Transport Economics

Transport is a fundamental component of modern society, serving as the backbone of economic development, social integration, and environmental sustainability. Its significance spans multiple dimensions, from facilitating trade and connectivity to supporting daily life and advancing social progress.

The importance of transport in society means effective decision making is important. Applying the frameworks and principles of transport economics can help decision makers deliver a more efficient allocation of resources and find cost effective solutions to infrastructure and policy issues.

What we do

Our Transport Economics group applies economic frameworks and commercial thinking to address the challenges presented by change and uncertainty in the transport sector. Using insightful economic analysis (tools, modelling, and research) underpinned by deep experience, we help clients with decision making in the following key areas:

Assessing and prioritising investments. Using cost benefit analysis and other evaluation frameworks we assess the social, economic and financial impacts of transport infrastructure projects and policies in a way that is rigorous, defensible and transparent.
Informing policy making. The Australian transport sector is undergoing significant change, which makes the evaluation of these changes a key factor in government investment decisions. We apply economic principles to inform the design of transport related public policy initiatives and strategies using economic modelling to assess and understand policy impacts.
Optimising contractual and regulatory arrangements.The impact of regulatory change can create uncertainty for businesses. Our economists apply economic frameworks to analyse the value of future uncertain events today to inform the design of long term commercial relationships that optimise outcomes and provide certainty for participants in regulated markets.
Forecasting demand. As populations increase, there is a corresponding demand for investment in transport infrastructure and services and funding pressures. We help our clients predict future travel and freight demand to input into project evaluation, cost benefit analysis, and investment decisions, ensuring these investments make the best use of available funds.
Improving pricing decisions. Decisions around infrastructure and services pricing are best made through application of robust economic principles and frameworks. Our team develops and analyses pricing issues and fares proposals, benchmarking against national and international practice. We also assess the impact of pricing and fares proposals across the community.