Sydney's first electric hydrofoil water metro — at zero government capital.
A privately funded, TfNSW-compliant urban transit network for Sydney Harbour. ~$980M in 25-year economic benefits. Complementary to Sydney Ferries.
Operational in 12–18 months.
The opportunity
Sydney road congestion was estimated by BITRE at $6.9B for the 2015 financial year, projected to reach $12.6B by 2030. On the same trajectory, the current annual cost is approximately $10–11 billion.[1] Commute times in Sydney are among the longest in the OECD.
Over 100,000 residents live in waterfront communities — Wentworth Point, Rhodes, Sans Souci, Avalon, Mosman, Seaforth — where current road journeys to the CBD take 45 to 90 minutes. The same trips by water can be made in 13 to 45 minutes.Sydney's harbour ferry mode share for harbour-adjacent CBD-bound commuter trips is approximately 7%.[2] The five corridors Water Roads has identified have no existing ferry service.
The solution
Transport as a Service — one contract, zero government capital, deployable in months.
One contract
Water Roads delivers Transport as a Service. One contract covers zero-emission vessels, route optimisation, ticketing, crew, maintenance, and carbon reporting. The State carries no procurement, no operating, and no asset disposal exposure.
Complementary to Sydney Ferries
Water Roads operates five corridors with no existing ferry service — Wentworth Point/Rhodes, Middle Harbour, Eastern Suburbs, Avalon, Sans Souci. The pilot does not compete with the current Sydney Ferries network or the Transdev operating contract.
Deployable in months
The first Vessev hydrofoil arrives in Sydney in May 2026. The pilot service Wentworth Point/Rhodes to Barangaroo can launch by Q4 2026 — a timeframe Sydney Metro projects measure in decades.
The economic case
Conventional cost-benefit analysis using TfNSW Economic Parameter Values v2025.1 (January 2025) in June 2024 dollars. NSW Treasury Carbon Values (December 2024) for CO₂.
All figures on this page use Transport for NSW's published Economic Parameter Values (EPV v2025.1, January 2025), the TfNSW Cost-Benefit Analysis Guide v5.1 (August 2024), and NSW Treasury target-consistent Carbon Values (Deloitte, December 2024). The pilot benefits decomposition is shown below; the full methodology is published in the accompanying Economic Evidence Note v1.0.
Pilot route — Year 1 annual benefits
All values in June 2024 dollars. Source references in italic right column link to the References section anchors. Full decomposition in the Economic Evidence Note v1.0.
Network at five routes — annual benefits and NPV
At the TfNSW standard 7% real discount rate, the five-route network delivers approximately $980 million in 25-year economic value — all of it derived from parameter values published by TfNSW Economic Advisory.
At the 4% sensitivity discount rate used in TfNSW supplementary analysis, the 25-year NPV is approximately $1.4 billion.
The technology
Electric hydrofoils fly above the water at speed, eliminating hull drag. Deep Power converts existing wharves into e-Wharves without grid upgrades.
Electric hydrofoil — proven technology
Hydrofoil technology lifts the vessel above the water surface at speed, eliminating hull drag and reducing energy consumption by up to 85%. Over a 30-year operational lifetime, the carbon footprint is 97.5% lower than equivalent diesel vessels.[4]
Energy comparison is against high-speed diesel fast ferry baseline. Against Sydney Ferries' displacement-hull fleet (RiverCat, Emerald, Freshwater classes), the relative reduction is in the order of 60–70%; Water Roads is complementary to Sydney Ferries, not a replacement.
"The combination of hydrofoils and electric propulsion is the main factor in lowering emissions. This type of vessel has a clear advantage."
— Felix Glaunsinger, KTH Royal Institute of Technology, Stockholm
Deep Power — converts existing wharves into e-Wharves
Deep Power is an Australian-designed floating modular charging platform. It converts existing wharves into electric-enabled e-Wharves without requiring grid upgrades, operates independently of the city electricity grid, and provides emergency power resilience for waterfront communities. Designed in Australia and manufactured in NSW (Canada Bay initially, then Hunter Region).
Climate and carbon
The first NSW transport project to apply NSW Treasury's target-consistent carbon values (Deloitte, December 2024) — aligned to the Net Zero Future Act 2023 trajectory.
