SUBMISSION TO INFRASTRUCTURE AUSTRALIA The Outback Way

The Outback Highway Development Council Inc ( OHDC Inc) 

PO Box 42, Laverton, WA, 6400. 

P: 07 46617393 F: 0746617783 E: info@outbackway.org.au 

SUBMISSION TO INFRASTRUCTURE AUSTRALIA 

The Outback Way- ‘Australia’s Longest Shortcut’ 

BACKGROUND 

The Outback Way links Laverton in WA through to Winton in 

Qld through the heart of the nation, providing a trans-national 

link from Perth to Cairns. 

The Outback Way, 2,800 kilometres in length from Laverton to 

Winton, is currently a combination of 1700km of unsealed gravel 

road and 1100km of bitumen. This unique project is in 

partnership with Local, State and Federal jurisdictions to provide 

the third strategic road link. This strategic link provides access 

and creates opportunities for the mining, tourism, pastoral 

sectors, linking transport hubs, reducing the east and west 

connection by 1600km. In addition, the Outback Way offers 

unprecedented access and continuity of education, health and 

policing services for our indigenous, remote and rural 

communities. 

The OHDC Inc is finalising the expenditure of $20million provided 

by Roads to Recovery strategic component, which has been 

matched by state and local governments. The upgrade that has 

been started with these funds includes, taking sections of road 5 

feet below ground level to a grade3 formed road, and lifting and sealing flood prone areas in the channel country in 

western Queensland- a total of 170km. 

To finish the 1100km upgrade of the Outback Way to all weather gravel, $50 million is required over 5 years, to be 

matched by State & Local governments. The Main Roads/ Infrastructure departments in each state and Territory have 

jointly identified the next priority sections requiring the next $10million, based on what section, if improved, would 

enhance connectivity. The funding formula in principle would have the capital costs shared between the 

Commonwealth and the State/Territory governments, with the 7 Local Governments involved contributing via funding, 

labour force, equipment, materials etc. 

As a result of a social, cultural and economic impact study conducted by the OHDC INC, it was estimated that the upgrade 

of the Outback Way has a multiplier effect of 1:1.9 which has been described as exceptional for an infrastructure project. 

Expand Australia’s Productive Capacity 

Rating- Highly beneficial 

How does the initiative meet the strategic priority? 

MINING: 

• The Outback Way provides access to greenfield mine sites, currently being explored and for companies with 

exploration licenses along the Outback Way 

• With the east west link mining companies that have interests in WA & Qld will be able to share equipment 

more realistically. 

FREIGHT: 

• The route links with 3 main rail hubs- Kalgoorlie, Alice Springs and Winton- opening up freight capacity from 

east to west and importantly providing an east/west feeder line to the Adelaide to Darwin railway to take 

products north to Darwin for export or to the southern states. 

• Savings from heavy transport/ vehicle km up when a direct route is used. 

FUTURE REQUIREMENTS 

• Provides an excellent infrastructure corridor from east to west for future water, gas or defence needs. 

1

Provide Data and evidence of how the initiative meets the strategic priority 

• A new major garnet mine in the Harts Range area is being developed and is forecast to have a life output of 

approximately $3 billion. 

• BHP metals exploration & Newmont are actively exploring major nickel deposits near Warburton, this would 

involve movement of approximately 500,000 to 700,000 tonnes of ore per annum. on the Outback Way. 

• Other exploratory prospects along unsealed sections of the Way include base metals in the West Musgrave & 

Petermann Ranges area, base metals on Jervois Station( NT) and near Boulia in Queensland. 

TOURISM – 

• Permits issued between 1st Feb -28th Aug 2005 totalled 288 

Permits issued between 1st Feb -28th Aug 2008 totalled 627. 

• Camping & Motor-home Club of Australia forecast that Grey nomads will double in the next 5years and spend 

10 yrs travelling doing a lap of Australia every 2 yrs looking for a new route. 

• Desert Adventurer Bus travels from Cairns to Alice along the Outback Way 3 times/wk, and wants to expand 

the route to WA when the road is upgraded. 

FREIGHT- 

• The recent update of economic modelling on the Hann Highway in Qld indicated the savings for a direct route 

for heavy vehicles could be up as much as 40- 50%. (Cummings Economics) 

Outline how the initiative is dependant on policy, regulatory, demand pricing, efficiency and or capital 

investment initiatives. 

• Roads to Recovery – Strategic Component policy- which went straight to local councils and NT Government for 

work on their roads. 

• The Outback Highway Development Council Inc (OHDC Inc) has had the Outback Way assessed for Public Private 

Partnership value by Macquarie Bank which deemed it to be unsuitable. 

• Once the Outback Way is developed the ongoing maintenance and further capital works will need to be 

committed to by the appropriate tiers of government. 

Increase Australia’s productivity 



• Reduces the time between east and west by 1600km- 2 days travel for freight. 

• Alternative freight and product distribution routes throughout Australia. 

• Enables better utilisation of existing rail and road infrastructure by creating inter-modal transport hubs 

• Offers an alternative- taking produce up the centre for export, reducing congestion and blockages on 

eastern and western ports. 

• Triple road trains can use the route, increasing volume of freight/ trip from outside Perth to outside 

Townsville. 

