Positive benefit/cost analysis

The City of Port Phillip is supporting the construction of separated bikelanes along a decent stretch of St Kilda Rd in Melbourne.    Consultants GHD prepared an analysis of immediate costs versus longer term benefits for the works, and came up with a Benefit Cost Ratio (BCR) of 1.134.  i.e. each $1 spent on the project would deliver a $1.134 return. The benefit cost ratio considered travel costs or savings; savings in crash costs, health benefits from increased use of active transport; environmental benefits, vehicle operating costs, construction and operating costs.


A reduction in collisions of up to 28 per cent would be expected. The annual economic value of these avoided crashes per annum is between $1.2 million (in 2018) and $2.1 million (in 2035).

There would be an expected 25 per cent increase in bike riding on St Kilda Road in the first year after installation. As well as reducing congestion, this increase in bike riding contributes to a range of health benefits, estimated to be $1.05 per kilometre cycled per person.

Now they just need the Victorian State Government to fund the works. Fingers crossed! 


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