Newhaven Port Access Road Business Case July 2018

East Sussex County Council NEWHAVEN PORT ACCESS ROAD Business Case

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PROJECT NO. 70045406 OUR REF. NO. 70045406/001

DATE: JULY 2018

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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. Specifically, the NPAR will address current conflicts between Port traffic and local residential areas which are increasingly becoming a constraint on the growth of port traffic and its economic potential as well as creating severe social and environmental issues for local residents and businesses in this part of the town (see Section 2.3).

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 1 of 128 Figure 1: The Newhaven Port Access Road in context within Newhaven

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 2 of 128 East Sussex County Council AMBITIONS FOR NEWHAVEN 1.1.6. A ‘Vision for Newhaven’ is outlined in the Adopted Joint Core Strategy Local Plan Part 1 (20161) as follows: ‘By 2030, Newhaven will have undergone significant regeneration and developed and strengthened its economic base. The town will have become the focus for enterprise and training within the district, with links to the two universities in Brighton. Much of the economic regeneration will have centred upon port generated activities, high-tech industries and the tourism industry with the town acting as the continental gateway to the adjacent National Park. The regeneration of Newhaven will have resulted in a revitalised and more accessible town centre, with an improved public realm and a greater range of uses and activity, including those to meet local needs. The improved accessibility of the town centre will have been aided by an improved highway network, greater connectivity to the town’s railway stations and a high quality sustainable transport corridor along the A259. The natural asset of the river through the town will have been maximised through redevelopment opportunities, thereby enhancing this unique area of the town for residents and visitors alike.’ 1.1.7. The NPAR proposals contribute directly to the ‘Vision for Newhaven’ by supporting port generated activities that will deliver economic regeneration in the town, and are also well aligned to national growth policy of promoting strategic investment in infrastructure to enable growth. For Newhaven, this is particularly important, given: ¡ its coastal location and its 1800 ‘marketplace’ ¡ an identified need for improved connectivity to larger economic hubs in the wider regional economy. 1.1.8. There is also a clear challenge to tackle key internal transport infrastructure bottlenecks and environmental issues in and around Newhaven, in particular relating to the functionality of the A259 and Newhaven Ring Road and the designation of an air quality management area for Newhaven town centre, and improve the town’s connectivity with the wider strategic transport network. This is key to enhancing the prospects for securing new private sector investment in the town and enabling Newhaven to support the growth and rebalancing objectives reflected in the Greater Brighton City Deal and the Newhaven Enterprise Zone designation. 1.1.9. The focus for business growth includes specific ambitions for port-related development linked to clean-tech and offshore renewables opportunities, building on the commitment of EoN to the Rampion offshore windfarm operation and maintenance base and growing a related supply-chain. This requires improvement in the town’s current stock of business accommodation to suit modern business activities and encourage growth and agglomeration in these target sectors. 1.2 PROJECT OBJECTIVES 1.2.1. In this context, the strategic objectives of the NPAR Phase 1A investment are as follows: ¡ To support Newhaven’s economic transformation through rebalancing of economic activity across the Greater Brighton City Region ¡ To resolve traffic and associated environmental conflicts arising from Port traffic in residential communities ¡ To complete the strategic connectivity of Newhaven Port and support its growth as an economic asset ¡ To support the delivery of the Newhaven Enterprise Zone by enhancing the attractiveness of Newhaven as a business investment location. 1.3 SCHEME DESCRIPTION 1.3.1. The Newhaven Port Access Road (NPAR) Phase 1A is a section of approximately 650m of single carriageway continues from the Pargut roundabout to the proposed Port roundabout and includes a new 122m long bridge over the Newhaven-Seaford branch line and Mill Creek canal. This constitutes the second part of the original 1997 proposals and is the subject of this business case (see Figure 2).

1 http://www.lewes-eastbourne.gov.uk/planning-policy/lewes-core-strategy-local-plan-part-1/

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 3 of 128 Figure 2: Newhaven Port Access Road – scheme plan

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 4 of 128 East Sussex County Council 1.4 A STRATEGIC ECONOMIC NARRATIVE 1.4.1. The case for investment in the completion of the Newhaven Port Access Road centres on its role in unlocking the town’s economic growth potential as a business and residential location. Newhaven town and port are integral elements of the wider Greater Brighton City Region economy, as recognised in the City Deal and wider strategic policy statements, set out in the strategic case. There is a recognised constraint on the capacity of Brighton and other parts of the City Region to accommodate new business growth and expansion of existing firms. 1.4.2. Recent evidence prepared on behalf of Brighton & Hove City Council2 confirms that there is limited space available for the current businesses and very low levels of new build forecast for immediate development. This means current businesses will struggle to expand in Brighton and new business will not be attracted to the area. The analysis concludes that working in conjunction with the surrounding authorities, including Lewes District, will be necessary to enable growth and is vital to keep the businesses in the Greater Brighton area. 1.4.3. Newhaven is a key current and future employment location for the district of Lewes, with almost 65% of the District’s identified employment development land being in the town3. It also hosts a significant proportion of the existing commercial property stock across the local authority area, although much of it is now unsuitable for modern business requirements. The key employment development opportunities in the town have been designated as Enterprise Zone in the recognition of the important role the town can play in meeting the growth needs of firms across the Brighton City Region. The NPAR will play a critical role in enabling these Enterprise Zone development opportunities to come forward and thus securing the growth potential of the City Region and fulfilling the objectives of the Greater Brighton City Deal. 1.4.4. Enquires from business across the City Region, and from elsewhere, indicate that there is demand for commercial space in Newhaven but the delivery of new commercial development projects is constrained by poor perceived connectivity and the poor image created by some of the industrial uses that dominate the town’s gateways. The NPAR will contribute directly to improving connectivity and the relief of port traffic in the vicinity of some key Enterprise Zone sites, improving their desirability as development locations. It will also enable the Port estate to expand and facilitate the relocation of some of the industrial uses from the town’s gateways into the Port area, enabling higher value business activities to be attracted into the town, including growing businesses from Brighton, currently constrained by a shortage of space to grow. 1.4.5. Current published ONS Sub-National projections identify that Lewes District is expected to experience population growth in excess of 9,000 over the next 10 years, of which 2,850 will be of working age. Assuming 20% of the working age population remain economically inactive, the District will generate resident-based employment demand in the order of 1,800 over the next decade. Given that Newhaven is a main employment location for the District and hosts at least 65% of currently allocated employment land, it is reasonable to expect employment demand in Newhaven to require capacity for in the order of 1,200 new jobs. In addition, as Newhaven’s regeneration moves forward, it would be reasonable to expect that the town will attract increased in-commuting from surrounding areas, adding to the levels of employment demand. As outlined in the Strategic Case, the NPAR has the potential to enable the delivery of over 450 jobs on the Enterprise Zone sites in Newhaven, making an important contribution to addressing this deficit in employment capacity. 1.4.6. Without the NPAR, the key Enterprise Zone sites in Newhaven will be more constrained in terms of development prospects and the ability of the town to meet this demand for employment from resident population growth will be restricted. Given the know shortage of employment sites elsewhere in the City Region, notably in Brighton, this would result in increased and longer distance commuting to employment centres elsewhere in the South East. 1.4.7. In particular, the East Quay site will remain under-developed in the absence of the NPAR, which will constrain not only the capacity of this major Enterprise Zone site itself to accommodate new businesses, but will also inhibit the relocation of unattractive industrial uses from other Enterprise Zone sites which are earmarked for higher value commercial uses, notably Railway Quay and North Quay. North Quay has important wharf facilities which are currently safeguarded, inhibiting future development potential of the North Quay site.

