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In this edition Transport for NSW hold industry briefing detailing major project pipeline SA Government opens EOIs for Adelaide Metro train franchise Gateway shortlist announced Auckland Metro Rail franchise moves ahead Commonwealth approves Stage 1 of Melbourne Airport elevated road project CPB Contractors awarded $518m M80 Northern Contract Upgrade Contract awarded for Bell to Moreland level crossing removal works HSA Group awarded contract for Cairns Southern Access Corridor – Stage 3 Industry News Appointments Policy Taskforces and Events

TRANSPORT Transport for NSW hold industry briefing detailing major project pipeline On Tuesday, Transport for NSW held an industry briefing on its project pipeline to 2024. This briefing revealed planned procurement timelines for major NSW Government election commitments, including the M6 Stage 1 (formerly F6 extension), M12 Motorway, Upgrade, Western Harbour Tunnel and Beaches Link, in addition to a number of other transport projects.

The Transport for NSW Pipeline 2024 document comprises 120

Source: Shutterstock projects, with 30 over $500 million and a further 60 within the $150 million to $300 million bracket. Figure 1 depicts the indicative timeline for major projects over $1.5 billion dollars. While TfNSW notes the timelines are subject to change, the document provides new information on the timing of the next tranche of major projects. Following the briefing the Government called EOIs for the M6 Stage 1. TRANSPORT SA Government opens EOIs for Adelaide Metro train franchise This week, the South Australian Government opened Expressions of Interest for the operation of Adelaide Metro train services. The SA Government is inviting interested participants to register for the industry briefing by 5 November, with EOIs to close on 26 November. Shortlisted applicants will be invited to bid for the tender which is due to be released in early 2020, with a new operator expected to commence by early 2021.

The South Australian Opposition has responded to the Government’s

Source: Shutterstock decision to franchise its rail services by promising to cancel any contracts should it win government. Threatening to reverse agreed contracts has the potential to expose SA taxpayers to compensation payouts in the future, while depriving Adelaide transport users of the high-quality service they deserve from the best public transport operators around the world.

TRANSPORT shortlist announced This week, the NSW Government announced the shortlist of applicants to build the Sydney Gateway. Once complete, the project will provide a high-capacity connection from the Airport and Port Botany to the new WestConnex St Peters Interchange. The Environmental Impact Statement and draft Major Development Plan is scheduled to be on display by the end of 2019. Construction is expected to commence in early 2021 and be completed by 2023.

The three parties shortlisted to submit tenders for the project are:

Source: Shutterstock AirPortConnex, led by Salini Impregilo; a John Holland and Seymour Whyte Joint Venture, and CPB Contractors.

The Port Botany Rail Duplication, which forms part of the Sydney Gateway project is being procured separately by the Australian Rail Track Corporation.

TRANSPORT Auckland Metro Rail franchise moves ahead

This week, Auckland Transport initiated a second phase of market engagement to re-tender the Auckland Metro Rail franchise. This phase of consultation with industry is being undertaken as a Request for Information (RFI). Auckland Transport have indicated that EOIs will be released in late January 2020, with Request for Proposals expected to be released to shortlisted parties in May 2020. Contract award is expected in late 2020 and the new contract will take effect from 2021. The current franchise contract with Transdev has been in Source: Shutterstock place since 2004.

The new franchise contract marks a shift away from the current operating model and will allow for increased levels of vertical integration to encourage greater operational and commercial efficiency.

The new model could include scope for the operator to take on greater responsibility and control across various operational elements, such as maintenance of rolling stock, station operation and maintenance, safety, security and surveillance. Auckland Transport will use feedback received during the RFI process to determine the scope of the new model. ROAD Commonwealth approves Stage 1 of Melbourne Airport elevated road project The Federal Government has approved the Major Development Proposal (MDP) for Melbourne Airport’s T4 Express Link – an elevated road link from the Tullamarine Freeway to the T4 domestic terminal. The express link is the first stage of a wider $350 million Elevated Loop Road project that will be delivered in two stages. Construction of Stage One is scheduled to commence in early 2020 and reach completion in 2021. The full project is expected to be completed in 2023.

