Tees Valley Combined Authority New Tees Crossing

Updated Outline Business Case

11 November 2020 Version 2.0 Issue

Tees Valley Combined Authority 2240-01 ▪ New Tees Crossing ▪ Updated Outline Business Case 11 November 2020 ▪ Version 2.0 ▪ Issue

Document Control

Client: Tees Valley Combined Authority Project Title: New Tees Crossing Job Number: 2240-01 Report Title: Updated Outline Business Case

Date Version Status Author Checked Approved

18/12/2018 0.1 Draft E Roberts J Spruce J Spruce 20/03/2019 0.2 Draft E Roberts J Spruce J Spruce 10/10/2019 0.3 Draft E Roberts J Spruce J Spruce 24/10/2019 1.0 Issue E Roberts J Spruce J Spruce 10/09/2020 1.1 Draft E Roberts J Spruce J Spruce 30/10/2020 1.2 Draft E Roberts J Spruce J Spruce 03/11/2020 1.3 Draft E Roberts J Spruce J Spruce 11/11/2020 2.0 Issue E Roberts J Spruce J Spruce

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Tees Valley Combined Authority 2240-01 ▪ New Tees Crossing ▪ Updated Outline Business Case 11 November 2020 ▪ Version 2.0 ▪ Issue

Contents

Executive Summary 1 1 Introduction 4 1.1 Overview 4 1.2 Business Case 4 1.3 Document Content and Structure 7 2 The Strategic Case 8 2.1 Step 1: Setting the Context 10 2.1.1 Tees Valley Area Profile 10 2.1.2 Middlesbrough and Stockton-on-Tees Area Profile 18 2.2 Step 2: Identifying Transport Barriers 20 2.2.1 Tees Valley Transport Issues 20 2.2.2 A19 and River Crossing Issues 25 2.3 Step 3: Exploring Options and Strategic Alternatives 39 2.3.1 Objectives 39 2.3.2 Options 40 2.4 Step 4: Exploring Impacts of Interventions 44 2.4.1 Main Impacts 44 2.4.2 Wider Impacts 45 2.4.3 Measures for Success 47 2.5 Step 5: Aligning with Wider Local Plans and Objectives 47 2.5.1 Tees Valley Local Plans 47 2.5.2 River Tees Port Expansion 48 2.5.3 Other Large Scale Developments 49 2.5.4 Middlesbrough Investment Prospectus 51 2.5.5 Stockton-on-Tees Economic Strategy 2017-2032 52 2.5.6 Other Transport Proposals 53 2.6 Step 6: Considering Wider Evidence and Stakeholder Views 55 2.6.1 Stakeholder Views 55 2.6.2 Wider Policy Alignment 57 3 The Economic Case 66 3.1 Options Appraised 66 3.2 Methodology and Assumptions 66

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Tees Valley Combined Authority 2240-01 ▪ New Tees Crossing ▪ Updated Outline Business Case 11 November 2020 ▪ Version 2.0 ▪ Issue

3.3 Present Value of Costs 68 3.3.1 Investment Costs 68 3.3.2 Operational and Maintenance Costs 69 3.4 Present Value of Benefits 69 3.4.1 Scheme Transport User Benefits 69 3.4.2 Construction and Maintenance Delays 70 3.4.3 Safety Benefits 71 3.4.4 Reliability Benefits 72 3.4.5 Wider Benefits 74 3.5 Environmental Impacts 74 3.5.1 Noise 75 3.5.2 Air Quality 76 3.5.3 Greenhouse Gases 77 3.5.4 Landscape 78 3.5.5 Townscape 79 3.5.6 Biodiversity 79 3.5.7 Historic Environment 80 3.5.8 Water Environment 80 3.6 Social Distributional Impacts 82 3.7 Value for Money 83 3.8 Appraisal Summary Table 85 3.9 Preferred Option 85 3.10 Sensitivity Tests 85 3.10.1 Highways England Cost Estimate 86 3.10.2 High and Low Growth 87 3.10.3 OBR Lower Growth Forecasts 88 3.10.4 High Carbon Price Valuation 88 3.10.5 Summary 89 4 The Financial Case 90 4.1 Costs 90 4.1.1 Scheme Preparation and Construction 90 4.1.2 Maintenance Costs 91 4.2 Risk Allowance 91 4.3 Spend Profile 92 4.4 Budgets/Funding Cover 93

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5 The Commercial Case 95 5.1 Commercial Viability 95 5.2 Output-based Specification 95 5.3 Procurement Strategy 96 5.4 Payment and Charging Mechanisms 97 5.5 Risk Allocation and Transfer 97 5.6 Contract Length and Management 99 5.7 Human Resources Issues 99 6 The Management Case 100 6.1 Evidence of Similar Projects 100 6.2 Project Dependencies 100 6.3 Governance, Organisational Structure and Roles 101 6.4 Project Plan 104 6.5 Assurance and Approvals Plan 105 6.6 Communications and Stakeholder Management 106 6.7 Programme/Project Reporting 107 6.8 Risk Management Strategy 108 6.9 Benefits Realisation Plan 113 6.10 Monitoring and Evaluation Plan 114 7 Summary 118

Appendices Appendix A: Staged Overview of Assessment Report Appendix B: Public Consultation Report Appendix C: Appraisal Specification Report Appendix D: Combined Modelling and Appraisal Report / End of Stage 2 Economics Appendix E: Environmental Assessment Report Appendix F: TAG Supporting Workbooks and Worksheets Appendix G: Appraisal Summary Tables Appendix H: Options Estimate Report Appendix I: Procurement Strategy Appendix J: Project Management Plan Appendix K: Project Plan Appendix L: Stakeholder Engagement and Public Consultation Strategy Appendix M: Risk Management Plan Appendix N: Risk Register Appendix O: Benefits Realisation Plan Appendix P: Monitoring and Evaluation Plan

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Tees Valley Combined Authority New Tees Crossing – Outline Business Case 11 November 2020 ▪ Version 2.0 ▪ Issue

Executive Summary

This document and its supporting appendices comprise the Outline Business Case for a new strategic road crossing of the River Tees, in the approximate location of the existing A19 Tees Viaduct.

As this submission clearly demonstrates, there is a strong and robust case for investment in a New Tees Crossing, therefore it is recommended that the scheme is prioritised for funding so that the many benefits that it will deliver across the Tees Valley City Region can be realised as soon as possible. In particular, the scheme will:

• Relieve the existing A19/A66 bottleneck, enhancing the reliability of people’s journeys across the Tees Valley’s road network and reducing the cost to the local and national economy due to congestion and delays;

• Reduce journey times for local people – most drivers are expected to save more than two minutes of travel time during peak periods – unlocking development potential in the City Region through the provision of additional road capacity and making the Tees Valley more attractive to inward investors and visitors;

• Improve the resilience of the network and therefore reduce the negative impact of events such as roadworks and road traffic accidents;

• Make journeys safer by improving the standard and capacity of the road network;

• Improve access to the Tees Valley’s Enterprise Zone sites, the Teesworks site, the expanding port facilities along the River Tees (where there is an aspirations for a freeport) and Teesside International Airport;

• Deliver connectivity and journey time reliability enhancements for freight and logistics traffic – a key component of the Tees Valley’s growth plans;

• Support the economic growth objectives of the Northern Powerhouse and the Tees Valley City Region; and

• Help realise the full benefit of the committed A19 Norton to Wynyard improvement scheme, which is due for completion by 2022/23.

The preferred option – the A19 Tees Viaduct Capacity Enhancement Option – has been identified as the one that will achieve the agreed objectives and provide a holistic solution to the identified national, regional and local issues identified.

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In summary, the preferred option for the A19 New Tees Crossing will provide localised widening of the existing viaduct structure to provide three southbound lanes throughout the length of the existing Tees Viaduct between the A1046 and A66 intersections. In addition, it will also provide a new bridge structure to carry local northbound traffic, to the west of the existing Tees Viaduct structure.

The economic analysis of the preferred option demonstrates that an adjusted benefit : cost ratio of over 1.5 is generated if wider economic impacts are considered, representing Medium value for money.

However, it is important to note that the overall value for money of the scheme encompasses more than just the benefit : cost ratio value – there are a range of benefits for which the standard approach does not provide a monetisation methodology, or for which the calculation is outside of the current scope of assessment. These benefits are more strategic in nature, and include:

• Unlocking future development growth across the City Region through the provision of additional road capacity (although not specific developments are dependent on the scheme);

• Increased network resilience through the provision of additional lanes across the River Tees and the removal of existing vehicle conflicts; and

• Reducing the negative impact of the ongoing and significant maintenance requirements associated with the existing Tees Viaduct and Newport Bridge structures.

A cost estimate for the preferred option has been developed by Highways England including a calculated allowance for risk assuming they take the lead in scheme delivery from this point forward. This outturn cost is £468,573,365, which also includes a further allowance for portfolio risk. Excluding portfolio risk, this figure is £426,592,574.

Several potential funding routes have been considered for the scheme, with Department for Transport considering the most appropriate to be the Large Local Major schemes element of the new National Roads Fund, with a contribution from TVCA. TVCA is proposing to contribute £21.33 million (5% of the Highways England cost estimate excluding portfolio risk, as would be the case with a scheme not on the Strategic Road Network) from its own resources to the scheme, having already provided a significant contribution to the development costs alongside Government funding.

However, given that the scheme lies on the Strategic Road Network, it should be delivered by Highways England through its procurement processes and procedures allied to the Project Control Framework.

A sound governance structure has been in place throughout the life of the scheme, and Highways England has been closely involved in its development since inception. Highways England is

2 Tees Valley Combined Authority New Tees Crossing – Outline Business Case 11 November 2020 ▪ Version 2.0 ▪ Issue supportive of the scheme, and its teams have reviewed the traffic, economic and environmental products prepared in support of this business case. Transition arrangements have been considered should this OBC be accepted, funding granted, and the scheme transferred to the Highways England portfolio of major projects.

A project plan has been developed setting out all of the key project tasks and their duration, the interdependencies between each of the tasks, and key milestones and gateways. This plan envisages a start of works in Summer 2025 and completion of the scheme by Summer 2028.

Finally, to support the ongoing development and implementation of the scheme, a stakeholder engagement and public consultation strategy has been created and outline benefits realisation and monitoring and evaluation plans produced. The most recent public consultation exercise, carried out in 2019, demonstrated a high level of support for the scheme from both the business community and the travelling public.

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1 Introduction

1.1 Overview

The economic geography and peripheral nature of the North East is one of the greatest challenges to delivering future growth and prosperity across the region. This is particularly true for the Tees Valley as it contains a number of centres within a small geographical area. Much of the recent activity from the Tees Valley Combined Authority (TVCA) and the Local Authorities has been aimed at addressing the challenges of job losses in the industrial economy, issues of inequality, high unemployment and social exclusion and the difficulties within the local housing market. However, whilst the local economy now has stronger foundations as a result, further targeted intervention is required in order to achieve the ambitious growth targets set by TVCA.

The lack of a single dominant commercial centre has transport implications and means that good interconnectivity is vital for the Tees Valley to function effectively. The Tees Valley Strategic Economic Plan (SEP), the developing Local Industrial Strategy and Strategic Transport Plan (STP) clearly articulate the need for better transport connections across the City Region, providing businesses and residents with a high quality road network that is safe, less congested and more reliable.

This will boost competitiveness through improved connectivity across the North, as identified in Transport for the North’s (TfN’s) Strategic Transport Plan, linking key sectors and leading industries with other centres of expertise outside of the Tees Valley. An improved road network across the Tees Valley will also provide more access to global markets, increasing the capacity for growth and creating more jobs for the people of the City Region – this is particularly important as 70% of major local businesses are internationally owned.

1.2 Business Case

This document and its series of appendices comprise the Outline Business Case (OBC) for a new strategic road crossing of the River Tees, in the approximate location of the existing Tees Viaduct on the A19, as shown in Figure 1.1 and Figure 1.2, as well as the following photographs.

The A19 is a dual carriageway trunk road that runs from its junction with the A1 at Seaton Burn, north of Newcastle, through (via the A168) to the A1(M) at Dishforth, thereby providing the principal north-south strategic road link through the Tees Valley City Region. The new crossing will address existing congestion and network reliability issues on this key route that, unaddressed, will constrain the Tees Valley’s growth ambitions.

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Figure 1.1: Location of Existing A19 Tees Viaduct (OpenStreetMap)

Figure 1.2: Aerial View of Existing A19 Tees Viaduct (Google Maps)

Portrack Interchange Newport Bridge

Tees Viaduct

A19/A66 Interchange

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1.3 Document Content and Structure

This document has been prepared in accordance with Transport Business Case guidance, Strategic Case Supplementary Guidance: Rebalancing Toolkit and WebTAG Transport Appraisal guidance issued by the Department for Transport (DfT). It also recognises the requirements of Highways England’s Project Control Framework (PCF), HM Treasury’s Green Book and associated supplementary guidance on public sector business cases.

The remainder of the document is structured as follows:

• Chapter 2: The Strategic Case, which presents the rationale for undertaking the scheme by demonstrating the need for change, and how the intervention furthers the aims and objectives of not only the TVCA and its constituent authorities, but also DfT, Highways England and TfN;

• Chapter 3: The Economic Case, which demonstrates the impacts of the scheme in terms of value for money in relation to economic, social and environmental impacts;

• Chapter 4: The Financial Case, which explains how the scheme costs have been derived and illustrates how the scheme is affordable and fundable;

• Chapter 5: The Commercial Case, which demonstrates that the preferred option will result in a viable procurement and a well-structured contract between the public sector and its service providers;

• Chapter 6: The Management Case, which demonstrates that robust arrangements are in place for the delivery, monitoring and evaluation of the scheme and that the necessary arrangements are in place for change and contract management, benefits realisation and risk management.

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2 The Strategic Case

This chapter of the OBC defines the policy and business strategy alignment, examines the existing characteristics of the local area and the problems identified (both current and future), identifies a series of scheme objectives and sets out the options that have been considered. It therefore demonstrates the case for change – that is, the rationale for making the investment.

It has been prepared with particular reference to the DfT’s Strategic Case Supplementary Guidance: Rebalancing Toolkit, published in December 2017, which is designed to help authors of strategic cases assess how a programme or project fits with the objective of spreading growth across the country, and also introduces a framework for presenting the rebalancing case more consistently.

Figure 2.1 summarises the justification for the scheme in line with the six steps set out in the Rebalancing Toolkit, each of which is explored in more detail in the following sections of this chapter.

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Figure 2.1: Summary of the Strategic Case

Some increase Persistent High levels of Ageing, growing Poor but economic and ongoing multiple STEP 1: population with external output remains labour deprivation CONTEXT younger cohort perceptions below UK demand and significant moving away of the area average issues disparities

Current Problems

Few high capacity Limited alternative routes Safety issues due to vehicular river crossings of suitable capacity network configuration

Existing crossings will Inter-operation of Tees Focus of demand on a few require increasing Valley Local and routes across City Region maintenance due to age of Strategic Road Networks STEP 2: structures TRANSPORT BARRIERS Demand for road use still Planned and unplanned high and will increase incidents have high impact

Future Problems Increasing delays, congestion, high travel costs, unable to support growth, making Tees Valley less attractive for investment

Objectives of Scheme Primary: Improve network performance, resilience, safety and minimise impacts on the natural and built environment STEP 3: Secondary: Support the economic growth objectives of the Northern Powerhouse and the Tees OBJECTIVES Valley City Region, support sustainable local residential development, AND OPTIONS Option 2: A19 Tees Viaduct Capacity Option 1: A19 Tees Viaduct Option Enhancement Option

Impacts

STEP 4: IMPACTS

Measures for Success

STEP 5: Middlesbrough and Other Transport Proposals WIDER River Tees Port Expansion Stockton Local Plans and – particularly A19 Norton LOCAL Economic/Investment to Wynyard Improvements PLANS Strategies

Wider Policy Alignment STEP 6: Stakeholder Views: Transport Investment Strategy TfN Strategic Transport Plan WIDER Public Highways England Route Strategy STDC EVIDENCE Businesses Tees Valley SEP and STP

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2.1 Step 1: Setting the Context

2.1.1 Tees Valley Area Profile

Covering over 3,300 square miles, the Tees Valley comprises the five local authority areas of Darlington, Stockton on Tees, Hartlepool, Middlesbrough, and Redcar and Cleveland. The area represents 1.2% of the population of England and 0.6% of the English land mass. It is highly urbanised, with 90% of the population living in urban areas. The population is concentrated in the five main town centres (35%) with the remaining population located in the suburbs, in smaller settlements, or, the remaining 10%, in rural areas.

Demographic Context

The Office of National Statistics’ mid-2019 population of Tees Valley is estimated to be 675,944 of whom:

• 132,111 people are aged 0-15 (19% of population);

• 413,143 people are aged 16-64 (62% of population); and

• 130,690 people are aged 65 and over (19% of population).

Although there has been an upward trend in the size of the population since 2000, population growth has lagged below that in the North of England and England as a whole. The Tees Valley population is projected to continue its long term growth seen since the start of the millennium with growth then projected to slow both locally and nationally reaching around 680,600 by 2036. By 2037, the population is expected to increase by 1.2% compared to a 10% rise nationally and a 5% rise across the North of England.

The Tees Valley age profile is also older than in the North of England and England, demonstrated by a higher median age (41.1 in Tees Valley, compared with 40.6 and 39.8 respectively), and a lower old age dependency ratio (3.1 persons of working age for every person of state pensionable age in Tees Valley, compared with 3.2 and 3.3 respectively). There is an ageing workforce, exacerbated by the high percentage in the 18-20 and 24-29 age cohort who currently choose to move away from the Tees Valley.

Although there is projected growth, it is not expected in all age groups. The working age population (aged 16-64) is predicted to be almost 23,000 lower in in 2037 at 57%, down from 62% in 2017. Conversely, there will be an increase in the proportion of over 65s, with the percentage of the population over the retirement age expected to grow from 19% in 2017 to a quarter in 2037. Coupled with the fall in working age

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population, this will bring skills shortages when experienced and highly skilled staff leave the workforce. There will also be implications for health services as pressures increase.

Ensuring that the proposed economic growth and additional jobs envisaged in the SEP are delivered will require more inward migration from other population centres to counter the decrease in working population. This will mean the transport network will have to cope with a greater demand for travel to/from and around the City Region. These additional travel demands will exacerbate existing issues on the strategic and local road networks described later in this section. A new crossing of the River Tees is an important step in providing a national, regional and local road network that is fit for the future.

Social Context

Whilst the population of the Tees Valley is predominantly White British (93%), the Tees Valley is home to a small Black and Minority Ethnic (BAME) community with Middlesbrough having an ethnic make-up that more closely reflects the national picture (86% of Middlesbrough’s population is White British compared with 80% of England’s).

There are still high levels of severe disadvantage across Tees Valley. The Index of Multiple Deprivation combines different aspects of deprivation, including income, employment, education and skills, health and disability.

The Tees Valley has a relatively high proportion of lower super output areas (LSOAs) within the most deprived 10% nationally, ranking as the second most deprived Local Enterprise Partnership (LEP) in England (out of 38 LEP areas). 121 or 29% of Tees Valley’s 417 LSOAs are in the 10% most deprived nationally, almost three times the national rate.

The Tees Valley is most deprived in the Health domain, with Employment deprivation second and Income deprivation a close third. More positively, Tees Valley shows relatively low levels of deprivation in both Barriers to Housing & Services and Living Environment domains.

At the local authority level and out of 317 districts nationally, Middlesbrough has the highest proportion of LSOAs within the national most deprived 10% with Hartlepool 10th, Redcar & Cleveland 29th, Stockton-on-Tees 39th and Darlington 47th. All five local authority areas now rank amongst the 15% most deprived local authorities in England. However, the numbers within the second and third deciles match the national average and the number of LSOAs which are within the least deprived in the country has been growing over time, indicating that the polarity within Tees Valley is increasing. This disparity in levels of deprivation is illustrated in Figure 2.2.

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Figure 2.2: Distribution of LSOA Deprivation Scores across Tees Valley (IMD, 2019)

The Tees Valley has higher death rates than the national average – by 11% - for both Males and Females – this is equivalent to around 625 extra deaths each year. All Tees Valley Local Authorities have death rates above the national average. Standard Mortality Rates (SMRs) are a strong indicator of deprivation and all the results, with few exceptions, follow the pattern of high SMRs in deprived areas and low SMRs in more affluent areas.

Unemployment is a persistent issue, with youth unemployment, deprivation and barriers to work being particular problems. Long term unemployed people face multiple and complex barriers when accessing work.

To reduce unemployment, it is vital to ensure education, training and job opportunities are easily accessible, particularly in the identified growth and high demand sectors. Increasing the mobility of residents will help to support the workforce offer of the Tees Valley – it will increase the accessibility of employment sites and contribute to releasing capacity on the transport network to accommodate future development.

The Tees Valley, and particularly Middlesbrough and Stockton, have an opportunity to increase the number of people in employment by ensuring easy and affordable access to jobs, education and training. A new crossing of the River Tees will provide businesses with better connectivity to the Tees Valley and support employment, particularly within Enterprise Zones and the expanding port facilities on the River Tees, including the South Tees Development Corporation (STDC) site.

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Economic Context

Aggregate economic output (as measured by GDP) from Tees Valley amounted to £16.2bn in 2018, a 2.1% real terms decrease on 2017. This compares to real terms increases of 1.4% nationally and 1.2% in the North of England as a whole. Tees Valley GDP now accounts for 3.9% of the North of England’s GDP, 0.88% of England’s and 0.76% of the UK’s. The annual change in GDP for the Tees Valley is shown in Figure 2.3.

Figure 2.3: Real terms GDP index (2008 = 1), Tees Valley, North of England and UK

These figures clearly pre-date the recent COVID-19 pandemic which is having a significantly detrimental impact on GVA across the UK. Current Bank of England forecasts show a sharp recovery in 2021, but it will likely be 2022/23 before GVA returns to the levels seen at the end of 2019. However, investment in economic infrastructure, such as the highway network, will be vital to ensure that the recovery takes place as quickly as possible to minimise the long term impact to the UK economy. Targeting such investment in areas where GDP was already lagging behind, such as the Tees Valley, will be even more important.