2 Industrial Estates Audit Brighton & Hove – SHW December 2017 3 Lewes District Joint Core Strategy Adopted 2016

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 5 of 128 1.4.8. The NPAR will enable the Port to invest in new berthing facilities in the Port area, including the proposed new deep-water berth, which in turn will enable the relocation of the wharf capacity from North Quay to East Quay. Through relocation of the wharves, the existing unattractive industrial / mineral storage uses on North Quay can be relocated onto part of the core area of the Port, creating a major improvement to the visual appearance at this key entry point to Newhaven. This is identified in the Enterprise Zone Implementation Plan4 as an important barrier to the regeneration of Newhaven and the attraction of higher value business activities to the town. 1.4.9. If the NPAR does not proceed, the North Quay wharves will need to continue to be safeguarded, thus restricting development potential of this major Enterprise Zone site but also requiring the ongoing operation of the swing bridge to allow commercial vessels to access North Quay, with a continuation of the consequential impacts on traffic movements in the town when the bridge is opened. 1.4.10. The NPAR is therefore a critical infrastructure investment in driving the regeneration of Newhaven, enabling the town to fulfil its potential economic role and to act as a key growth point in the Greater Brighton City Region. Without the NPAR, there will be a deficit of employment capacity to meet not only the growth in the local working-age population but also to meet the demands of firms unable to grow elsewhere in the Greater Brighton area.

4 Newhaven EZ Implementation and Investment Plan, March 2017, Cushman & Wakefield / Regeneris.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 6 of 128 East Sussex County Council

Newhaven Port Access Road Business Case July 2018 Chapter 2: Strategic Case

2 STRATEGIC CASE

2.1 INTRODUCTION 2.1.1. The Strategic Case presented here sets out why the investment is needed as well as the “case for change”. A clear rationale for making the investment is demonstrated together with the scheme’s ‘strategic fit’ and how it will further the aims and objectives in the region. 2.1.2. The Strategic Case developed here is based on DfT guidance and contributes towards the overall business case presented to Government which is supported by robust evidence. 2.2 BUSINESS STRATEGY: NATIONAL, REGIONAL AND LOCAL POLICIES 2.2.1. The Newhaven Port Access Road (NPAR) has a strong policy fit which is set out below. NATIONAL 2.2.2. In March 2017, the Department for Transport launched its Port Connectivity Study. Recognising that ports are vitally important to the nation’s economy as a conduit for the vast majority of freight that enters and leaves the country, which in turn is key enabler for many of the nation’s economic activities, the study therefore aims to examine the sufficiency of port access and connectivity in England. It also sought to identify where there is a potential need for connectivity improvements taking into account port and public infrastructure plans for the next 10 years. 2.2.3. As part of the study, the DfT gathered information from across the port industry about their developments and investments alongside details of road and rail access from a port perspective, as well as how they engage with transport investment processes. REGIONAL Local Growth Deals 2.2.4. Growth Deals provide funds to Local Enterprise Partnerships (LEP) which are partnerships between local authorities and businesses for projects that benefit the local area and economy. 39 growth deals were announced on 7 July 2014 with the Coast to Capital Growth Deal being one of those. 2.2.5. The Department for Transport’s Coast to Capital Growth Deal stated that: “subject to a satisfactory conclusion of the funding agreement, will bring together local, national and private funding as well as new freedoms and flexibilities to focus on three key priority areas as identified in the Local Enterprise Partnership’s Strategic Economic Plan: ¡ Enhance business support and skills ¡ Accelerate research and innovation ¡ Invest in transport, flood defences and resilience” 2.2.6. Within the Coast to Capital Growth Deal, Central Government provisionally agreed an allocation of £10m of funding for the Newhaven PAR as it:

“Opens up a major brownfield site for housing and employment land plus new harbour facilities currently with very restricted access.”

2.2.7. The NPAR scheme has an estimated cost of £23,020,466 with East Sussex County Council contributing the remaining £13.20m of funding towards to the overall cost of the scheme. East Sussex County Council Plan and East Sussex Growth Strategy 2.2.8. The Council Plan identifies the delivery of the Port Access Road as a priority for the County Council and is explicit in its priority of driving economic growth:

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 9 of 128 “By creating the environment and infrastructure business needs, using the Council’s resources to support the local economy and ensuring local people have the skills they need to take advantage of the opportunities available”. 2.2.9. Likewise, the East Sussex Growth Strategy also sets out clear aspirations to this effect, including: ¡ Better alignment of skills provision to meet local employer needs ¡ Increase the number of people in the workforce with high level skills ¡ Improve work readiness, including soft and basic skills ¡ Enabling business growth and supporting business start-ups. Local Transport Plan 2011 - 2026 2.2.10. The LTP3 adopted in May 2011 identifies the county’s approach to delivering infrastructure to achieve sustainable economic growth and help deliver housing development in Newhaven. This identifies that this will be achieved by: “promoting development to fund the construction of the Newhaven Port Access Road as appropriate to enable expansion of the port and the development of the Eastside, facilitating economic growth in the town” Lewes District Core Strategy 2016 - 2030 2.2.11. Lewes District Council’s Core Strategy states that: “Regeneration of the district’s coastal towns is a key objective of this plan. Key to this will be regeneration at Newhaven and growth will have a significant role to play in achieving this transformation. We need to work in partnership to deliver the regeneration of vacant, underused or poor quality sites and premises and improve accessibility before allocating new green field sites for business development, particularly at Newhaven. We need to determine the best way of maintaining and enhancing the role of Newhaven as a regionally significant port with its associated facilities.” Contribution to Other Partners plans 2.2.12. A 20-year vision for the future of Newhaven has been developed by the Newhaven Strategic Network (NSN) which sets out priorities and proposals for the town. These include: ¡ creating a sustainable community with a balance of uses, ¡ maximising local economic opportunity ¡ tackling social imbalances ¡ enhancing the physical and natural environment ¡ establishing a sustainable transport network. 2.2.13. The Newhaven Port Access Road will help contribute towards the delivery of the vision for Newhaven in particular maximising and support the local economy, which in turn will help to tackle social imbalances in people’s socio-economic status and quality of life.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 10 of 128 East Sussex County Council Newhaven Enterprise Zone 2.2.14. Newhaven has substantial physical capacity for growth, including on large brownfield sites in around the Port, waterfront and town centre. The Lewes District Local Plan, adopted in May 2016, allocates 65% of the entire District’s employment land supply in Newhaven, reflecting the importance placed on the town as a growing employment centre. 2.2.15. The 2015 Autumn Statement confirmed the designation of the Newhaven Enterprise Zone, which commenced in April 2017. The Enterprise Zone is a 79 hectare development opportunity spread across 8 key sites in the town. Targeting high value manufacturing in the ‘Clean, Green and Marine’ sectors, most of the Enterprise Zone sites are focussed on the Eastside of the River Ouse. 2.2.16. Each Enterprise Zone site has a role to play in delivering change in Newhaven. With its proximity to the Port, the East Quay site in particular offers an ideal opportunity for delivering clean-tech and port-related growth – this site is directly unlocked by the Newhaven Port Access Road. 2.2.17. The Newhaven Port Access Road will have a key influence over delivery of the Newhaven Enterprise Zone. Potential attribution of Newhaven Port Access Road impacts to the delivery of economic outputs on each of the sites has been indicated, reflecting the variable extent to which Newhaven Port Access Road will influence development outcomes and timings, directly and indirectly. These impact attributions have been applied in estimating the jobs / GVA value of the wider benefits of the Newhaven Port Access Road in terms of unlocking and / or accelerating Enterprise Zone site delivery (see ‘Calculating Wider Benefits Methodology’ in the Economic Case. Newhaven Port Masterplan 2.2.18. Newhaven Port and Properties (NPP) and its partners have developed a Port Masterplan (PMP) for the port of Newhaven to form a strategic framework from which the port will develop over the next 20-30 years. The vision for the port of Newhaven is to create a thriving commercial and ferry port and tourism gateway, providing infrastructure for job-creating businesses in the new low carbon, leisure marine and fishing industries. Accessed via an attractive multi-use gateway area, the port will offer attractively renovated waterside access for residents and visitors. 2.2.19. The PMP identifies five key strategic objectives: ¡ Maintain the Newhaven-Dieppe ferry route and increase utilisation whilst improving the customer experience through a sensitive re-development of the Railway Quay area, making it an extension of, and complementary to, Newhaven town centre ¡ Invest in infrastructure to establish a clean technology and renewable energy business cluster, building on the success of existing local businesses and the current opportunities in off shore wind; ¡ Increase the volume of international trade through the port with a focus on renewable energy supplies such as biomass ¡ invest in infrastructure for the continued development of the fishing and leisure marine sectors enhance the natural marine environment by establishing a public access conservation area on port land. 2.2.20. The PMP acknowledges that a new Eastside Strategic Road i.e. Newhaven Port Access Road is a long- standing project of the county and district councils. NPP sees the potential benefit of a new strategic road over the longer term but this will need to be planned to dovetail with the development opportunities identified in the PMP. 2.3 PROBLEM IDENTIFIED 2.3.1. Newhaven is connected to the strategic road network via the A26, which runs northwards and links to the A27 at Beddingham near Lewes. From here the A27 travels eastbound to Eastbourne and then Hastings, whilst the westbound A27 travels to Brighton and beyond as well as linking to the A23 to Gatwick Airport and onto London. 2.3.2. The existing road access into the Port is sub-standard. Access into Railway Quay and the ferry terminal is very close to the existing swing bridge and a railway level crossing both of which cause delays.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 11 of 128 2.3.3. The existing access to the Port is via Railway Road, Clifton Road and Beach Road which is subject to a 30mph speed limit, and is street lit with pedestrian footways on either side of the carriageway. The roads are fronted by industrial and residential properties whose front doors open directly onto the footways. A nursery school is located on Railway Road. The route into East Quay also utilises a level crossing south of Newhaven Harbour station on the Lewes - Newhaven – Seaford railway line. Images of Railway Road Clifton Road and Beach Road are shown in Figure 3 which have been taken from Google Map.

