Amid population ponzi, Vic Government cuts tram services

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By Leith van Onselen

In what reads like a bad April Fools Day joke, the Victorian Government will cut tram services amid booming population growth and record patronage. From The Age:

Tram services will be slashed on some of Melbourne’s busiest routes next month, leading to longer wait times and increased crowding.

Tram frequency will be reduced on six of Melbourne’s busiest tram routes when the timetable changes on May 1…

The government has issued no public warning about the looming cuts, which will hit night-time services hardest, but also includes the loss of some services in the morning peak…

The cuts have been made in a time of runaway growth in tram usage. Passenger numbers soared 12 per cent last year to 203.8 million journeys, surprising even the state’s public transport planners.

Public Transport Victoria noted in its latest annual report that “strong population growth is likely to be driving tram patronage growth”.

“Since 2012 over a third of building approvals for new dwellings have been nearby tram routes,” PTV said.

You can’t make this stuff up. Melbourne’s population has ballooned by 1 million people (27%) over the past 12 years, and is projected to add 97,000 people every year for the next 35 years. And yet the State Government is cutting tram services, which are already crush-loaded!

Just keep telling yourself that this is “the world’s most livable city”.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.