• There is an expectation the growth (especially of economies like China), will see strong demand for 

Australian mineral products continue. With some commodity prices coming down, achieving 

efficiencies in costs will be a higher priority. 


The upgrading of the Outback Way has major travel distance implications :- 

• Reducing 1100 km of travel between Alice Springs and Perth and 300 – 500 km between Alice Springs 

and the Queensland coastal regions. 

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• Reducing 1000 km between the Perth/Kalgoorlie area and the regions of northern and central 

Queensland. 

• Providing an alternative route of equal distance between Perth and Darwin. 

• Triple Road trains can move from 50km north of Perth through to the edge of Townsville in Qld. 

• The Outback Way has massive advantages making Alice Springs closer to Perth. 

• It results in Cairns and Townsville being even closer to Alice Springs than Perth and not that much further than 

Darwin and Adelaide. 

• It also makes Alice Springs closer to Rockhampton and Brisbane. 

• The distance to Sydney via the Outback Way will be only marginally more than via the southern route. 

ALTERNATIVE ROUTES 

Perth - Darwin Western Route 4043 km 

Outback Highway 

4029 km 

Brisbane - Perth Southern Route 4334 km 

Outback Highway 

5000 km 

The Outback Way will provide a route Perth to Darwin of almost identical distance to that via the Kimberley. 

The Outback Way route will provide an alternative route between Perth and Brisbane but about 15% longer in distance. 

MINING: Providing a preferred route for mining sector equipment movements 

• For heavy haulage of earth moving equipment- the Outback Way saves $15,000/ mining movement. 

• Approximately 70% of the $26 billion / year of mining activity takes place in Western Australia, Queensland and 

the Northern Territory. 

• 45% of mining companies that are active in Kalgoorlie are also active around around North West of Alice Springs 

and the Mt Isa region in Queensland- making equipment sharing valuable for productivity. 

• The Outback Way reduced the distance by 1000km between Kalgoorlie and Mt Isa saving considerable costs. 

All data from-OHDC Inc Social, Cultural Economic Impact Study 

3



• The Outback Way must be able to take triple road trains- this will be invaluable for freight operators and the 

only trans-national route of its kind in Australia. 

• Major long distance road transport benefits of the route include benefit from being able to use large freight 

efficient vehicles. 

CAPITAL INVESTMENT INITIATIVES- The Outback Highway’s viability is not heavily dependent on particular capital 

investment initiatives along its route, eg. specific mines. However, new mining initiatives currently being 

canvassed in the Alice Springs area would enhance the benefits of road linkages between that area and major 

mining service centres like Kalgoorlie and Mt Isa. 

Diversify Australia’s economic capabilities 



CATTLE INDUSTRY: 

Enables the cattle industry better access to their geographical diversification- many Central Australian Properties have 

properties in western Qld, for risk and drought management purposes. The Outback Way is critical infrastructure to 

increase efficiency in these operations. 

Cattle marketing in Central Australia will be diversified to include WA buyers, being able to transport cattle west. 

Green Brothers in WA have expressed interest in buying cattle in Alice Springs, resting them in Laverton/Kalgoorlie to 

take them onto their operations in WA. 

NEW INDUSTRIES- The upgrade of the Outback Way will also enhance logistics and support ‘in time’ chain management 

for the Horticulture industry and Camel industries. 

With the development of the Outback Way new processing industries may start up in Alice Springs, in western Qld, or 

in Eastern WA, to feed product to the south or north of Australia. 

MINING: new minerals and activity. With increased technology and access provided by the Outback Way, mining 

developments throughout this region of Australia have enormous growth potential. 

TOURISM – a new adventure route for Australian & International tourists to experience- the Outback Way is truly unique 

as ‘Australia’s longest shortcut’ providing a new product for the market place. 

The Outback Way opens up central Australia and offers new ways to see Australia- someone can land in Cairns and hire 

a 4WD and drive to Perth or Alice Springs then fly out to Sydney. The travel routes are numerous now people can go 

east to west across the centre- by car, train or air to complete their trip in inland Australia. 

The Outback Way is also the world’s longest geo-cache trail which is a new adventure tourism activity, with personal 

satellite navigation systems people find the 34 cache’s which are hidden along the Outback Way. The interest in the 

Outback Way is increasing as we have seen a tripling of road usage in 3 years. The growth of the people caravanning 

and ‘doing Australia’ is expected to double in 5yrs and although fuel prices are higher, people are staying longer in 

each place helping the economies of rural and remote communities. 

INDIGENOUS OPPORTUNITIES- the Outback way will also support the 13 indigenous communities along the route, 

encouraging the development of indigenous arts & crafts, bush foods, tourism businesses. 


CATTLE INDUSTRY: 

• Due to the volume of livestock it can cost one producer up to an extra $40,000 to go the long way through Mt 

Isa- 1000 head were sent via Mt Isa costing an additional $40/head. 

• From Boulia to Winton when there was 70km of unsealed road- Cattle going to sale yards lost 10% weight, since 

the road has been sealed they lose only 4% weight. The improvement to the Outback Way equates to 

approximately an extra $150/head. 

• Northern Territory Cattleman’s Association figures on the value and marketing of Cattle in Central Australia. 