Figure 3: Views of Railway Road, Clifton Road and Beach Road

2.3.4. Figure 4 shows the total and Heavy Goods Vehicles (HGV) traffic flows from December 2015 and January 2018 on Railway Road.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 12 of 128 East Sussex County Council Traffic Flow on Railway Road , Newhaven (7am to 7pm - 2015 and 2018) 2015 2018

3715 3503

184 275

HGV Total

Figure 4: Observed traffic flow on Railway road, Newhaven

2.3.5. In 2015, HGV traffic equated for 5.25% of all traffic (7am to 7pm) whereas HGV traffic equated to 7.4% of all movements over the same time period in 2018. The 2018 survey shows 275 HGV movements over the 12- hour period, which equates to an average of 23 HGV movements along the road per hour. 2.3.6. This use has social and environmental (pollution, noise and vibration) consequences on the residents who live in the area as well as the pupils of the nursery school situated at the northern end of Railway Road. 2.3.7. Future expansion of the Port and development within the East Quay area is therefore constrained by the current poor access to the site, and the impacts from the unsuitable traffic along Railway and Beach Road adversely affects the viability of identified Enterprise Zone site (particularly residential developments) on Railway Road/Beach Road. 2.3.8. The recent Brett Aggregates planning application for an Aggregates Importation and Processing Plant on part of East Quay supports this constraint on development, and goes as far to state that Phase 3 or their development could only be implemented once the NPAR is open. Their Planning Supporting Statement is shown in Table 1.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 13 of 128 Table 1: Brett Aggregates: Planning supporting statement Stage 1 development (indicative commencement year 2018) Collecting aggregates from the existing berth on the East Quay and developing facilities to enable them to be processed, bagged and transported from site by rail and road. At this stage a daily average of 17 lorry loads would be exported by road with no more than 6 loads in any hour and restrictions self-imposed to minimize any potential conflict with school and nursery drop-off and pick-up times. The use of the rail for distribution of aggregates in bulk would be maximised. Stage 2 development (indicative commencement year 2019) When Rampion Offshore Wind (ROW) relocates to elsewhere on the East Quay, using land, currently occupied by it in connection with the construction of the wind farm in the English Channel, a stocking conveyor system would be installed and the rail siding extended to improve cargo discharge and rail loading efficiency and provide more space for aggregates storage. Output by road would remain unchanged. Stage 3 development (indicative commencement year 2020) Only when the new port access road is open to traffic, bypassing Railway Road, Clifton Road and Beach Road, increasing levels of aggregate processing and bagging and adding a ready-mixed concrete batching plant. From this time all traffic associated with the proposed development would use the new port access road.

2.3.10. The associated Transport Assessment for the application indicates that Stages 1 and 2 of the development would produce an additional 34 daily HGV movements on the residential access roads, which equates to 3 per hour (17 loads exported = 34 HGV movements two-way). Stage 3 would produce an additional 109 daily HGV movements (10 per hour). These HGV movements would be in addition to the 275 per day that already occur through other Port activities. 2.3.11. The full transport assessment can be viewed on-line at https://apps.eastsussex.gov.uk/environment/planning/applications/register/Detail.aspx?typ=dmw_planning&ap pno=LW%2f799%2fCM(EIA) 2.3.12. As discussed elsewhere within this document, there is a long term ambition within the EZ to relocate industrial activities from North Quay to East Quay so that North Quay can be redeveloped creating a major improvement to the visual appearance at this key entry point to Newhaven, but this relies on development and new berthing areas being provided at East Quay. If NPAR does not proceed, the North Quay wharves will need to continue to be safeguarded, thus restricting development potential of this major EZ site. 2.3.13. Additionally, activities at North Quay also require the ongoing operation of the swing bridge to allow commercial vessels to access North Quay, with a continuation of the consequential impacts on traffic movements in the town when the bridge is opened. The swing bridge opening for the last 12 months are shown in Table 2. 2.3.14. On average it takes 10-15 minutes to complete and open/close cycle, with traffic on the A259 and Newhaven Ring Road stationary during this time. Opening times are subject to tidal constraints and so often occur during peak traffic hours exacerbating the traffic impacts.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 14 of 128 East Sussex County Council Table 2: Number of time Swing Bridge opened Date Number of times Swing Bridge opened

Apr 2018 16

Mar 2018 3

Feb 2018 1

Jan 2018 6

Dec 2017 6

Nov 2017 9

Oct 2017 6

Sep 2017 8

Aug 2017 13

Jul 2017 11

Jun 2017 14

May 2017 11

Total 104

2.3.15. The recent planning approval for FM Conway to install and operate an asphalt plant, concrete batching plant and gully waste plant at North Quay, is a prime example of the type of activity that in the longer term with appropriate berthing could be relocated to East Quay. Documents submitted with this planning permission indicate that the swing bridge will need to operate an additional 80 times a year to facilitate the Conway operations (40 ships per annum). Thus it is clear that relocating these types of operation will have significant transport benefits on the highway network within Newhaven as well as supporting the Enterprise Zone aspirations. 2.3.16. However, the transport assessment for the Conway permission also indicates that their plant will produce over 45,000 additional HGV movements per year, which with the assumption of 275 working days per year is an additional 138 per day, or 12 per hour. Aside from the need for adequate berthing in East Quay which is unlikely to occur without the NPAR, it is therefore also clear that the existing access into Newhaven Port could not accommodate these additional traffic movements and so completion of the NPAR is crucial to allow relocation of these types of activities, and in turn to facilitate the aspirations of the Enterprise Zone. 2.3.17. Details of the Conway permission can be viewed on line at

https://apps.eastsussex.gov.uk/environment/planning/applications/register/Detail.aspx?appno=LW/789/CM(EI A)&typ=dmw_planning

