Smart tech systems cut congestion for a fraction of what new roads cost
- Written by Hussein Dia, Professor of Future Urban Mobility, Swinburne University of Technology
The new transport projects governments are constantly announcing are expensive. In the recent New South Wales and Victorian elections, the returned state governments’ transport infrastructure promises added up to A$165 billion. What’s mostly missing from the promised transport solutions is smart technology that provides higher benefits at a fraction of the cost – when retrofitting existing roads in particular. The benefit-to-cost ratio can be more than a dozen times greater than for a new road.
Clearly, infrastructure spending helps to drive the economy. These projects also deliver benefits to the community, including increased road safety, shorter travel times and fewer delays.
The economic merit of these projects is usually captured using a benefit-to-cost ratio (BCR). For example, the BCR of the A$15.8 billion North East Link road project in Melbourne is estimated to be 1.25 – for every A$1 invested, A$1.25 is returned in benefits to the economy and community. For the Melbourne Metro rail tunnel, a best-case BCR of 3.3 has been reported.
But are we getting good value for money? Could cheaper alternatives deliver more benefits?
Technology offers smarter, cheaper solutions
Technology offers transport solutions that provide higher benefits at a fraction of the cost of building new infrastructure. Collectively known as intelligent transport systems, these are widely recognised today as better answers for smart transport outcomes.
Intelligent transport systems can have positive impacts on the safety, efficiency and environmental performance of transport.When comparing different “congestion-busting” options, “building more roads” provides, on average, a BCR of 3.0. This is dwarfed by the much higher BCR values of tech solutions.

Authors: Hussein Dia, Professor of Future Urban Mobility, Swinburne University of Technology