Business
The 10.5km T2D Project is the final section of the North-South Corridor, finalising more than $15 billion investment from the South Australian and Commonwealth Governments and completing a 78km traffic-light-free transport and freight route connecting Gawler and Old Noarlunga.
Traffic congestion along South Road and the major parallel routes (Marion Road and Goodwood Road) are predicted to cost the South Australian economy more than $230 million by 2031 according to Infrastructure Australia’s Australian Infrastructure Audit (2019).
Economic assessments suggest that the congestion relief offered by the T2D Project will be in the order of $8.4 billion (in present value terms) across the first 50 years of operations. This will be delivered through not just travel time savings but lower vehicle operating costs and reduced travel time variability.
The T2D Project will be constructed within the existing road corridor environment which runs through a large portion of Adelaide’s west and southwestern suburbs. There are around 950 businesses in the area which will experience changes to their environment due to construction and eventual operations of the T2D Project. The potential negative and positive effects of the project on these businesses and surrounding areas has been assessed and considered.
These assessments show that while there will be short-term impacts to business during construction, it will also support about 5,500 jobs on average across the construction period and about 6,500 jobs at construction peak, leading to many opportunities for business stimulus across the T2D Project.
The assessments also show that there will at times be disruption to businesses, including changed access, noise, vibration and changed traffic conditions and movements. The Department continues to work proactively to mitigate potential construction impacts on businesses and to support those that are either being acquired, moving or closing.
- Summary
Download a summary of the Business impact assessment in PDF format
Approach
The Department engaged consultants early in the planning stage to assess the potential impact (both positive and negative) on businesses within proximity of the project.
Investigations completed include:
- a Business Impact Assessment (BIA), which was undertaken and updated to align with each respective project design change. The primary objective of this report is to estimate the potential positive and negative impacts and the cost of disruption on businesses as a result of the project’s construction and eventual operation
- the Business Case, which was developed to confirm the project's merits, including the need for investment, the scope, its value for money proposition and delivery approach.
Engagement has started with local businesses along the alignment to better understand their business requirements and how they operate. This information will be used to help inform construction staging.
Further assessments and data gathering will be ongoing throughout the engagement, design and construction stages of the project. For more information see the assessment methodology.
Assessment area
The following map shows the businesses in proximity to South Road (which were the subject of the BIA):
Map: Businesses in proximity to South Road
Map disclaimer
Existing environment
Adelaide’s economy is more diversified and dynamic than ever. There has been a marked change in what drives Adelaide, with health care, financial services and professional services increasing their contributions to the state’s economy. The expected revitalisation of the manufacturing base will see activity intensify towards Adelaide’s west and north and the T2D Project will improve access to these areas.
Key business precincts along the T2D Project alignment include:
- commercial and industrial hubs at Edwardstown and the Brickworks Marketplace
- Henley Beach Road Main Street Precinct
- the Tonsley Innovation precinct to the south of the alignment.
Photo: Castle Plaza Shopping Centre, Brickworks Marketplace and Tonsley Innovation Precinct.
Impacts and mitigation measures
The BIA has estimated that the project will inject billions of dollars into the SA economy, reduce the cost of freight and save billions of dollars in overall congestion costs through travel time savings, reduced vehicle operating costs, improved road reliability and greater network resilience to incidents. The project’s benefits also include:
- community benefits of just over $550 million inclusive of increased road safety, amenity improvements for active travel and reduced greenhouse emissions
- significant uplift in benefits to business through improved connectivity, wider catchment areas, reduced travel times and less traffic congestion
- urban development benefits estimated to be in the range of $2.6 billion and wider economic benefits of $3.5 billion
- economic activity in South Australia expanding by more than $700 million at the peak of construction in 2028
- about 5,500 jobs per year on average during main construction for the next decade, creating a skills legacy for South Australia.
Video: T2D Project benefits.
There will also be a range of short-term and long-term changes to normal operations of businesses close to the construction of the project. These impacts could range from changes in amenity, noise impacts and extra or reduced traffic flows to access issues or reduced parking availability.
The Department is committed to working closely with identified businesses to mitigate negative impacts and provide support where needed – this includes cases where businesses may need to relocate or close. This engagement is underway and will continue through the detailed design and construction phases of the project.
Each business will be impacted differently depending on its nature and its proximity to the project. Because of this, the T2D Project will adopt a proactive and personalised approach to supporting impacted business owners and tenants to manage and mitigate impacts during construction and operation.
The BIA identified 950 businesses that could be impacted by the project with a breakdown summarised below:
- approximately one third of businesses are not expected to be impacted by the project (either by acquisition or by construction)
- about 20% are businesses operating on commercially or industrially zoned land that is to be acquired for the project. Of these businesses many will relocate rather than close. The Department is working closely with these businesses to support them through this process
- about half of businesses have been identified as relying on passing traffic for parts of their trade. The Department will proactively work with these businesses to plan measures to mitigate any potential issues both during and post construction
- it is recognised that jobs will be displaced due to business closures, and the Department is working to minimise this
- the project will contribute about $9 billion into the wider SA economy and save about the same amount in congestion costs.