4

MINING: 

• A new major garnet mine in the Harts Range area is being developed and is forecast to have a life output of 

approximately $3 billion. 

• BHP Metal & Newmont are actively exploring major nickel deposits near and east of Warburton, this would 

involve movement of approximately 500,000 to 700,000 tonnes of ore per annum. on the Outback Way. 

• Other exploratory prospects along unsealed sections of the Way include base metals in the West Musgrave & 

Petermann Ranges area and base metals on Jervois Station( NT) and near Boulia in Queensland. 

TOURISM: 

• Ngaanyatjarra Land Council Permits issued for travel 

in the aboriginal lands in the between 1st Feb -28th 

Aug 2005 totalled 288 

Ngaanyatjarra Land Council Permits issued between 

1st Feb -28th Aug 2008 totalled 627. 

Indicating a 3 fold increase in 3 years. 

• The tourism trends include adventure routes, eco 

tourism, seeking educational experiences, fly drive 

packages. 

• Camping & Motor-home Club of Australia forecast that 

Grey nomads will double in the next 5years and spend 

10 yrs travelling. They will complete a lap of Australia 

every 2 yrs and then look for a new route. 

• At any one time- there are 1 million people geocacheing 

in the world. 

• There is enormous scope for new tourism bus tours, tag along tours along an upgraded Outback Way. Bus 

companies from Qld, NT & WA have all expressed interest in developing tours along the Outback way. 

• The international tourism routes- indicate the preferred routes visitors enjoy when they come to Australia-the 

Outback Way provides the linkages to deliver the required experience. 

Aboriginal communities along the Outback Way are generally the most knowledgeable of the surrounding landscape 

and are best placed to identify sites to locate small safari camps that provide travellers an alternative to motel rooms 

/ donga’s / bushcamping / campgrounds. Ideally the potential locations would be in proximity to natural features 

(e.g. breakaway, gnamma holes, caves, soaks, ridges, woodlands, dense scrub-bush, etc) that offer potential to 

supplement the accommodation experience with tours, walk trails, flora / fauna spotting or cultural talks. There may 

be scope to access grant funding to design and pre-fabricate safari tents within a community before relocating to the 

selected sites. (OHDC Inc- Integrated Tourism Plan) 

HORTICULTURE: Central Australia 

• Horticultural production in the Alice Springs region, for example table grapes and citrus fruits, is projected to 

grow from approximately $20 million to $80 million over the next decade. Although most produce is projected 

to move south, an upgraded eastern arm of the Outback Way could, in combination with regular freight 

movements, open up additional markets in the eastern states of Australia. 

CAMEL INDUSTRY: 

• With an estimated 50,000 feral camels in the Central Australia / Western Desert area requiring culling at a cost 

of over $40+ per head to keep numbers under control, it is not surprising that a live camel exporting industry is 

developing in this area. It is forecast that through the development of this industry, a turnover of 50,000 head 

per annum over the next 10-15 years could be expected, through which the western arm of the Outback Way 

would play a major role. 



• Tourists and travellers must seek permits from the Central Land Council and Ngaanyatjarra Land Council to 

travel through indigenous land west of the Kata Tjuta, this takes ½ hr and is free. The process could be sent o 

be problematic and restrictive, however at this stage it is useful to collect traveller numbers along these 

roads. 

• The Outback Way goes through a national park however we have a working relationship with Parks Australia. 

• The drivers for business investment will be driven by demand of travellers and freight movements. 

Build on Australia’s Competitive advantage 

Rating- Moderately beneficial 


The upgrading of the Outback Way will reduce operating costs of transport operations servicing the communities along 

the unsealed sections of the Way, including the provision of support fuel for aviation operations at centres like 

Warburton that act as emergency landing alternatives and refuelling points in this vast area. 

5

• However, of most importance, the Outback Way reduces 1600km for movement of transports between Perth, 

Alice Springs and northern and central Queensland. It is expected that almost all transport movements 

between these areas would use an upgraded Outback Way. While the road distance between Perth and 

Brisbane is 15% longer than via southern routes, transport operators on the southern route are confined to 

using “doubles”. With “triples” being able to be used on the Outback Way, it is expected that a substantial 

part (but not all) of road traffic between WA and SE Qld would also utilise the Outback Way. 

• In addition to this the links to Ports in WA- Fremantle, Esperance, Geraldton, Carnarvon, Port Augusta, 

Gladstone, Mackay, Cairns, the Port of Darwin and Townsville 

• The Outback way improves the logistics and chain management solutions or commodities and bulk freight. 

• Importantly, surveying has also indicated that the Outback Way upgrading could complement the operations 

and profitability of the Alice Springs Darwin railway by providing improved feeder links from east and west into 

an Alice Springs inter-modal transfer station for north or south rail freight movement. There would also be 

opportunities for transport operators in Alice Springs to develop new east – west transport opportunities to 

replace north – south transport operations lost as a result of the railway’s development. 