The City Region has a significant productivity challenge, particularly in relation to GVA per head of population, illustrated in Figure 2.4. At £20,370 per annum, the Tees Valley’s GVA per capita was some 71.5% of the UK rate in 2018, representing a GVA gap that has increased by 50% in real terms since 2009. This output gap results from Tees Valley residents having relatively low economic activity and employment rates, a small pool of working age people and lower productivity.

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Figure 2.4: Tees Valley Productivity Indices (2018)

Whilst overall GVA is low, GVA per employee in the production sector (£86,000 in 2014) is well above the LEP average of £76,800, and other major LEP geographies such as Leeds, Manchester and Birmingham. Production industries (such as process or advanced engineering) contribute over 50% more of Tees Valley’s economic output than the sector does for England as a whole. Both Construction and Public Services also account for a higher share of the area’s total GVA than they do nationally. Professional & Business Services and to a lesser extent Other Private Services, including Culture & Leisure, Logistics, Wholesale & Retail, IT and Media contribute relatively less to the Tees Valley’s output than in England as an average.

There were 17,765 business enterprises in Tees Valley in 2019, up by 535 on the year before. This meant the Tees Valley business density rate increased from 318 enterprises per 10,000 residents aged 16+ (63.7% of the UK rate) in 2018 to 327 (64.8% of UK) in 2019. This represents an enterprise gap of 9,650 compared to the UK.

The Tees Valley resident employment rate peaked in 2017 at 69%, whilst nationally and regionally the rate continues to rise. Over the last year the Tees Valley rate has risen slightly by 0.2 percentage points compared to a 0.6% rise nationally and a 0.4% rise across the North of England. However, this slight rise in rate is due to a fall in the working age population rather than an increase in people in employment, with 100 fewer 16-64 year olds in employment, whilst nationally and regionally numbers in employment have risen. 281,100 Tees Valley residents aged 16-64 were employed in 2019, 68.6% of the working age population, compared to 75.8% nationally. Figure 2.5 illustrates the recent trends in the employment rate.

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Figure 2.5: Employment Rate Trends (2014 – 2019)

In August 2019, 5.2% of Tees Valley residents aged 16-64 were claiming either Job Seekers Allowance or Universal Credit (and required to seek work) compared to 3.1% nationally. This rises to 6% for 16-24 year old residents, double the national rate of 3%.

The Tees Valley historically has a low percentage of residents employed in high value occupations compared to the national average – with 38.4% employed in high value occupations in 2018 compared to 42.1% nationally, 3.8% below the national average compared to 4.5% in 2013. Residents are less well qualified than many other parts of the country – in terms of Degree/Level 4+ qualifications in 2018, the area needs an additional 34,800 residents qualified to that level to match the UK rate.

A summary of these key economic indicators, and the gaps to the national average, is shown in Figure 2.6.

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Figure 2.6: Summary Economic Indicators

Despite these issues, the Tees Valley has significant strengths. It has the fourth highest proportion of businesses undertaking product or service innovation in the UK and it is part of the only continuous net exporting region of goods in the UK with additional opportunities to pursue. The Tees Valley has also been ranked in third place in the UK for business expansion of existing companies, and business start-up rates continue to outperform the UK average.

The TVCA has ambitious plans to grow the City Region economy over the next ten years, aiming to create 25,000 new jobs and 22,000 new homes, making the Tees Valley an even better place for residents and businesses. To deliver on these ambitions, the TVCA recognises a need to build on existing strengths and world-class expertise in areas such as advanced manufacturing (particularly oil and gas, metals and automotive), chemicals and process and logistics, and invest in growing capability in new industries, such as biologics, subsea, digital/creative and the low carbon economy. Businesses within these sectors are spread right across the City Region, as shown in Figure 2.7.

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Figure 2.7: Key Tees Valley Business Locations

There are also a wide range of cost-effective sites and premises across the Tees Valley, with a number of Enterprise Zone sites and a total of 423 hectares available for new business investment that offer financial incentives, as well as simplified planning and superfast broadband. The sites include both new and established business and enterprise parks, plus large cleared industrial sites with access to utilities, port services and logistics.

11 of the 12 Tees Valley Enterprise Zone sites lie within 20 minutes’ drive of the A19, as shown in Figure 2.7, and the A19 serves areas of all four prime capabilities from the Northern Powerhouse Independent Economic Review, including Belasis Business Park, Tees Advanced Manufacturing Park (TeesAMP), Queen’s Meadow Business Park and North Shore Innovation Centre.

Despite the clear opportunities for economic growth, the ageing population implies labour supply constraints will increase meaning that there is the potential for there to be a lack of sufficient local workers in the future. The jobs base is also dependent on a small number of large employers, although there is a comparatively high business start-up rate, particularly amongst lifestyle entrepreneurs. Promoting the towns and rural areas of Tees Valley to change external perceptions of the area will assist in attracting and retaining a larger workforce.

New transport investment will make it easier for visitors, leisure and business to come to Tees Valley. The New Tees Crossing will support the economic prosperity of the Tees Valley through enhanced connectivity. The new crossing will improve

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journey times for commuters, businesses and visitors to the local area as well as for trips into and out of the Tees Valley City Region from the north and south.

2.1.2 Middlesbrough and Stockton-on-Tees Area Profile

Middlesbrough and Stockton and the river corridor between them lie at the heart of the Tees Valley City Region. Both Boroughs have the potential to deliver enhanced, city-scale facilities, services and infrastructure to drive forward the economy.

Middlesbrough Council is a unitary authority serving an area covering approximately 5,400 hectares with a population of 138,412 (2011 Census). From its mid-19th century origins, the economy of Middlesbrough was built upon iron, steel and heavy manufacturing along the river and around its port. The traditional economic base of heavy industry and petrochemicals went into decline in the 1970s and 1980s, shedding labour and becoming more capital intensive in the face of external competition. Since this time the economy of Middlesbrough has restructured by diversification into light and general industry and by enhancing the town centre as the focal point for retail, leisure, commercial and civic administration for the whole Tees Valley City Region.

This has been a long term process and a number of indicators show that Middlesbrough’s economy is still weak compared with other areas, with low skill levels, high unemployment, low rates of business formation, and a low cost/income economy. However, the indicators also show that Middlesbrough has been making strides towards economic recovery in recent years.

Middlesbrough town centre is the principal retail centre for the Tees Valley City Region and the third largest retail centre in the North East. It is also the single largest employment destination within the Tees Valley employing over 20,000 people and as such, is the principal economic driver within the Borough. Much of this employment, nearly 90%, is within the service sector. The flow of people who travel to work in Middlesbrough from outside of the town is greater than that of people who live in the town but travel to work outside in other districts. Whilst this illustrates the importance of Middlesbrough as an employment centre, there are still many local people who cannot gain access to the job market because of a lack of skills or education.

Middlesbrough’s population is also in decline. Since peaking at about 160,000 in the 1960s, the population has been steadily falling. The decline has come about as a result of outward migration, as opposed to declining birth rates or increasing death rates. If allowed to continue it could impact upon Middlesbrough’s role within the Tees Valley City Region, and the ability to deliver quality services to the population. More recently, there has been an increase in house building activity following the adoption of the Middlesbrough Housing Local Plan in November 2014 and the setting

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of ambitious targets for new homes by Middlesbrough Council. Middlesbrough has a flourishing Asian community and has the highest proportion of minority ethnic communities in the Tees Valley at 6% of the town’s population.

Despite recent improvements in the local economy and employment, the majority of Middlesbrough’s inner area terraced housing and social rented housing estates in east and west Middlesbrough, experience high levels of multiple deprivation. Middlesbrough is the local authority with the highest proportion of lower super output areas in the most deprived 10% nationally according to the 2019 Index of Multiple Deprivation, unchanged for the 2015 indices. There is a complex relationship of social and economic factors including high long term and male unemployment, low income, benefit dependency, poor educational achievement, ill health, low car ownership often linked to other factors such as poor housing and high local crime rates.

Stockton-on-Tees Borough Council is a unitary authority with a population of 196,487 (Stockton-on-Tees Borough Profile 2019). It consists of Stockton-on-Tees town centre and smaller outlying settlements including Billingham, Norton, Thornaby, Yarm and Ingleby Barwick. Durham Tees Valley Airport is also partly within the Borough. The Borough accounts for the largest number of residents within the Tees Valley City Region.

The working age population has declined in recent years from a peak of 124,474 in 2011 to 121,500 in 2019 – so in 2011 those aged 16-64 made up 64.9% of the population, and by 2019 this had fallen to 61.6%. The population aged 16-64 is forecast to decrease further by 2031. By 2031, the population aged over 65 is forecast to increase in Stockton-on-Tees by 41.0%, which is higher growth than both the national (+38.5%) and Tees Valley (+35.7%) projections.

The area of Stockton-on-Tees Borough is 20,393 hectares in size. It owes much of its early development to the River Tees. By the 17th century, Stockton-on-Tees became a major river port transporting coal to London. The Borough is also famous for the first passenger railway as well as for its iron and steel industries. Although little remains of Stockton-on-Tees’ industrial heritage, the River Tees has an increasing focus for leisure following the development of the Tidal Barrage in 1995. Extensive regeneration programmes are also being brought forward for many of the former industrial sites.

The Borough has had to adapt and respond to change and now represents a modern industrial and service-based economy. Although the existing manufacturing base is smaller, it is still significant with a technically and highly skilled workforce remaining. There were 5,445 registered businesses located in Stockton-on-Tees in 2016, around one third of the businesses in the Tees Valley.

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The number of residents in Stockton-on-Tees that are economically active is 95,500 (76.9%), 90,500 of which are in employment, and an estimated 5,200 are unemployed (April 2019 - March 2020). The employment rate of 76.9% is lower than nationally (79.1%), but higher than regionally (75.5%). Unemployment has followed a similar pattern to that of the City Region, and remains higher than national averages, peaking at 11.1% (10,600) in 2012. Since then there has been a fall to 5.4% which, unlike the national rate, is still higher than the rate before the 2008 economic downturn.

Stockton-on-Tees’ commuting patterns from the 2011 Census indicate that over half (44,347) of employed residents lived and worked in the Borough, with the addition of 7% (6,438) who were classed as homeworkers, 7% (5,836) had no fixed workplace, and 1% worked offshore. Stockton-on-Tees has a net inward commuting pattern, as 768 more people travel into the Borough for work than leave it. 34% (29,650) of residents travel outside the Borough for work and 35% of Stockton on-Tees’ workers originate from outside the Borough.

The Borough has a unique social and economic mix with discrete geographical areas of multiple and isolated types of deprivation, situated alongside areas of relative affluence. The 2019 IMD show Stockton-on-Tees is ranked 113 out of the 317 Local Authorities districts in England, making it within the 35% most deprived areas nationally. Whilst 15% of the population live within the top 20% of least deprived areas of England, 29% live in the 20% most deprived areas. In addition, 18 out of the 120 LSOAs across Stockton-on-Tees are within the 10% least deprived LSOAs in England, whereas 35 of the LSOAs are within the 20% most deprived LSOAs in England. Comparisons with the 2015 IMD indicate that the gap is increasing between the most deprived and the less deprived areas of the Borough.

2.2 Step 2: Identifying Transport Barriers

2.2.1 Tees Valley Transport Issues

Tees Valley is recognised as an economic functioning geography with several economic foci, rather than one single dominant commercial centre. This polycentric character results in complex traffic flows between the various centres which, combined with the significance of intra-regional commuting indicates the importance of good, reliable interconnectivity for the economy. The polycentric nature of the labour markets is shown in Figure 2.8.

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Figure 2.8: Tees Valley Labour Markets

87% of residents work within Tees Valley, with relatively few commuters crossing the Tees Valley boundary (around 248,000 people live and work in Tees Valley with 38,000 Tees Valley residents working outside of the area and 35,000 Tees Valley workers resident in other areas).

Whilst most people work within their district of residence, there are substantial proportions travelling between districts within Tees Valley, as illustrated in Figure 2.9.

In terms of flows to Tees Valley’s neighbouring areas, there is a small net out-flow of around 700 commuters to North Yorkshire (comprised of 9,700 out-flow and 8,900 in- flow) with a similarly small net out-flow to Tyne & Wear of 1,300 (5,800 out-flow and 4,600 in-flow). The largest commuter flows are with County Durham with a net in- flow of close to 6,900 (comprised of 10,600 out-flow and 17,500 in-flow).

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Figure 2.9: 2011 Census Travel to Work Data

With approximately a quarter of the population of the North East and a higher population density, the Tees Valley demonstrates a greater reliance on motor vehicle transport than the wider region. Despite recent and ongoing improvements to sustainable modes, for example through the Tees Valley Bus Network Improvements scheme, motor vehicle traffic has continued to grow in recent years and commuting by road, by any form of motorised vehicular transport, continues to the dominate travel patterns within the City Region. Figure 2.10 illustrates the trend in motor vehicle traffic, which has grown again in recent years since a dip as a result of the economic downturn in 2008.

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Figure 2.10: Tees Valley Motor Vehicle Traffic Trends

5,200

5,100

5,000

4,900

4,800 Million Vehicle Kilometres Vehicle Million 4,700

4,600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year

Car travel accounts for 72.6% of all journey to work trips in the Tees Valley (2011 Census) and road transport will continue to play a significant role in the future economy of the City Region.

For the River Tees screenline, that includes the A19 Tees Viaduct and Newport Bridge, the same trends in continued growth in car and total traffic levels is evident, as shown in Figure 2.11.

Figure 2.11: River Tees Screenline

Car All Traffic

140,000

130,000

120,000

110,000

100,000

90,000

80,000 Annual Average Daily Flow Daily Average Annual 70,000

60,000 2011 2012 2013 2014 2015 2016 Year

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The main road network in the Tees Valley comprises the A1(M) and A19, with north- south connections via Darlington and Middlesbrough respectively, and the east-west A66, A689 and A174, which connect Middlesbrough, Stockton, Hartlepool, Redcar, Teesport and Durham Tees Valley Airport to the A19, A1(M) and beyond. These key links provide the main source of strategic trip making for the Tees Valley, delivering vital connectivity to the North East and the rest of the UK.

As strategic routes, the A1(M), A19, A174, and the A66 west of the A19, and the A1053 between the A174 and A66 fall under the remit of Highways England. The A66 east of the A19 comes under the authority of Middlesbrough Council and Redcar and Cleveland Borough Council. The A689 falls under the auspices of the local highway authorities of Durham County Council, Stockton-on-Tees Borough Council and Hartlepool Borough Council and is part of the recently designated Major Road Network.

Whilst the Tees Valley does not suffer from widespread traffic congestion to the same extent as some other city regions, there is significant congestion on localised sections and corridors. This congestion could hinder access to some areas and impact on the distribution of goods, potentially stifling regeneration proposals.

Traffic flows are focussed along the north-south A1(M) and A19, and along the east- west A66 and A689. In places the A19 carries up to 51% more traffic than the A1(M) in the Tees Valley City Region, underlining the demand for north-south connections through the heart of the Tees Valley.

It is recognised that economic growth in the Tees Valley hinges on the provision of first-rate transport links. The movement of freight is of particular importance due to the industrial and manufacturing activities located in the region and the international gateways of Teesport and Teesside International Airport.

A range and choice of transport to key labour markets is important in order to provide opportunity for everyone to access appropriate employment. The car or van is used for 73% of the journeys to work in the Tees Valley, compared with 62% nationally. Car ownership is increasing and forecast to rise further, increasing pressure on the road network in the immediate future.

Economic specialisation within the Tees Valley as part of the vision for regeneration is likely to reinforce its polycentric form, hence transport solutions that support this economic vision to provide better quality links between centres will be vital. Furthermore, freight movements are key to the Tees Valley economy, both through its manufacturing industries and as movements through its several ports, including the deep sea facilities at Teesport. Therefore, future economic growth requires that the transport network is able to accommodate increased freight movements. In particular, the A1(M), A19 and A66 strategic routes are highlighted as key for the City

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Region. In general, improved connections beyond the region to the rest of the country, and to London in particular, are also highlighted as being desirable.

2.2.2 A19 and River Crossing Issues

Current River Crossing Capacity

There are currently 10 crossing points of the River Tees between the west of Stockton and the coast, as illustrated in Figure 2.12. Six of these existing points are for vehicular traffic, however, only two of these are capable of carrying significant volumes of traffic – the A66 Surtees Bridge and the A19 Tees Viaduct.

Figure 2.12: River Tees Crossing Points

Highway crossing capacity and how it has changed over time is illustrated by the timeline below. The timeline indicates that there has been little increase in capacity since 2008 and this was only to upgrade an existing structure.

• A1130 Victoria Bridge – current bridge opened to traffic in 1887;

• Transporter Bridge – opened to traffic in 1911;

• A1032 Newport Bridge – opened to traffic in 1934;

• A19 Tees Viaduct – opened to traffic in 1975;

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• A66 Surtees Bridge – Originally opened to traffic in 1981 (with two lanes each way), the current bridge (with three lanes each way) opened to traffic in 2008; and

• Princess of Wales Bridge - opened to traffic in 1992.

The A66 Surtees Bridge crosses the River Tees in an east-west direction, and is three lanes wide in either direction, however only two are available for through traffic, with the third acting as a weaving section between the junctions with the A135 and the A1045. It also has a pedestrian/cycleway on its southern side. The bridge structure itself is relatively new, having been opened in 2008 to replace a previous bridge that suffered from differential settlement.

The A19 Tees Viaduct is the key north-south crossing of the River Tees. It is three lanes wide in each direction, although again only two lanes are used by through traffic, with a weaving section over the Viaduct itself, and no hard strip or hard shoulder, nor any pedestrian facilities. This section of the A19 currently carries between 100,000 and 106,000 vehicles per day (using September 2019 recorded traffic flows from Autolink and 2018 DfT Road Traffic Statistics respectively). The parallel A1(M) carries only 46,600 (2018 DfT Road Traffic Statistics) at the point at which it crosses the River Tees, emphasising the importance of this route.

The Tees Viaduct and the adjoining Portrack Flyover (the section of the A19 to the north of the River Tees, passing directly over the Portrack Roundabout), were built between 1973 and 1975. The Viaduct was designed with sufficient clearance to allow ships to pass, although since Newport Bridge had its lifting deck functionally removed in 1990, large shipping can no longer reach this point.

Newport Bridge itself is the designated strategic diversion route for the Tees Viaduct but carries only 19,800 vehicles per day (2018 DfT Road Traffic Statistics). Further east, the only remaining crossing option is the historic Transporter Bridge, which carries less than 1,000 vehicles per day.

To the west of the A19, the Tees Barrage is owned by the Canal and River Trust. It is unsuitable for large volumes of traffic (especially being a private road) and is currently designated for through use by pedestrians and cyclists only. The Tees Barrage also restricts the passage of large vessels, with the maximum size being 25.0 metres long and 6.0 metres wide. Within Stockton centre, there are two pedestrian bridges, a rail bridge and a further two road bridges (Princess of Wales Bridge and A1130 Victoria Bridge), neither of which are suitable to carry significant additional volumes of traffic.

As a result, north-south traffic, whether strategic or local in nature, principally uses the existing Tees Viaduct.

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A19

At a strategic level, the A19 provides links from the Tees Valley City Region to the North East and Leeds City Region, the former having the second largest inter-city region flows east of the Pennines. There has been recent investment in two “Pinch Point” junction improvement schemes by Highways England at the A19/A174 Parkway and A19/A689 Wynyard junctions.

However, the A19 also connects the key centres of the commuting population in the Tees Valley and the North East and therefore accommodates a large number of short urban trips. 60% of the trips on the existing Tees Viaduct have an origin and a destination within the Tees Valley City Region, emphasising the inter-operation between the strategic and local road networks.

The dual role that the A19 is currently performing impacts upon the ability of the route to function in its strategic capacity, adding to the problems described below at the Tees Viaduct. The zone of influence of this crossing can be significant with the extent of congestion arising from any incident dependent upon the severity. Congestion on the A19 can stretch between the A174 Parkway to the south and A689 Wynyard to the north if there is an incident on or around the Tees Viaduct. It is more difficult to define the precise east-west influence of the existing crossing as congestion spreads on the local road network due to the limited number of vehicular crossing points in the area.

There is an aspiration to remove or reduce levels of local traffic on the existing Tees Viaduct, reducing weaving movements and thereby increasing strategic road capacity so as to provide a more reliable, safer, north-south through route. An improvement to the Tees Viaduct section of the A19 together with the other improvements being undertaken along the A19, will also provide a higher quality diversionary route for the A1/A1(M), as well as reduce increasing pressure on the other crossing points on the local road network.

Road Safety and Accessibility

Low speed rear shunt accidents are prevalent on the existing Tees Viaduct, and this section of the A19 contains two of the top 250 collision locations on the strategic road network (ranked 52 and 158), as illustrated in Figure 2.13.

Collision data for the five year period from January 2015 to December 2019 provided by Autolink shows that, over this period, there were 51 personal injury collisions on the A19 main carriageway (total of both directions) between the A66 interchange and the A19/A1046 Portrack junction. The average number of collisions per year is 10.2. The collision rate per million vehicle kilometres is 0.077, based on a 2016 two-way AADT estimate of 95,095 (attained from Highways England’s Webtris tool) and

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mainline carriageway lengths measured between the start of merge taper and start of diverge nose.

Figure 2.13: Road Safety Issues (Highways England, 2014)

The COBALT 2009 default collision rate per million vehicle kilometres for this type of road (D3AP) is 0.123, with the rate reducing annually to a value of 0.083 for 2016. The safety performance of the existing road is slightly better than what could be expected for this type of road, however, whilst the overall performance of the road is just above average, data again indicated a higher than average incidence of low speed rear shunt accidents on the route and a clustering of such incidents on the Tees Viaduct.