Under NSW Treasury Policy Paper TPG23-08, the cost of CO₂ emissions must be included in cost-benefit analysis where material to NPV. In December 2024, NSW Treasury adopted target-consistent carbon values modelled by Deloitte, aligned to NSW's legislated emissions targets under the Net Zero Future Act 2023.[5]
Carbon values data table
Source: NSW Treasury Carbon Values (Deloitte, December 2024). Target-consistent values aligned to NSW legislated emissions targets under the Net Zero Future Act 2023.
1,600 tonnes CO₂-e / year
PILOT CARBON ABATEMENT
From modal shift. 25-year NPV at NSW Treasury central case: ~$3.2M.
~8,000 tonnes CO₂-e / year
NETWORK CARBON ABATEMENT
At five-route maturity. 25-year NPV at NSW Treasury central case: ~$16M, rising to ~$2.7M/yr by FY35.
Net Zero Future Act 2023
50% reduction by 2030, 70% by 2035, net zero by 2050.
Future Transport 2056
Innovation in new transport technologies; waterway activation.
NSW Battery Industry Prospectus
Battery integration and pack assembly market segments to 2030.
Sydney's Ferry Future
Waterway activation and modern fleet renewal.
Future Made in Australia
Sovereign manufacturing, technology transfer, regional jobs.
Parramatta River Strategy
Broader waterfront activations enabled by Deep Power.
Wider economic contribution
Beyond the cost-benefit analysis: the broader economic activity, employment, and supply-chain impacts of the network.
The figures below are Economic Impact Assessment outputs derived from ABS input-output multipliers (2018–19 input-output tables). Per Transport for NSW Principles and Guidelines Section 3.1.6, EIA outputs are reported separately from cost-benefit analysis and are not additive to the CBA benefits shown in The Economic Case above. They measure gross direct, indirect and induced economic activity rather than net welfare benefits.
~$112B
ECONOMIC ACTIVITY (25YR)
Direct, indirect, induced (IO multipliers)
~23,000
JOBS SUPPORTED (25YR)
Tourism, construction, manufacturing, operations
550+
REGIONAL MANUFACTURING JOBS
Across three NSW manufacturing sites
$500K
INDIGENOUS PROCUREMENT / YR
Indigenous procurement target
EIA figures are reported separately from the cost-benefit analysis in Section 4 above, per TfNSW Principles and Guidelines Section 3.1.6 — they measure economic activity, not net welfare. The two should not be added together.
Deliverability and risk
Designed as a reversible pilot. The State carries no capex, no operating exposure, and no asset disposal liability.
Comparison table
Water Roads serves catchments where Sydney Metro extension is not economically viable. The comparison is not substitutive — Metro corridors and Water Roads corridors are different. The point is that the State can add five new transit corridors with zero capex, in 12–18 months, with the option to exit if the pilot does not perform.
NSW manufacturing and jobs
Three regional manufacturing sites. Partnerships with TAFE NSW and AMWU. Aligned with Future Made in Australia.
Newcastle (Hunter Region)
Deep Power battery integration and charging infrastructure assembly. Positions within the NSW Battery Industry Prospectus integration and service segment ($296M market by 2030) and battery pack assembly segment ($270M by 2030). 200–300 jobs in partnership with AMWU.
Nowra (Shoalhaven)
Composite vessel manufacturing and battery integration via Innovation Composites. Heads of Agreement signed. 200 regional jobs with TAFE NSW skills development partnership.
Sydney / Parramatta
Fleet management, route optimisation, and technology platform development. 150 jobs including Me Mel (Goat Island) Indigenous engagement hub.
Year 1
Import complete vessels
Year 2
Onshore assembly & integration
Year 3
Sovereign manufacturing capability
Founded with custodial consent
Water Roads was founded with custodial consent from the Gadigal and Wangal peoples — the Traditional Custodians of the lands and waters on which the pilot service operates. Custodial consent is a foundational condition of the company's existence, not a post-hoc commitment.
Me Mel (Goat Island)
Indigenous engagement hub
$500K
Annual Indigenous procurement target
20 jobs
Indigenous jobs by Year 2
Get in touch
For partnership enquiries, investment discussions, or stakeholder briefings.