Demand and Supply Analysis of Canberra Light Rail Network

This report analyzes the demand and supply of the Canberra light rail network and its impact on the real estate market. It discusses the increase in demand due to the expansion of the public transport network and the challenges faced during the implementation. The report also highlights the potential benefits of the light rail network in terms of reducing travel time and driving economic activity. Overall, it provides insights into the demand and supply dynamics of the Canberra light rail network.

1
Economics

2
Introduction
The aim of the report is to reflect on one of the most powerful real estate moguls in Canberra
that has been looking forward to relocate light rail network. The objective is to illustrate the
viewpoint by making use of demand and supply. Demand is defined as the total quantity of a
product or service that is acquired willingly by purchasers (Ruffel et al. 2011). The quantity
that is demanded reflects on the relationship that exists between quantities demanded as well
as price. On the other hand, supply is defined as the quantity that is offered by a market.
Analysis
The Canberra light rail network is also known as Canberra Metro that is presently serving the
Canberra city. Initially the construction of a tram network was proposed by Walter Burley
Griffin in the Canberra city. According to Lowrey (2019), Canberra light rail stations has
been prompting businesses to move. The chief executive suggested to shift his headquarters
to offices to a tram station. The global real estate company also aimed to shift to a shiny CQ
building. As a result, the supply for new buildings has been exceeding the demand for new
buildings. The demand for light rail network in Canberra increased due to increase in public
transport network. The Canberra government stated that the new rail network resulted in
record ridership. The network not only served the tram service but also the bus service in the
form of completely integrated system. The increase in demand was proudly reflected on by
the ACT government. Gordon (2011) argued that initially it was confusing to introduce new
light rail network in Canberra. This has been because the revised bus timetable interacted
with the new light rail network. In other words, the bus network timetable altered drastically
but the other services got scrapped as well as replaced with something that turned out to be
diverse completely.

3
Figure 1: Connecting Light Rail
(Source: Currie, Ahern and Delbosc, 2011)
Most of the commuters tried to make their way to work by struggling to catch a single bus.
As a result, the ACT government flagged changes to the existing bus network thus running a
public education campaign. This initiated the introduction of new bus routes that got linked
up with light new rail network (Currie, Ahern and Delbosc, 2011). There have been multiple
commuters who took to social media in order to voice their support to initiate the changes.
The working of the light rail in Canberra would provide the passengers with an opportunity
of cutting the journey time from Gughalin Town Centre to the city in just 25 minutes. The
reduction in the traveling time would favour the city highly as the visiting frequency to the
city would increase which would provide an opportunity for the city to develop and grow
gradually. The introduction of new light rail track also helped to improve the circumstance in
the Canberra city. This simply improved the overall effective communication. This acted as
an alternative by individuals who used public bus as a mode of transport. The adjustment

4
period got adjusted with the timings that linked the bus service with rail new network. This
resulted in a large expansion thus leading to a primary reset regarding the network across the
city. The increase in individuals has also raised the overall travelling percentage that
increased the demand for light new rail network. The government has been delivering
adequate transport facilities that have linked economic activity with corridor. It has been
stated that initiation of 400 meters of tram tracks are likely to continue witnessing
development thus ultimately raising the supply of property reaching the ceiling. A survey
stated that commercial proprietors increased the office blocks in Canberra in the year 2017. It
has been found that the value of the property is likely to increase due to raise in the number
of tram line. On the other hand, the proprietors of commercial property feared that light rail is
likely to provide the ACT government with a cause to increase the overall property rates
(Clifton and Mulley, 2018). A third of the Canberra property owners also preferred a line
while they were asked to expand in the upcoming stage.
Figure 2: Increased Traveling Frequency
(Source: Clifton and Mulley, 2018)
The introduction of new light rail network in Canberra is likely to increase the demand
potential in residential areas that included Reid as well as Campbell. It will lead to demand-
driving opportunities that will in turn provide support to increasing tourism as well as
education sectors in the city. This in turn acted as a considerable generator related to demand

5
for public transport. Woden Town Centre is also regarded as the major market that is known
to bring about future development in terms of employment as well as housing. This in turn
acted as the strong driver in order to bring about implementation of light rail. According to
Currie, Ahern and Delbosc (2011), both Athllon Drive corridors as well as Erindale Drive has
bought about identical demand levels to bring about light rail. The high residential rates of
development predicted on the corridor that led to considerable prospects in order to shape
lifestyle as well as travel behaviours related to future residents. This in turn helped to raise
the demand as well as develop the liveability of the districts that matures in the future.
Conclusion
It could be concluded that the increase in demand was proudly reflected on by the ACT
government. Most of the commuters tried to make their way to work by struggling to catch a
single bus. As a result, the ACT government flagged changes to the existing bus network thus
running a public education campaign. The government has been delivering adequate transport
facilities that have linked economic activity with corridor.
References
Clifton, G. and Mulley, C., 2018. Barriers and facilitators of integration between buses with a
higher level of service and rail: An Australian case study. Research in Transportation
Economics, 69, pp.39-50.
Currie, G., Ahern, A. and Delbosc, A., 2011. Exploring the drivers of light rail ridership: An
empirical route level analysis of selected Australian, North American and European systems.
Transportation, 38(3), pp.545-560.
Gordon, C., 2011. Planning for structural transit in low density environments: The case of
Canberra, Australia. Australian Planner, 48(3), pp.148-159.
Lowrey, T., 2019. [online] Canberra's new public transport timetables cause commuter
confusion on first day of route rollout. Available at: https://www.abc.net.au/news/2019-04-
29/canberra-new-public-transport-bus-light-rail-timetables/11054002. [Accessed 17 May
2019].
Ruffel, S., Krouk, G., Ristova, D., Shasha, D., Birnbaum, K.D. and Coruzzi, G.M., 2011.
Nitrogen economics of root foraging: transitive closure of the nitrate–cytokinin relay and

6
distinct systemic signaling for N supply vs. demand. Proceedings of the National Academy of
Sciences, 108(45), pp.18524-18529.