All of the current crossing points of the River Tees in the local area are multi-modal with the exception of the A19. There is a cycle ban on the A19 between the A174 and the A689 that was implemented following a cyclist fatality. Hence, there is no

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current provision along the A19 for non-motorised users (NMUs) at this location which requires them to use the crossings in Stockton, Tees Barrage or Newport Bridge.

Pedestrian/cycle severance is present for housing developments along the A19 on the section between the A66 and A174. In particular, there are currently accessibility and severance issues for pedestrians and cyclists at the A19/A1130 interchange.

Bus operations in the Tees Valley run predominantly on the local road network and utilise the Victoria or Newport Bridges, although the coach services and the X9 service to Newcastle currently use the A19 at the existing Tees Viaduct. Congestion and issues on the local roads due to incidents on the strategic road network can have a significant detrimental impact on bus operations across the City Region.

Asset Condition

A series of works is due to commence on the A19 to replace the bridge piers on the Tees Viaduct and Portrack Flyover sections of the A19. This will be a like for like replacement to extend the life of the structure and no changes to carriageway alignment are proposed. Autolink’s DBFO concession requires the existing viaduct to be handed back to Highways England in 2027 with an agreed residual life on all the assets on the viaduct. The structural residual life of the viaduct is 60 years on handback.

The life of the existing Tees Viaduct structure is estimated (by Highways England) at 120 years from the date of construction (1975) with the pier replacement ongoing maintenance. However, given the age of the Tees Viaduct structure, ongoing and increasing maintenance intervention in the longer term will be required in any event.

Incidents and Network Resilience

Traffic flows on the A19 can also be disrupted when incidents occur resulting in the need to close/partially close the route, or when high winds (between 45 and 50 mph, depending on their direction) require the closure of the Tees Viaduct. Any issue on the A19 or A66 causes significant congestion on the local road crossings, and the wider local road network. This can result in traffic delays over a wide area both north and south of the River Tees. Diversion of traffic also creates problems for the other vehicular crossings, with a lack of overall resilience in the network due to few convenient, alternative ways to cross the river which are suitable for high volumes of traffic and heavy vehicles.

One incident on the Tees Viaduct involved the closure of two lanes of the northbound carriageway due to a HGV fuel spillage which occurred on 18 October 2017 at 8.50am. The lanes were not fully opened until 10.30am, causing heavy tailbacks for morning commuters and business travel. This is a typical example of the type of disruption that occurs on a regular basis.

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The official diversionary route for this part of the A19 is the adjacent Newport Bridge and crosses the river to the east of the Tees Viaduct. Newport Bridge is a Grade II listed structure that typically carries around 23,000 vehicles per day. The bridge was closed to traffic in 2014 to undertake essential maintenance works, causing significant additional congestion which at one stage, extended northwards beyond the A19/A179 Sheraton Interchange, a distance of 11 miles. Examples of this level of congestion are shown in Figures 2.14 and 2.15 taken from images from Roadworks.org.

Due to the age of the structure (it opened in 1934), the requirement for future maintenance will intensify, with a major refurbishment due in the next 5 to 10 years which will require severe traffic restrictions and, potentially, full closures for prolonged periods. The ability of Newport Bridge to accommodate traffic diverted from the A19 will therefore be compromised on an increasing basis.

Figure 2.14: Monday 13 October 2014 (1757 hours)

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Figure 2.15: Tuesday 14 October 2014 (1808 hours)

The principal impacts of congestion and incidents are as follows:

• Unreliable journey times on key route for local and strategic traffic;

• Congestion affecting local residents and businesses as well as strategic journeys;

• A lack of road network resilience over a wide area;

• Cost to the economy from drivers caught in congestion and additional time for goods to be delivered; and

• Problems exacerbated by limited alternative routes (especially for heavy goods vehicles).

Network Performance Issues

The A19 across the existing viaduct is 3 lanes with one allocated for weaving movements. According to Advice Notice TA46/97 (the relevant document at the time) Annex D, a typical congestion reference flow (CRF) for a dual 3 lane all-purpose trunk road is 103,000. CRFs are an estimate of the Annual Average Daily Traffic (AADT) flow at which the carriageway is likely to be ‘congested’ in the peak periods on an average day and relate to links between junctions. For the purposes of calculating the CRF, ‘congestion’ is defined as the situation when the hourly traffic demand exceeds the

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maximum sustainable hourly throughput of the link. At this point the effect on traffic is likely to be one or more of the following: flow breaks down with speeds varying considerably, average speeds drop significantly, the sustainable throughput is reduced and queues are likely to form.

The most recently published DfT traffic statistics indicate that the AADT flow on the Tees Viaduct is 106,000 vehicles, with a September 2019 recorded two-way flow of 100,000 vehicles. The former is in excess of the typical CRF for a dual 3 lane all- purpose trunk road. However, it should also be noted that on this section of the A19, the practical CRF is likely to be a lot lower than 103,000 due to the number of merges, diverges and weaving sections that will reduce the link capacity below the theoretical level. The section of the A19 over the Tees Viaduct, and the approaches to it, regularly suffer from stationary traffic, where only 55% of journeys are classed as being “on time” by Highways England.

Analysis has been undertaken of traffic growth at the existing crossing between 2010 and 2017 in each hour of the day. Figures 2.16 and 2.17 present the results and clearly show that peak period delays have constrained growth at the crossing over this period and resulted in peak spreading. For example:

• Growth has been less than 5% southbound between 7-9 am on the A19 between 2010 and 2017;

• Growth has only been around 2.5% southbound between 4-5pm between 2010 and 2017 and growth has been prevented (declines) between 5-6pm on the A19; and

• Growth has been prevented (declines) at 8-9am and 4-6pm northbound on the A19.

Figures 2.18 and 2.19 present the observed journey times along the A19 between the A139 and A66 south-facing slips from June 2017. Each of the plotted lines is from a specific weekday with the average shown in red. The graphs show that during peak periods there is a wide variation in travel times, which can more than double at such times of the day.

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Figure 2.16: A19 Southbound Change in Flows between 2010 and 2017

Figure 2.17: A19 Northbound Change in Flows between 2010 and 2017

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Figure 2.18: A19 Northbound Journey Times

Figure 2.19: A19 Southbound Journey Times

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Further analysis of the data has been carried out and Figures 2.20 to 2.23 illustrate the percentage of days that experience delays of different magnitudes on the A19 northbound (between A1130 and A139 junctions) and southbound (between A1046 and A66 junctions) as well as the A66 eastbound (between A1130 junction and A19 northbound on slip) and westbound (between A19 northbound off-slip and A19 northbound on-slip).

Figure 2.20: A19 Northbound Delays

Figure 2.21: A19 Southbound Delays

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Figure 2.22: A66 Eastbound Delays

Figure 2.23: A66 Westbound Delays

The data indicates:

• Over 70% of all A19 journeys northbound are delayed between 1 and 5+ minutes between 4 and 5pm;

• Around 70% of all A19 journeys southbound are delayed between 1 and 5+ minutes between 4 and 6pm;

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• Around 65% of all A19 journeys southbound are delayed between 1 and 5 minutes between 8 and 9am; and

• Around 65% of all A66 eastbound to A19 northbound journeys are delayed between 1 and 5+ minutes between 4 and 6pm.

The observed journey time data for the route between the A66 and A139 junctions (a distance of around 2.5 miles) indicates that northbound on the A19 there is around an average of 1.5 minutes delay at peak times compared with overnight free flow condition. However, there is a lot of variability around that average with the worst observed being 8.3 minutes delay. In the southbound direction there is on average 2 minutes of delay at peak times compared with free flow travel times with again a large variation and the worst observed delay was nearly 5.5 minutes over this period.

Trafficmaster data has been used to establish existing observed travel times on the A19 and compare the difference between actual travel times and “target” times (based on a 60mph average speed) at different times of day. This is summarised in the Table 2.1, for the sections between the A179 (Sheraton) and the A67 (Crathorne) within the Tees Valley, and that immediately adjacent to the Tees Viaduct, between the A689 and the A174.

Table 2.1: Existing Travel Times and Targets

Section AM Peak (minutes) Inter-Peak (minutes) PM Peak (minutes)

Current Target Current Target Current Target

Sheraton - 19.85 16.90 17.39 16.90 17.91 16.90 Crathorne (S/B)

A689 - A174 (S/B) 9.82 7.80 8.16 7.80 8.73 7.80

Crathorne - 17.10 16.90 16.82 16.90 17.05 16.90 Shearton (N/B)

A174 - A689 (N/B) 7.96 7.80 7.70 7.80 7.85 7.80

The difference in the target time between time periods and directions is a further illustration of the variance in speeds and journey times experienced on the route at present. Overall, these results show that a 60mph average speed is not currently achievable at any time of the working day, due to existing network constraints.

The southbound journey time in the AM peak is significantly below the 60mph average, and this is where the positive benefits of the committed A19 RIS1 Norton to Wynyard improvement scheme (see below) would be reduced without a complementary intervention on the Tees Viaduct section. Indeed, there is a

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significant chance that the improvement could actually exacerbate the pinch point at the Tees Viaduct, as a result of future increases in through traffic demand.

The levels of congestion experienced on the SRN and LRN in the vicinity of the existing Tees Viaduct can be illustrated by Google “typical traffic” maps. Figures 2.24 and 2.25 illustrate traffic congestion experienced on a typical Tuesday during the AM (0830) and PM (1730) peak periods. These suggest that there is between 1-4 minutes delay southbound at peak times and 1-5 minutes delay northbound at peak times. The lack of growth in peak periods indicates these delays and unreliable journey times are suppressing demand for the crossing with drivers travelling at other times to avoid it.

Figure 2.24: AM Typical Traffic Congestion (Tuesday, 0830)

Figure 2.25: PM Typical Traffic Congestion (Tuesday, 1730)

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This congestion will act as a constraint on future growth aspirations, particularly those sectors more reliant on reliable road transport connections, as well as creating additional issues on the local road network.

The poor road safety record and accessibility issues relating to the existing situation were described previously. The relatively high level of low speed rear “shunt” accidents recorded on the existing Tees Viaduct is likely to be a reflection of the current operational and performance issues.

Whilst few bus services use the Tees Viaduct section of the A19, any issues on the LRN resulting from incidents on the SRN will inevitably have adverse impacts on bus service operation, particularly the network of services between Stockton and Middlesbrough.

A more detailed summary of the current problems and challenges was presented in the Client Scheme Requirements Report and the Additional Capacity Issues Workshop Report provided as part of the Strategic Outline Business Case (SOBC) documentation.

2.3 Step 3: Exploring Options and Strategic Alternatives

2.3.1 Objectives

Based on the foregoing analysis of context and current/future problems, the following objectives have been identified for this improvement scheme.

The primary objectives relate to the specific problems, in terms of performance and efficiency, that should be addressed. The secondary objectives reflect the strategic level requirements that the scheme should also support, although acknowledging that no specific developments should be dependent on the scheme.

Primary:

• Reduce congestion and provide reliable north-south journey times on the A19;

• Improve resilience of the river crossing itself and the wider strategic road network to the impact of events such as roadworks and adverse weather;

• Reduce the number and severity of incidents for all road users.

• Minimise adverse impacts on health and environment;

• Reduce the impacts of the route on severance for local communities;

• Provide value for money.

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Secondary:

• Support the economic growth objectives of the Northern Powerhouse and the Tees Valley City Region;

• Improve access to the City Region Strategic Centres, STDC site, Enterprise Zone sites and expanding port facilities along the River Tees, including Teesport;

• Support sustainable local residential development in the medium to long term.

• Improve access to jobs and services for all road users;

• Support the SRN in delivering enhanced national and pan-Northern connectivity;

• Deliver connectivity enhancements for freight movements.

2.3.2 Options

The assessment of options for improvement was started in 2015 with the establishment of a “Task and Finish” Group, comprising representatives from Highways England, the TVCA, together with Middlesbrough and Stockton Councils. Planned transport infrastructure at the time was taken into consideration in drawing up a long list of potential alignments for a new crossing. The aim of the option generation process was to develop a range of potential solutions to address the need for intervention as identified above.

A description of each of the long list of options can be found below:

• Option A: An eastern alignment over the River Tees between the A66 at Southbank and Teesport;

• Option B: From Riverside Park Road to Cowpen Bewley Road in Billingham;

• Option C: From Haverton Hill Road to Riverside Park Road;

• Option D: From Riverside Park Road to Portrack Interchange;

• Option E: Crossing close to Newport Bridge;

• Option F: Removing non-strategic network traffic from the flyover (i.e. Middlesbrough and Portrack bound traffic) using an alternative lower alignment river crossing;

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• Option G: A new crossing to the west of the existing Viaduct between the A66/A19 interchange and Portrack Lane;

• Option H: A strategic bypass of the A19 Tees Viaduct on a lower alignment;

• Option J: Enhanced access to the existing crossing point at Tees Barrage Way;

• Options K + L/K + M: Diversion of A19 to the west of Stockton;

• Option N: Combination of works at Portrack Interchange to remove the bottleneck;

• Option N + E: The combination of works at Portrack, to remove the existing pinch point, with a crossing close to Newport Bridge (Corridor between D and E) to provide additional capacity; and

• Option C + B.

The long list of options generated and taken through the sifting process is illustrated in Figure 2.26.

An initial sift of the options was undertaken to eliminate those that did not deliver or had minimal alignment with the scheme objectives identified previously. The options were also tested using the Tees Valley Multi-Modal Model to assess how much relief each option would provide to the existing A19 Tees Viaduct. From this process, four options were identified as meriting further detailed modelling and assessment.

These four options were as follows:

• Option H;

• Option A;

• Option F; and

• Option N + E.

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Figure 2.26: Location of Long List of Scheme Options

The DfT’s Early Assessment and Sifting Tool (EAST) was utilised to better understand how these four options perform and compare. The EAST assessment aims to identify, at a high level, the nature and extent of all the economic, environmental and social impacts of the options. The use of EAST allows unpromising options to be discarded and identified shortlisted options to be taken forward for further development and assessment. To document the process, a Staged Overview of Assessment Report was prepared, providing more detail on the process by which the partners generated and sifted options in order to identify those that are more likely to achieve the project objectives. This is included at Appendix A.

The EAST process led to two options being subsequently refined and assessed in more detail – known as the Newport Bridge Option and the A19 Tees Viaduct Option, as shown in Figure 2.27.

In December 2017 it was decided that the Newport Bridge Option should not be progressed as detailed traffic modelling identified that the option caused Newport Interchange to operate beyond its theoretical capacity in the opening year of 2027 and there was no practical or cost effective improvement that could be undertaken to address this. To ensure that the performance of the A19 Tees Viaduct Option was challenged, it was felt important that a new option be selected for it to be compared against.

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Figure 2.27: Shortlisted Options

The resulting review of previously discarded solutions and discussions around potential new routes resulted in an alternative, the A19 Tees Viaduct Capacity Enhancement Option, being identified. This option is illustrated in Figure 2.28 (which also show the Portrack Relief Road).

Figure 2.28: A19 Tees Viaduct Capacity Enhancement Option

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In summary, the preferred Capacity Enhancement Option for the A19 New Tees Crossing will provide localised widening of the existing viaduct structure to provide three southbound lanes throughout the length of the existing Tees Viaduct between the A1046 and A66 intersections. This widening will entail the construction of a new southbound carriageway on a significant number of bridge structures adjacent to the existing ones, which would then be attached to the existing viaduct to avoid differential settlement. The loading from the new southbound carriageway will not be carried by the existing viaduct.

In addition, it will also provide a new bridge structure to carry local northbound traffic, to the west of the existing Tees Viaduct structure. The new crossing is envisaged to take the form of a post-tensioned concrete deck which would be constructed as a balanced cantilever or a steel box girder with concrete slab deck.

Further information is presented in the Staged Overview of Assessment Report.

In relation to active travel modes, the scheme will maintain the existing public rights of way and footways beneath the existing Tees Viaduct and the Portrack Relief Road element will include segregated walking and cycling facilities along its length.

2.4 Step 4: Exploring Impacts of Interventions

2.4.1 Main Impacts

Growth in traffic from the base year to the two modelled forecast years is shown to increase journey times and delays in the network, including along the New Tees Crossing scheme extents where increases in journey time are forecast without intervention. The exception to this is along the Norton to Wynyard section of the A19, where delays and journey times reduce due to the A19 Norton to Wynyard Improvements scheme.

Both of the scheme options are forecast to result in a reassignment of traffic onto the A19 from more local routes, as well as a small degree of strategic reassignment from long distance routes such as the A1. The AM and PM peak periods experience the largest degree of reassignment with a smaller impact observed in the inter-peak reflecting the lower degrees of delay in the inter-peak period.

However, the A19 Tees Viaduct Option significantly reduces traffic flows on the existing crossing in both directions due to forced reassignment and separation of traffic onto the new structure for certain movements. The A19 Tees Viaduct Capacity Enhancement Option has a similar impact on the northbound A19 as traffic switches to the new crossing. The existing A19 southbound crossing is able to accommodate additional traffic growth due to the extra capacity provided by the A19 Tees Viaduct Capacity Enhancement Option.

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With both options, journey times are forecast to reduce on the A19 over the scheme area compared with the Do Minimum. With the A19 Tees Viaduct Capacity Enhancement Option in place, journey times in the opening year decrease by around 2.50 minutes in the AM peak and over 2.30 minutes in the PM peak. These reductions become greater in 2042 with 3 minutes and 2.50 minutes saved respectively in the AM and PM peaks. In the northbound direction, nearly 1.5 minutes are saved in both the AM and PM peaks by 2042. The A19 Tees Viaduct Option generally results in similar savings in both AM and PM peaks by 2042.

The main conclusions from the Economic Case are as follows:

• Overall the scheme is shown to reduce travel times across the network in every scenario with some slight increases in travel distance occurring due to reassignment effects;

• The A19 Tees Viaduct Option delivers higher levels of user benefits than the A19 Tees Viaduct Capacity Enhancement Option as it includes more additional road capacity, however, the cost associated with this additional capacity is such that the overall return on investment is lower than for the A19 Tees Viaduct Capacity Enhancement Option; and

• The A19 Tees Viaduct Option generates a safety disbenefit and has a slightly larger environmental disbenefit due to the extra traffic attracted to the scheme area in this option leading to more accidents and greater air and noise emissions in the scheme area.

2.4.2 Wider Impacts

The Economic Case has also established journey reliability and wider benefits exist. As both options provide additional capacity on the A19 over the River Tees this increases journey time reliability, with differences between the options resulting from the differences in traffic flows on the routes experiencing the benefits. Both options therefore support the SRN by providing additional capacity to accommodate the mix of long distance and local trips on the A19 and will offer the opportunity to better manage the interface between the A19, the A66 and the local road network.

The current congestion problems where the roads on the SRN and the local roads meet at this capacity pinch point will be addressed by either option so that incidents on the local or strategic road networks can be managed without rapid flow breakdown and area-wide congestion.

Furthermore, as both options reduce the generalised cost of travel across the River Tees through a reduction in congestion and journey times this will therefore

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effectively bring companies and individuals closer together with resultant productivity benefits associated with agglomeration.

These benefits are of particular importance for addressing the economic challenges of the Tees Valley. As noted previously, while some Tees Valley sectors are more productive than their national counterparts, most sectors are less productive than the national average. There is therefore a need to seek to improve business productivity and this applies to every sector and occupation. Higher productivity is also central to reinvestment and the sustainability of employment. This productivity imperative is an underlying theme within the Tees Valley SEP.

Ensuring the Tees Valley has the competitive infrastructure to support a growing economy is a major priority for TVCA and the business community and is one way to address the productivity challenge. The reliable and efficient operation of the A19 is essential for the provision of services and goods in the Tees Valley, enabling local businesses to operate effectively and for local residents to access jobs. Yet there has been no significant increase in crossing capacity for 27 years and the section of the A19 on the existing Tees Viaduct is the currently the busiest in the Tees Valley in terms of heavy goods vehicles (HGVs), being used by approximately 7,500 HGVs per day (equivalent to 7% of vehicles on the existing Tees Viaduct).

The journey time improvements and enhanced journey time reliability offered by the scheme will maintain and enhance the competitiveness of the Tees Valley economy, although there will be disruption during construction of the scheme. The journey time reductions will facilitate a more free-moving and reliable transport network, unlocking the potential for further economic prosperity by improving the viability of planned development and the sustainable investment by employers throughout the area. It will also offer the potential for productivity enhancements through proximity/agglomeration and offer improved labour supply opportunities.

It will have a particular impact on the freight and logistics sector that supports the functioning of many of the large employment sites as well as the ports on the River Tees. The freight and logistics sector is a key enabler in terms of investment, jobs and economic wellbeing. The efficient movement of goods is vitally important for economic success, as it allows the raw materials and finished goods manufactured in the Tees Valley to reach their destinations. Any improvement in efficiency will offer a significant opportunity for economic growth through increases in productivity, especially as freight is vulnerable to resilience issues due to operational needs for timeliness of deliveries and the cost of delays.

There are significant freight and logistics traffic flows across Tees Valley serving both local and pan-Northern needs, and this sector is key to realising the economic ambitions of the Tees Valley SEP. There is a need to drive growth of freight traffic

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through Tees Valley by improving connectivity and enabling operators to offer more cost-effective services.

The Tees Valley is also an important link in the UK’s supply chain, providing an international gateway for the movement of goods in and out of the country and a key hub for the transport of domestic freight. Local port facilities on the River Tees export more than any other port in England and Tees Valley exporters have the highest value per exporter of goods in the country. The port provides a critical gateway to world markets for the Tees Valley industrial platform, which is one of the most important manufacturing regions in the UK with world leading Chemical and Process industries, Steel Processing and Energy facilities.

Over the last ten years, Teesport has become a major container port serving the wider northern UK hinterland with particularly strong connections to Northern Europe, the Baltics and Russia, along with a comprehensive network of connections to the major container ports of Europe. The scheme will therefore support the SRN and the connectivity this provides for local businesses, as well as the freight and logistics sector, including the ports on the River Tees. This will be even more important with the aspiration for a freeport in the City Region.