The project forms part of a broader $20 billion investment program Source: Melbourne Airport being undertaken across Australia’s major airports. This continued investment supports the Productivity Commission’s findings in its review of airport regulation, released last week, and underscores that the current system of stable, light-touch regulation is supporting improvements in outcomes for airport users.

TRANSPORT CPB Contractors awarded $518m M80 Northern Contract Upgrade This week, the Victorian Government announced that CPB Contractors will deliver the remaining $518 million upgrade to the northern section of the M80 Ring Road in Melbourne. This upgrade comprises four kilometres of road between Sydney Road and Edgars Road. The project is being jointly funded by the Victorian and Federal Governments. Construction is expected to start in early 2020 and be completed in early 2023.

The upgrade will involve construction of additional lanes in both

Source: Shutterstock directions, entry and exit ramps, structural works, street lighting, and a new freeway management system. This system will feature overhead electronic signs providing real time travel information, variable speed limits, and ramp signals to control access onto the M80 Ring Road. TRANSPORT Contract awarded for Bell to Moreland level crossing removal works This week, a $542.4 million contract for the Bell to Moreland level crossing removal was awarded to an alliance of John Holland Group, Kellogg Brown & Root and Metro Trains Melbourne. The contract includes the removal of four level crossings and the construction of two new stations in Melbourne’s inner north. Major construction on the project is expected to commence in 2020.

The contract was awarded to the consortium as part of the program

Source: Shutterstock alliance model. The consortium retained the contract for the Bell to Moreland level crossing removals after it had satisfied performance criteria on the previous removal of level crossings at Camp Road, Skye/Overton Road and Buckley Street.

TRANSPORT HSA Group awarded contract for Cairns Southern Access Corridor – Stage 3 This week, the $481 million construction contract for the Bruce Highway – Cairns Southern Access Corridor – Stage 3: Edmonton to Gordonvale project was awarded to a consortium consisting of John Holland, Seymour White and AECOM. Work is scheduled to commence in 2020 and is expected to be completed by 2023.

The Cairns Southern Access Corridor – Stage 3 will involve duplicating 10 kilometres of the Bruce Highway between Edmonton

Source: Shutterstock and Gordonvale from two to four lanes. Stage 3 also includes:

construction of a four-lane bridge over several creeks; installation of an off-road shared pathway for cyclists and pedestrians, and realignment of a section of the North Coast Rail Line to accommodate the works. Industry news

The NSW Government has restarted its market engagement with banks and investors on financing for the Western Harbour Tunnel. The project was halted due to the NSW election and subsequent Machinery of Government changes. The proposed 6.5 kilometre tunnel will connect the WestConnex project to Sydney’s North Shore and is expected to cost $15 billion. The NSW Government will undertake a competitive sale process and consider PPP, alliance, hybrid toll and availability-based PPP models. The engagement process will be concluded by the end of the year.

The Western Sydney International Airport Terminal design plans have been released. Architecture firms Zaha Hadid and Cox Architecture were chosen from a shortlist of five, after a competitive tender process involving 40 design teams. The airport has been designed for modular expansion. It will initially cater for 10 million passengers annually.

The Port Authority of NSW has approved a shipping facility to be built on the east side of Sydney’s Glebe Island. The facility will be able to receive dry bulk construction material that will support infrastructure projects, including WestConnex, Sydney Metro, and the Western Harbour Tunnel.

The Federal Government has announced plans to invest $1 billion in grid stabilisation through the Clean Energy Finance Corporation. The Grid Reliability Fund will invest in generation, storage and transmission projects including projects shortlisted for its Underwriting New Generation Investments program. Given the heavily regulated nature of the network market, and the competitive nature of the generation market, it is unclear what market gap in private capital this additional investment into the CEFC seeks to fill.

The NSW and Federal Governments have announced a joint underwriting of up to $102 million to support the upgrade of the Queensland-NSW Interconnector (QNI). Subject to regulatory approval by the Australian Energy Regulator, the underwriting will allow Transgrid to fast track the delivery of the upgrade, with construction scheduled for completion in late 2021.

AMP Capital has agreed to acquire a 50 per cent interest in the Macarthur Wind Farm. The wind farm is the largest in the southern hemisphere and generates 420 MW of energy from 140 wind turbines. The acquisition is valued at approximately $880 million and is expected to reach financial close by the end of the first quarter of 2020.