It is expected that the Outback Way would become a major road freight link between the South West of WA and Qld 

for the estimated 300,000 tonnes of road freight per year travelling between these two areas. Projected interstate 

freight vehicle movements over the Way after upgrading are expected to be about 7 per day or 3.5 each way(2003) 

Travel Times 

Based on various discussions, we have estimated travel speeds on the Eastern and Western Arms of the Highway will improve as a result of 

the upgrading as follows :- 

Travel Speed 

Travel Time Unsealed Sections 

Current Upgraded Current Upgraded Time Saving 

hrs hrs hrs 

Light Vehicles Western Arm 80 100 12.75 10.20 2.55 

Eastern Arm 80 100 7.95 6.36 1.59 

Transports Western Arm 50 70 20.40 14.57 5.83 

Eastern Arm 50 70 12.72 9.09 3.63 

Coaches Western Arm 60 80 17.00 12.75 4.25 

Eastern Arm 60 80 10.06 7.95 2.11 

Linking to existing infrastructure throughout Australia- 

Develop our cities and regions 



TOURISM- The increasing tourist activity is having significant flow on effect to local communities along the route, with 

more cash being injected in to the local economies. New tourism infrastructure is being developed, new packages and 

tourism trails are being marketed increasing tourism interest along the Outback Way. 

With a more reliable route through central Australia international tourists would be attracted to experience the 

Outback Way -contributing to the economies of the smaller communities, rather than flying in and out. With 631,000 

overnight visitors in Central Australia annually with an average spend of $185/day, 10% of these travellers would 

provide enormous economic boost to the region. 

Sustainability for a route such as the Outback Way can include environmental, social and economic considerations. 

Social sustainability along the Outback Way is expected to be enhanced as traffic and visitation increase. Social 

sustainability would improve with an increase in employment opportunities, enhanced viability for local enterprises, 

increased opportunity for enterprise development, increased opportunity for community involvement in cultural 

activities (e.g. art, craft, guided walks – tours) and enhanced scope to improve community income and investment. 

BUSINESSES- as the Outback Way is upgraded there will be growth in roadhouses along the route, quick vehicle repair 

centres and potential indigenous tourism activity. 

6


TOURISM 

• Winton: 2007 19,500 visitors @ $95/day returning $1.8million 

2008 Jan – Aug- 13,100 visitors @$95/day returning $1.25million 

• WA Golden Outback Region- 2007- 

789,900 visitors o/nite @$107/day 

$85million 

• The OHDC INC Integrated Tourism 

Study indicates that; 

• Community-run roadhouses, especially 

those in WA, could improve the range 

of services available by offering for 

example, roadside assistance, car/tyre 

repairs, vehicle recovery service (i.e. 

mobi-tow like facilities), short guided 

tours (tucker, culture, medicine, 

dreamtime), evening meals to groups, 

art workshops, etc. In most cases this 

will require the development of 

indigenous enterprises and grant 

funding could be accessible. 

• Aboriginal communities could provide 

access to selected tracks to known sites/attractions/points of interest. These could be sign-posted as strictly 4WD 

only – meaning self-sufficiency is required. This would create additional scope for ‘adventure’ travellers (e.g. 

4WD’ers) to discover the outback and could lead to enterprise opportunities for local communities offering guided 

tours, user pays-camping, the sale of fuel-food, meals/accommodation, cultural talks at designated sites, bush 

tucker tours / tasting, etc. 

(OHDC Inc Integrated Tourism Plan) 

Reduce greenhouse emissions 

Rating- Moderately beneficial 


• By the reduction of distance the Outback Way provides, and by bringing the east and west of Australia closer. 

• Also enabling better use of existing infrastructure by being the feeder to railway and ports- this will reduce 

emissions and transport will be on the road for shorter periods of time. 

• The Outback Way can take triple road trains so can take 1/3 more product/ trip reducing fuel consumption 

and costs for companies and as a result reducing emissions. 


• The Outback Way – tourism project has a carbon offset program for travellers of the Outback Way. Outback 

Way travellers pay $40 to offset their carbon emissions generated from travelling the Outback Way. The OHDC 

who in turn commissions a tree-grower (e.g. Landcare, Men of The Trees, Carbon Neutral, etc) who would 

receive $12-$18 to plant 4-8 trees. This could be extended to freight and transport. 

• Previous maps have illustrated the reduced travel times the Outback Way delivers. 



• The Outback Way can take triple road trains, unlike the Nullarbor Route that is limited to B Doubles. 

• The 7 Shires have collectively agreed on a 9m wide road surface for any works being done along the Outback 

Way, ensuring safety for passing trucks and vehicles alike. 

Improve social equity and quality of life in our cities and regions 



CATTLE: Provides critical infrastructure to access markets for drought affected areas, particularly Central Australia 

and Western Queensland. 

DEFENCE: A large part of the nation’s defence capabilities are now located in Australia’s north and west, areas of 

greater vulnerability and closer to likely world and regional trouble spots. The Outback Way will play a role in 

providing an important “interior line of communication and transportation” route between defence capabilities in 

Australia’s north east and west and an alternative interior link to Darwin. It will also link some of Australia’s important 

7

surveillance facilities. The Outback Way needs to be considered as part of the recently announced Defence audit and 

assessment. The Outback Way links up the Jindalee Over the Horizon Radar Project-with radar facilities in Laverton, 

Harts Range and South of Longreach. 