In summary, both options will therefore support the Tees Valley's ambitious growth plans at a strategic level although it should be noted that there are no specific developments that are dependent on the scheme. For example, the build-out of the Teesworks site is not reliant on the scheme, but its attractiveness, particularly to logistics and port-related activities, will be enhanced by addressing the congestion, reliability and safety issues on the A19.

2.4.3 Measures for Success

Measures for success are the attributes essential for successful delivery of the scheme. They include not only measurable impacts on travel conditions but also consider the strategic fit, value for money and affordability, achievability and commercial aspects of the project. The success factors have been determined through a logic mapping exercise and are closely aligned to the benefits realisation and monitoring and evaluation plans, both included in the Management Case.

2.5 Step 5: Aligning with Wider Local Plans and Objectives

2.5.1 Tees Valley Local Plans

The Local Authorities within the Tees Valley are at various stages of Local Plan preparation. Local Plans have recently been adopted for Redcar and Cleveland (2018), Hartlepool (2018) and Stockton-on-Tees (2019) Borough Councils. Updated Local Plans for Darlington Borough and Middlesbrough Councils are being prepared.

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The Local Plans establish a framework for the sustainable economic growth and development over their respective plan periods in part through the identification of sites for housing and employment growth to meet identified needs. In terms of housing delivery, the Tees Valley Local Plans aim to provide beyond the 22,000 homes in the period from 2016 to 2026 as set out in the Tees Valley SEP.

The A19 is vitally important for connecting the key centres of the commuting population within the Tees Valley and supporting the wider economic growth ambitions. Housing and employment allocations within adopted and emerging Local Plans will increase the number of trips within the City Region and re-emphasise the importance of the highway network in supporting economic growth within the Tees Valley. Specific developments which will have an impact on the A19 are detailed below.

North of the Tees Viaduct, there are already development related pressures along the A19 due to committed developments and proposed developments at West Stockton and West Hartlepool, alongside the creation of a sustainable settlement at Wynyard, which will increase this pressure. The Local Plans of both Stockton-on-Tees and Hartlepool Borough Councils contain significant housing and employment allocations which will require improvements to the highway network in order to support and enable their development over respective Local Plan periods.

There are large developments and housing allocations coming forward in south and west Middlesbrough which will create a demand for travel on the A174 and A19, and place additional demand on the existing junctions in this area. The continued regeneration of the Greater Middlehaven and Riverside Park areas is also relevant, and significant regeneration will increase demand for crossing capacity on the River Tees.

The Tees Marshalling Yards, immediately west of the Tees Viaduct, are now out of operation and the adopted Stockton-on-Tees Local Plan supports the residential-led regeneration of this site, which would have a further impact on the A19, A66 and other parts of the local road network in the vicinity. New housing developments in Redcar and Cleveland will also generate additional trips on the A174 and the A19, adding to existing issues on these routes.

2.5.2 River Tees Port Expansion

Supporting the ongoing development of the ports of Tees and Hartlepool as a truly international freight gateway for the north of England is vital for the Tees Valley and the Northern economy. Recent investment will take the capacity of Teesport up to 650,000 TEU and the implementation of the Northern Gateway Terminal proposal will further increase the capacity to around 1.1 million TEU. This will be a multi-million

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pound investment by PD Ports and could create up to 4,000 direct and indirect jobs across the Tees Valley.

The new £300 million deep-sea container terminal will be located on the site of the existing riverside Teesport Container Terminal (TCT1), the riverside ro-ro berth (Ro- Ro No.3) and the gasification jetty. The channel will be dredged to 14.5m at LAT and the alongside depth to 16m and the terminal will include:

• 1km quay comprising three berths, each capable of taking 12,000 TEU vessels;

• A paved area of 55 ha;

• A new intermodal rail terminal; and

• 365/24/7 operation.

The Northern Gateway Terminal proposal will require improvements to the strategic road and rail network including the parts of the A19, A66 and Northallerton to Teesport rail line.

In the meantime, there is also potential for an intermediate upscaling of container handling capacity at No.1 Quay which was recently refurbished for SSI slab exports. P&O Ferries has increased capacity on its Zeebrugge service to handle an additional 25% units and further shipping lines are expected to expand their Tees service after winning a contract to handle UK imports for a major retailer (80% of which will come through Tees).

2.5.3 Other Large Scale Developments

A range of key developments will be supported by the proposals for a New Tees Crossing as follows:

• Peak Resources – an Australian-based company is establishing a £70 million mineral processing plant at the Wilton International Site. The plant will process ‘rare earth’ minerals neodymium and praseodymium shipped over from the company’s mine in Tanzania for use in the automotive sector and other products including mobile phones and wind turbines. Planning permission was secured in May 2018, with operations expected to commence in mid to late 2020. The construction phase requires up to 420 contractors at the peak of construction and then 140 staff on a permanent basis.

• The Navigator North Tees Terminal is an integrated supply system for petrol and diesel in the North East and a hub for Greenergy’s rail distribution network. The former Petroplus refinery, located at Seal Sands near Middlesbrough,

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includes a deep-water jetty, and was acquired by Greenergy from Petroplus’ administrators in July 2012 and re-opened as Greenergy North Tees in November 2012. The import terminal has been upgraded to include petrol storage as well as diesel. New pipeline links have been created to other storage facilities in the Teesside area and improvements have been made to tanks, road loading and import facilities. A new petrol rail loading facility was installed in 2014 so that petrol can be transported by train to other UK locations for the first time. The result is an integrated and flexible supply terminal for both petrol and diesel that is responsive to changing fuel supply and demand trends and capable of meeting the future road fuel requirements of the North East region as well as the wider UK economy.

• Hitachi opened its new £82 million train manufacturing assembly facility in Newton Aycliffe in September 2015 and K Line begun a direct service the same month using 7,500-unit ro-ro vessels to move rail equipment between Japan and Teesport. The next generation intercity trains are being manufactured by Hitachi in Japan and, of the 790 rail cars expected to be shipped over the next few years, the majority will be on K Line’s ro-ro vessels with 5 to 18 rail cars per shipment on almost monthly basis. This new connection could potentially also allow exporters of project cargoes to access K Line’s global network directly from Teesport. Hitachi has first refusal on adjoining land and it is hoped that its site will expand in the future.

• MGT is currently building a 299MW biomass power station on the Teesport Estate, upriver of Tees Dock. The £650 million Teesport Renewable Energy Plant aims to generate electricity for the equivalent of 600,000 homes using imported wood pellets and chips from sustainable forests, primarily in Europe and the United States shipped in directly to an on-site deep-water berth. The plant was expected to be in operation by 2020 and although MGT Teesside reported in the summer to be fully committed to finishing the project as soon as possible it has faced major delays and made significant redundancies during the construction phase, with the completion date unknown..

• Port Clarence Renewable Energy Plant is a £160 million biomass power station proposed on the north bank of the River Tees on the old Clarence Works. Although construction work started in December 2015 and was due to start operating in 2020, with Stobart Energy proposed to supply around 250,000 tonnes of waste wood fuel per year the owners of Port Clarence Energy exited the contract for the project in May 2019. They remain hopeful of a successful conclusion as an operational power plant and continue construction as soon as possible.

• Dogger Bank Wind Farm off the coast of Tees Valley will commence in January 2020 and will comprise two wind farms, each with a maximum installed

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capacity of 1.2GW which will connect to the national grid via the existing Lackenby Substation. The development could have the potential to generate around 8 Terawatt hours (TWh) of green power every year, equivalent to the electricity used annually by approximately two million British homes. Dogger Bank Teesside A will be 196km from the Tees Valley coast and will cover an area of 560 sq km. Dogger Bank Teesside B is 165km from shore and covers an area of 593 sq km. The developer is Forewind, a consortium comprising four leading international energy companies. Key components that could result in supply chain opportunities for fabrication, operation and maintenance include wind turbines, offshore collector and converter substation platforms, offshore accommodation/helicopter platforms, offshore meteorological stations and cabling.

2.5.4 Middlesbrough Investment Prospectus

The Middlesbrough Investment Prospectus was launched in 2017. It reflects on a number of recent successes, more than £74 million of direct Council investment, and lays out the ambitions and priorities that will take Middlesbrough on to the next phase in its journey. It sets out the Council’s vision to create sustained economic growth, high quality jobs and thriving communities by inspiring, upskilling and connecting Middlesbrough’s people to the new opportunities created.

The prospectus has four main investment priorities as follows:

• Attract city-scale investment that will grow Middlesbrough’s economy and that of the wider Tees Valley City Region;

• Diversify Middlesbrough’s town centre economy by increasing the proportion of commercial, leisure, cultural and food and beverage floor space;

• Generate significant income through a targeted programme of housebuilding and business creation; and

• Inspire, upskill and connect Middlesbrough’s people to the new opportunities that arise.

Key sites identified for continued and future investment include Middlehaven (including Boho 10, a £250 million mixed use development launched in October 2019), Centre Square, the railway station and historic core, University Quarter, Teesside Media and Innovation Village as well as other business enterprise space. The Investment Prospectus also identifies the importance of building modern, high quality housing to retain and grow its population as a key driver in wealth generation and the delivery of good quality public services.

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The provision of a new crossing of the River Tees will support the projects outlined within the Investment Prospectus, enhancing local and strategic connectivity in support of sustained economic growth and prosperity. The Investment Prospectus is due to be refreshed later in 2019.

2.5.5 Stockton-on-Tees Economic Strategy 2017-2032

This Economic Strategy sets out Stockton-on-Tees Borough Council’s growth ambitions over the next fifteen years. The vision is set out below and seeks to position the strategy as a framework for rebalancing the local and regional economy in support of national objectives.

“The businesses and people of Stockton-on-Tees are part of a thriving and productive Tees Valley economy; a City Region that is driving economic growth across northern and national economies”

The vision is supported by three main objectives as follows:

• Objective 1: Have a successful business base where existing companies have experienced sustainable growth and new businesses have been created and attracted;

• Objective 2: Provide sufficient sites and premises in vibrant, connected and distinctive places that businesses are attracted to and people choose to live, work and play; and

• Objective 3: Ensure that people have the opportunity to learn/ train and gain the appropriate level of skills to maximise the employment opportunities available in the economy.

Objective 2 is of most relevance, underlining the importance of good connectivity for attracting businesses and people to live and work in the Borough. In particular, the strategy identifies the following transport and infrastructure elements that are of key importance to deliver the vision:

• All modes of strategic connectivity within and outside Stockton-on-Tees stimulate and support economic growth;

• Resilience has been built and investment secured into the transport and infrastructure networks to respond to economic growth requirements;

• Northern and national transport plans take account of local transport priorities;

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• Transport improvements provide access to attractive investment opportunities at strategic employment locations; and

• Communications infrastructure supports economic and housing growth.

A new crossing of the River Tees is one element that support all of these requirements in support of economic growth and prosperity for the Borough of Stockton-on-Tees and the wider Tees Valley.

2.5.6 Other Transport Proposals

There are a number of other transport proposals that are of relevance to this scheme – these are summarised in the following paragraphs.

A19 Norton to Wynyard

The scheme will benefit local residents and businesses by relieving congestion, improving journey time reliability and network resilience. Replacement of the road surface will also reduce road traffic noise. The scheme will promote growth in the local economy and local area by bringing forward developments in the Tees Valley.

The scheme is currently on site and is programmed to be completed by 2022/23.

The Norton to Wynyard scheme will improve the flow of traffic on this section of the A19 by increasing the section between the A1027 and the A689 to three lanes wide in each direction, with the existing speed limit of 70mph retained. The existing section of concrete carriageway will be replaced with low noise surfacing and any current Public Rights of Way including footbridges and underpasses will either be maintained or replaced.

Implementation of this scheme may exacerbate the issues of network unreliability and congestion previously described on the existing Tees Viaduct as an increase in southbound traffic demand encounters the existing constraints.

It is worth noting that, in developing the A19 Norton to Wynyard scheme, Highways England has undertaken sensitivity tests with and without a possible new Tees Crossing and this has illustrated the value for money of the A19 Norton to Wynyard scheme increases with the new strategic crossing capacity in place.

Portrack Relief Road

It is recognised that to open up development opportunities within Stockton and Middlesbrough within the vicinity of the existing Tees Viaduct, a package of proposals needs to be developed and delivered which will embrace a combination of improvements and management of the primary road infrastructure, additional

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secondary road infrastructure, improvements to public transport and complementary traffic management measures.

This complementary scheme (which would be delivered separately to the larger New Tees Crossing scheme) would include the creation of a new 1.3km highway link by utilising the former Billingham Beck branch railway between Marston Road and the A1032 Newport Bridge Approach Road. It is a significant supportive scheme for any option taken forward for a new strategic road crossing of the River Tees.

It should be noted that the Portrack Relief Road scheme is due to be complete before the start of construction of a New Tees Crossing and there is no direct dependency.

A66 East-West Connections

The TVCA is also considering the means of providing improved connections between the A1(M) and the A66 to the north west of Darlington. Development funding for the scheme was granted by DfT in November 2016, and an OBC is currently in preparation (October 2020).

As a pre-cursor, the A66 & A689 Tees Valley Strategic Study Stage 0.2 Summary Report – Option Assessment was prepared on behalf of Highways England and TVCA in 2016. The options the report has identified for further consideration along the A66 east-west corridor are as follows:

• Improvements to the existing A66 to the south and east of Darlington;

• A new link around the north of Darlington, from Junction 59 of the A1(M) to the A66/A1150 roundabout;

• Improvements to the existing A66 around the south and west of Stockton, particularly between the Elton Interchange and the junction with the A135 (1835 Way); and

• Improvements to key junctions on the A66 local road along the route into Teesport, particularly the A66/A171 roundabout at Cargo Fleet and the A66/A1053 Tees Dock Road roundabout. Middlesbrough Council has secured £2.95 million of National Productivity Investment Fund (NPIF) funding for the introduction of a 'throughabout' at the A66/A171 junction, which opened to traffic at the end of August 2020.

The A66 proposals do not conflict with those for the A19 as the former are designed to improve east-west movements primarily, but also to build in resilience to both the A1 and A19 regional strategic north-south corridors, by providing an alternative to the A19 for northbound traffic from eastern part of the Tees Valley City Region. For

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assessment purposes only the committed/completed schemes identified in the last bullet point have been included.

Given the interaction between the A19 and the A66 immediately south of the existing Tees Viaduct, it will be important to ensure that any future improvements dovetail with the A19 New Tees Crossing. Furthermore, improvements proposed for both corridors (A19 and A66) will assist in addressing air quality concerns on the A66 through Middlesbrough by improving the flow of traffic through the A19/A66 interchange.

The section of the A66 in the vicinity of the A19, that has been identified by the DfT as part of its Major Road Network (December 2018), carries up to 90,000 vehicles per average weekday, and westbound traffic is regularly delayed due to congestion associated with the existing A19 Tees Viaduct.

2.6 Step 6: Considering Wider Evidence and Stakeholder Views

2.6.1 Stakeholder Views

Consultation in relation to the scheme has been considered since an early stage in its development. As part of the A66 & A689 Strategic Study, stakeholder workshops were undertaken so as to capture information, develop a fuller understanding of the day to day operation of the network and consider the range of infrastructure proposals that could address the issues identified.

In preparing the refresh of the Tees Valley SEP, consultation was undertaken with local stakeholders (via business engagement events) to ascertain their views in relation improving east-west transport connectivity within the Tees Valley between the A1(M) and the port facilities along the River Tees, including Teesport. These sessions illustrated support for improvements along the A66, as shown by its specific inclusion within the Transport and Infrastructure section of the refreshed Plan.

In addition, the provision of a new crossing of the River Tees is included in the priorities identified in the Consultation Draft Tees Valley STP, which was published in August 2019, with public consultation events undertaken during September 2019.

An initial public information exercise in accordance with Highways England’s established approach within their PCF took place across the Tees Valley in July 2017, with a launch event supplemented by a series of exhibitions in all five local authority areas. These events attracted approximately 120 visitors and a further series of local meetings were organised to enable more detail to be provided to local residents and seek information and issues. Over two thirds (68.5%) of respondents were in favour of the scheme, and there was the perception that the scheme would alleviate the congestion issues currently experienced in the local area.

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A further public consultation exercise on the two shortlisted options took place in March 2019, with a further launch events and four local consultation events in Stockton, Middlesbrough, Hartlepool and Redcar, to ensure that the views of the local population and businesses were considered and incorporated into the options. A virtual consultation space was also developed to explain the proposals, allowing people to access scheme details and provide comment without having to psychically attend a particular event. Copies of the documents were also made available in municipal buildings across Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton-on-Tees throughout the consultation period, which ran from 26 March until 17 May 2019.

1,247 people visited the four public consultation events, over 5,500 people visited the virtual consultation space and 301 completed questionnaires were received. A full report on the most recent public consultation exercise can be found in Appendix B.

Overall, the response to the consultation was extremely positive, with 84% of the consultees agreeing with the need for additional road capacity over the River Tees both to ease congestion and improve safety. Over 70% of the respondents to the questionnaire favoured the likely preferred route option and as 76% of respondents were satisfied that they had been provided with sufficient information on which to base their response.

Of those that did not support the provision of additional road capacity across the River Tees, the main reasons given were in relation to potential environmental impacts and also a preference for alternative routes that were ruled out earlier in the option assessment process.

Feedback was received from the business community in the Tees Valley, including from businesses with close ties to the port and those within the South Tees Development Corporation site. As part of the 2019 consultation exercise, responses were received from 29 key business and education providers from across the Tees Valley – these were all in support of the project, with many highlighting the vital role a proposed new crossing would play in improving the future economic success of the City Region.

As scheme development has progressed, there has been specific consultation with the statutory environmental bodies, principally Environment Agency and Natural England, that has helped inform the design to date and helped provide a full understanding of some of the environmental constraints, as well as the mitigation measures that have been developed.

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2.6.2 Wider Policy Alignment

The major national, regional and local policy priorities are summarised below with a brief commentary on how this improvement scheme is aligned with these priorities. The policy alignment is summarised in Table 2.2.

Table 2.2: Summary of Policy Alignment

Policy Alignment

Highways England’s Tees DfT TfN’s Scheme Objectives Route Valley SEP, Transport Strategic Strategy and STP and Investment Transport Strategic Investment Strategy Plan Business Plan Plan Primary

Reduce congestion and provide reliable north-south journey times ✓ ✓ ✓ ✓ on the A19

Improve resilience of the river crossing itself and the wider ✓ ✓ strategic road network to the impact of events

Reduce the number and severity of incidents/accidents for all road ✓ ✓ users

Minimise adverse impacts on health ✓ ✓ ✓ ✓ and environment

Reduce the severance impacts of ✓ the route on local communities

Provide value for money ✓ ✓ ✓ ✓ Secondary

Support the economic growth objectives of the Northern ✓ ✓ ✓ ✓ Powerhouse and the Tees Valley City Region

Improve access to the City Region ✓ ✓ ✓ ✓ Strategic Centres, Teesworks site,

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Policy Alignment

Highways England’s Tees DfT TfN’s Scheme Objectives Route Valley SEP, Transport Strategic Strategy and STP and Investment Transport Strategic Investment Strategy Plan Business Plan Plan Enterprise Zone sites and port facilities along the River Tees

Support sustainable local residential ✓ ✓ ✓ development

Improve access to jobs and services ✓ ✓ ✓ for all road users

Support the SRN in delivering enhanced national and pan-Northern ✓ ✓ ✓ ✓ connectivity

Deliver connectivity enhancements ✓ ✓ ✓ ✓ for freight movements

National

Government’s Transport Investment Strategy

The Transport Investment Strategy (DfT, July 2017) sets out how the Government will build on the progress made to date and through future investment decisions will respond realistically and pragmatically to today’s challenges, driving progress towards fulfilling the aims of the Industrial Strategy whilst putting the travelling public at the heart of the decisions that are made.

The Strategy outlines four main goals and guiding principles that will be considered. Through the Strategy, investment will be made in the transport network in different ways, most fundamentally by addressing the network’s core capability – its condition, capacity and connectivity – and also improving the user experience and adapting the network to safeguard the environment and health.

Alignment: This improvement scheme has an excellent fit with the Transport Investment Strategy objectives for strategic roads and economic growth. It supports and aligns with the four main goals and will deliver:

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1) A more reliable, less congested, and better connected transport network;

2) Support productivity and respond to local growth priorities;

3) Enhance global competitiveness;

4) Support the creation of new housing.

The Strategy also recognises the crucial role that ports and airports play in the UK economy, both of which are also key elements of the Tees Valley economy, and both of which will be supported by this improvement scheme.

Highways England Route Strategy, Strategic Business Plan 2020-2025 and Delivery Plan 2020-2025

The London to Scotland East Route Strategy (Highways England, March 2017) provides a high level view of the current performance of the strategic road network, as well as issues perceived by stakeholders that affect the network. The series of Route Strategies are one of the key components of research required for developing the RIS for Highways England.

The Route Strategy identifies the capacity constraints at the A19 Tees Crossing as a factor in causing delays and safety issues and acknowledges that it is difficult to manage incidents arising, partly due to a lack of technology on the route, as shown in Figure 2.29.

The Highways England Strategic Business Plan 2020-2025 sets out Highways England’s approach to building on their work in the first Road Period (RP1) between 2015-2020. It describes a balanced portfolio of investment to maintain and operate the SRN safely and provide new capacity where it is most needed over the second Road Period (RP2).

The accompanying Delivery Plan 2020-2025 indicates that Highways England plans to open 25 projects started in RP1 and begin construction on 12 new projects. One of the 25 projects is the A19 Norton to Wynyard project which is on site now and due to open to traffic in 2022/23.

It is also noted that potential projects for the third Road Period (RP3) will need to enter development between now and 2025. Highways England has allocated £347 million of funding over RP2 for further scoping work.