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 15 of 128 2.3.18. Although the Brett planning application is still under consideration, and yet to be determined, East Sussex County Council Planning Department has given a view on the additional HGV movements that any additional development in East Quay would produce. They state that: ‘One of the issues that would need to be considered as part of the ‘planning considerations’ regarding development in the vicinity of Beach Road, Clifton Road and Railway Road is the effect of vehicle movements, particularly HGVs, on the amenity of persons within the locality, especially the occupiers of residential properties. With regard to the Brett proposal, there would be an increase in the numbers of HGVs (and other traffic) using these roads to access the Port, as there is no other access, and an increase in traffic along this route would be likely to exacerbate the existing effects on amenity (e.g. noise and vibration). While efforts should be made to try and reduce such effects, this can be difficult at a port when there is only one inadequate access and there are permitted development rights associated with transporting goods. For its development, Brett would need to use the aforementioned roads for Stages 1 and 2 of the proposal, while the proposed Stage 3 would not become operational until the NPAR is completed. Moreover, ESCC, as Minerals Planning Authority, would be likely to prohibit vehicle movements associated with Stage 3 until the NPAR is available for use. Once the NPAR is available for use, all traffic associated with the Brett development would use the NPAR.’ 2.3.19. It is therefore clear that the existing access into East Quay constrains development and Port expansion. It follows that regardless of whether the Brett application is granted and proceeds, only a small level of additional development can be accepted with the current access arrangements, and that any further development coming forward after Stage 2 of the Brett proposals would also require the NPAR to be in place. It is also clear that the NPAR is crucial to allow the relocation of industries and realise the wider long-term aspirations of the Enterprise Zone. Therefore the problem can be defined as that in Table 3.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 16 of 128 East Sussex County Council Table 3: Summary of problem Newhaven is a key current and future employment location for the district of Lewes, with almost 65% of identified employment development land in the town. It also hosts a significant proportion of the existing commercial property stock across the local authority area, although much of it is now unsuitable for modern business requirements. Newhaven offers substantial potential for growth but is currently dominated by low value added manufacturing, and wholesale and retail trade employment. Newhaven is identified as a growth corridor by both the Coast to Capital and South East LEPs focussed on CleanTech and Maritime industries. There is widespread commitment to encourage the development of a range of modern office and industrial premises in Newhaven to support a diverse range of sectors. EZ status, which came into effect in April 2017, will help towards improving the town’s commercial property offer. There is the ability to capitalise on the investments from E.ON in its operations & maintenance base for Rampion Offshore Wind Farm (OWF), Veolia in its Energy Recovery Facility, proposals for a Marine Enterprise & Training Centre, and the opening of a new University Technical College (UTC) specialising in marine and environmental engineering. Newhaven Port & Properties (part of port owners Societe d’Economie Mixte Locale) has prepared a masterplan to increase the volume of trade through the port, establish this renewable energy cluster, and support the development of the fishing and marine leisure sectors. National infrastructure policy identifies the strategic importance of port connectivity to the Strategic Road Network and the recent launch of the DfT Port Connectivity Study recognises the importance of ‘last mile’ port access and connectivity for England’s key ports and how connectivity improvements can support economic growth. The existing road access into the Port via Railway Road, Clifton Road and Beach Road is fronted by residential properties, a nursery school as well as local businesses. With the level of traffic on the existing access, including increasing numbers of HGV movements, as well as development sites starting to come forward as part of the Enterprise Zone on Railway Road and Beach Road, the existing access into the Port is sub-standard. This is creating unacceptable social and environmental consequences for those living and working along the road and affecting the development potential of the Port. Continuing Phase 1 of the Newhaven Port Access Road southwards over the railway line and Mill Creek into the East Quay area of the port will provide a new direct access into this area, thus removing the constraints to further development and resolving the amenity and environmental impacts generated by traffic on the existing road into the port. This will allow the full development potential of the port to be realised, providing much needed jobs and benefits to the wider Newhaven area. If the Newhaven Port Access Road is not delivered, it is expected that: ¡ the overall environment will continue to be poor for residents, pupils at the nursery school and employees in businesses on Railway Road, Clifton Road and Beach Road ¡ the full development potential of Newhaven Port will not be realised and the delivery of the Port’s Masterplan will be inhibited ¡ the potential of the development sites coming forward on Railway Road and Beach Road will be restricted ¡ the wider regeneration plans of the Newhaven Enterprise Zone will be undermined.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 17 of 128 2.4 IMPACT OF NOT CHANGING Newhaven’s economic challenges & opportunities 2.4.1. The economic challenges and opportunities facing Newhaven have been widely acknowledged in recent studies to support policy development and the formulation of strategies to support the town’s growth and regeneration. These studies include: ¡ Newhaven – Key Sites for Economic Growth, GENECON / AspinallVerdi – 2015. This study was commissioned by East Sussex CC and Lewes DC as a precursor to Enterprise Zone designation to establish the key economic challenges facing the town, the development potential of key sites and their role in supporting the transition of the local economy and the growth of the Greater Brighton City Region ¡ Newhaven EZ Implementation and Investment Plan, March 2017, Cushman & Wakefield / Regeneris. This study was commissioned by Lewes DC and the Coast to Capital LEP following the commencement of the Newhaven Enterprise Zone to provide a framework for the delivery of key sites, including consideration of key barriers to investment and the key interventions required to unlock new business growth. 2.4.2. Both studies acknowledged the critical role of NPAR as a facilitating investment with potential to deliver direct and indirect influence over the deliverability of key site outcomes. 2.4.3. Key challenges for Newhaven confirmed in both studies include: ¡ The town’s economy is currently defined by the town centre, port, and large traditional industrial estates which give a generally poor impression for potential investors and visitors. Ferry users in particular perceive Newhaven to be ‘unattractive’, consequently overall visits and spend by ferry travellers in the town centre is low ¡ Deterioration in the traditional port-related industrial areas, where dated premises, vacancies, lack of upkeep and low value uses have served to accelerate the decline in property assets ¡ The current commercial property offer in the town is weak and this has fuelled a lack of diversity among economic activities taking place within the town. There is a current overreliance on low value manufacturing and wholesale/retail trading ¡ The historic core of the town centre has been blighted by post war development and there are high levels of vacant units in the town centre, with a generally weak and increasingly marginal overall retail offer ¡ The existing ring road severs links between the historic town centre and the rest of Newhaven and several local highway constraints have resulted in serious congestion and peak hour delays, and contributing to the air quality issues in the town centre. Within the town, these problems are exacerbated by port traffic, vehicles feeding the Energy Recovery Facility and the swing bridge ¡ Serious housing issues facing local people, including a poor physical environment in some residential areas and a shortage of low cost housing for first-time buyers. Low provision of equipped play space and leisure opportunities exacerbate this ¡ There are areas of significant coastal and fluvial flood risk that are a constraint on new development. Significant investments in flood defences are currently underway funded by the Environment Agency and Local Growth Fund monies secured by the South East and Coast to Capital Local Enterprise Partnership’s ¡ Long-term population growth is driving demand for housing and employment, but there is an under provision of jobs in Newhaven with higher than average unemployment and structural weaknesses in the employment and labour markets ¡ Below average skills profile and a mismatch between resident workers’ skills and available jobs. There is a significant under provision in higher-value professional, financial and business service jobs, resulting in lower than average earnings with an under representation of higher-value occupations amongst Newhaven’s residents.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 18 of 128 East Sussex County Council 2.5 INTERNAL DRIVERS FOR CHANGE DRIVING A HIGHER VALUE LOCAL ECONOMY 2.5.1. There is an overall under-supply of jobs in the town with a high proportion of low-value jobs based on a prevalence of low, unskilled and elementary occupations amongst working residents, generating below average earnings5. Jobs in Newhaven are concentrated in Manufacturing, Retail, and Transport industries, these three industries account for 48% of all jobs in Newhaven compared to around 20% in Lewes District and Coast to Capital LEP area. Manufacturing activity is very important to the local economy accounting for 20% of Newhaven jobs alone, compared to 5% and 6% in Coast to Capital and Lewes District. Jobs in Newhaven are also much higher on average in Wholesale, Retail, and Transport industries, on average being up to 3 times larger than Coast to Capital or Lewes District. This reflects the historical and ongoing port activities which has encouraged industrial and manufacturing uses. 2.5.2. Jobs in high skilled industries such as Information Technology, Professional, Scientific, and Technical, and Finance are more limited in Newhaven - these sectors are 2.5 to 3.5 times smaller in Newhaven compared to Lewes district or Coast to Capital (see Figure 5)

Figure 5: Total employment per sector

2.5.3. There are high levels of both “in” and “out” commuting which, whilst broadly in balance, highlights the significance of the town’s economic relationships with, and reliance upon, other economic centres in the wider sub-region. Higher skilled residents tend to travel out of Newhaven to access higher value jobs in other centres, while those higher skilled jobs that currently exist in the town tend to be taken by in-commuters with higher skills. 2.5.4. The strategy for Newhaven is therefore to achieve a rebalancing of employment and housing growth in the Greater Brighton City Region by improving the appeal of the town as a residential choice, supporting the growth of higher skills within the local labour pool and driving higher value business growth. This requires a multi-faceted approach combining measures to enhance the appeal of the town for higher value businesses, including improved connectivity through measures such as the NPAR, alongside programmes to support the growth of a higher skilled local labour pool. 2.5.5. The town’s economy is currently dominated by comparatively low value-added manufacturing, and wholesale and retail trade employment and the strategy is to support transition to a higher value economy by investing in the key assets that can support growth in target sectors.