REGIONAL DEVELOPMENT: 

In regional development terms the road supports the entire region from Laverton through to Winton. Tourism 

opportunities, water resource development, housing, infrastructure supporting aircraft movements in and out of 

communities, health services, education, fuel supplies, infrastructure planning – the Outback Way assists these 

essential services to be organized in a disciplined way helping the integration of institutions and communities to 

successfully knit together. 

Increased tourism and road traffic will have a significant impact on economic opportunities in the existing small 

communities along the unsealed sections of the Way. In national terms, the impacts involved in business development 

and employment are relatively small. 

SERVICES & QUALITY OF LIFE- 

Remote and isolated communities rely on the Outback Way for food, groceries, fuel and government services such as 

education, health and policing. With an improved road people in these communities would enjoy cheaper living costs 

and an improved diet with fresh vegetables, fruit , bread and milk- currently these can only purchased in cans or 

frozen respectively. 

Thirteen communities rely directly on the Western Australian section of road for their survival. But there are many 

more communities in the adjoining desert regions where circumstances are such that life is very fragile. Other more 

obvious beneficiaries of improvements to the dirt road include the mining industry, transiting travellers, the transport 

and commercial industry that service the inland region of the continent and, government people from the public 

sector, including the police. 

The continuity of health and educational services is limited due to access issues as the road may be in poor condition 

due to heavy transport or too wet. Staff for these agencies don’t seem to stay in these communities resulting in 

inconsistent service delivery -As long as people know they can leave a place when they want to, they will stay. 


CATTLE: 22 triple road trains/ day over 4 months out of Boulia due to drought 

Over 500 triple road trains using single lane bitumen July 07 to June 08(149700 head 4737 decks away 1500 decks 

returning, 6237 decks, 6 decks per truck =1040 trucks) 

DEFENCE: 

The Social Cultural & Economic Impact study survey found that the pastoralists 

interviewed indicated the following expectations for social and ‘quality of life’ 

benefits following the proposed upgrade of the Outback Highway: 

• 86% of pastoralists interviewed saw road safety as the impact with the 

highest priority. 

• None of the pastoralists interviewed indicated that the expected road safety 

impacts were not a priority. 

• 80% indicated that recreational and general social benefits were expected. 

• 66% indicated that schooling and educational services benefits were 

expected. 

• 60% indicated that health and medical service benefits were expected 

although 47% of pastoralists indicated that these potential benefits 

were not a priority, for them. 

• 53% indicated that general community and other government service benefits were expected although 57% of 

pastoralists indicated that these potential impacts were not a priority, for them. 

• 47% indicated that policing and security service benefits were expected although 54% of pastoralists indicated that 

these potential impacts were not a priority, for them. 



• The Outback Highway route avoids the safety problems of heavy transports having to pass through cities 

and highly populated areas. 

Linkages 



Tourism routes – the Outback Way connects the void in Central Australia- connecting travellers with the tourism routes 

of WA, SA, NT and Qld directly. The Outback Way links the Stockman’s Hall of Fame ( Longreach), the Transporters 

Hall of Fame ( Alice Springs) and the Miners Hall of Fame( Kalgoorlie) 

Road network/ rail hubs/ Ports: With the Outback Way- product can go from east to west, west to east, west to the 

centre, east to the centre and up to the Port of Darwin by rail. 

Organisation the OHDC Inc is linked with- OHDC Inc members include 

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• Local Governments who make up the OHDC Inc across the entire route from Laverton WA- Winton Qld- 

Laverton Shire, Ngaanyatjarraku Shire, MacDonnell Shire, Alice Springs Town Council, Central Desert Shire, 

Boulia Shire, Winton Shire 

• Regional Development Agency (ACC’s ) Goldfields Esperance, NT & Central Qld. 

• Goldfields Esperance Economic Development Corporation 

• Representatives from Main roads WA, Main Road Qld, and NT Infrastructure & Planning 

• Central Lands Council, Ngaanyatjarra Land Council 

Provide Data and evidence of how the initiative meets the strategic priority- see maps throughout submission 

Support from – 

• Australian Local Government Association, Leonora 

Shire 

• Minerals Council of Australia, Northern Territory 

Cattleman’s Association 

• Remote Area Planning and Development Board – 

Longreach, Winton, Isisford, Diamantina, Boulia, 

Barcoo, Barcaldine, Ilfracombe, Blackall. 

• Transport Hall of Fame- Alice Springs, Desert Sands 

Cartage 

• Hampton’s Transport Services, Penns Cartage 

Kalgoorlie, Australian Trucking Association, 

• Australian Agricultural Co, Northern Australia 

Pastoral Company 

• 

• 

Linkages to other roads, rail and ports 

Moneterised Benefits & Costs- outline of capital expenditure attached pages 11-15 

C) SUMMARY OF BENEFITS 

The following summarises the Net Present Values identified. Those given in brackets are the comparable “on-road” costs where 

“diverted/other” figures are used. 