Progress and changes will be reported in the annual Delivery Plan updates, which are subject to Ministerial approval.

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Figure 2.29: London to Scotland East Route Strategy Identified Issues

Alignment: Of the issues identified in the Route Strategy, two that are not addressed by projects either within the Delivery Plan or the proposed pipeline for RP3 are the capacity issues around the existing A19 Tees Crossing and the lack of strategic messaging on the A19 and A66. The New Tees Crossing improvement scheme will help address for former and will contribute to achieving the Government objectives for the SRN, including:

• A network that supports the economy;

• A safer and more reliable network;

• A greener network;

• A more integrated network;

• A smarter network.

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The Route Strategy acknowledges that a business case for this improvement project is being prepared, in consultation with Highways England.

Regional

TfN’s Strategic Transport Plan

TfN’s Strategic Transport Plan and accompanying initial Investment Programme (February 2019) set out the priorities for transport infrastructure investment for the next 30 years (2020-2050). The Strategic Transport Plan is a statutory document, allowing TfN and its Partners to take a leading role in developing the case for investment in the North.

The Investment Programme is built up from a series of TfN’s work programmes, including the Rail North Long Term Rail Strategy, the work done to date on Northern Powerhouse Rail and Integrated and Smart Travel, and a series of Strategic Development Corridors (SDCs) that have been identified by the most recent evidence. It comprises TfN’s advice to the Government on the long term, multimodal priorities for enhanced pan-Northern connectivity. The Plan will enable TfN and its Partners to work with Government and delivery partners to secure funding and delivery of the right schemes at the right time, also providing certainty for local transport authorities to plan complementary investment.

The seven prioritised SDCs identified in the Strategic Transport Plan each represent strategic geographical and economic areas where evidence indicates delivery of transformational growth is dependent on bringing forward major road and rail investment. The SDCs have been developed to represent where most of the largest gaps between demand and performance currently exist, and where there is likely to be the greatest economic potential to improve connectivity and the economic interaction between the existing key economic clusters and assets of the North and facilitate potential future clusters in other locations. Investment considered within the context of these corridors is focused on interventions that will benefit the whole of the North. The Strategic Development Corridors are shown in Figure 2.30.

The scheme is included within TfN’s Economic Recovery Plan, published in August 2020, and which builds on its existing Strategic Transport Plan and Northern Infrastructure Pipeline. The Economic Recovery Plan calls for a commitment to a number of “quick win” road and rail schemes, centred on principles agreed by the North’s leaders, including the need to reflect the challenges of COVID-19, the need to accelerate job-creating schemes to give industry confidence, better integrate local transport through more devolution and decarbonise the future of transport.

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Figure 2.30: TfN’s Strategic Development Corridors

Alignment: It is noted within the Strategic Transport Plan that the major north- south routes of the A1 and A19 must provide a consistent level of service and resilience to meet the needs of important economic centres they link and the strategic journeys they facilitate. The scheme is recognised as a pan-Northern objective falling within the Yorkshire to Scotland and Connecting the Energy Coasts Strategic Development Corridors. It is identified in the Investment Programme for delivery by 2027 and has been included within the reference case within the Strategic Programme Outline Case (February 2019) for the Connecting the Energy Coasts Strategic Development Corridor.

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Local

Tees Valley SEP and Investment Plan (2019-2029)

The Tees Valley SEP was refreshed to coincide with the establishment of the TVCA. The new Plan sets out the growth ambitions and priorities for the Tees Valley over the next ten years to 2026 and provides a framework for economic development activities. The priorities in the refreshed SEP are grouped into six building blocks which reflect the main challenges, areas of market failure and opportunities for the Tees Valley.

To date, the Tees Valley has identified four strategic transport priorities within the City Region that will deliver pan-Northern benefits, all of which can be delivered over the lifetime of the SEP.

The Investment Plan sets out the Tees Valley’s investment strategy for the period 2019 – 2029 and is focused around priorities across six growth generating themes. The ten year planning figure used in this Investment Plan is £588.2 million, which is estimated to have a total impact of supporting 16,875 direct jobs and an additional £1,480 million of additional GVA.

Alignment: An additional crossing of the River Tees is one of the four identified strategic transport priorities and as being required in order to enhance access to Enterprise Zone locations. It is included within the Investment Plan, noting that whilst national funding to deliver the project, TVCA funding will be used to prepare the development works required to access national funding, and/or represent a local contribution alongside national funds.

Tees Valley STP

The STP was published in January 2020 alongside a series of supporting implementation plans. The plan includes a framework for setting out the main interventions needed based on six themes, which are closely linked together.

The ‘Major Roads’ theme identifies that the A19 has been identified as a new high quality strategic route by Highways England, yet there remains a pinch point at the Tees Viaduct, where delays regularly occur because there are too few alternative ways to cross the River Tees.

It highlights that the A19 is the main north-south artery through the Tees Valley and needs to be improved to support the growth that is anticipated. It goes on to identify that a new major road crossing of the River Tees will ensure that the A19 will meet the previous “mile per minute” aspiration for the SRN, address current issues with journey times and delays, as well as realising the full benefit of the committed A19 Norton to Wynyard widening scheme.

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Alignment: A new Tees Crossing is identified within the STP as an key intervention to support the economic growth identified in the SEP by delivering enhanced connectivity within the Tees Valley and to/from the rest of the country to facilitate access to global markets and support inward investment.

South Tees Development Corporation

The STDC site is the first Mayoral Development Corporation outside London, now known as Teesworks, and is the UK’s largest and most connected industrial zone. It was set up to promote the economic growth and commercial development of Tees Valley by converting assets in the South Tees area into opportunities for business investment and economic growth.

The Teesworks site covers approximately 4,500 acres of land to the south of the River Tees, in the Borough of Redcar and Cleveland, and includes former SSI steelworks site as well as other industrial assets. The area benefits from river access and includes the deep-water port of Teesport, England’s largest exporting port.

The purpose of Teesworks is to further the economic development of the area through physical regeneration, social regeneration and environmental regeneration so that it becomes a major contributor to the Tees Valley economy, bringing the SSI site, and other underutilised land in the area, back in to economic use. By attracting private sector investment, Teesworks will secure additional, high quality jobs for the people of Tees Valley and provide a safe environment for the workforce.

A Development Plan was published in August 2020 which aims to provide a flexible framework for achieving the socio-economic ambitions for the regeneration of the South Tees area, realising that a long timeframe is necessary for the successful implementation of the plan for economic growth in South Tees and the wider Tees Valley area. The details and scale of the regeneration proposals are shown in Figure 2.31.

A £1 million roundabout scheme has recently been completed to open up a vital access to part of the Teesworks site and was funded by the Local Growth Fund through the TVCA.

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Figure 2.31: Teesworks Development Plan

Alignment: The scheme will support improved connections to the Teesworks site, which will enable industrial investment that will create approximately 20,000 new jobs and contribute £1 billion per annum into the UK economy overall. Supporting this vision, and the impact it will have on rebalancing the UK economy, through strategic transport improvements will be a key element in its success.

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3 The Economic Case

This chapter of the OBC assesses options to identify all their impacts, and the resulting value for money. The economic, environmental, social and distributional impacts are all examined, using qualitative, quantitative and monetised information to determine the extent to which the scheme’s benefits outweigh its costs.

3.1 Options Appraised

A comprehensive and robust process was adopted for the generation and shortlisting of options for the scheme, as set out in the Options Assessment Report and summarised in the Strategic Case.

From the initial long list of options, four were identified for further consideration and this led to two options being subsequently refined and assessed in more detail – the Newport Bridge Option and the A19 Tees Viaduct Option.

Further appraisal of these options was undertaken and this identified that the Newport Bridge option is not viable as it would cause the Newport Interchange to operate beyond its theoretical capacity in the opening year of 2027, causing delays during peak periods within the interchange and also on the A66 mainline. No practical or cost effective solution to improve the interchange was identified.

The resulting review of previously discarded solutions and discussions around potential new routes resulted in an alternative, called the A19 Tees Viaduct Capacity Enhancement Option being identified.

The economic and environmental appraisal of the following two options is therefore presented within this section of the OBC and also included within the Financial Case:

• A19 Tees Viaduct Option; and

• A19 Tees Viaduct Capacity Enhancement Option.

It should be noted that both options now exclude the Portrack Relief Road. Previous PCF Stage 1 work confirmed that the Portrack Relief Road (and associated costs) improves the performance and the value for money of the New Tees Crossing scheme, TVCA is delivering the Portrack Relief Road ahead of, and not as part, of the new crossing of the A19 itself as an enabler of the larger scheme.

3.2 Methodology and Assumptions

The economic assessment of the scheme has been undertaken in accordance with current Transport Analysis Guidance (TAG), including:

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• TAG Unit A1 cost-benefit analysis;

• TAG Unit A2 economic impacts;

• TAG Unit A3 environmental impacts; and

• TAG Unit A4 social and distributional impacts.

The methodology is based on the DfT Value for Money Framework (July 2017) and follows the process described in the Appraisal Specification Report, included at Appendix C.

The economic appraisal has included the following:

• Transport Economic Efficiency – for assessing travel time and vehicle operating cost benefits (evaluated using TUBA version 1.9.14 (1.13.1 databook));

• Impact on Road Users during construction (evaluated using SATURN and TUBA);

• Traffic Safety – for assessing the benefits of reduction in accidents (evaluated using COBALT with DfT parameter set 2018-1); and

• Journey Time Reliability (evaluated using the TAG standard deviation-based approach).

An initial benefit : cost ratio (BCR) is calculated that includes the monetised noise, air quality and greenhouse gas impacts of the scheme. Other monetarised benefits – reliability and resilience impacts – are then taken into consideration, producing an adjusted present value of benefits (PVB), which is used to calculate an adjusted BCR.

The A19 Norton to Wynyard Improvements model was used as the basis of the assessment of the New Tees Crossing scheme in the PCF Stage 1 work. The actual Norton to Wynyard scheme as well as Portrack Relief Road have been included in the Do Minimum for the PCF Stage 2 work to ensure the benefits for these schemes are not included in the assessment of the New Tees Crossing scheme. However, the three schemes are complementary and additional benefits accrue if a new crossing is delivered, as identified in the Strategic Case.

As part of the PCF Stage 2 work, the base model has been recalibrated and revalidated using the original dataset but with a focus on further improving the representation of base year traffic conditions through the scheme area. The original base model was focussed on the area of the Norton to Wynyard scheme and whilst it achieved TAG calibration and validation criteria in the area for the New Tees Crossing scheme, further calibration of the base model in the scheme area has now been

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undertaken. This recalibration exercise was carried out in Autumn 2018 with ppk/ppm values from May 2018 and SATURN version 11.3. A further calibration and validation check has been carried out using the November 2018 ppk/ppm values and SATURN version 11.4.

The development of the model is described in the New Tees Crossing PCF Stage 2 Combined Modelling and Appraisal Report (and its associated appendices), included at Appendix D.

The modelled assessment periods are:

• Morning Peak Hour (0800-0900);

• Inter-Peak Hour (average hour between 1000 and 1600); and

• Evening Peak Hour (1700-1800).

The following vehicle types and user classes are modelled:

• UC1: Car - Commuting, Business and Other;

• UC2: LGV - Business;

• UC3: HGV - Business.

3.3 Present Value of Costs

3.3.1 Investment Costs

The cost of the proposed scheme has been estimated at 2019 (Q1) factor prices. These estimates include all costs associated with scheme preparation and construction, and an allowance for risk.

For the purposes of the economic assessment, and in line with the guidance in TAG Unit A1.2, an optimism bias of 15% has been applied to these costs. This is the recommended uplift for a fixed road link at OBC stage. The purpose of optimism bias is to ensure that the benefit : cost analysis is robust. However, it is important to note that optimism bias is only applied to costs in the economic assessment and is not included in the forecast outturn costs in the Financial Case.

The 2019 costs were converted to outturn costs and then converted to market prices using the TAG market price adjustment factor of 1.19 and then to a 2010 price base using the GDP deflator series available in the TAG databook. Finally, the costs were

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converted to a present value of costs (PVC) by discounting to 2010 using the TAG discount rates.

The resulting PVC for the different options is shown in Table 3.1.

Table 3.1: Present Value of Costs

Option Present Value of Costs (PVC) (£)

A19 Tees Viaduct Option 226,020,922

A19 Tees Viaduct Capacity Enhancement 181,342,102 Option

3.3.2 Operational and Maintenance Costs

There is evidence to suggest that the existing Tees Viaduct and Newport Bridge structures will require significant maintenance in the short to medium term. The delivery of the New Tees Crossing scheme will reduce traffic on the latter structure in particular and therefore potentially defer or reduce the totality of, the maintenance cost requirements. However, there will be costs associated with maintaining any new infrastructure provided and an estimate of this has been included within the cost estimates provided.

3.4 Present Value of Benefits

3.4.1 Scheme Transport User Benefits

User benefits have been assessed using the DfT’s Transport Users Benefit Appraisal (TUBA) software, an industry-standard method of assessing economic benefits from transport schemes, in accordance with guidelines set out in TAG Unit A1. TUBA calculates the benefits related to journey time savings, vehicle operating cost savings and fuel tax revenue.

The TUBA assessment was carried out for the two scheme options for the Core Scenario along with three traffic growth sensitivity tests as described later in the Economic Case.

Annualisation factors for the three modelled time periods have been calculated as detailed in the Combined Modelling and Appraisal Report. Scheme appraisal was undertaken for a 60 year horizon period from opening, in accordance with HM Treasury’s Green Book.

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The scheme related transport user benefits for the options are presented in Table 3.2.

Table 3.2: Transport User Benefits (Travel Time and Vehicle Operating Costs)

Option Transport User Benefits (£)

A19 Tees Viaduct Option 232,110,000

A19 Tees Viaduct Capacity Enhancement 205,533,000 Option

The composition of the Transport User Benefits and additional information on the assumptions used are set out in Appendix O of the Combined Modelling and Appraisal Report and in the End of Stage 2 Economics report, the latter also included at Appendix D.

3.4.2 Construction and Maintenance Delays

An assessment of the likely traffic management measures required during construction of the scheme was undertaken as part of a major contractor’s buildability review. The main elements of traffic management involve lane closures, narrow lanes, reduced speed limits and slip road closures. These elements have been allocated to the different phases of the construction programme to produce a programme of traffic management measures for the construction period from Summer 2025 to Summer 2028.

For the purpose of modelling the construction delays, the detailed programme has been simplified into five distinct phases each of which has different traffic management measures.

The traffic management elements have been coded into the Do Minimum 2027 SATURN model by changing the characteristics of the links in the model to reflect the traffic management. Five separate versions of the model have been produced to the reflect the five phases. By running these models in comparison with the Do Minimum model without any traffic management measures, the delays associated with each phase of the works can be quantified. Note that no variable demand modelling (VDM) is undertaken as the durations of the phases are not considered long enough to result in a significant VDM response.

These models are then used to run a one year TUBA to quantify the PVB disbenefit of each of the five phases of construction. These one year PVB results are then adjusted to reflect the number of months covered by the relevant phase and then all combined to give the total disbenefit due to construction, as shown in Table 3.3. Note that the impact of construction of both options is assumed to be the same.

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Table 3.3: Construction Delay Impacts

Option Construction Delay Impacts (£)

Both Options -16,384,625

3.4.3 Safety Benefits

The safety assessment of the proposed scheme options was completed using the DfTs COBALT software, developed by DfT to undertake the assessment of a schemes impact on collisions to support economic appraisal. Version 2013.2 of COBALT was used with the 2018-1 parameters file, both downloaded in May 2019 from the DfT website.

COBALT assesses the safety impacts of road schemes using detailed inputs of road links and road junctions that would be affected by the scheme. Additional model inputs include collision rates and costs and forecast traffic volumes by link and junction.

The safety assessment is based on a comparison of collisions by severity and associated costs across an identified network in ‘Without Scheme’ and ‘With Scheme’ scenarios.

The COBALT network was formed from the simulation sections of a SATURN traffic model which covered a wider geographical area than would likely be meaningful by the proposed New Tees Crossing scheme. The forecast change in traffic flows associated with the assessed scenarios and years were used to rationalise the links used in the COBALT network. All SATURN links that form part of the buffer network were also excluded.

Criteria for determining the links to include in the COBALT model were identified as those having an Annual Average Daily Traffic (AADT) change of 10% and a Do Minimum flow of over 2,000. These criteria were informed by the change in collisions resulting from a (0.10 x 2000) 200 vehicle change in AADT being approximately two collisions over the 60 year appraisal period. This was chosen based on the need to develop a practicable network size and to also ensure that links where there was a meaningful change were incorporated.

Links that were not important local distributors, did not link core elements of the network, or were located a significant distance away from the core of the network were omitted from further assessment. This was again to develop a practicable network size and to omit any potential model ‘noise’ on local links that in practice would be unlikely to experience a meaningful change in traffic flow.

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Observed collision data between 1 January 2013 and 31 December 2017 were obtained from Stats19. Collisions for each link and were captured for each Do Minimum link using GIS allowing for collision rates to be calculated based on link type and traffic volume. The average collision rate by link type across the modelled network was somewhat higher than COBALT defaults. Since much of the scheme is entirely new, it was not considered appropriate to use existing collision rates that are based on a road network constructed a relatively long time ago and on a congested network that the scheme is seeking to alleviate. Consequently, the default COBALT parameters were adopted.

Table 3.4 summarises the results of the COBALT analysis.

Table 3.4: Forecast Collision Savings and Safety Benefits

Option Change in Number of PVB (£) * Collisions (over 60 years)

A19 Tees Viaduct Option +128 -5,929,500

A19 Tees Viaduct Capacity -87 2,745,100 Enhancement Option

* Negative PVB values denote a disbenefit

The safety assessment indicates that the A19 Tees Viaduct Capacity Enhancement Option is forecast to generate a benefit while the A19 Tees Viaduct Option is forecast to generate a disbenefit over the 60 year appraisal period. In the A19 Tees Viaduct Capacity Enhancement Option there is a reduction of 87 collisions (approximately 1.5 collisions per year) and with the A19 Tees Viaduct Option, an increase of 128 collisions (approximately 2.1 collisions per year).

3.4.4 Reliability Benefits

Highways England has a spreadsheet-based tool called MyRIAD which is designed to assess changes in incident delays and travel time variability changes on inter urban motorways and dual carriageways. However, on advice from the developers of the MyRIAD software it is not applicable to situations where a new link is being provided (as is the case with the New Tees Crossing scheme).

The TAG Unit A1.3 (section 6.3) urban road approach has therefore been applied but with the additional level of detail of using observed data to derive journey time standard deviations rather than the proxy approach described in TAG.

Journey time data for the following four routes has been obtained from Highways England’s online journey time database for weekdays from neutral months between June 2017 and May 2018:

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• A19 northbound from Mandale (A1130) and A139 junctions;

• A19 southbound from Norton (A1027) south facing slips to south of the A19/A66 Interchange;

• A66 eastbound from A1130 to A19 northbound on-slip; and

• A66 westbound to A19 northbound slip road.

This data has been used to calculate the standard deviation in journey time for each hour of the day on each of these routes. By introducing additional capacity the schemes are assumed to reduce the journey time variability (and therefore standard deviation) to current inter-peak levels for those time periods where the variability is greater than the inter-peak (typically the AM and PM peaks).

Combining the saving in standard deviation of travel time with the forecast traffic flows from the SATURN model gives an overall reliability saving due to the scheme. This in turn is monetised using TAG values of time and the TAG recommended value of journey time reliability (0.4).

In accordance with TAG, these benefits are not included in the Analysis of Monetised Costs and Benefits table but are included in the Appraisal Summary Table (AST) and in the adjusted BCR.

The results of the assessment are presented in Table 3.5.

Table 3.5: Forecast Hours Saved and Reliability Benefits

Option Hours Saved (over 60 PVB (£) years)

A19 Tees Viaduct Option 14,383,507 31,750,009

A19 Tees Viaduct Capacity 14,066,906 31,063,138 Enhancement Option

It is assumed that both options will have broadly the same impact on journey time reliability as both provide additional capacity on the A19 over the River Tees. The difference in the results is driven by the differences in traffic flows on the routes experiencing the benefits. It should be noted that this approach results in a conservative approximation of the reliability benefits as no account is taken of the worsening of reliability over time with increased traffic volumes.

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3.4.5 Wider Benefits

Transport schemes have impacts and benefits beyond their direct effects on users. In determining the case for investment in transport, such impacts need to be considered alongside other assessments. Collectively these are known as wider impacts. The methodology adopted to assess these wider impacts is in line with guidance in TAG Unit A2-1. The wider impacts assessment is focused on the following three areas:

• Agglomeration – by reducing journey times, the relative agglomeration of business in this area will increase – this will have a direct impact on the productivity arising from static clustering and GDP of the UK and is a central element to the estimation of wider impacts;

• Output change in imperfectly competitive markets – a reduction in the costs of transport allows businesses to operate more efficiently, improves their output and intensity of business practices, and hence generates benefits; and

• Labour supply impacts – this captures tax revenues arising from the welfare effects to the UK economy of having a wider human resource pool; as travel costs are reduced, more workers will be attracted to the workplace from either new areas accessible by the scheme or areas that are already connected receiving an improved service.

DfT’s WITA (Wider Impacts in Transport Appraisal) software v2.0 has been used to undertake the wider impact analysis of the two scheme options.

The results are presented in Table 3.6.

Table 3.6: Wider Impacts Benefits

Option PVB (£)

A19 Tees Viaduct Option 86,952,448

A19 Tees Viaduct Capacity Enhancement 73,220,368 Option

3.5 Environmental Impacts

This section summarises the forecast environmental impacts of the proposed scheme. The impacts are discussed in more detail in the Environmental Assessment Report included at Appendix E.

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Several environmental impacts are assessed through the use of TAG workbooks. These assessed environmental impacts are:

• Noise;

• Air quality;

• Greenhouse gases;

• Landscape/Townscape;

• Historic environment;

• Biodiversity; and

• Water environment.

