation heavy vehicle reform in conjunction with DOT. The aim is to turn the provision of heavy vehicle road infrastructure into an economic service where feasible. This would see a market established that links the needs of heavy vehicle users with the level of service they receive, the charges they pay and the subsequent investment of proceeds back into road services. 

 

The numbers

Metrics to support this key aspect of the sustainability policy is under development.

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Case study

Concessional Loading Road Maintenance Contribution Policy

WA’s Concessional Loading Scheme (CLS) allows heavy vehicles to transport 23.5 tonnes on tri-axles. Rather than a permit the pricing scheme arrangement is contractual by Deed of Agreement between ourselves and the relevant operator. Owners, producers or receivers of nominated commodities hauled in heavy vehicles using a CLS permit may be required to make contributions for additional costs incurred in making roads and bridges trafficable and to sustain infrastructure.

We will permit heavy vehicles to transport commodities on the road network at axle loads above the standard limits specified in the Vehicle Standards Regulations, under certain conditions. These conditions are specified in our various CLS’s.

Where we are requested to permit a new haulage task that proposes to operate:

1. At the higher axle loads of one of our CLS’s the new haulage task is so large that it increases the annual tonnage transported by heavy vehicles along a road or increases the number of heavy vehicles using a road; or

2. At axle loads above the CLS; then

New haulage tasks may be considered provided we are compensated for:

  • Any modification to the asset required to enable the heavy vehicles to safely interact with other road users; and
  • Any additional damage to the asset due to the higher axle loads over and above the anticipated level of wear that would be caused by the haulage task at standard axle loads.

The Policy applies to the owner, producer and receiver of a commodity but not the heavy haulage operator who is transporting the commodity.

The Principles of the Policy are:

  • Road safety and efficiency
  • Cost recovery;
  • Equitable charging; and
  • Transparency.

3. The arrangement is legally binding between the State and the owner of the product through a Deed of Agreement.

We are obliged to keep sound records that demonstrate the funding received under the Policy is spent on maintenance and rehabilitation works on the relevant haulage route.

The intended outcome of the Policy is that mining and resource companies are able to more efficiently move commodities in a safe and equitable manner, subject to conditions and recompense for additional wear on the road network. 

 

Modified: 01 Sep 2016