Western Arm $ Million (cf On-Road Saving) 

Locals 

$7.213 m 

Business 

$8.404 m 

Tourists $17.204 m ($11.766 m) 

Coaches $34.278 m ($18.167 m) 

Cattle 

$0.910 m 

Camels 

$8.993 m 

Local Freight 

$18.347 m 

Interstate Freight * $34.510 m ($40.490 m) 

Heavy Equipment * 

$6.867 m 

Accident Injury Cost Savings + $3.700 m 

Total 

$140.426 m 

Eastern Arm 

$ Million 

Locals 

$1.103 m 

Business 

$1.462 m 

Tourists $18.031 m ($9.793 m) 

Coaches $5.925 m ($11.184 m) 

Cattle $4.709 m ($2.930 m) 

Local Freight 

$2.049 m 

Interstate Freight * $22.152 m ($20.248 m) 

Heavy Equipment * 

$4.209 m 

Accident Injury Cost Savings + $1.796 m 

Total 

$61.436 m 

Overall Total 

$201.862 m 

* NOTE :These are benefits that only accrue if both arms of the Outback Highway are upgraded. 

+ NOTE : For existing traffic only. 

The following table compares these with the initial capital cost and maintenance costs (rendered into “resource price” terms). 

Western Arm 

$m 

Eastern Arm 

$m 

Total 

$m 

Benefits $140.426 m $61.436 m $201.862 m 

Less Maintenance Costs $24.405 m $16.613 m $41.018 m 

Net Benefits $116.021 m $44.823 m $160.844 m 

Capital Costs $42.332 m $41.315 m $83.647 m 

Benefit Cost Ratio 2.741 1.085 1.923 

9

TABLE – ESTIMATED MAINTENANCE COSTS CURRENTLY UNSEALED SECTIONS OF 

THE OUTBACK HIGHWAY – CURRENT & AT ALL-WEATHER GRAVEL STANDARD 

Km 

Current At All-weather Gravel Difference 

$ per Km Total $ per Km Total Total 

Laverton to WA/NT Border 829 $603 $500,000 $3,000 $2,487,000 $1,987,000 

WA/NT Border to Kata Tjuta 191 $1,460 $278,860 $2,500 $477,500 $198,640 

Plenty Hwy to NT/QLD Border 401 $,900 $367,200 $2,500 $1,020,000 $652,800 

NT/QLD Border to Boulia 230 $,870 $200,000 $4,500 $1,035,000 $835,000 

TOTAL $3,673,440 

Allowing 10% reduction to reduce to a “resource price” basis, Net Present Value of the above at a 7% discount 

rate is Western Arm $24.405m, Eastern Arm $16.613m, giving a total of $41.018 million. 

Source of Capital - Table 1. Source of Capital- Total capital targeted to be raised from all sources is $ million (Table 

1) 

Amount ($m) 

State / Territory Governments 

Qld State Government & Shires $3,116,000 

WA State Government & Shires $3,402,000 

Northern Territory Government & Shires $3,482,000 

Sub Total $10,000,000 

Federal Government $10,000,000 

Total $20,000,000 

Accident Costs 

It is concluded in this section that accident injury savings as a result of the upgrading on current traffic levels 

would be about $247,000 pa. on the Western Arm and $120,000 pa. on the Eastern Arm, giving a total of about 

$367,000 pa. Allowing for some natural growth in the existing traffic would give an approximate Net Present 

Value of the stream of benefits from accident injury cost savings on the Western Arm of about $3,700m and on 

the Eastern Arm of about $1.796m, ie. a total of about $5.496m. 

Non- Moneterised Benefits & Costs 

Road construction and maintenance is commonly viewed as an employment-generator. In the general 

community employment is viewed as an economic issue and as function of individual development that leads to 

personal empowerment and community stability. All of these issues and others – traditional values, culture, 

building capacity, and finding ways to overcome boredom - are also important to Aboriginal communities. 

(OHDC Inc - social, cultural & economic Impact Study) 

Further non monetised benefits are outlined in the social equity and quality of life strategic goal. 

Conclusion- 

The upgrade of the Outback Way enables the Commonwealth Government to achieve its clear and committed policy of 

working directly and through the States and Local Government in providing funding for; improved indigenous health, 

education and community welfare, improved major infrastructure for Australia, and the development of Australia’s 

unique tourism industry. The Outback Way assists the Commonwealth government to directly deliver on these policies. 

Our supporting evidence is sourced from the OHDC Inc Social Cultural & Economic Impact Study and Integrated Tourism 

Plan. 

It is in this context, this submission for $50 million through Infrastructure Australia is being sought to support the 

completion of this important strategic road link between WA and QLD. 

10

Capital Requirements- Priority sections of the Outback Way- Itemised by all 3 main roads departments in Qld, NT & WA 

Table 2. Use of Capital for Outback Way 

OUTBACK HIGHWAY – $10 Million Combined Priority Projects 2009-10 

PRIORITY LIST 

Priority 

Location 

(Chainage-km) 

1 269.3 – 282.5 

(13.2km) 

Road & (Road 

Priority) 

Laverton 

WA 

Scope of Work 

Clear, form and construct on existing 

(8.9km) and new alignment (4.3km) 

with sheeted surface 

Justification 

Combined poor horizontal/vertical geometry with low 

lying formation prone to inundation in wet, particularly 

at bog hole locations 

Estimated 

Cost 

$990,000 

2 Donohue Hwy 

100.5 to 105.6 

3 Donohue Hwy 

79.4 – 84.9 

QLD 

Cottonbush Creek 

Floodplain 

QLD 

4* 115.9 - 128 Tjukaruru Road 

(Docker River 

Road) NT 

5 443.5 – 462.53 

(19.3km) 

6 Donohue Hwy 

97.9 – 100.5 

Ngaanyatjarraku 

WA 

QLD 

Raise formation, numerous 

watercourses, construct floodway, 

concrete margin, gravel paving – 

5.1km. 