3.5.1 Noise

As noted in TAG Unit A3, there is growing evidence on the links between environmental noise and health outcomes. Defra has produced guidance on assessing the impacts of transport-related noise from different sources including road schemes and has used research to establish monetary valuation techniques to enable decision- makers to assess the relative importance of the noise impacts of a transport option in relation to other impacts currently measured in monetary terms.

The TAG Noise Workbook has been utilised alongside the guidance identified in TAG Unit A3 to assess the noise related monetary impact of the scheme. The Workbook can be found at Appendix F, supported by the information contained in the Environmental Assessment Report.

The net present value (NPV) of the change in noise for both options is presented in Table 3.7 alongside a short commentary of the specific impacts.

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Table 3.7: Monetary Valuation of Noise Impacts

Option Monetary Valuation of Noise Impacts (£m Comments NPV)

This option is predicted to increase road traffic noise levels directly and indirectly at a number of residential receptors. However, most of these noise increases are relatively small (the largest increase is 2.6dB). The receptors that are expected to experience the A19 Tees Viaduct largest change in noise directly from the proposed -3,016,888 Option scheme are located near the existing A19; to the south of the A139, to the eastern side of the A19/A66 interchange (north of the A66) and to the south east around Whinney Banks. Some of these receptors are located within Noise Important Areas. There are also direct increases in road traffic noise at receptors close to the proposed Portrack Relief Road.

This option is predicted to increase road traffic noise levels directly and indirectly at a number of residential receptors. However, most of these noise increases are relatively small (the largest increase is 2.1dB).

A19 Tees Viaduct The receptors that are expected to experience the Capacity largest change in noise directly from the proposed -2,935,564 Enhancement scheme are located near the existing A19; to the Option south of the A139, to the eastern side of the A19/A66 interchange (north of the A66) and to the south east around Whinney Banks. Some of these receptors are located within Noise Important Areas. There are also direct increases in road traffic noise at receptors close to the proposed Portrack Relief Road.

3.5.2 Air Quality

A detailed assessment has been undertaken to establish the potential effects of the two options on local air quality. The main pollutants of concern that have been

assessed are oxides of nitrogen (NOx), nitrogen dioxide (NO2) and fine particulate matter (PM10 and PM2.5).

The TAG Local Air Quality Workbook, Air Quality Sensitivity Workbook, and Air Quality Valuation Workbook has been utilised alongside the guidance identified in TAG Unit A3 to assess the air quality impacts and their monetary valuation. The Workbooks can be found at Appendix F.

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The NPV of the change in air quality for both options is presented in Table 3.8 alongside a short commentary of the specific impacts.

Table 3.8: Monetary Valuation of Air Quality Impacts

Option Monetary Valuation of Air Quality Comments Impacts (£m NPV)

Overall, there is a beneficial impact on local NO2 and PM2.5 concentrations and an adverse impact A19 Tees Viaduct on regional NO emissions as a result of this -299,430 x Option option. This is due to an increase in capacity on the road network and increased traffic volumes as a result of the proposed scheme.

Overall, there is a beneficial impact on local NO2 A19 Tees Viaduct and PM2.5 concentrations and an adverse impact Capacity on regional NO emissions as a result of this -189,908 x Enhancement option. This is due to an increase in capacity on Option the road network and increased traffic volumes as a result of the proposed scheme.

3.5.3 Greenhouse Gases

The Climate Change Act 2008 includes a legally binding target to reduce the UK’s greenhouse gas emissions to at least 80 per cent below base year levels by 2050. It is therefore important that the impacts of proposed transport schemes on greenhouse gas emissions - whether they are increased or decreased – are incorporated within the appraisal in a consistent and transparent way.

Although TUBA provides the net present value of the change in carbon dioxide

equivalent (CO2e) emissions from road-based fuel consumption that is in the nontraded sector as an automatic output of the program, the output from TUBA were

not used to quantify CO2e at this stage. Instead, the TAG Greenhouse Gases Workbook has been utilised alongside the guidance identified in TAG Unit A3 to assess the greenhouse gas impacts and their monetary valuation.

The Workbook can be found at Appendix F.

The NPV of the change in greenhouse gas emissions for both options is presented in Table 3.9 alongside a short commentary of the specific impacts.

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Table 3.9: Monetary Valuation of Greenhouse Gas Emissions

Option Monetary Valuation of Greenhouse Gas Comments Emissions (£m NPV)

CO2 emissions are assessed on a regional scale, A19 Tees Viaduct where the predicted effect was adverse. This is -17,815,919 due to an increase in capacity and increased Option traffic volumes as a result of the proposed scheme.

CO emissions are assessed on a regional scale and A19 Tees Viaduct 2 an adverse effect on CO emissions was predicted. Capacity 2 -14,153,538 This is due to an increase in capacity and Enhancement increased traffic volumes as a result of the Option proposed scheme.

3.5.4 Landscape

The TAG Landscape Appraisal Worksheet has been utilised alongside the guidance identified in TAG Unit A3 to assess the impact of scheme on the physical and cultural characteristics of the land itself (that is, its use and management) and how these are perceived. The Worksheets can be found at Appendix F.

For both options it has been assessed there could be potentially Moderate Adverse impacts.

The A19 Tees Viaduct Option would generally be in keeping with the area. However, it would introduce an adjacent crossing at a lower height to the existing Tees Viaduct, which would affect visual amenity along the river corridor, in particular as experienced from the Teesdale Way long distance path and National Cycle Network Route 1 as well as from accessible open spaces. The Portrack Relief Road would form a visual and aural intrusion along the northern edge of the Portrack Marshes. Furthermore, the proposed scheme would result in land take and loss of vegetation associated with the new road sections, in particular along the Portrack Relief Road, at Portrack Interchange, around the A19/A66 Interchange and around the new crossing.

The A19 Tees Viaduct Capacity Enhancement Option would generally be in keeping with the surrounding area. However, it would increase the width of the existing Tees Viaduct and introduce an adjacent crossing at a lower height to the existing Tees Viaduct, which would affect visual amenity along the river corridor, in particular as experienced from the Teesdale Way long distance path and National Cycle Network Route 1 as well as from accessible open spaces. The Portrack Relief Road would form a visual and aural intrusion along the northern edge of the Portrack Marshes.

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Furthermore, the proposed scheme would result in land take and loss of vegetation associated with the new road sections, in particular along the Portrack Relief Road, at Portrack Interchange and around the new crossing.

3.5.5 Townscape

The TAG Townscape Appraisal Worksheet has been utilised alongside the guidance identified in TAG Unit A3 to assess the impact of scheme on the physical and social characteristics of the built and non-built urban environment and how these are perceived. The Worksheet can be found at Appendix F.

The A19 Tees Viaduct Option has been assessed as having potentially Moderate Adverse impacts. The proposed scheme would require land take from within the commercial/ industrial area, football pitches and open space. The scheme would be visible from many locations within the urban area. However, the change would largely be seen in context of the existing road network. Residents along Stockton Road, between the two interchanges, at the A19/A66 Interchange and at Whinney Banks, as well as employment receptors at Lustrum Industrial Estate, North Tees Industrial Estate, Portrack Industrial Estate and the Industrial Estate located to the east of the A19 and at the A19/A66 Interchange are predicted to experience adverse visual impacts.

The A19 Tees Viaduct Capacity Enhancement Option has been assessed as having potentially Slight Adverse impacts. Although the urban area through which the scheme passes is already dominated by the existing road corridors, the option would result in adverse visual impacts, the loss of small areas of commercial/industrial areas and buffer planting, which can only be partially mitigated.

3.5.6 Biodiversity

The TAG Biodiversity Appraisal Worksheet has been utilised alongside the guidance identified in TAG Unit A3 to assess the impact of scheme on the biodiversity and earth heritage (geological) interests. The Worksheet can be found at Appendix F.

For both options, it has been assessed there could be potentially Large Adverse impacts.

Both options impact two internationally designated sites (Teesmouth and Cleveland Coast proposed Special Protection Area (pSPA) and proposed Ramsar sites); one nationally designated site (Teesmouth and Cleveland Coast Site of Special Scientific Interest (SSSI)); three locally designated sites (Local Wildlife Sites (LWS)); a number of Habitats of Principal Importance (HoPI); and potentially a number of protected species and Species of Principal Importance (SoPI). The actual presence of protected

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species in the scheme area is currently unknown and will be determined at later stages.

Given that the Portrack Relief Road element of the scheme is being delivered separately, then the direct physical impact on all internationally designated sites is significantly reduced for the remainder of the scheme. Impact on the SPA and RAMSAR sites is limited to the vicinity of the River Tees, and direct effects on Portrack Marsh are removed which will likely lead to a reducing in the impacts assessed during the next stage of scheme development.

Ongoing dialogue with Natural England is being undertaken to ascertain the implications of any land take required from beneath the proposed structure, the basis of which will be utilised to inform any mitigation measures that may be required to be investigated during PCF Stage 3.

3.5.7 Historic Environment

The TAG Historic Environment Appraisal Worksheet has been utilised alongside the guidance identified in TAG Unit A3 to assess the impact of scheme on the historic environment. The Worksheet can be found at Appendix F.

For both options, it has been assessed there could be potentially Neutral impacts on known heritage assets and Slight Adverse impacts on archaeology.

In relation to both options, the scheme maintains existing historic character and does not result in severance, loss of integrity, context or understanding within the Tees Valley landscape, and has an overall Neutral effect on all known heritage assets. However, there is potential to encounter previously unknown below-ground archaeological deposits during construction, which may have a slight adverse effect.

3.5.8 Water Environment

The TAG Water Environment Appraisal Worksheet has been utilised alongside the guidance identified in TAG Unit A3 to assess the impact of scheme on the water environment. The Worksheet can be found at Appendix F.

It has been assessed there could be potentially Highly or Potentially Significant impacts, although these are likely to be Neutral once mitigation is in place.

For both options, there is the potential to adversely affect the fluvial floodplain (for Flood Zone 3) of the Lustrum Beck due to both the Portrack Relief Road and the proposed crossing over the River Tees, and will potentially affect the flow of water in the tidal floodplain (for Flood Zones 2 and 3) of the River Tees and tidal sections of

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Billingham Beck and the Old River Tees. These aspects have been recommended to be assessed through a Flood Risk Assessment at PCF Stage 3.

Road drainage has the potential to impact the chemical quality of the Lustrum Beck (which currently has 'good' status under WFD) and Billingham Beck, River Tees and Old River Tees (which currently has 'failing' status under WFD) - however, this is not anticipated to be significant following a HAWRAT assessment for Lustrum Beck and the tidal nature of the River Tees, Billingham Beck and Old River Tees. Best practice dictates appropriate water treatment measures where required, so it is assumed that any impact will be negligible. Crossing points on the watercourses have the potential to impact fish passage, which is predominantly associated with shading impacts from the crossing.

The Environment Agency has been, and continue to be consulted, on the scheme and it has been highlighted that there is the potential to combine programmes and funding to deliver the required flood protection and highway improvements in the Portrack area. The Tees Tidal Flood Risk Management Strategy was published in June 2009, to provide a sustainable, cost effective plan for managing flood risk within the Tees Estuary over a 100 year period. It assessed potential interventions to manage flood risk in eight independent flood cells and identified a required investment of £93.9 million to support implementation of the Strategy's recommendations. The Portrack area was one of the cells considered, with a potential economic damage at £19.4 million over the life span of the Strategy and a high level indicative cost of £2.1 million.

The Environment Agency considers that intervention is required within the next six years to manage the current and the anticipated future level of flood risk in this area. Initial hydraulic modelling has been undertaken to assess the level of risk in more detail. This has identified a number of potential flooding routes, which could affect the A19 Portrack Interchange, resulting in severe disruption and potential damage to the highway network at this location.

In order to manage this flood risk, a number of interventions are likely to be required. One option may be to construct a new defence between the River Tees and North Tees Industrial Estate – this could be along the line of the proposed Portrack Lane Relief Road. There is therefore potential to combine programmes and funding to deliver the required flood protection and highway improvements. This would need to be considered in detail but there are potential efficiencies and cost savings, together with an opportunity to make the network far more resilient to the impacts of flooding and climate change.

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3.6 Social Distributional Impacts

A detailed summary of the assessment of the impacts of the scheme on different social groups has been undertaken in order to determine the differences between the options and to ensure a fair distribution of impacts. The analysis has been carried out in accordance with TAG Unit A4.2. A summary of the findings is contained in Table 3.10. The full TAG Distributional Impact Appraisal Matrix is contained in Appendix F.

Table 3.10: Social Distributional Impacts Summary

Impact Route Option Key Impacts

All of the 5 income quintiles experience a beneficial effect, with quintile 1 experiencing a benefit greater than its proportion of A19 Tees the population whilst quintile 4 experiences benefit slightly Viaduct Option below its proportion of the population. Quintiles 2,3 and 5 experience benefit in line with their population. User Benefits All of the 5 income quintiles experience a beneficial effect but A19 Tees to a lesser extent. Quintile 1 experiences a benefit greater than Viaduct its proportion of the population. Quintiles 2 and 5 receive a Capacity proportion of benefits equivalent its share of population in the Enhancement impact area. Quintile 4 shows the lowest proportion of benefits Option compared to the proportion of population within the group.

All affected quintiles (1-3) experience a net disbenefit in terms of noise. Quintile three experiences a proportion of disbenefit A19 Tees above which would be expected from the quintile's population. Viaduct Option Quintile 1 experiences an adverse effect broadly in line with its population while the net disbenefit to quintile two is smaller than the proportion of the group's population. Noise A19 Tees All affected quintiles experience a net disbenefit in terms of Viaduct noise. Quintiles 2 and 3 experience a proportion of the net Capacity disbenefit above which would be expected from the quintile's Enhancement population while the adverse effect to quintile one is smaller Option than the proportion of the group's population.

Air quality impacts from PM2.5 is neutral across all income quintiles. Air quality impacts from NO2 are not distributed evenly. Quintile 1 experiences a proportion of the benefit above A19 Tees which would be expected from the quintile's population. Viaduct Option Quintiles 2 and 3 experience an adverse effect which is smaller than the proportion of the group in the total population. Quintiles 4 and 5 do not experience any significant benefit or Air Quality disbenefit.

A19 Tees Air quality impacts from PM2.5 is neutral across all income Viaduct quintiles. Air quality impacts from NO2 are not distributed Capacity evenly. Quintile 1 experiences a proportion of the benefit Enhancement broadly in line with the proportion of the group in the total Option population, while quintiles 2 and 3 experience a proportion of

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Impact Route Option Key Impacts

the benefit smaller than the proportion of the group in the total population. Quintiles 4 and 5 do not experience any significant benefit or disbenefit.

This option will have a higher proportion of accidents involving cars than the national average but will have a slight beneficial A19 Tees impact (reduction) in serious and fatal accidents. A moderate Viaduct Option beneficial impact will also be felt by vulnerable users and social groups. Accidents A19 Tees This option will have a higher proportion of accidents involving Viaduct cars than the national average but to a lesser extent. The option Capacity will have a slight beneficial impact (reduction) in serious and Enhancement fatal accidents. A moderate beneficial impact will also be felt by Option vulnerable users and social groups.

This option is anticipated to have a neutral impact on vulnerable groups including children, the elderly and households with A19 Tees disabled persons. However, there will be a slight negative Viaduct Option impact on households with car ownership owing to disruption to two PRoWs during the construction and operation of the scheme. Severance A19 Tees This option is anticipated to have a neutral impact on vulnerable Viaduct groups including children, the elderly and households with Capacity disabled persons. However, there will be a slight negative Enhancement impact on households with car ownership owing to disruption to Option two PRoWs during the construction and operation of the scheme.

3.7 Value for Money

The Value for Money assessment of the scheme has been undertaken in line with TAG and is based on assessment of the economic, environmental, social, distributional and financial impacts as described above. The Transport and Economic Efficiency (TEE), Public Accounts (PA) and Analysis of Monetised Costs and Benefits (AMCB) tables for each option are included within the Combined Modelling and Appraisal Report.

The BCR is defined by dividing the total PVB by the calculated PVC and the calculation of an initial BCR is set out in Table 3.11 for both options. The initial value of BCR includes monetised benefits of users benefits in terms of travel times and operating costs, construction delay impacts, accident savings, noise, air quality and greenhouse gas impacts and indirect taxation impacts.

The adjusted BCRs, that includes consideration of reliability and resilience benefits, are also set out in Table 3.11.

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Table 3.11: Initial and Adjusted BCR Calculations

A19 Tees Viaduct Capacity A19 Tees Viaduct Option Enhancement Option

PVB (£) 196,286,263 183,564,090

PVC (£) 226,020,922 181,342,102

NPV (£) -29,734,658 2,221,988

Initial BCR 0.87 1.01

Reliability Benefits (£) 31,750,009 31,063,138

Wider Benefits (£) 86,952,448 73,220,368

Adjusted PVB (£) 314,988,720 287,847,596

Adjusted BCR 1.39 1.59

The A19 Tees Viaduct Option delivers higher levels of user benefits than the A19 Tees Viaduct Capacity Enhancement Option as it includes more additional road capacity. However, as the BCR results demonstrate, the cost associated with this additional capacity is such that the overall return on investment is lower than in the A19 Tees Viaduct Capacity Enhancement Option.

According to the DfT Value for Money Framework categories are defined as follows:

• Poor VfM if BCR is below 1.0;

• Low VfM if the BCR is between 1.0 and 1.5;

• Medium VfM if the BCR is between 1.5 and 2;

• High VfM if the BCR is between 2.0 and 4.0; and

• Very High VfM if the BCR is greater than 4.0.

Therefore, it is clear that the A19 Tees Viaduct Option provides Low value for money, whilst the A19 Tees Viaduct Capacity Enhancement Option offers Medium value for money.

However, it is important to note that the overall value for money of the scheme encompasses more than just the benefit : cost ratio value – there are a range of benefits for which the standard approach does not provide a monetisation

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methodology, or for which the calculation is outside of the current scope of assessment. These benefits are more strategic in nature, and include:

• Unlocking future development growth across the City Region through the provision of additional road capacity;

• Increased network resilience through the provision of additional lanes across the River Tees and the removal of existing vehicle conflicts; and

• Reducing the negative impact of the ongoing and significant maintenance requirements associated with the existing Tees Viaduct and Newport Bridge structures.

3.8 Appraisal Summary Table

The Appraisal Summary Table (AST) presents all the evidence from the economic assessment in a single table. It records all the impacts which have been assessed and described above using monetised, quantitative or qualitative information as appropriate. The ASTs for both options are included at Appendix G.

3.9 Preferred Option

Given the analysis that has been undertaken and presented above, the Preferred Option is the A19 Tees Viaduct Capacity Enhancement Option. The information presented in the remainder of this chapter and the rest of the business case therefore assumes this option is taken forward to delivery.

3.10 Sensitivity Tests

In order to understand the sensitivity of the benefits described above against some alternative parameters, four sensitivity tests have been carried out as follows for the preferred option:

• Using the commercially assured cost estimates provided by Highways England as described in the Financial Case;

• Considering lower and higher growth scenarios;

• Assuming the lower future growth forecasts provided by the Office for Budget Responsibility (OBR) arising from the COVID-19 pandemic; and

• Using the high carbon values provided in the July 2020 update to TAG.

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The impact of the sensitivity tests is reported in more detail in the End of Stage 2 Economics report.

3.10.1 Highways England Cost Estimate

During the preparation of PCF2 and this OBC it was identified that the preference is for this scheme to be delivered by Highways England given that the scheme is on the SRN. Therefore, Highways England has undertaken a commercial cost review and set out a cost estimate that meets their assurance requirements. These costs are those presented in the Financial Case.

The Highways England costs for the preferred option are greater due to assumed higher land and third party costs as well as an increased risk allowance, including portfolio risk. Using these costs, the Adjusted BCR is therefore lower than when using the cost estimates described previously, as illustrated by Table 3.12.

Table 3.12: Preferred Option Initial and Adjusted BCR Calculations, Highways England Cost Estimate

A19 Tees Viaduct Capacity Enhancement Option

PVB (£) 183,564,090

PVC (£) 209,877,788

NPV (£) -26,313,698

Initial BCR 0.87

Reliability Benefits (£) 31,063,138

Wider Benefits (£) 73,220,368

Adjusted PVB (£) 287,847,596

Adjusted BCR 1.37

However, it is understood that the construction price inflation forecasts used by the Highways England pre-date the COVID-19 pandemic and therefore do not account for reduced future inflation forecast by other bodies. In due course therefore, this commercially assured cost estimate may reduce, hence the above sensitivity test is robust.

It is also worthy of note that the base construction cost estimates from the original costing exercise and the Highways England estimate are extremely close – the deviation principally occurs in the different treatment of risk and inflation.

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3.10.2 High and Low Growth

TAG high and low growth economics results have been estimated for the preferred option. The Combined Modelling and Appraisal Report and the End of Stage 2 Economics report contains details of the derivation of the high and low growth models and the associated economics results which are used as the basis for these sensitivity test results.

Both the low and high growth scenarios result in a reduction in TUBA benefits. In the case of the high growth scenario this is primarily due to significant congestion in the network in 2051 in this scenario which reduces the benefits below the core values in the later appraisal years (total benefits up to 2042 are higher in the high growth than the core).

Applying these changes produces the economics results presented in Table 3.13.