5 Newhaven – Key Sites for Economic Growth, GENECON / AspinallVerdi, 2015

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 19 of 128 2.5.6. Newhaven has suffered from years of stagnation and decline and there is now widespread policy support to accelerate Newhaven’s transition from an economy based on low value manufacturing and processing, to a higher value economic role, capitalising on key sites and assets, including the Port and wider Enterprise Zone proposals. Spatial and economic policy at local, city-region and LEP levels is now fully aligned to this objective and the NPAR forms a key element of the strategic response. MEETING EMPLOYMENT NEEDS ACROSS GREATER BRIGHTON 2.5.7. The economic case for investment in the completion of the Newhaven Port Access Road centres on its role in unlocking the town’s economic growth potential as a business and residential location. Newhaven town and port are integral elements of the wider Greater Brighton City Region economy, as recognised in the City Deal and wider strategic policy statements, set out in the strategic case. There is a recognised constraint on the capacity of Brighton and other parts of the City Region to accommodate new business growth and expansion of existing firms. Recent evidence prepared on behalf of Brighton & Hove City6 Council confirms that there is limited space available for the current businesses and very low levels of new build forecast for immediate development. This means current businesses will struggle to expand in Brighton and new business will not be attracted to the area. The analysis concludes that working in conjunction with the surrounding authorities, including Lewes District, will be necessary to enable growth and is vital to keep the businesses in the Greater Brighton area. 2.5.8. Newhaven is a key current and future employment location for the district of Lewes, with almost 65% of the District’s identified employment development land being in the town. It also hosts a significant proportion of the existing commercial property stock across the local authority area, although much of it is now unsuitable for modern business requirements. The key employment development opportunities in the town have been designated as Enterprise Zone in the recognition of the important role the town can play in meeting the growth needs of firms across the Brighton City Region. The NPAR will play a critical role in enabling these Enterprise Zone development opportunities to come forward and thus securing the growth potential of the City Region and fulfilling the objectives of the Greater Brighton City Deal. 2.5.9. Enquires from business across the City Region, and from elsewhere, indicate that there is demand for commercial space in Newhaven but the delivery of new commercial development projects is constrained by poor perceived connectivity and the poor image created by some of the industrial uses that dominate the town’s gateways. The NPAR will contribute directly to improving connectivity and the relief of port traffic in the vicinity of some key Enterprise Zone sites, improving their desirability as development locations. It will also enable the Port estate to expand and facilitate the relocation of some of the industrial uses from the town’s gateways into the Port area, enabling higher value business activities to be attracted into the town, including growing businesses from Brighton, currently constrained by a shortage of space to grow. 2.5.10. Current published ONS Sub-National projections identify that Lewes District is expected to experience population growth in excess of 9,000 over the next 10 years, of which 2,850 will be of working age. Assuming 20% of the working age population remain economically inactive, the District will generate resident-based employment demand in the order of 1,800 over the next decade. Given that Newhaven is a main employment location for the District and hosts at least 65% of currently allocated employment land, it is reasonable to expect employment demand in Newhaven to require capacity for in the order of 1,200 new jobs. In addition, as Newhaven’s regeneration moves forward, it would be reasonable to expect that the town will attract increased in-commuting from surrounding areas, adding to the levels of employment demand. 2.5.11. As outlined in the Strategic Case, the NPAR has the potential to enable the delivery of over 450 jobs on Enterprise Zone sites in Newhaven, making an important contribution to addressing this deficit in employment capacity.

6 Industrial Estates Audit Brighton & Hove – SHW December 2017

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 20 of 128 East Sussex County Council 2.5.12. Without the NPAR, the key Enterprise Zone sites in Newhaven will be more constrained in terms of development prospects and the ability of the town to meet this demand for employment from resident population growth will be restricted. Given the know shortage of employment sites elsewhere in the City Region, notably in Brighton, this would result in increased and longer distance commuting to employment centres elsewhere in the South East. 2.5.13. In particular, the East Quay site will remain under-developed in the absence of the NPAR, which will constrain not only the capacity of this major Enterprise Zone site to accommodate new businesses, but will also inhibit the relocation of unattractive industrial uses from other Enterprise Zone sites which are earmarked for higher value commercial uses, notably Railway Quay and North Quay. 2.5.14. The NPAR is therefore a critical infrastructure investment in enabling Newhaven to fulfil its potential economic role and to act as a key growth point in the Greater Brighton City Region. Without the NPAR, there will be a deficit of employment capacity to meet not only the growth in the local working-age population but also to meet the demands of firms unable to grow elsewhere in the Brighton area. GROWING BUSINESS IN NEWHAVEN 2.5.15. Despite its relative economic performance in the wider Greater Brighton City Region, Newhaven is home to a number of highly innovative and successful companies, demonstrating the potential of the town to attract and grow a higher value economic base supported by interventions including the NPAR as a critical component. Examples include: Brightwell 2.5.16. Brightwell Dispensers Ltd is a global designer and manufacturer of innovative soap, paper and chemical dispensers and dosing systems. 2.5.17. The company exports to 85 countries worldwide and employs around 270 people in Newhaven and has recently announced plans to invest more than £6 million in the town over the next 5-10 years. Surrey NanoSystems 2.5.18. Surrey NanoSystems began as a start-up in late 2006, staffed by scientists from the University of Surrey’s Advanced Technology Institute (ATI) and CEVP Ltd. The company is a market leader in advanced engineering and manufacturing linked to scientific applications, with a highly skilled workforce. Most recently, the company has created ‘Vanta Black’, that holds the record for the darkest and most impermeable man-made substance ever created. This is generating substantial growth for the company worldwide. 2.5.19. The company currently employs 25-30 people, but has just taken on a new site at Eastside South business park in Newhaven. This site forms part of the company’s expansion plan, with a view to taking their number of employees to more than 100 over the next five years, and reinforces their base in Newhaven. APG Cash Drawer 2.5.20. APG Cash Drawer is a manufacturer of retail cash drawers and related products that is well-established in Newhaven. The company was previously known as Cash Bases, but has recently merged with Minneapolis- based APG. The company currently employs around 200 staff in Newhaven and again has a worldwide market linked to their parent company. Feilo Sylvania 2.5.21. Feilo Sylvania is a leading provider of lighting solutions. The company is 80% owned by Shanghai Feilo Acoustics Ltd, which is principally engaged in the manufacture and distribution of lighting equipment and is China’s first joint stock company. The company reorganised its M&A on a large scale in 2014 and became a joint enterprise comprising companies including Shanghai Yaming Lighting Co Ltd, Bejing Shen’an Group as well as Shanghai Sunlight Enterprise Co Ltd. With the acquisition of Havells Sylvania, Feilo has gained manufacturing bases, logistics centres, R&D technology centres around the world, as well as market access in 48 countries. 2.5.22. The company is well-established in Newhaven and employs more than 100 people in the town.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 21 of 128 SUPPORTING INVESTMENT IN NEW BUSINESS ACCOMMODATION 2.5.23. Newhaven is identified in the Greater Brighton City Deal as one of the areas in the Greater Brighton City Region that has the growth potential to house the region’s expanding businesses. There is a pressing need for additional quality, modern office and workshop space for expanding high growth businesses across the City Region. Greater Brighton has a larger proportion of High Growth businesses (14%) than nationally7 (9%) but there is a lack of appropriate space to enable expansion. The effect of this is that growth is stymied with companies stuck in substandard premises due to a lack of supply. Without available grow-on space, accommodation for new start-up businesses is also constrained. 2.5.24. Despite Newhaven having a number of large brownfield sites that could accommodate new business and commercial development, private investment in new premises has been limited, largely due to constrained rental and capital values creating viability gaps, alongside negative perceptions about Newhaven as an investment location8. For some sites, abnormal development costs exacerbate this challenge. Without measures to improve investor perceptions and land values, and meet occupier demand, investment in new business premises is likely to remain constrained in all but a few exceptions9. 2.5.25. Newhaven is currently characterised by its established industrial property stock – predominantly older industrial and warehousing units and typically under 20,000 sqft. Indeed, over 70% of designated employment floorspace was built before 1970. There is little modern office accommodation in the town – although the Enterprise Centre on Denton Island does provide small serviced units for SMEs. Partly due to the lack of recent development, there has been little change in rental values and yields over the last couple of years. 2.5.26. Market demand is primarily driven by SMEs and local businesses but the dynamics of the local commercial market has resulted in local firms finding it hard to expand or upgrade to more suitable premises locally. Consequently, new firms are not easily able to locate to Newhaven owing to the lack of good quality and suitable premises. 2.5.27. The successful Newhaven Enterprise Centre has been recording occupancy levels in excess of 99% for a number of years and has a significant waiting list for new units. Occupiers report a lack of quality move-on space available locally to facilitate expansion. Lewes District Council completed an extension to the Enterprise Centre in 2016 as part of the Newhaven Growth Quarter project, fostering stronger collaborative links with the neighbouring Denton Island Community Centre and Sussex Downs College’s Newhaven Campus. 2.5.28. The lack of suitable move-on space for growing businesses is compounded by the abnormal remediation costs of many of Newhaven’s developable sites, which is being addressed through Enterprise Zone designation. The NPAR will support development potential by improving connectivity and the perception of Newhaven as an investment location. The Enterprise Zone designation seeks to address property market failure through development facilitation and business demand incentives. The NPAR has a key role in complementing the Enterprise Zone initiative, by improving connectivity, opening up new development opportunities and supporting the drive to improve local property values by increasing investor confidence in the town. GROWTH SECTOR OPPORTUNITIES 2.5.29. As part of the analysis for the Newhaven Enterprise Zone Implementation and Investment Plan10 consideration has been given to the key business sectors that could be attracted to and grown-on in Newhaven and for which the enhanced connectivity of the town achieved through the NPAR could be an important influence.