Construction impacts
The T2D Project design includes below-surface tunnels for almost 60% of the 10.5km motorway. This design approach significantly minimises impacts to existing businesses on South Road.
Further, there is potential for significant local stimulus for surrounding businesses in supporting the expected local workforce which will hit numbers of more than 5,500 at times.
The Department is proactively working with businesses to plan necessary measures to mitigate any issues both during and post construction, particularly in areas where surface works and above-ground construction is undertaken.
Potential construction impacts faced by businesses, and the measures planned to be implemented to mitigate these impacts are outlined below:
| Potential construction impacts | Key mitigation measures |
|---|---|
| Land acquisition for the project resulting in business acquisition or accessibility issues for existing businesses. | The project will:
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| Project construction activity including demolition and truck movements creating noise, vibration, amenity and accessibility impacts for existing businesses/precincts. | The project will:
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| Establishment of construction infrastructure and temporary laydown areas for tunnel boring machine (TBM) storage/construction resulting in disruption to surrounding business. | The project will:
While final mitigation measures will be influenced by the final detailed design, construction methodology and scheduling and construction methods adopted, a key measure will be the use of acoustic sheds for spoil handling at TBM operations support areas. |
| Site preparation and earthworks resulting in noise, vibration, amenity, dust and accessibility impacts for operating businesses. | The project will:
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| Permanent and temporary road closures creating unavailable, restricted or reduced public transport routes disrupting access to bus stops/wider public transport network leading to staff access issues and less passing traffic/potential customers. | The project will:
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| Potential increase in crime and antisocial activity within construction zones due to lack of natural surveillance of the street. | The project will:
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| Impacts from reduction in traffic movement/accessibility resulting in business revenue loss/job losses or even unforeseen business closure. | The project will:
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| Reduced access for staff, impacts to car parking and disruption for suppliers to businesses during construction resulting in loss of business/staff difficulties and potentially affecting revenues. | The project will:
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| Interruption of essential utilities leading to business disruption/inability to operate or even temporary closure. | The project will:
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| Presence of machinery, fencing and site facilities creating amenity and accessibility issues for businesses, staff and customers. | The project will:
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Operational impacts
Potential impacts to businesses caused by the operation of the T2D Project and the measures planned to be implemented to mitigate these impacts are outlines below:
| Potential operational impacts | Key mitigation measures |
|---|---|
| New corridor design creating different traffic patterns/reduced passing traffic or access issues for remaining businesses. | The project will:
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| Changes to access and new project infrastructure resulting in severance and amenity issues for remaining businesses. | The project will:
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| Operational amenity impacts such as new/louder noise, light spillage for continuing businesses. | The project will:
The project must demonstrate compliance at all sensitive receptor in accordance with the:
Where noise treatment is required, priority shall be given to treating the noise at the source and to applicable standards, over treatment at the receptor. Noise façade property treatments shall be designed in accordance with the Department’s Road Traffic Noise Guideline or the EPA’s Guidelines for the assessment of noise from railway infrastructure. The project will prepare a Facade Treatment Scope of Works (FTSW) document for each eligible property. |
| Visual impact of project infrastructure for continuing businesses creating amenity issues. | The project will:
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| Changes to pedestrian accessibility, public transport routes and connectivity leading to loss of custom for continuing businesses. | The project will:
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How impacts will be minimised or avoided
Further to the above, a targeted and personalised engagement approach will be undertaken with businesses to determine which measures will be most effective at mitigating impacts associated with the construction and operation of the project. It is acknowledged that they will have different needs at different points in time depending on the construction timetable.
The key construction phases and their illustrative support requirements are:
- pre-construction: businesses will require support that enables effective planning and decision making and/or assistance relocating
- construction: businesses will require support that mitigates the operational and financial impacts of construction activity
- post-construction: businesses may require support (e.g. communicating changes to customers) following the construction phase.
The project is being guided by the Department’s business and stakeholder engagement policies, Small Business Framework and the recommendations set out in the Small Business Commissioner’s guidelines, see Open to Business - Making Roadworks Work.
Approvals
Approvals, permits and authorisations
Whilst there are no internal Department approvals required for the project in relation to business, the project must demonstrate compliance with the South Australian Government Master Specification Project Controls – Small Business Support (MS PC-CS2 – Small Business Support).
The project’s outcomes align strongly with key South Australian and Australian Government priorities including those listed in the following plans, reports, strategies and audits:
- 30-year Plan for Greater Adelaide: 2017 Update
- 20-year State Infrastructure Strategy (2020)
- Australian Infrastructure Audit (2019)
- 2022 Regional Strengths and Infrastructure Gaps
- National Road Safety Strategy 2021-2030
- South Australia’s Road Safety Strategy to 2031
- National Freight and Supply Chain Strategy 2019
- 2021 Australian Infrastructure Plan.
Next steps
The Project Assessment Report (PAR) community consultation period concluded in April 2024. We thank you for your feedback.
The valuable information and local insights received during the consultation phase of the PAR are being considered by the project team and will inform the ongoing refinement of the T2D Project.