Table 3.13: Preferred Option Initial and Adjusted BCR Calculations, High and Low Growth

Low Growth High Growth

A19 Tees Viaduct A19 Tees Viaduct A19 Tees Viaduct A19 Tees Capacity Capacity Capacity Viaduct Capacity Enhancement Enhancement Enhancement Enhancement Option Option Option Option (TVCA Cost (HE Cost (TVCA Cost (HE Cost Estimate) Estimate) Estimate) Estimate)

PVB (£) 139,327,257 139,327,257 163,258,100 163,258,100

PVC (£) 181,342,102 209,877,788 181,342,102 209,877,788

NPV (£) -42,014,845 -70,550,531 -18,084,002 -46,619,688

Initial BCR 0.77 0.66 0.90 0.78

Reliability 31,063,138 31,063,138 31,063,138 31,063,138 Benefits (£)

Wider 58,210,193 58,210,193 66,117,993 66,117,993 Benefits (£)

Adjusted PVB 228,600,588 228,600,588 260,439,231 260,439,231 (£)

Adjusted 1.26 1.09 1.44 1.24 BCR

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3.10.3 OBR Lower Growth Forecasts

This sensitivity test concerns the use of the “sensitivity test” version of the TAG databook released in July 2020. This is version 1.14 and reflects the projected impact of COVID-19 pandemic and the March 2020 OBR economic forecasts. As such the economic growth in this version is lower than in TUBA version 1.13.1 and the resultant scheme benefits are lower as shown in Table 3.14.

Table 3.14: Preferred Option Initial and Adjusted BCR Calculations, OBR Lower Growth Forecasts

A19 Tees Viaduct Capacity A19 Tees Viaduct Capacity Enhancement Option Enhancement Option (TVCA Cost Estimate) (Highways England Cost Estimate)

PVB (£) 144,911,090 144,911,090

PVC (£) 181,342,102 209,877,788

NPV (£) -36,431,012 -26,313,698

Initial BCR 0.80 0.87

Reliability Benefits (£) 31,063,138 31,063,138

Wider Benefits (£) 73,220,368 73,220,368

Adjusted PVB (£) 236,736,199 236,736,199

Adjusted BCR 1.31 1.13

3.10.4 High Carbon Price Valuation

This sensitivity test uses the high carbon price valuation contained in the July 2020 TAG databook for the scheme’s greenhouse gas impact. This reflects the greater weight currently being placed on carbon emissions in the scheme appraisal process. Use of the high carbon valuation reduces the BCR values slightly from those presented previously by around 2-3%, as shown in Table 3.15. However, the impact is not that marked as the greenhouse gas disbenefit is a small proportion of the overall scheme impact.

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Table 3.15: Preferred Option Initial and Adjusted BCR Calculations, High Carbon Price Valuation

A19 Tees Viaduct Capacity A19 Tees Viaduct Capacity Enhancement Option Enhancement Option (TVCA Cost Estimate) (Highways England Cost Estimate)

PVB (£) 175,857,108 175,857,108

PVC (£) 181,342,102 209,877,788

NPV (£) -5,484,994 -34,020,680

Initial BCR 0.97 0.84

Reliability Benefits (£) 31,063,138 31,063,138

Wider Benefits (£) 73,220,368 73,220,368

Adjusted PVB (£) 280,140,614 280,140,614

Adjusted BCR 1.54 1.33

3.10.5 Summary

From the TAG assessment of the two options it is clear the preferred option is the A19 Tees Viaduct Capacity Enhancement Option, which offers Medium Value for Money.

The Adjusted BCR remains between 1.0 and 1.5 for all sensitivity tests, even when using the commercially assured Highways England cost estimates, confirming the robustness of the economic analysis and the value for money of the preferred option.

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4 The Financial Case

This chapter of the OBC provides information on the affordability of the scheme and its funding arrangements. It sets out the most recent cost estimates and their financial profile. As noted previously, given the preference for the scheme to be delivered by Highways England, the information contained in this chapter is generally derived from the commercially assured cost estimate provided by Highways England.

4.1 Costs

4.1.1 Scheme Preparation and Construction

A separate PCF Stage 2 Options Estimate Report has been produced detailing the costs and how they have been identified for the different options. This report is included at Appendix H, which H also includes details of the Highways England commercially assured cost estimate by way of comparison.

The Options Estimate report includes a number of assumptions including:

• Costing exercise with rates valid to 1Q 2019;

• UK sourced estimating rates;

• UK sourced benchmarking rates;

• Allowances, where definition of the requirement is very low; and

• Percentage additions, for items such as preliminaries, logistics, professional fees and contingencies.

Land and compensation costs are based on estimate for similar schemes.

Enquiries have been undertaken on for the preferred option to identify public utilities in the location of the proposed scheme. Estimates have been received for the following statutory undertakers and are included in the cost estimates:

• British Telecom;

• Northumbrian Water;

• Virgin Media;

• Northern Powergrid; and

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• Northern Gas Networks.

A summary of scheme base costs, excluding risk allowances which are defined in Section 4.3, is presented in Table 4.1. Table 4.1 also illustrates the conversion of the base costs to outturn costs, that is including the impact of construction price inflation. The detailed inflation assumptions are provided within the Combined Modelling and Appraisal Report.

Table 4.1. Summary of Base and Outturn Scheme Costs

Base Cost Estimate Outturn Cost Estimate (£ Q1 2019) (£)

A19 Tees Viaduct Capacity 255,827,633 355,663,534 Enhancement Option

These scheme costs are considered proportionate and affordable in relation to the issues identified in the Strategic Case and the predicted benefits of the scheme assessed in the Economic Case. They have been prepared by Highways England in line with their commercial assurance processes and valuation information.

4.1.2 Maintenance Costs

Highways England has identified an allowance for whole life costs in their complementary cost estimate.

4.2 Risk Allowance

A QRA has been carried out by the project team, following a number of risk workshops as described in the Management Case. The identification and quantification of risk through this process has led to the inclusion of a risk allowance in the scheme costs as shown in Table 4.2.

Table 4.2: Outturn Costs including Risk Allowance

Risk Allowance (£) Outturn Cost with Risk Allowance (£)

A19 Tees Viaduct Capacity 70,929,040 426,592,574 Enhancement Option

No portfolio risk is included in the above figures although this has been provided separately by Highways England in accordance with their cost estimation processes.

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This additional portfolio risk value, and the total resulting outturn cost, is shown in Table 4.3.

Table 4.3: Outturn Costs including Portfolio Risk Allowance

Option Portfolio Risk Allowance (£) Outturn Cost with Portfolio Risk Allowance (£)

A19 Tees Viaduct Capacity 41,980,791 468,573,365 Enhancement Option

4.3 Spend Profile

The total cost of the preferred option has been split over time by the Highways England commercial team to reflect their likely spending on the scheme (which extends beyond opening year predominantly to cover land expenditure). The breakdown of the scheme costs by year can be found in Table 4.4 and includes real cost inflation and project risk allowances, however it does not include the portfolio risk allowance.

Table 4.4: Breakdown of Scheme Costs

Year Estimated Spend (£)

2020 3,088,029

2021 9,744,830

2022 15,118,143

2023 7,212,351

2024 14,808,804

2025 56,102,418

2026 165,090,297

2027 134,960,374

2028 16,642,781

2029 2,988,520

2030 452,228

2031 159,318

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Year Estimated Spend (£)

2032 106,010

2033 65,893

2034 52,578

TOTAL 426,592,574

4.4 Budgets/Funding Cover

Several potential funding routes have been considered for the scheme and the most appropriate are set out below.

• Large Local Major (LLM) Schemes Element of the new National Roads Fund

The LLM programme was set up in 2016 to cater for the small number of exceptionally large local highway authority transport schemes that could not be funded through the normal routes, such as Local Growth Fund or other devolved allocations. LLM development funding has been provided for the work on this scheme up to this point, and hence this is an appropriate funding route for the delivery of the scheme. The scheme was included in TfN’s advice to Government in Summer 2019 as to the priority LLM schemes for the North.

• Major Road Network (MRN) Element of the new National Roads Fund

The MRN forms a middle tier of the country’s busiest and most economically important local authority ‘A’ roads, sitting between the national SRN and the rest of the local road network. A specific new funding stream has been dedicated to improvements on MRN roads with the aim of reducing congestion, supporting economic growth and road users. As part of the scheme involves providing benefits to the defined MRN, this is considered to be an appropriate funding route.

However, the current MRN element of the National Roads Fund usually considers funding between £20 and 50 million (albeit up to a maximum ceiling of £100 million in exceptional circumstances), and there is not necessarily a discrete element of the scheme that would fit this range.

• Highways England Road Investment Strategy (RIS)

The second RIS (RIS2) is a long term programme of stable funding for motorways and major roads running from 2020-2025. The RIS2 comprises a long term vision

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for England’s motorways and major roads, a multi-year investment plan that will be used to improve the network and create better roads for users and build on the high level objectives from the RIS1 period (2015-2020). Given that the scheme is aimed at addressing existing capacity issues on the SRN and that the majority of the work required on the scheme sits on the SRN, the RIS could be seen as an appropriate funding route.

However, the scheme is not included in Highways England’s Delivery Plan for 2020 to 2025, published in August 2020, although it should be noted that delivery of the scheme will straddle the RIS2 and RIS3 periods, with the majority of the costs in the latter.

• Local Funding

The Tees Valley Investment Plan was agreed in January 2019 and has been developed following a Devolution Deal signed by the Tees Valley Local Authorities with central government that is worth £450 million over 30 years. The Investment Plan has been created to deliver a programme of investment in the City Region over the 30 year period, and detailed allocations for the first ten year period have been drawn up.

TVCA is proposing to contribute £21.33 million (5% of the Highways England cost estimate excluding portfolio risk, as would be the case with a scheme not on the SRN) from its own resources to the scheme, having already provided a significant contribution to the development costs alongside LLM funding. Portfolio risk is seen as a wider risk allowance than simply for this scheme as so is considered inappropriate to be included in any calculations of a local contribution.

Following discussions with the DfT, it is concluded that New Tees Crossing scheme is most appropriate for the LLM element of the National Roads Fund as the primary funding source. However, as noted previously given the scheme is on the SRN, once this OBC has been approved, the scheme should be delivered by Highways England as part of their major project portfolio.

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5 The Commercial Case

This chapter of the OBC outlines the commercial viability of the scheme, and the procurement strategy which will be used to engage the market. It provides the intended approach to risk allocation and transfer, contract and implementation timescales, as well as how the capability and technical expertise of the team delivering the scheme will be secured.

5.1 Commercial Viability

The New Tees Crossing scheme is considered to be commercially viable as Highways England has considered whole life costs during their review of the scheme costs set out in the Financial Case.

The scheme comprises new or upgraded transport infrastructure that will be maintained by Highways England once constructed. There are no other anticipated ongoing costs that will affect the commercial viability of the improvement.

No specific market engagement has yet taken place on the scheme proposals other than the involvement of a major contractor as part of the review of the buildability and the cost estimates.

However, should the scheme become part of Highways England’s portfolio, it will follow their Regional Delivery Partnership (RDP) procurement strategy, with the scheme falling within the North Region, Band B (for projects > £100m). There are three contractors within North Region Band B - Costain, Balfour Beatty, and Kier. Further details of Highways England’s RDP procurement strategy are provided below.

5.2 Output-based Specification

The anticipated output of a new strategic road crossing of the River Tees, in the approximate location of the existing Tees Viaduct, together with the widening of the existing structure, is enhanced capacity and resilience of the existing network on this section of the A19, allied to a reduction in journey times and improved road safety.

The overall scheme needs to be delivered the within available funding envelope, ensuring best value, within the required construction design standards, integrating well with the surrounding highway network, maximising the economic objectives of the scheme, but with risk reduced to a level that is as low as reasonably practicable.

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To help achieve these objectives, the following actions are required:

• Achieve cost certainty;

• Minimise preparation costs in regard to scheme design;

• Minimise construction delivery costs;

• Achieve an efficient delivery programme;

• Achieve an appropriate quality of design;

• Incentivise innovation;

• Maintain project knowledge;

• Achieve an effective and efficient handover (assuming the project is to be handed over to Highways England at the end of PCF Stage 2);

• Obtain contractor input to risk management and assessment; and

• Engage with contractors and stakeholders throughout planning to scheme delivery.

Obtaining planning permission for the project (likely via a Development Consent Order route) is a critical milestone, as is obtaining planning permission for the complementary Portrack Relief Road. Ensuring that the latter scheme is open to traffic before the A19 New Tees Crossing will also be vital to maximise the benefits of the project.

The scheme will align with Highways England’s Project Control Framework (PCF) – the accepted approach to the planning, delivery and management of major projects on the SRN. The PCF comprises a standard project lifecycle, standard project deliverables, project control processes and governance arrangements. The project will start at PCF Stage 3 – Preliminary Design.

5.3 Procurement Strategy

The identified procurement strategy should identify the best way of achieving the objectives of the scheme and value for money, taking account of the risks and constraints. Consideration of the strategy for this scheme has included taking account of a developed market for any proposed procurement approach and a mechanism to incentivise performance, efficiency and innovation.

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Given that the scheme lies on the SRN, it has been agreed through discussions between DfT, Highways England and TVCA that it be delivered by Highways England through their procurement processes and procedures allied to the PCF, with the complementary but separate Portrack Relief Road scheme to be delivered by SBC.

A Project Level Procurement Strategy was prepared as part of the PCF Stage 2 work and is included at Appendix I. However, once the scheme is accepted into Highways England’s major projects portfolio it will follow Highways England’s RDP procurement strategy.

In 2017, the Highways England Investment Committee (HEIC) and the DfT Board Investment and Commercial Committee (BICC) approved the RDP procurement strategy. The strategy was for “Highways England to lead a generational shift in how highways and infrastructure schemes are developed and deliver successes”. Bespoke to Highways England, the RDP strategy is designed to deliver “industry leading” principles, Highways England imperatives and benefits, including integration, efficiency, predictability, outcome benefits focus and encourages value-based decision making.

5.4 Payment and Charging Mechanisms

At this time, it is envisaged that Highways England will tender the construction contract for the scheme and the successful contactor will be paid by monthly valuation, as with other similar schemes within the RIS. Commercial management will be provided by Highways England’s Project Controls Service and will involve the management of commercial tasks required in each stage, including upskilling and training staff, and ensuring all suppliers deliver the commercial outputs they are contracted to do.

All suppliers to be engaged on the project by Highways England will be incentivised to improve performance throughout the tenure of their appointment. The model used to report and manage this process is the Collaborative Performance Framework (CPF), which is used to monitor how well the supplier is meeting requirements and to highlight areas where intervention may be necessary. CPF combines quantitative metrics based on hard data, with qualitative measures provided by behaviour-based metrics. The RDP framework further incentives Delivery Integrated Partners (DIP) through three KPIs associated with journey time reliability during construction, start of works and open for traffic.

5.5 Risk Allocation and Transfer

A more detailed account of the approach to risk management for the scheme is included in the Management Case.

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Some of the risk is captured and quantified within the QRA process as outlined in the Management Case. Once the tendering process for the construction contract is complete, some of the risk (such as scheme cost increases associated with the design and construction) can be transferred to the successful contractor. However, the risk of costs being higher than currently predicted, remains until the tendering process is complete. Other risks that will be transferred to the successful contractor(s) at the appropriate time include those that encompass discharging planning conditions, estimations of the quantities, mitigation measures and resources.

Following discussions between DfT and TVCA it is recognised that the risk of any cost increases does not lie with TVCA, but will be managed as part of the overall RIS programme by Highways England. This risk is accounted for by the higher scheme cost estimate developed by Highways England and reported in the Financial Case and the inclusion of a level of portfolio risk. The current Risk Management Plan and Risk Register would then be transferred to Highways England and updated during PCF Stage 3. Regular risk reviews involving Highways England have been held to update the risk register to this point and inform the cost estimates quoted previously.

Highways England’s RDP procurement strategy has numerous risk mitigation clauses built in. These will allow Highways England to progress contract award with minimal risk. The risk mitigation clauses are:

• Any exit route is based on fair payment of actual cost;

• There is a ‘terminate at will’ clause for all projects, a ‘circuit breaker’ - exposure is actual costs only;

• A requirement to complete mobilisation deliverables prior to being appointed a project contract, a ‘quasi condition’ precedent, means that suppliers will have been quality and behaviourally assured before being awarded project contracts;

• There are stage gate exit routes in the contract prior to DCO submission and Notice to Proceed;

• There is a defined ‘not to exceed’ cap specified for each project where the definition is equal to the current expected funds available; and

• At all stages, financial commitments are fixed or capped costs or target costs, with overspend exposure ‘pain’ carried fully by the supplier to the level of its business overhead and profit.

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5.6 Contract Length and Management

At this time, the construction contract will most likely be a NEC4 contract. The recent update to the NEC4 suite of contracts from NEC3 reflects procurement and project management developments and emerging best practice, with improvements in flexibility, clarity and the ease of administration.

It is anticipated that the construction contract itself will run for a period of between 36 and 48 months from award, from 2025 through to 2028/29. The buildability review undertaken by a major contractor confirms that this timetable is realistic and this has also been endorsed by Highways England.

It is envisaged that design, procurement and construction supervision of the scheme will be managed by Highways England. The complementary but separate Portrack Relief Road scheme will be led by SBC.

Regular contract management meetings will be scheduled post-award of the construction contract(s) throughout the delivery programme to monitor progress, risk and finance.

5.7 Human Resources Issues

No significant human resources issues have been identified that could affect the deliverability of the scheme, although it is recognised that it will have a considerable human resources requirement, across TVCA, Highways England, the design teams and the contractor teams.

At this time, sufficient resources have been identified to deliver the scheme and further details of the required capabilities and assigned resources are set out in the Management Case. The resource requirement will be kept under review by the Project Board and Highways England so that additional resources can be brought in if necessary.

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6 The Management Case

This chapter of the OBC describes how the scheme will be managed and delivered.

6.1 Evidence of Similar Projects

Highways England has been moving forward work on 112 major schemes originally planned to start work in the RIS1 period, with 85 now having started or planned to start by the end of the RIS1 period in March 2020. One of the RIS1 schemes (the A19 Norton to Wynyard Improvements) is within the Tees Valley, whereas another seven RIS1 schemes are in the North East, two on the A19 further north from the Tees Valley.

In its most recent annual report on the performance of Highways England, the Office of Rail and Road (ORR) identified that forecast total costs for its RIS1 major schemes are currently £2.9 billion higher than originally assumed. This increase was due to the increased scope for some schemes and immature scheme estimates when RIS1 funding was set.

The Government’s objectives for RIS2 include that the programme will do more to incentivise the integration of the strategic and local road networks, and that Highways England demonstrates that it is efficient and also deliver schemes on time and to budget. The performance specification for the RIS sets out to ensure that the SRN relates well to the surrounding transport network, the wider environment and the communities it affects.

There is therefore clear evidence of the delivery of similar projects to the New Tees Crossing scheme by Highways England and that this scheme sits well within the RIS programme performance specification.

There has also been a good level of consideration already given as to how the scheme can be constructed efficiently and safely. The buildability review undertaken by a major contractor suggests that construction of the New Tees Crossing scheme will predominantly be carried out offline but there will need to be temporary closure of some of the existing slip roads while the new structure is joined onto the existing road network. Reduced speed limits through the area of works on the existing carriageway are also likely to be required for worker safety. Two lanes of traffic in both directions on the A19 and A66 will be maintained at peak times during construction.

6.2 Project Dependencies

The Strategic Case identified a number of other transport and non-transport interventions with a relationship to the New Tees Crossing scheme, but the ones with

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the greatest level of dependency are Portrack Relief Road and the A19 Norton to Wynyard Improvements RIS1 scheme.

The latter scheme will improve the flow of traffic on the A19 by increasing the section between the A1027 and the A689 to three lanes wide in each direction, allied to the replacement of the existing concrete carriageway with low noise surfacing. The scheme is currently on site and is expected to be completed by 2022/23.

The issues of network unreliability and congestion that the New Tees Crossing scheme are trying to address will only increase with the opening of the Norton to Wynyard scheme. The planned construction phase of the New Tees Crossing scheme is intended to follow the delivery of the A19 Norton to Wynyard scheme so as to minimise the time whereby the full benefits of the committed improvement may not otherwise be realised.

6.3 Governance, Organisational Structure and Roles

To date, TVCA has led the development of the project with Highways England in place in an overseeing role. This will continue until such time as this OBC is agreed and the funding is in place, when Highways England will take over the scheme. The current governance structure and key roles are illustrated in Figure 6.1.

Senior Responsible Owner (SRO) – the SRO has overall accountability for the delivery of the scheme on behalf of the Project Board, ensuring the scheme remains focused on achieving its objectives. They have the authority to make decisions concerning the delivery of the scheme within a certain delegation.

The SRO is the TVCA Head of Transport, Tom Bryant, who reports directly to the Tees Valley Management Group within the TVCA governance structure, and then on to the Tees Valley Combined Authority Transport Committee and Cabinet.

Project Manager – the Project Manager leads and manages the project team with the authority and responsibility to run the project on a day-to-day basis. A Project Manager was recruited in 2017 through the SBC Economic Growth and Development Services Consultancy Partnership 2016-2020 framework agreement.

Andy Johnson of Arup is the current Project Manager for the scheme – a Chartered Civil Engineer with over 20 years’ experience specialising in highway and infrastructure engineering and has significant experience in leading the design, project management and supervision of large multi-disciplinary teams delivering highway and environmental improvement schemes varying in value up to £400 million. He has particular knowledge of Highways England major projects and has first-hand experience of successfully delivering PCF Stages 0-7 across a number of UK projects.

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Figure 6.1: Current Governance Structure and Roles

DfT Government

TVCA SRO

Highways DBC, HBC, England SBC MC RCBC Monitoring Role Local Authority Local Authority Local Authorities

Arup Project Manager

Arup Fore Jacobs

Technical Lead Business Case Traffic & Economics

Project Board – a Project Board has been set up and supports the SRO and Project Manager. The purpose of the Project Board is to manage the completion of PCF Stages 1 and 2 and the production of this OBC. The Project Board is chaired by the SRO or the Project Manager, and comprises senior level representation from the following:

• SBC – Highways, Transport and Design Manager (Andy Corcoran);

• Middlesbrough Council – Transport and Infrastructure Manager (Craig Cowley);

• Highways England; and

• Technical support teams,

with representatives of the other Tees Valley Local Authorities invited to participate in Board meetings for completeness.