7 Greater Brighton and West Sussex Business Survey 2014; Marshall Nairne Ltd and Emergent Research & Consultancy Ltd 8 Newhaven EZ Implementation and Investment Plan, March 2017, Cushman & Wakefield / Regeneris 9 Ibid. 10 Ibid

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 22 of 128 East Sussex County Council 2.5.30. This analysis reached the following conclusions:

The two best positioned priority sectors that the EZ could seek to attract in the short to medium term are environmental technology and services, and advanced engineering. Both these sectors build on existing local strengths and relate to the spatial pattern of employment in the wider area. Both sectors will potentially overlap with the marine sector (e.g. marine related manufacturing and offshore energy provision), building on existing strengths and infrastructure assets, notably the Port. Of these, advanced engineering is likely to generate the greatest employment opportunities. Opportunities in the creative and digital sector is considered to be dependent on the extent to which Newhaven can be effectively integrated into the Greater Brighton City Region - which the NPAR will contribute towards through enhanced connectivity with the strategic road network. Manufacturing is a major employer in Newhaven and, despite recent job losses, the presence of high-tech manufacturing and evidence of growing manufacturing sub-sectors are likely to provide shorter term opportunities for growth. This is related to the advanced engineering sector, where Newhaven may become an attractive location for investment as pressure for land increases in other parts of the region. Newhaven is also well placed to benefit from investment in environmental technologies, however the scale of employment in this sector may be lower. Besides manufacturing, the current employment profile of Newhaven is dominated by low density uses and the Enterprise Zone provides an opportunity to attract and retain more job- rich and higher value employment activities to the town.

2.5.31. The East Sussex Growth Strategy 2014-2020 makes specific reference to the emergence of a clean-technology and maritime cluster in Newhaven and the opportunity for further growth in the right conditions are in place to encourage new investment. The delivery of the new University Technical College in Newhaven, specialising in marine and environmental engineering, is a direct response to this recognised sector opportunity in the town and the need to ensure a supply of local skilled residents to support business growth locally. DELIVERING THE NEWHAVEN ENTERPRISE ZONE – THE INFLUENCE OF NPAR 2.5.32. Newhaven has substantial physical capacity for growth, including on large brownfield sites in around the Port, waterfront and town centre. The Lewes District Local Plan, adopted in May 2016, allocates 65% of the entire District’s employment land supply in Newhaven, reflecting the importance placed on the town as a growing employment centre. 2.5.33. The 2015 Autumn Statement confirmed the designation of the Newhaven Enterprise Zone, which commenced in April 2017. The Enterprise Zone is a 79 ha development opportunity spread across 8 key sites in the town. Targeting high value manufacturing in the ‘Clean, Green and Marine’ sectors, most of the Enterprise Zone sites are focussed on the Eastside of the River Ouse.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 23 of 128 2.5.34. Each Enterprise Zone site has a role to play in delivering change in Newhaven. With its proximity to the Port, the East Quay site in particular offers an ideal opportunity for delivering clean-tech and port-related growth – this site is directly unlocked by the NPAR. 2.5.35. The NPAR will have a key influence over delivery of the Newhaven Enterprise Zone. The relationship to the Enterprise Zone sites is outlined below. Potential attribution of the NPAR impacts to the delivery of economic outputs on each of the sites has been indicated, reflecting the variable extent to which the NPAR will influence development outcomes and timings, directly and indirectly. 2.5.36. These impact attributions (see Figure 6 to Figure 13) have been applied in estimating the jobs / GVA value of the wider benefits of the NPAR in terms of unlocking and / or accelerating Enterprise Zone site delivery (see ‘Calculating Wider Benefits Methodology’ in the Economic Case).

East Quay – 18.95ha Port land accommodating the Rampion O&M base. Enterprise Zone proposals Extensive capacity for new B2 development estimated at 9,750sqm. Current proposals for aggregate processing plant for part of the site but this will not deliverable without the NPAR. Strong enquiry from luxury yacht builder from Southampton seeking 8,000sqm (up to 300 jobs) with south coast waterfront. East Quay is an ideal opportunity for this type of operation. NPAR influence Direct connectivity into East Quay increasing attractiveness as major port-side development opportunity. Development prospects are severely limited without the NPAR. NPAR impact attribution 100%

Figure 6: East Quay

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 24 of 128 East Sussex County Council Avis Way Industrial Estate – 26.70 ha Established industrial estate on the edge of Newhaven with extensive mix of employers across a range of sectors. Poor quality business units requiring refurbishment to meet modern business standards and intensification of light industrial uses. Enterprise Zone proposals 5,034 sqm of refurbished business space completed to enhance appeal to higher value manufacturers and services – 4 units recently taken up by expanding local businesses and a new leisure service occupier. Ongoing refurbishment programme anticipated – estimated 5,200sqm future phases. NPAR influence Improved connectivity with the port, improving potential for supply-chain companies linked to environmental, marine and off-shore wind sector. Enhanced profile for the estate as part of wider connectivity benefits. Acceleration of 5,000sqm refurbishment investments NPAR impact attribution 25% Figure 7: Avis Way Industrial Estate

Railway Quay – 4.65 ha Key gateway site adjoining rail station, between the port and town centre. New UTC opened in refurbished building on-site. Development site acquired by Lewes District Council with Coast to Capital LGF support. Enterprise Zone proposals 2-3,000 sqm of new commercial business floorspace in ‘gateway’ building targeting higher value business uses. Possible residential as part of mixed use scheme NPAR influence HGV traffic diverted further from the site, improving profile and attractiveness for higher value businesses. Opportunity to create a ‘statement’ development at the gateway to the town centre, port and riverside. The NPAR makes the site much more attractive for investment so could accelerate delivery. NPAR impact attribution 30%

