Oxford Street East Cycleway Economic Assessment

Background

Transport for New South Wales (TfNSW) engaged NineSquared to undertake an economic assessment of the Oxford Street East (OSE) Cycleway. The project aims to deliver a 1.8 km separated cycleway to improve safety, connectivity and amenity for cyclists travelling between the Eastern Suburbs and the Sydney CBD. The initiative forms part of a broader strategy to encourage active transport, improve urban place outcomes and reduce reliance on private vehicles.

TfNSW required a robust, evidence-based assessment of shortlisted options, taking into account placemaking and urban domain improvements amongst more traditional benefits. The analysis allowed TfNSW to understand the economic merits of each option, quantify impacts across different user groups, and support decision-making at the business case stage.

Our Role

NineSquared undertook a comprehensive economic appraisal of the OSE Cycleway, applying cost-benefit analysis (CBA) in line with relevant NSW Treasury and Transport appraisal guidelines. The engagement involved integrating inputs from transport modelling, engineering design, and urban domain assessments to quantify the full range of project impacts.

Key elements of the engagement included:

• Assessing impacts on cyclists, pedestrians, road users and the broader community
• Quantifying travel time changes, safety improvements and environmental benefits associated with mode shift towards active transport
• Evaluating impacts on general traffic and heavy vehicles, including congestion effects resulting from road space reallocation
• Undertaking scenario and sensitivity testing to explore how outcomes varied under different assumptions, including speed limit changes and project delivery configurations

The analysis demonstrated that both project options generate positive net benefits, indicating strong economic justification for the investment, while highlighting a preferred option from an economic perspective.

The work provided TfNSW with a clear, defensible evidence base to inform decision-making, balancing transport efficiency, community outcomes and broader strategic objectives. It also supported a deeper understanding of how active transport infrastructure can contribute to mode shift, improved amenity and long-term network performance. Delivery of the Oxford Street East Cycleway is currently underway, as part of the broader Revitalising Oxford Street project.

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