Macquarie Group and The Res Group have placed the second stage of the Murra Warra wind farm in north- western Victoria on the market. The wind farm consists of 116 turbines and has an expected sale price of $600 million.

Maoneng Group will develop four large batteries in NSW in a 15-year deal with AGL Energy. Each storage system will have a 50 MW capacity with a 100 MWh output when the project comes online, which is expected in 2023. The New Zealand Government has delayed a decision on how it will pay for a NZ$2.5 (AU$2.3) billion upgrade of water and sewerage infrastructure until a sector inquiry is complete. The NZ Government is considering using private finance for the project but has ruled out privatisation of water and wastewater assets.

The New Zealand Government has announced the creation of a standalone crown drinking water regulator. The move comes in response to the Havelock North tragedy three years ago. Legislation for the authority is expected to pass the NZ Parliament in 2020.

The Federal Government has commenced a process to auction 2.4GHz of essential spectrum to support the rollout of 5G in Australia. The spectrum will be re-allocated through a competitive auction in early 2021. The first 5G spectrum in the 3.6GHz band was sold in December 2018.

The NSW Government is seeking feedback on Landcom’s concept plans for new residential, retail and commercial developments near the Kellyville and Bella Vista Metro Stations. The State Significant Developments include subdivision, new parks and community facilities. Both exhibitions close on 26 November.

The Victorian Parliament has passed legislation to increase the state’s Renewable Energy Target to 50 percent by 2030, building on existing targets of 25 per cent by 2020, and 40 per cent by 2025.

The SA Government has initiated a Request For Proposals for process for the 100 per cent supply of electricity needs for its government assets. The RFP process closes on 5 December. Shortlisted proponents will be invited to a selective Request For Tender in early 2020.

An Industry briefing was recently held for the ACT Government’s proposed S.P.I.R.E Project, at Canberra Hospital. The request for Expressions of Interest is expected to be released on 14 November and close 19 December.

Arcadis have been appointed to provide cost estimation services for the second runway at Auckland International Airport. The proposed parallel second runway is to be three kilometres long and will be located to the north of the new combined domestic and international terminal. The runway is expected to be operational by 2032.

The Queensland Government has commenced the site selection process for the location of a new Bundaberg Hospital. 20 options have been proposed for the potential site, which will be considered by the Queensland Government and the chosen site announced in 2020.

The Victorian Government will shortly begin an operating trial of a fully electric bus between Elsternwick and Clifton Hill. The bus will be based at Transdev’s North Fitzroy depot and trialled until January 2021. The government will then decide the potential to fully roll out electric buses across Victoria.

The Federal House of Representatives Standing Committee on Infrastructure, Transport and Cities has commenced a new inquiry into options for ‘financing faster rail connections’ to major cities across Australia. It is unclear why the Inquiry is examining financing for these potential projects, and whether this will also examine possible sources of funding. Submissions to the inquiry close on 6 December.

BACK TO TOP Appointments

Lyell Strambi has been appointed as a non-executive Director of Aurizon. Mr Strambi is currently Chief Executive Officer of Melbourne Airport.

Claire Ferres Miles has been appointed Chief Executive Officer of Sustainability Victoria. Ms Ferres Miles was previously Director, City Strategy and Place for the City of Melbourne.

David Carter has been appointed as Group CEO of RACQ. Mr Carter will assume the position after he leaves his position as Chief Executive of Banking and Wealth at Suncorp in early 2020.

The Victorian Government has made several appointments to the WorkSafe Board. John Merritt has been appointed Chair, Elizabeth Lukin and Julie Warren have been appointed as Directors of WorkSafe Victoria Board.

John Moore has been appointed Account Manager and Project Director of Jacobs’ Queensland water business. Mr Moore was previously a Project Director at GHD.

Frank Hanson has been appointed Principal City Shaper at RPS. Mr Hanson was previously Principal Urban Designer of the Victorian Planning Authority.

BACK TO TOP

Policy Taskforces and Events

Tax Taskforce

With Jeremy Hirschhorn, Second Commissioner, Client Engagement Group, ATO and Rebecca Saint, Deputy Commissioner, Public Groups, ATO

Date: Monday, 25 November 2019 Time: 2.30pm-4.00pm

Location: DLA Piper Sydney, dial-in details are available

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