Figure 8: Railway Quay

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 25 of 128 Bevan Funnell (North & South) – 2.4 ha Redevelopment of obsolete industrial buildings accessed from Railway Road. Enterprise Zone proposals North site has planning consent for 80 homes and 10,000sqm of B1/B2. Similar mix anticipated for South site. NPAR influence Removal of HGV traffic from Railway Road will vastly improve attractiveness of these sites for residential and B1 uses so accelerating delivery of Enterprise Zone ambitions. NPAR impact attribution 30%

Figure 9: Bevan Funnell (North & South)

Eastside North 5.2 ha Substantial greenfield site with previous planning consent for an Asda supermarket. Asda pulled out in 2014 and no alternative development has yet been finalised. Site offers one of the largest opportunities for new employment-generating development linked to the Port’s existing operations. Enterprise Zone proposals Capacity for circa 9,000 sqm of B-class development NPAR influence The site is directly unlocked by the NPAR phase 1, which will link the site with the Port land to the south and the A26 trunk road to the north, increasing attractiveness as business location. The site has challenging ground conditions (high groundwater levels and sited in floodplain) that necessitate piling so the NPAR could support development values and thus viability. NPAR impact attribution 25% (given access already provided by the NPAR Phase 1)

Figure 10: Eastside North

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 26 of 128 East Sussex County Council Eastside South – 2.26ha Site accessed from Beach Road, with Phase 1 of small business units now delivered through LGF funds from Coast to Capital LEP. Occupiers include Surrey Nano Systems (local expansion) and Valet Pro (relocation from Hailsham). Enterprise Zone proposals Future phases of business units up to 7,800sqm in abeyance pending the NPAR. NPAR influence Reduced HGV traffic on Railway Road / Beach Road currently accessing the Port will significantly improve attractiveness for B1 uses and accelerate private investment. NPAR impact attribution 30%

Figure 11: Eastside South

North Quay – 13.4ha Large riverside site at the entrance to the town currently in port-related / aggregates use. Proposals for short-medium term use as an asphalt plant but thereafter has potential for mixed commercial use. Potential for relocation of port uses facilitated by the NPAR. Enterprise Zone proposals Medium to long term capacity for circa 19,200 sqm of commercial B- class floorspace. NPAR influence Limited impact from the NPAR given timescales for future development but connectivity and new investment across the wider Enterprise Zone will improve the attractiveness of the site for commercial development in the medium term. NPAR impact attribution 20%

Figure 12: North Quay

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 27 of 128 Town Centre Newhaven town centre is a focus for improvements to support the regeneration of the town and attractiveness for new businesses and residents through new investments in town centre facilities and public realm and intensification of employment uses. Enterprise Zone proposals Lewes DC is promoting a number of specific schemes including new hotel, expanded leisure centre, 1,584sqm of new retail space, and 1,858 sqm health hub, together with circa 91 residential units. NPAR influence Limited to general improvement in the attractiveness of the town centre through improved traffic flows and alleviation of HGV traffic close to the town centre. NPAR impact attribution 10%

Figure 13: Town Centre

2.5.37. In summary, the influence of the NPAR on the delivery of the Enterprise Zone sites combines: ¡ direct effects to provide much improved connectivity for East Quay and directly unlock capacity for 9,750sqm of new business space, linked to the Port; ¡ direct enhancement of the development potential of the Bevan Funnell and Eastside South sites by removing Port-related HGV traffic from local access roads, improving attractiveness for business investment on these sites ¡ indirect effects on the other Enterprise Zone sites through wider connectivity improvements, enhanced management of HGV movements across the town and a step-change in the perception of Newhaven as an investment location. 2.5.38. In combination, these effects are estimated to support the economic impacts as shown in Table 4.

Table 4: Wider economic benefits Wider economic benefits Net additional jobs estimate Cumulative GVA (NPV)

Direct jobs and GVA impacts (East Quay) 216 £91.5m

Indirect attributed jobs and GVA impacts (based 240 £91.4m on attribution rates for other Enterprise Zone sites

2.5.39. This demonstrates the significance of the direct links to East Quay from the NPAR in driving Enterprise Zone employment and GVA benefits. These high-level estimates of the value of wider economic benefits from the NPAR are based on single shift patterns. In reality, many of the businesses attracted to the Enterprise Zone are likely to operate on at least two-shift working patterns, thus doubling the employment effects of the NPAR as an enabling investment to support local economic growth. The calculations and assumptions supporting the quantification of these wider economic benefits are presented in the ‘Economic Case’ section of this business case.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 28 of 128 East Sussex County Council EVIDENCE OF BUSINESS DEMAND FOR OPPORTUNITIES IN NEWHAVEN 2.5.40. There is evidence of growing demand in Newhaven for sites and premises from local businesses seeking better quality accommodation or to expand, together with growing numbers of enquiries from businesses seeking to locate in the town. The following are some examples of enquiries handled by Lewes District Council from businesses seeking opportunities in Newhaven in the last six months: ¡ Polymer products manufacturer – active enquiry Looking for a site for 5000 sq m building with 1000 sq m hard standing for new product and process design - polymer resin brick utilising recycled hard-core. Lego type brick build. Product currently under development with University of Brighton to meet UK standards. Anticipated to create 50-100 jobs depending on volumes/capacity of plant. Timeframe 6 months to one year. ¡ Tea products supplier Relocation from Hove looking for premises in Newhaven. Employing 100+ staff and a growing business. Unable to find suitable premises in Newhaven for their growing needs. As a trigger to private investment in commercial premises, the NPAR could be important in securing relocations of this nature into Newhaven. ¡ Yacht builder – active enquiry Looking for waterside location for circa 80,000 sqft to relocate their growing business from Southampton. Currently 100 staff but looking at 200 total in the next 2-3 years. The company is in discussion with the Port given a requirement for water access. the NPAR is likely to be critical to attracting this company ¡ Waste recycling company – active enquiry Relocation from Lancing for expanding waste recycling company with 20 staff. Currently in discussion with Eastside North site owner in Newhaven, ideally to build their own premises. Looking for 60,000 sq ft initially. The NPAR has a direct impact on the development potential of the Eastside North site as part of the Enterprise Zone as well as freeing up a development site at the existing premises. ¡ Kitchen design and installation company – active enquiry Currently a home-based business now seeking specific premises in Avis Way for expansion including 8 staff. Investment will support the ongoing improvement of Avis Way. The NPAR improves the overall appeal of Newhaven to encourage this type of SME growth in the town. 2.5.41. The Greater Brighton Inward Investment Strategy makes specific reference to opportunities in Newhaven and confirms that the Enterprise Zone sites will be actively promoted as key business investment locations for the City Region. 2.5.42. Newhaven Port has confirmed that it is regularly handling enquiries from businesses interested in locating in the Port estate, including national and international enquiries. Given confidentiality restrictions the details of business interests and investment proposals cannot be revealed, but the Port has indicated that many of these enquiries are reliant on the improved connectivity anticipated from the NPAR. The expansion of the Port and associated business investments is heavily reliant on the completion of the NPAR. 2.5.43. A range of businesses have expressed specific support for the NPAR and its role in improving the profile of Newhaven. If the NPAR does not proceed, there is a real risk that the momentum that has built up in terms of a positive policy framework, the Enterprise Zone designation and wider infrastructure, skills and place-making investments will be lost. The current enquiries referenced above are specific examples of how the NPAR could directly influence business investment decisions in favour of Newhaven. 2.5.44. For Newhaven, the key challenge is confidence in the long-term prospects for the port and the town across the business community. External perceptions play an important role in building investor confidence. Key agencies including the District and County Councils and the LEP consider that the completion of the NPAR will directly support a positive perceptual shift about the town, supporting the objectives of the designated Enterprise Zone.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 29 of 128 2.5.45. A number of letters of support have been assembled from key businesses in the town and wider sub-region, together with the Port operators, to demonstrate the widespread support for the project and its value in unlocking and / or accelerating business investment decisions. These are presented in Appendix A but include: ¡ Maria Caulfield MP ¡ Coast 2 Capital Local Enterprise Partnership ¡ South East Local Enterprise Partnership ¡ Team East Sussex ¡ Locate East Sussex ¡ Newhaven Port and Properties ¡ Lewes District Council ¡ Newhaven Town Council ¡ Bright-Tech ¡ Surrey NanoSystems Ltd ¡ Ctec Energy ¡ Veolia ¡ Brett Aggregates. LINKED INVESTMENTS TO REINFORCE THE DELIVERY OF NPAR OBJECTIVES 2.5.46. The NPAR project is not being promoted in isolation. It is part of an integrated package of investments to achieve a strategic and coordinated response to Newhaven’s challenges and growth opportunities. The package seeks to address physical growth constraints, attract new residents, deliver new business space, support business investments in target sectors and redress the skills deficits to meet the needs of higher value businesses. The wider package of investments that have already been secured and delivered include: ¡ Newhaven Port Access Road (Phase 1, completed Autumn 2015) ¡ The development of the new UTC@Harbourside (opened September 2015), a University Technical College with the University of Brighton as its University Sponsor and Veolia as Employer Sponsor, specialising in marine and environmental engineering. Whilst unfortunately it has recently been announced that the UTC is to close, partners are committed to working to find alternatives and hope that the site will remain in educational use for post-16’s ¡ Construction management and E.ONs Operations and Maintenance Base for the Rampion Offshore Wind Farm (OWF, to be completed in 2018) ¡ Newhaven Growth Quarter on Denton Island (completed April 2016) ¡ Local Growth Fund award for business space development on the privately-owned Beach Road site adjacent to East Quay ¡ Veolia in its Energy Recovery Facility in the town ¡ Significant water-front residential redevelopment in prospect at West Quay. 2.5.47. Looking forward, there are significant planned strategic interventions which will continue to help towards delivering the ‘Vision for Newhaven’, including: ¡ Flood defence improvements delivered Flood defence improvements delivered by the Environment Agency through the Newhaven Flood Alleviation Scheme (FAS) will be completed in 2019. The FAS, funded by the Environment Agency and with Local Growth Fund monies from the South East and Coast to Capital Local Enterprise Partnerships, will reduce the risk of flooding to approximately 430 homes and 390 businesses in and around Newhaven and will provide a 1 in 100-year standard of protection, including to the East Quay site ¡ Acquisition of Railway Quay by Lewes District Council to facilitate new development of this gateway site, to include potential residential and commercial development ¡ Allocation of new sites for 1,500 homes in Newhaven being actively promoted through the adopted Lewes District Local Plan 2016 ¡ Improvements to the cycling and walking network and improved access to public transport, including a package of transport improvements being promoted through the Local Transport Plan (LTP3, 2011-2026).