Form, pave and bitumen surfacing of 

Cottonbush Creek Flood Plain 

Raise, Reform and gravel, improve 

drainage. 

Form up and reconstruct existing 

alignment with new pavement and 

selected geometric and drainage 

improvements 

Widen and regrade formation over 

rocky ground in hilly country. Paving 

and bitumen surfacing, upgrade 

drainage – 2.6km. 

Existing pavement worn out, bulldust sections several 

short sharp gullies prone to scouring in wet. Expensive 

section to maintain 

Wide flat watercourse extends 5.5km beyond main 

channels and is the site of extensive flood damage in wet 

seasons. 

This whole road section is 300 to 500mm below ground 

level in sandy dune country, with minimal drainage. The 

drainage is complicated by high velocity water runoff 

from ranges and ponding in swamp areas. 

Narrow low formation which includes 7 sub-standard 

curves, 1 dangerous crest and 2 floodway locations 

requiring treatment 

Rough stoney surface, and short low radius curves, 

hazardous to stock transports. 

$306,000 

$990,000 

$1,740,000 

$1,322,000 

$440,000 

7 Donohue Hwy 

231.0 – 164.0 

QLD 

Resheet and break up pavement top 

with grid roller 

Paving of existing natural low standard loam formation, 

which perform poorly during prolonged dry periods and 

breaks down into bull dust. Safety problem for all 

vehicles. 

$570,000 

8 

21 – 33 

(14km) 

NT 

Tjukaruru Road 

(TR1) 

Raise, reform and gravel sand dune 

sections and improve drainage 

With current traffic loads, the low strength natural sandy 

material over this section through sand dunes has 

collapsed requiring lifting and capping with gravel. 

Significant ponding 

$1,742,000 

11

9 93 – 107.5 

(14.5km) 

Laverton 

WA 


alignment with improved sheeted 

pavement 

Very rough section constructed of bony material with 

rock outcrops prone to corrugation. 

$1,090,000 

10 Donohue Hwy 

77.6 – 79.4 & 

84.9 – 87.6 

QLD 

Form, pave and bitumen surface outer 

Cottonbush Creek Floodplain 

Connect existing bitumen to bitumen provided in QLD2 

(1.8km) and extend for 2.7km to the west to prevent 

flood damage in outer Cottonbush Creek Floodplain 

$810,000 

Total Preliminary Estimated cost of 10 Priorities 

* This project may be completed in 2008-09- however it is a critical section, and due to clearance issues this project may roll into 2009-10, if not 

another section from the NT future priority improvement list will be moved to the 2009-10 works programme. 

$10,000,000 

Projected Stages- 3, 4, 5 & 6 ( consecutive budget years) 

Priority sections identified for the following budget years- 20010-11 until 2013-14 

OUTBACK WAY (GREAT CENTRAL ROAD) 

PRIORITY IMPROVEMENT SECTIONS IN WESTERN AUSTRALIA 

Priority Location 

(SLK Section) 

4 352 – 384 

(32km) 

5 817.2 – 846.7 

(29.5km) 

6 147.9 – 153.4 

(5.5km) 

7 198 – 219 

(21km) 

8 500 – 508.5 

(8.5km) 

Local Authority Scope of Work Justification 

Laverton 


Laverton 

Laverton 


Form and construct water bound pavement 

on existing (24km) and new alignment 

(8km) 

Form up and construct on existing 

alignment with improved pavement with 

selected geometric and drainage 

improvements. 

Form up and reconstruct on existing 

alignment with water bound pavement 

Form and construct water bound pavement 

on existing alignment 


alignment with improved sheeted surface 

(Includes recon of Tjirrkali Nth Turnoff) 

Poor horizontal geometry (realignments proposed), 

narrow low standard formation prone to severe 

corrugation 

Narrow, depressed formation with five substandard 

curves and four major creek crossings requiring 

improvement. Also requires intersection improved 

with Sandy Blight Rd. 

Very poor condition, low level section, of sand clay 

construction and prone to corrugation. Two flood 

sections require treatment 

Narrow low standard formation prone to 

corrugation with three separate curves requiring 

radius increases to improve safety 

Narrow low formation which remains corrugated 

even after grading includes very poor standard 

intersection which requires reconstruction 

Estimated Cost 

$2,400,000 

$2,065,000 

$415,000 

$1,575,000 

$595,000 

9 540 – 548 Ngaanyatjarraku Reconstruct and primerseal 7m wide on Dust suppression for Warburton Community is an 

$2,400,000 

(8.0km) 

existing alignment and construct improved issue. Elder Ck crossings are in poor condition and 

floodways at Elder Ck North and South require permanent treatment. Tie in with 

community road sealing operations. 

10 8.33 – 15.83 Laverton Reconstruct and primerseal 7m wide on Extend seal north of Laverton and link previously $2,060,000 

12

(7.5km) 

TOTAL COST 

existing alignment and reseal existing 

sealed floodways 

sealed floodways (530m total length). Will also 

provide sealed passing opportunity. 