The Project Board, via the SRO and/or the Project Manager, reports progress, as required, to:

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• DfT;

• Tees Valley Combined Authority Transport Committee and Cabinet;

• Tees Valley Transport Advisory Group; and

• Local Authority Cabinets/Executive Groups.

The Project Board receives progress and project exception reports from, and gives direction to, the Project Manager. The Board ensures the timely set up and receipt of key deliverables from the technical support teams involved with the scheme, commissioning the technical work necessary.

The Project Board also provides overview of the risk register, ensures effective communications are implemented and will carry out stage gate reviews at key project milestones, or as required by the Government’s Gateway or Highways England processes.

It should be noted that Highways England have been involved in the scheme since its inception and has steered the project from a governance perspective through its role on the Project Board. The organisation is supportive of the scheme and their in-house technical assurance teams have reviewed the PCF Stage 1 and 2 traffic, economic and environmental products.

The Project Management Plan (PMP) included at Appendix J provides the basis for the execution of the New Tees Crossing scheme throughout the project lifecycle and at each PCF stage. The PMP is a tool used for planning and managing projects, maintained by the Project Manager and is available to all project team members. The plan is a ‘live’ document that is updated as the scheme progresses so that it represents the scheme’s current status (for example, changes in scope, programme). The PMP provides concise and accurate information about the background to the scheme, the agreed objectives and deliverables.

Given the suggested route for delivering the scheme through Highways England, the scheme will follow the governance processes prescribed in the PCF from the point at which this OBC is accepted. It is expected that the Project Board will be replaced by a Project Committee chaired by Highways England with representatives from TVCA and the local authorities.

The Highways England team structure details are yet to be confirmed but it is anticipated that there will be a Project Director, Senior Project Manager (SPM), Project Manager (PM), two Assistant Project Managers, Project Support, SPM/PM level Stakeholder Co-ordinator, SPM/PM level DBFO Interface Co-ordinator, as well as wider support resources (DCO Manager, commercial assurance including scheduling

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and technical assurance). For PCF Stage 3 onwards, the Highways England SRO Designate would be Roger Wantling.

6.4 Project Plan

A Project Plan has been developed for this OBC setting out all the key project tasks and their duration, the interdependencies between each of the tasks, and key milestones and gateways. Certain elements of the programme have a built-in tolerance/contingency to account for risks identified within the risk register which could have an impact upon the programme.

A collaborative planning approach has been adopted on the scheme to ensure key milestones are met and additional efficiencies identified and realised to assist with the aspirational RIS objectives and targets being met.

The current version of the project plan, included at Appendix K, has been produced and managed by the Project Manager, and includes all significant work activities, significant outputs and key decision points regardless of which organisation is leading the work, for example, traffic modelling work, commercial outputs and Highways England governance milestones.

The project plan is a ‘live’ document and will be reviewed and updated regularly to provide an accurate and integrated picture of progress and dependencies for the project. The Project Manager is responsible for ensuring the plan is reviewed and updated on a monthly basis. Any changes or risks to achieving key milestone dates are brought to the Project Board’s attention and discussed as part of the monthly meeting cycle. All proposed revisions to the project plan are issued to the Project Board for approval.

Once the project is adopted into the Highways England major projects portfolio, a detailed project schedule will be produced and managed in line with NEC4 requirements, which will be stipulated in the contract documents for the Contractor and Technical Assurance teams. A greater level of detail will be introduced into the project plan during next stage(s) of the PCF process, as detailed design of the scheme progresses and as risk quantification and impacts change. However, at this stage the key milestones from the project plan are set out below:

• Preferred Route Announcement - Spring 2021;

• Submit Development Consent Order – Summer 2023;

• Planning Inspectorate Examination – Spring to Summer 2024;

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• Planning Inspectorate Recommendations to Secretary of State – Summer to Autumn 2024;

• Secretary of State Decision – Autumn/Winter 2024;

• Start of Works – Summer 2025; and

• Open for Traffic – Summer 2028.

Based on this programme, a FBC is expected to be prepared in 2024.

It is anticipated the complementary but separate Portrack Relief Road scheme will obtain planning approval by the end of 2021, with construction planned from Autumn 2022 to Autumn 2023.

6.5 Assurance and Approvals Plan

Project assurance provides the basic framework of controls that ensure:

• The project is managed and controlled as directed by the SRO;

• Basic standards are being followed; and

• The project is well-managed.

To date, the development of the scheme has followed the TAG transport appraisal process advocated by the DfT and Highways England’s PCF process in parallel, noting that the requirements of the PCF Stage 2 work go beyond what would normally be expected of an OBC for a local authority highway scheme.

The project assurance controls that have been utilised thus far include:

• Regular reporting (see below);

• Exception reporting and re-authorisation;

• Sign-off of PCF products as they are produced; and

• Stage Gate Assessment Reviews (SGARs)- evidence-based review that draws on documentation and activities that the project team have already produced.

Whilst it is the PCF project assurance controls that have been utilised in the main on the scheme, it is recognised that responsibility for the assurance and approval of this OBC rests initially with the DfT, who will assess the technical content of the business

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case against appropriate business case and transport appraisal guidance in order to confirm that the scheme represents value for money and is deliverable.

However, beyond approval of this OBC, it is expected that the PCF assurance process will be followed, as shown in Figure 6.2.

Figure 6.2: PCF Assurance Process Summary

6.6 Communications and Stakeholder Management

A Stakeholder Engagement and Public Consultation Strategy has been created as part of PCF Stage 2 work and includes an associated Communications Plan. Both of these are included at Appendix L.

The aims of the Stakeholder Engagement and Public Consultation Strategy are as follows:

• Making available to interested parties, information on the need and impact of the scheme;

• Giving the public and stakeholders an opportunity to express their views on the option(s) under consideration and provide a feedback loop;

• Outlining the sustainable option(s) for consideration and the likely consequences of the scheme; and

• Providing a programme for future stakeholder engagement and public consultation.

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The aim of the Communications Plan is to ensure the consistent and structured delivery of messages to all key stakeholders throughout the lifecycle of the scheme. The messages cover both the local and national benefits of the scheme.

Both documents are to be updated at each PCF stage and at other key points during the project lifecycle, being treated as ‘live’ documents with additional information added when applicable.

They set out the timings and considerations for external communications for some consideration of future PCF stages. The Project Board will be responsible for ensuring the Stakeholder Engagement and Public Consultation Strategy and agreed Communications Plan are implemented.

6.7 Programme/Project Reporting

The scheme will follow the PCF project lifecycle and will seek opportunities to expedite the process where possible to meet the RIS objectives set by DfT. A proportionate and efficient approach to the production of PCF products will be taken at all stages.

To date, the progress of the scheme and in particular the progress of the current deliverables has been reported by the consultant(s) to the Project Manager and thereafter the Project Board, in a monthly progress report.

A summary of other reporting formats and frequencies adopted to date is shown in Table 6.1.

Table 6.1: Regular Reporting Formats and Frequency

Control Area Report Description Frequency Co-ordinated By

Progress (product Progress Report Monthly Project Manager delivery) against Stage plan/programme

Risks and issues Risk Register and Monthly Project Manager Issues Log

Change control Change Log Monthly Project Manager

Costs and budgets Monthly finance Monthly Project Manager against the Stage cost returns and Monthly plan Management Reports

Look ahead Progress Report and Monthly Project Manager Progress Meeting Minutes

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These procedures are based on good practice. Once the project is adopted into the Highways England major projects portfolio, it will follow the PCF lifecycle and governance processes, including change control management and a review at the monthly Project Committee led by the Project Sponsor. The details will also be included in the High Level Requirements in the contract with the PCF Stage 3 Supplier.

The Highways England aspiration will be to manage contracts via the CEMAR system for all contract administration tasks including:

• Early Warnings;

• Compensation Events;

• Payment;

• Programme Submission;

• Quotations;

• Forecast to Completion;

• Test/Inspection, Searches and Defects; and

• General Communication where there is a contractual element.

Changes would be documented via CEMAR and approved by the PM, in consultation with the Regional Commercial Manager.

Any changes that the PM considers could result in exceeding tolerance against in-year or phase budgets, baselines for the PCF stage or phase, or affect the project’s likelihood to meet any of its transport objectives are escalated to Project Committee as required.

6.8 Risk Management Strategy

A Risk Management Plan (RMP) is in place for the scheme and is included at Appendix M. This specifically addresses issues associated with risk and sets out the management framework that will be put into place to assist in the identification, assessment and control of risk throughout the project lifecycle. It is based on the PCF RMP template and the PCF Risk Management Manual has been used as a basis for the risk management process adopted, which is illustrated in Figure 6.3.

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Figure 6.3: Risk Management Process

To supplement the RMP and to facilitate effective risk management on the scheme, a Risk Register has been produced, as included at Appendix N. This is the primary means of recording risk information and monitoring risk exposure throughout the life of the scheme. It not only records all identified risks and their associated assessments, but also includes necessary risk control plans and responsibilities, as well as the status of all risks. It has been developed through a collaborative process at suitable times during the development of the scheme.

An initial risk workshop was conducted at the end of the design and cost process within PCF Stage 1 in order to ensure the major risks were properly understood by all parties. The risk workshop was held in November 2017 and attended by members of the Project Board and delivery teams. The original Newport and Tees Viaduct Options described in the Strategic Case were assessed in this workshop.

The workshop discussed the qualitative and quantitative scoring of the risks, pre- and post-scoring, and the risk mitigation plans. A quantitative range was associated with

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each qualitative score for likelihood, cost and time, this can be seen in the RMP. To calculate the most likely risk costs an average of the cost range was used and multiplied by the average of the likelihood range, based on the qualitative scores given to each risk, these most likely risk costs were summed to give the overall risk cost. The strategic and programme risks were excluded from the quantitative assessment as the risks will be managed by the DfT and Highways England respectively.

During PCF Stage 2, three further risk workshops were conducted. The first was held in April 2018 and focussed on reviewing the risks for the Capacity Enhancement Option, as this option had the highest BCR of the three options being considered at that time. A second risk workshop was then held in June 2019 that focussed on reviewing the risks for both the A19 Tees Viaduct Option and the A19 Tees Viaduct Capacity Enhancement Option as part of the preparation of this OBC. A third workshop was then held in September 2020 as part of the close-out of the PCF Stage 2 work. In all cases, the highest threat risks and the highest cost risks were reviewed and any risks that were no longer applicable were closed out. The workshops provided the basis for the risk values set out in the Financial Case. Reporting of key risks is undertaken at Project Board meetings as necessary.

Table 6.2 identifies the top 10 risks for the preferred option identified at this current stage of scheme preparation. The risk rating indicated using standard Highways England terminology, but it was clear from the workshops undertaken to date that all of the risks were considered manageable.

Table 6.2: Top 10 Current Risks

Risk Cause Risk Event Risk Impact Risk Mitigation Post Mitigation Risk Rating

Re-use of If structures are Cost and Existing structural existing not capable of duration of surveys to be undertaken structures meeting current design and before construction in within new design standards construction order to determine what alignment due to altered increase remedial works may be Critical alignment or required Threat deterioration of existing structure additional works will be required

Proximity of Loading from Differential Scheme specific ground new structures new structures settlement investigation to be to existing could affecting undertaken to Critical detrimentally existing investigate ground Threat affect existing structure - cost conditions. structures to remediate Foundations to be designed taking into

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Risk Cause Risk Event Risk Impact Risk Mitigation Post Mitigation Risk Rating account surrounding structures and considering construction sequence

Changes in By their nature, 0 Be proactive with any EU/UK occurrence of changes in legislation legislation strategic risks announced. Ensure any (Brexit) would change changes are noted and the very nature incorporated of the DfT/ Highways High Threat England roads programme and therefore they can be identified but not costed

Ramsar and Protected The scheme Ensure early liaison with SPA sites habitats are requires consultation process to within the directly or redesign or ensure key clashes are River Tees indirectly realignment highlighted impacted by affected by the design of design - risk of High Threat the new IROPI structure eg. lighting, drainage, GI work

Handover of Delay to site Programme and Early engagement with existing access on cost impacts Autolink to understand viaduct from viaduct due to any potential programme Autolink to any planned clashes Highways works by Collaborative planning of England in Autolink to works to allow 2027 coincides enable handover concurrent working with currently to Highways planned start England - of works in Autolink’s High Threat 2024 residual life requirement on handover to Highways England cannot be agreed due to scheme works to existing viaduct

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Risk Cause Risk Event Risk Impact Risk Mitigation Post Mitigation Risk Rating

Managing More stringent Could Early engagement with journey time traffic significantly local highway authorities reliability management extend should reduce this risk during guidelines to construction construction assist with periods and journey time reduce High Threat reliability, productivity would increase the proportion of night time working

Working Sites designated Planning Early identification of adjacent to for nature permission may sites of nature SPA boundary conservation not be granted, conservation importance are unless importance, and directly or appropriate discussion with design indirectly consultation engineers to identify affected by with local possible avoidance construction authority has measures and/or been If sites cannot be High Threat operation undertaken, avoided, early and appropriate discussion/consultation mitigation is with local authority implemented and/or Natural England with a long recommended to term develop suitable management mitigation measures plan agreed and funded

Joints and Additional works Increase costs Investigation of existing waterproofing are required to and programme condition of of existing accommodate delays waterproofing and viaduct need the proposed discussions with SES High Threat replacement southbound lane regarding departures to as part of the be undertaken at the works earliest opportunity

Existing Additional works Increase costs Hold discussions with viaduct are required to and programme Autolink early in PCF cathodic accommodate delays Stage 3 to confirm the protection the proposed current proposals for the system southbound lane existing viaduct and also High Threat requires understand the alterations to programme for their allow works additional southbound

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Risk Cause Risk Event Risk Impact Risk Mitigation Post Mitigation Risk Rating lane to be accommodated

Changes in By their nature, 0 Procurement will be EU/UK occurrence of through RDP framework - procurement strategic risks ensure DfT is advised of rules would change realistic timeframes the very nature of the DfT/ Medium Highways Threat England roads programme and therefore they can be identified but not costed

If the scheme is accepted into the Highways England portfolio from PCF Stage 3 onwards, a joint risk management strategy is in place for all Regional Investment Programme (RIP) North projects to outline the processes of risk management, in accordance with Association of Project Management (APM) guidance and the Highways England’s Risk Management Manual, throughout to ensure a consistent approach is taken at all times.

Risk management will be executed in accordance with the RIP North Risk Management Plan and project- level PCF products which would be produced during PCF Stage 3. Monthly risk reviews will be held between the Supplier and Highways England Project Team. Specialist advisors from within Highways England will be consulted as required throughout the PCF stage and any issues recorded in the Issues Log.

6.9 Benefits Realisation Plan

An outline Benefits Realisation Plan (BRP) has been produced as part of this OBC and discussed with the Highways England’s Benefits Manager, to begin the process of identifying, tracking and comparing the various benefits expected to be delivered.

This BRP is not a Highways England PCF product, so Highways England will develop the plan into the Benefits Realisation and Evaluation Plan (BREP) and Benefits Register during PCF Stage 3. To date, the scheme objectives and a logic mapping process have been used to develop the “desired outputs, outcomes and impacts” of the scheme. These desired outputs, outcomes and impacts are the actual benefits

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that are expected to be derived from the scheme and are directly linked to the original set of objectives:

• Desired outputs – tangible effects that are funded and result from the scheme;

• Desired outcomes – what happens as a result of the outputs; and

• Desired impacts – the final impacts brought about by the scheme in the short, medium and long term as a result of the outputs and outcomes.

The scheme objectives and desired outputs/outcomes/impacts are summarised in Table 6.3 and provided the starting point for the development of the outline BRP, which itself is included at Appendix O. Given the scheme objectives identified, the outline BRP focuses upon stimulus to jobs/economic activity and the impact on journey times.

6.10 Monitoring and Evaluation Plan

The scheme will be subject to a programme of before and after monitoring and evaluation. Monitoring and evaluation are distinct activities - monitoring asks whether delivery is proceeding as planned and evaluation asks whether the intervention has achieved its desired objectives.

The outline Monitoring and Evaluation Plan included at Appendix P sets out the activities that will be undertaken to demonstrate the extent to which scheme objectives were met, monitor performance of the scheme and ensure that any potential issues post implementation are identified and addressed.

If the scheme is accepted into the Highways England portfolio, in accordance with current Highways England guidance, a Post Implementation Review (PIR) will take place, with the outputs being forwarded to the appropriate stakeholders (including the independent review team and management subject matter advisor). The SRO Designate is responsible for commissioning these reviews, with benefits assurance and tracking, and ensuring the relevant personnel are consulted and involved in the review process. A PIR differs from a post-project review in that it aims to discover whether the project achieved its objectives, and whether the forecast costs and benefits were realised.

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Table 6.3: Scheme Objectives, Desired Outputs, Outcomes and Impacts

Scheme Objective Desired Outputs Desired Outcomes Desired Impacts

Primary: A new crossing of the Quicker and more Increase in jobs River Tees to cost and reliable journey times Reduce congestion and provide reliable north-south journey timescales that provides times on the A19 Increase in GVA additional capacity and integrates well with the Improved resilience for the surrounding highway Improve resilience of the river crossing itself and the wider surrounding highway Increase in labour market network strategic road network network catchments areas

Reduction in the Reduce the number and severity of incidents for all road users Reduced carbon number and severity of emissions incidents for all road

Minimise adverse impacts on health and environment users Improved air quality

Reduce the impacts of the route on severance for local Improved environmental and community communities Improved satisfaction wellbeing outcomes with network across the network performance Provide value for money

Secondary:

Support the economic growth objectives of the Northern Powerhouse and the Tees Valley City Region

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Scheme Objective Desired Outputs Desired Outcomes Desired Impacts

Improve access to the City Region Strategic Centres and Enterprise Zone sites

Support sustainable local development in the medium to long term

Improve access to jobs and services for all road users

Support the SRN in delivering enhanced connectivity

Deliver connectivity enhancements for freight movements

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The project will also adhere to the Highways England requirements of Post Opening Project Evaluation (POPE) undertaken for all of Highways England’s major projects. The key objective of POPE is to identify the extent to which the expected impacts of highway projects have materialised and to inform thinking on current and future national project appraisal methods. POPE also forms the mechanism whereby Highways England can determine:

• The extent to which major projects offer value for money; and

• The level of accuracy associated with estimates of costs and predictions of benefits emerging from major projects, and the main factors affecting the accuracy.

POPE studies are undertaken for each major project one and five years after opening.

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7 Summary

This document and its series of appendices comprise the OBC for a new strategic road crossing of the River Tees.

The scheme has a strong strategic fit and the economic analysis of the preferred option – the A19 Tees Viaduct Capacity Enhancement Option - demonstrates that an adjusted BCR of over 1.5 is generated if wider economic impacts are considered, representing Medium value for money.

Beyond the economic analysis, the New Tees Crossing scheme will also:

• Relieve the existing A19/A66 bottleneck, enhancing the reliability of people’s journeys across the Tees Valley’s road network and reducing the cost to the local and national economy due to congestion and delays;

• Reduce journey times for local people – most drivers are expected to save more than two minutes of travel time during peak periods – unlocking development potential in the City Region through the provision of additional road capacity and making the Tees Valley more attractive to inward investors and visitors;

• Improve the resilience of the network and therefore reduce the negative impact of events such as roadworks and road traffic accidents;

• Make journeys safer by improving the standard and capacity of the road network;

• Improve access to the Tees Valley’s Enterprise Zone sites, the Teesworks site, the expanding port facilities along the River Tees (where there is an aspirations for a freeport) and Teesside International Airport;

• Deliver connectivity and journey time reliability enhancements for freight and logistics traffic – a key component of the Tees Valley’s growth plans;

• Support the economic growth objectives of the Northern Powerhouse and the Tees Valley City Region; and

• Help realise the full benefit of the committed A19 Norton to Wynyard improvement scheme, which is due for completion by 2022/23.

A cost estimate for the preferred option has been developed by Highways England including a calculated allowance for risk assuming they take the lead in scheme delivery from this point forward. This outturn cost is £468,573,365 and also includes a further allowance for portfolio risk. Excluding portfolio risk, this figure is £426,592,574.

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Several potential funding routes have been considered for the scheme, with Department for Transport considering the most appropriate to be the Large Local Major schemes element of the new National Roads Fund, with a contribution from TVCA. TVCA is proposing to contribute £21.33 million (5% of the Highways England cost estimate excluding portfolio risk, as would be the case with a scheme not on the Strategic Road Network) from its own resources to the scheme, having already provided a significant contribution to the development costs alongside Government funding.

However, given that the scheme lies on the Strategic Road Network, it should be delivered by Highways England through its procurement processes and procedures allied to the Project Control Framework.

A sound governance structure has been in place throughout the life of the scheme, and Highways England has been closely involved in its development since inception. Highways England is supportive of the scheme, and its in-house technical assurance teams have reviewed the traffic, economic and environmental products prepared in support of this business case. Transition arrangements have been considered should this OBC be accepted, funding granted, and the scheme transferred to the Highways England portfolio of major projects.

As this submission clearly demonstrates, there is a strong and robust case for investment in a New Tees Crossing. It is therefore recommended that the scheme is prioritised for funding so that the many benefits that it will deliver across the Tees Valley City Region can be realised as soon as possible.

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Appendix A

Staged Overview of Assessment Report

Appendix B

Public Consultation Report

Appendix C

Appraisal Specification Report

Appendix D

Combined Modelling and Appraisal Report / End of Stage 2 Economics

Appendix E

Environmental Assessment Report

Appendix F

TAG Supporting Workbooks and Worksheets

Appendix G

Appraisal Summary Tables

Appendix H

Options Estimate Report

Appendix I

Procurement Strategy

Appendix J

Project Management Plan

Appendix K

Project Plan

Appendix L

Stakeholder Engagement and Public Consultation Strategy

Appendix M

Risk Management Plan

Appendix N

Risk Register

Appendix O

Benefits Realisation Plan

Appendix P

Monitoring and Evaluation Plan

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