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Newhaven Port Access Road Business Case July 2018 East Sussex County Council NEWHAVEN PORT ACCESS ROAD Business Case TYPE OF DOCUMENT (VERSION) PUBLIC PROJECT NO. 70045406 OUR REF. NO. 70045406/001 DATE: JULY 2018 WSP Mountbatten House Basing View Basingstoke, Hampshire RG21 4HJ Phone: +44 1256 318 800 Fax: +44 1256 318 700 WSP.com QUALITY CONTROL Issue/revision First issue Revision 1 Revision 2 Remarks Issued to Client Date 19 July 2018 Prepared by East Sussex County Council WSP GENECON Signature Checked by East Sussex County Council WSP GENECON Signature Authorised by East Sussex County Council WSP GENECON Signature Project number 70045406 Report number 70045406/001 File reference \\uk.wspgroup.com\central data\Projects\700454xx\70045406 - ESCC - Newhaven Port Access Road WSCC Framework Commission\02 WIP\TR Transportation\Newhaven_Port_Access_Road_Business_Case_190718.docx NEWHAVEN PORT ACCESS ROAD ESSC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council CONTENTS 1 INTRODUCTION 1 1.1 PROJECT CONTEXT 1 1.2 PROJECT OBJECTIVES 3 1.3 SCHEME DESCRIPTION 3 1.4 A STRATEGIC ECONOMIC NARRATIVE 5 2 STRATEGIC CASE 9 2.1 INTRODUCTION 9 2.2 BUSINESS STRATEGY: NATIONAL, REGIONAL AND LOCAL POLICIES 9 2.3 PROBLEM IDENTIFIED 11 2.4 IMPACT OF NOT CHANGING 18 2.5 INTERNAL DRIVERS FOR CHANGE 19 2.6 UNLOCKING THE GROWTH OF NEWHAVEN PORT 31 2.7 EXTERNAL DRIVERS FOR CHANGE 33 2.8 SCOPE: WHAT THE PROJECT WILL DELIVER 36 2.9 SUMMARY - NPAR STRATEGIC CASE 47 3 ECONOMIC CASE 51 3.1 INTRODUCTION 51 3.2 ECONOMIC NARRATIVE 51 3.3 OPTIONS APPRAISED 54 3.4 NEWHAVEN PORT ACCESS ROAD OPTIONS 56 3.5 TRANSPORT SCHEME ASSESSMENT 66 3.6 TRANSPORT MODEL 66 3.7 SCHEME COSTS 66 3.8 TRANSPORT ECONOMIC EFFICIENCY 67 3.9 ENVIRONMENTAL ASSESSMENT 69 3.10 ECONOMIC APPRAISAL RESULTS 69 NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council 3.11 LEVEL 1 - INITIAL BCR ASSESSMENT 69 3.12 LEVEL 2 - WIDER ECONOMIC BENEFITS AND ADJUSTED BCR 70 3.13 LEVEL 3 WIDER ECONOMIC BENEFITS 71 3.14 QUANTIFYING LEVEL 3 WIDER ECONOMIC BENEFITS 77 3.15 SUMMARY – WIDER ECONOMIC BENEFITS 81 3.16 SENSITIVITY TESTING 82 3.17 WELFARE IMPACTS 82 3.18 SOCIAL IMPACTS 83 3.19 DISTRIBUTIONAL IMPACTS 85 3.20 APPRAISAL SUMMARY TABLE 86 3.21 VALUE FOR MONEY AND SWITCHING VALUES 86 4 FINANCIAL CASE 91 4.1 INTRODUCTION 91 4.2 COSTS 91 4.3 BUDGET / FUNDING COVER 93 4.4 ACCOUNTING IMPLICATIONS 93 4.5 SECTION 151 OFFICER DECLARATION 93 5 COMMERCIAL CASE 97 5.1 BACKGROUND 97 5.2 THE SCHEME 97 5.3 PROCUREMENT OPTIONS 101 5.4 PREFERRED PROCUREMENT AND CONTRACTING STRATEGY 102 5.5 PROCUREMENT ARRANGEMENTS 104 5.6 COMPETITION ISSUES 105 5.7 RESOURCE MANAGEMENT 105 5.8 RISKS AND MITIGATION 105 5.9 MAXIMISING SOCIAL VALUE 107 5.10 CONTRACT MANAGEMENT 110 6 MANAGEMENT CASE 115 6.1 OUTLINE OF THE APPROACH TO PROJECT MANAGEMENT 115 6.2 PROJECT INITIATION DOCUMENT (PID) 119 ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 East Sussex County Council 6.3 PROJECT PLANNING AND OVERALL PROGRAMME 119 6.4 CONTRACT MANAGEMENT ARRANGEMENTS 120 6.5 CONTRACT PROJECT BOARD 120 6.6 CHANGE MANAGEMENT 121 6.7 RISK MANAGEMENT 121 6.8 RISK MANAGEMENT PLAN 122 6.9 PROJECT ASSURANCE 123 6.10 STAKEHOLDER MANAGEMENT 124 6.11 CONSULTATION 124 6.12 LETTERS OF SUPPORT 125 6.13 KEY STAKEHOLDERS 125 6.14 BENEFITS REALISATION AND SCHEME EVALUATION 126 6.15 MONITORING AND EVALUATION PLAN 127 TABLES Table 1: Brett Aggregates: Planning supporting statement 14 Table 2: Number of time Swing Bridge opened 15 Table 3: Summary of problem 17 Table 4: Wider economic benefits 28 Table 5: SELEP SEP 35 Table 6: Option concepts 54 Table 7: Summary of scheme costs 67 Table 8: Newhaven Port Assess Road (Analysis of Monetised Costs and Benefits) 68 Table 9: Newhaven Port Access Road: AMCB (£m) 70 Table 10: Newhaven Port Access Road: Adjusted BCR (including Wider Economic Benefits) (£m) 71 Table 11: Conversion of floorspace estimates to gross employment capacity 78 Table 12: NPAR attribution factor 80 Table 13: Take-up profile 81 Table 14: Level 3 Wider Economic Benefits 81 Table 15: Sensitivity scenarios 82 Table 16: Welfare Impacts: GDP Calculations 83 Table 17: Value for money 86 NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Table 18: Summary of Scheme Cost 92 Table 19: Spend profile 92 Table 20: Assumed annual profile of expenditure 93 Table 21: Summary of scheme cost 101 Table 22: Current scheme programme 101 Table 23: Identified construction risks 106 Table 24: Current programme dates 119 Table 25: Top five risks 122 FIGURES Figure 1: The Newhaven Port Access Road in context within Newhaven 2 Figure 2: Newhaven Port Access Road – scheme plan 4 Figure 3: Views of Railway Road, Clifton Road and Beach Road 12 Figure 4: Observed traffic flow on Railway road, Newhaven 13 Figure 5: Total employment per sector 19 Figure 6: East Quay 24 Figure 7: Avis Way Industrial Estate 25 Figure 8: Railway Quay 25 Figure 9: Bevan Funnell (North & South) 26 Figure 10: Eastside North 26 Figure 11: Eastside South 27 Figure 12: North Quay 27 Figure 13: Town Centre 28 Figure 14: Newhaven Port masterplan 32 Figure 15: Port expansion area 33 Figure 16: Newhaven Eastside Distributor Road 38 Figure 17: Newhaven Port Access Road – Approved alignment 40 Figure 18: Approved Outline Bridge Design 41 Figure 19: Newhaven Port Access Road: alternative alignment over Mill Creek (Phase 1b) 43 Figure 20: Newhaven Port Access Road: General arrangement 46 Figure 21: Railway Road / Drove Road – Observed count (Thursday 11 January 2018) 56 Figure 22: Route for the Eastside Distributor Road 57 ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 East Sussex County Council Figure 23: Newhaven Port Access Road scheme 58 Figure 24: Newhaven Port Access Road: alternative alignment over Mill Creek (Phase 1b) 60 Figure 25: Ground conditions 63 Figure 26: Newhaven Port Access Road – Bridge design 64 Figure 27: Newhaven Port Access Road – scheme plan 65 Figure 28: Newhaven Enterprise Zone sites and Newhaven Port Access Road 73 Figure 29: East Quay 74 Figure 30: Avis Way Industrial Estate 74 Figure 31: Railway Quay 75 Figure 32: Bevan Funnell (North & South) 75 Figure 33: Eastside North 76 Figure 34: Eastside South 76 Figure 35: North Quay 77 Figure 36: Town Centre 77 Figure 37: NPAR ground conditions 98 Figure 38: Newhaven Port Access Road – Bridge design 99 Figure 39: Newhaven Port Access Road – scheme plan 100 Figure 40: Project management toolkit 115 Figure 41: Project Organogram: Design Phase 117 Figure 42: Project Organogram: Construction Phase 118 Figure 43: Project assurance structure chart 123 Figure 44: Gateway and sign off process 123 APPENDICES Appendix A Appendix B Appendix C Appendix C.1 Appendix C.2 Appendix C.3 Appendix D Appendix E NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Appendix F Appendix G Appendix H Appendix I Appendix J Appendix K Appendix L Appendix M Appendix N Appendix O Appendix P Appendix Q Appendix R Appendix S Appendix T ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 East Sussex County Council Newhaven Port Access Road Business Case July 2018 Chapter 1: Introduction 1 INTRODUCTION 1.1 PROJECT CONTEXT BACKGROUND 1.1.1. The completion of the Newhaven Port Access Road (NPAR) is a priority investment in the delivery of growth and regeneration plans for Newhaven. Newhaven has been prioritised as a growth location in a range of strategic growth plans, including the Coast to Capital and South East Local Economic Partnerships’ Strategic Economic Plans and the Greater Brighton City Deal. Designation of the Newhaven Enterprise Zone in April 2017 has confirmed the importance attached to Newhaven’s future growth and economic regeneration by the Government and partner agencies in East Sussex. 1.1.2. The NPAR (See Figure 1) runs between the A259 into Newhaven Port. Phase 1 of the NPAR, running from the A259 to Pargut roundabout, was completed in 2015 as part of the Eastside development, a residential development of 190 units. 1.1.3. Phase 1a, the subject of this business case, will complete the NPAR connection with the Port of Newhaven, enabling the relief of the existing local road network from port-related traffic by creating a direct link to the wider strategic road network – the A26 north to Beddingham and the A27. To complete the scheme, Phase 1a will connect the new Pargut roundabout near Eastside Business Park into the eastern side of the Port. This requires bridging of the existing Newhaven – Seaford railway line and Mill Creek. 1.1.4. Completion of the NPAR will play a key role in enhancing the strategic connectivity of Newhaven as an economic centre in the Greater Brighton City Region. This will improve the attractiveness of Newhaven as an investment choice for local and regional businesses and contribute directly to the delivery of the Enterprise Zone objectives for business growth and transformation of the local economy (see Section 2.4). 1.1.5. Importantly, the completion of the NPAR will directly unlock the growth potential of Newhaven Port (see Section 2.6), a critical national and regional economic asset, with current proposals to expand the port facilities and increase both cargo and passenger capacity.
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