Category: Rail News

Over the years, several experts have also questioned the effectiveness of the free tram zone, including Infrastructure Victoria, which called for it to be scrapped in 2020.

But the zone, which extends from Queen Victoria Market to Docklands, Spring Street, Flinders Street station and Federation Square, remains hugely popular with tourists and visitors to the CBD.

The City of Melbourne lord mayor, Nicholas Reece, recently won re-election on a platform that included pushing the government to expand the zone even further.

“Extending the free tram zone is just common sense. A few small changes could connect commuters to more of Melbourne’s key destinations,” he says.

Reece says extending the zone would support local businesses, encourage visitors to the city, help ease cost-of-living pressures and “ensure that everyone can enjoy the very best our city has to offer”.

The problems with expansion
It is not the first time an expansion has been floated. A 2019 parliamentary inquiry examined whether the free tram zone should grow to include the University of Melbourne and the neighbouring medical precinct in Parkville, north of the city, as well as the Melbourne Convention and Exhibition Centre (MCEC) and casino, and along St Kilda Road to Prahran in the south, taking in the Arts Centre, National Gallery of Victoria, Royal Botanic Gardens and Shrine of Remembrance.

But both the department of transport and the tram network operator, Yarra Trams, opposed the idea at the time.

The department of transport told the inquiry expanding the zone would increase the total cost of the scheme from $15m a year to $28m a year, amounting to a more than 10% reduction in Victoria’s fare takings.

Commuters board a tram in Melbourne
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When the free tram zone was introduced, the number of trips taken within the CBD almost doubled from 18.5m a year to 35.5m. Photograph: Bloomberg/Getty Images
Yarra Trams said extra platforms would be needed to cope with the expected increase in patronage.

The department said when the free tram zone was introduced, the number of trips taken within the CBD almost doubled from 18.5m trips a year to 35.5m.

The majority of this increase was attributed to commuters taking “short tram journeys” instead of walking.

Yarra Trams said this surge in patronage “harmed the operational efficiency, comfort, passenger satisfaction, and farebox income of tram services” and forced trams to slow down throughout the CBD.

Dr Crystal Legacy, an associate professor of urban planning at the University of Melbourne, says the free tram zone went against one of the key objectives of a high-quality public transport system.

“The whole point of these sorts of incentives is to try to get people out of their cars and on to public transport,” she says. “Instead, we’ve seen a shift away from people walking short distances.”

Bowen argues it has also led to more cars around the city. He says the PTUA is aware of commuters driving to the edge of the free tram zone to take a tram for the remainder of their trip.

“There’s definitely a problem around Docklands in particular, but possibly other areas as well. If you’re a car park owner, you’d definitely market it to people – ‘Park here and catch a free tram the rest of the way,’” he says.

The parliamentary inquiry ultimately recommended expanding the zone to two stops – the arts precinct and the casino/MCEC stop.