SYDNEY BEARS BRUNT OF $3.3B IN LOSSES TO GRIDLOCK

SYDNEY BEARS BRUNT OF $3.3B IN LOSSES TO GRIDLOCK
SYDNEY is the official gridlock capital of Australia, according to new data that shows traffic congestion is costing businesses in the nation's biggest cities more than $3.3 billion a year.

The Tom Tom Traffic Index Report has revealed that despite more commercial vehicles being registered in Melbourne, Sydney's congestion levels are the highest in the country.

However, while the NRMA says the figures come as no surprise, it argues that major infrastructure projects currently under way offer some light at the end of the tunnel.

The Tom Tom report says traffic congestion has risen 8 per cent in Sydney over the past eight years, making it the 30th most congested city in the world and costing Sydney businesses $980.79 million a year.

Tom Tom rates the city's traffic congestion level at 36 per cent after estimating that Sydney drivers spend an extra 151 hours on the road each year due to delays.

These figures show Sydney businesses bear almost a third of the cost of traffic snarls to the national economy.

The cost to Melbourne businesses has been calculated at $871.47 million, while Brisbane and Perth come a distant second at $581.7 million and $496.17 million respectively.

However, Hobart has surprisingly ranked as high as Melbourne in terms of congestion levels at 29 per cent each.

The report has found Hobart drivers spend an extra 109 hours in their cars a year, compared to Melbourne's 120 hours.

Hobart's extra drive time is the third highest of the 10 cities included in the report even though it has the second-lowest number of commercial vehicles registered in the city.

"Traffic congestion is a fact of life for every driver," says Christopher Chisman-Duffy, sales manager at TomTom Telematics ANZ.

"As we reveal the latest Traffic Index results, we can see that the problem is not going away."

NRMA spokesman Peter Khoury agrees Sydney's traffic snarls have become worse, arguing that infrastructure spending continues to lag population growth.

"We do our own business survey each year and what we find is we also know where the worst locations are for traffic," says Khoury.

"It's no coincidence that the worst locations coincide with the areas of Sydney that are currently seeing major road infrastructure projects.

"We know the data is bad and getting worse, but we also believe that there is light at the end of the tunnel, literally, with a number of major projects being built in Sydney over the next few years."

Tom Tom calculates the costs to businesses from wasted billable time, extra fuel consumption and missing targets.

It says traffic congestion has risen 4 per cent in Melbourne over the past year while Brisbane congestion is up just 1 per cent.

The report lists Perth fourth on the congestion list at 27 per cent, just behind Hobart, followed by Adelaide (25 per cent), Brisbane (25 per cent), Gold Coast (23 per cent), Newcastle (21 per cent), Canberra (17 per cent) and Wollongong (15 per cent).


CityCongestion levelExtra travel per year (hours)No. of commercial vehiclesCost to business

Sydney

36 per cent 151 375,669 $980.79M

Melbourne

29 per cent 120 420,025 $871.47M

Hobart

29 per cent 109 37,364 $70.42M

Perth

27 per cent 102 281,340 $496.17M

Adelaide

 

25 per cent 93 128,482 $206.6M

Brisbane

25 per cent 100 336,412 $581.7M

Gold Coast

23 per cent 81 72,035 $101M

Newcastle

21 per cent 79 16,866 $23.04M

Canberra

17 per cent 70 31,502 $38.13M

Wollongong

15 per cent 49 2,518 $2.13M

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Shareholders of Crown Resorts (ASX: CWN) have voted in favour of th...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...