$11,095,415 

Notes 

1. SLK (Straight Line Kilometre) sections are based on MRWA Alignment plans for the Great Central Road developed in 1997/98. SLKs commence at the intersection of 

Great Central Road and the Leonora – Laverton Rd. 

2. Construction costs for a 10m wide formation including appropriate off road drainage have been estimated as: 

Clear, form and construct with water bound pavement - $75,000 / Km 

Clear, form and construct sheeted gravel surface (no water)- $70,000 / Km 

3 Costs to undertake sealing projects at Priority Projects 9 and 10 have been estimated at $300,000/km for Warburton and $275,000/km at Laverton. 

OUTBACK WAY – QUEENSLAND 

FUTURE PRIORITY IMPROVEMENTS 

Priority 

QLD5 

Location 

(SLK Section) 

Donohue Hwy 

138.4 – 164.0 

Local 

Authority/Roa 

d 

Scope of Work 

Major realignment (referred to in earlier 

studies as Realignment B) 

Justification 

If and when the section is formed and paved it would be 

more economical to do it on the new alignment past 

Lake Wanditti. Considerable distance saved. 


$2,100,000 

QLD7 

QLD8 

Donohue Hwy 

11.3 – 21.3 

Donohue Hwy 

229 – 239 

Kelley Ck to 

Ridges 

TOTAL COST 

Realign road from Ch 17.4 to Ch 20.1 and 

pave and seal Ch 11.3 to 21.3 

Pave and bitumen 

Realignment and earthworks to avoid sharp curve near 

crest and improve alignment through a creek bed. 

Paving and bitumen sealing the whole section to 

prevent loss of gravel and extend existing bitumen 

Flooding will cause damage to newly improved section. 

Remote location 220km from Boulia with resultant high 

repair costs. 

$1,800,000 

$1,800,000 

$5,700,000 

13

OUTBACK WAY – NORTHERN TERRITORY 

PRIORITY LIST – September 2007 

Future – NT -Priorities 

Priority 

Location 

(Chainage-km) 

Road & (Road 

Priority) 

PT1 200 - 229 Plenty 

Highway (PT1) 

Scope of Work 

Raise, Reform and regravel, improve 

drainage. 

Justification 


No, shape, No drainage, very sandy road surface $2,000,000 

PT2 400 - 460 Plenty 

Highway (PT2) 

PT3 293.5 – 325.0 Plenty 

Highway (PT3) 

PT4 288.25 – 293.50 Plenty 

Highway (PT4) 

Widening and lift existing formation, 

upgrade gravel pavement and install 

improved drainage. 

Margins and stabilised floodways at Bonya 

Creek, lifting & widening the gravel 

formation, and drainage works. 

Concrete Margins and stabilised 

pavement. Forming Lifting, widening, 

gravel sheeting, drainage works. 

Section has narrow running widths and steep batters $3,500,000 

with formation up to 300mm below natural surface in 

sections and drainage problems with ponding water. 

This section currently has many areas, which in the wet $3,500,000 

causes lengthy closures due to ponding of water and 

bog holes, with the road surface being up 300m below 

natural surface level. 

This section currently has many areas, which in the wet $600,000 

causes lengthy closures due to ponding of water and 

bog holes, with the road surface being up 300m below 

natural surface level. 

No, shape, No drainage, very sandy road surface $2,400,000 

PT5 181 - 220 Plenty 

Highway (PT5) 

Raise, Reform and regravel, improve 

drainage. 

The Commonwealth Government is providing $8.0 million for upgrading the Plenty Highway as part of the $81 million Community, Beef and Mining 

Roads Upgrade Program of which the Australian Government will fund $52 million and the Northern Territory Government $29 million. The priorities 

for the Northern Territory Government – Plenty Highway will be considered in scoping the $8.0 million proposed program.” 

TR1 

33 – 55 

Tjukaruru 

Road (TR1) 

Raise, reform and gravel sand dune 

sections and improve drainage 

With current traffic loads, the low strength natural 

sandy material over this section through sand dunes has 

collapsed requiring lifting and capping with gravel. 

Significant ponding 

$1,258,000 

TR2 

171 – 181 Tjukaruru 

Road (TR2) 

Raise, reform and gravel and improve 

drainage 

This whole road section is 300 to 500mm below ground 

level in sandy dune country, with minimal drainage. 

$1,250,000 

14

TR3 181-189 Tjukaruru 

Road (TR3) 

Widening and lift existing formation, 

upgrade gravel pavement and install 

improved drainage. 

Section has narrow running widths and steep batters 

with formation up to 300mm below natural surface in 

sections and drainage problems with ponding. 

$1,000,000 

TR4 0 -21 Tjukaruru 

Road (TR4) 

Raising the formation, widen and gravel 

and associated drainage works 

Poor draining and ponding causes closures in the wet. 

Current running surface is extremely rough upgrade 

well below natural surface level. 

$2,000,000 

$17,508,000 

Total Preliminary Estimated cost of 9 Priorities 

* These future priority sections have been identified for further years of funding- however priority sections need to be reviewed annually as weather and usage can alter 

road condition significantly. 

15

SUBMISSION TO INFRASTRUCTURE AUSTRALIA The Outback Way

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