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 30 of 128 East Sussex County Council 2.5.48. This extensive package of interventions will directly support the delivery of transformational change in Newhaven, complementing the role of the NPAR as a driver of new business investment and labour market development. This combination of connectivity and growth facilitation aims to ensure that the ambitions for Newhaven are fully deliverable and that the NPAR forms part of a coordinated plan for growth and regeneration, specifically aligned to agreed national, regional and local policy objectives. 2.5.49. These physical interventions alongside the NPAR are also complemented by wider efforts to support skills development on Newhaven to align with the needs of growing businesses. 2.5.50. East Sussex County Council’s current Corporate Plan is explicit in its priority of driving economic growth: “By creating the environment and infrastructure business needs, using the Council’s resources to support the local economy and ensuring local people have the skills they need to take advantage of the opportunities available”. 2.5.51. The Plan makes specific reference to the delivery of the Newhaven Port Access Road as a priority growth investment. 2.5.52. The East Sussex Growth Strategy also sets out clear aspirations to this effect, including: ¡ Better alignment of skills provision to meet local employer needs ¡ Increase the number of people in the workforce with high level skills ¡ Improve work readiness, including soft and basic skills ¡ Enabling business growth and supporting business start-ups. 2.5.53. In Newhaven, the new UTC is making a key contribution to building a skilled local labour pool to support business growth and Sussex Downs College’s Newhaven campus provides a diverse education and training offer for a wide variety of learners, employees and communities and offers foundation degree programmes on behalf of the University of Brighton. 2.6 UNLOCKING THE GROWTH OF NEWHAVEN PORT THE PORT MASTERPLAN 2.6.1. Newhaven Port & Properties (part of port owners Societe d’Economie Mixte Locale) is promoting delivery of its Newhaven Port Masterplan (201211), with a vision to increase the volume of trade through the port, establish a renewable energy cluster, and support the development of added value activities, including in the process and marine sectors (see Figure 14).

11 http://www.newhavenportauthority.co.uk/port-masterplan.html

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 31 of 128 Figure 14: Newhaven Port masterplan

2.6.2. Newhaven Port combines cargo handling facilities and the operating base of DFDS Seaways providing connection with Dieppe, France. In 2016 the port handled approximately 800,000 tonnes of cargo, 134,000 passenger vehicles and 394,000 passengers. The port is therefore a key economic driver in Newhaven and provides a critical part of the infrastructure offer for Greater Brighton and the wider south coast. 2.6.3. In line with the Newhaven Port Masterplan, proposals for an extension to port facilities are at an advanced stage of delivery planning. This will include the provision of extended berthing to accommodate larger vessels and the expansion of laying out areas. Newhaven Port & Properties is seeing increased interest from companies that wish to have a base in the port, and it has a commercial and strategic need to increase the amount of marine traffic using the port, but it has very limited available quayside space with which to support this. 2.6.4. To accommodate this and in order to service the increasing number of renewables businesses, a multi- purpose berth and Port Expansion Area is required (see Figure 15). A number of key port uses are anticipated including: ¡ Office and warehouse space for offshore wind and other projects ¡ Renewable energy related business ¡ Aggregates handling ¡ Quarried stone handling ¡ Other bulk or general cargoes ¡ Fish import/ export and/or processing ¡ Maintenance and repair of work boats ¡ Biomass product handling ¡ Short / long term parking.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 32 of 128 East Sussex County Council Figure 15: Port expansion area

2.6.5. These plans will increase port capacity and therefore generate substantial additional HGV and related traffic, which presently can only access the port via Railway Road / Beach Road, which are already inadequate for the level of HGV traffic accessing and leaving the Port, being narrow and close to residential and local community facilities. The completion of the NPAR is therefore critical to enabling port expansion. If it does not proceed, the growth of the port will be constrained and current proposals for extended berthing to double the size of vessel that can be handled may not proceed. As one of the only ports on the south coast with space to expand, this would have a major impact on the future capabilities of south coast port infrastructure. Moreover, the connectivity improvements delivered by NPAR will support wider efforts to relieve HGV congestion on the road network along the south coast. Shoreham Harbour has also experienced growth in tonnage through the Port so the growth of Newhaven is not expected to displace business from Shoreham, but to develop a complementary south coast Port capacity, supporting the UK Ports strategy. 2.6.6. The establishment of the Rampion off-shore wind operations and maintenance base on East Quay at Newhaven is progressing, supporting 60 new jobs but also establishing Newhaven as a key location for the further growth of clean-tech related business activities attracted by the presence of the port and the O & M base. This catalytic effect will be significantly enhanced by NPAR by ensuring that the profile and connectivity of the port and associated development sites meets the requirements of businesses in this sector. 2.6.7. The NPAR supports the growth of the port and is entirely consistent with the Port Masterplan vision. Completion of the NPAR will provide strategic road connectivity for the port, reinforcing its role as a key economic asset and growth location on the south coast and strengthening its potential to contribute to the National Infrastructure Strategy and UK Ports strategy. 2.7 EXTERNAL DRIVERS FOR CHANGE PORTS AND THE NATIONAL INFRASTRUCTURE PLAN 2.7.1. The most recent National Infrastructure Delivery Plan (2016-2021, published in March 2016) identifies infrastructure as having a significant positive effect on output, productivity and growth rates, and is a key driver of jobs throughout the economy and on international competitiveness. As such, it is a key element of the Government’s long-term economic plan.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 33 of 128 2.7.2. It outlines the Government’s recognition that key national infrastructure schemes can be instrumental in unlocking regeneration projects in local areas (2014 National Infrastructure Plan) and the 2016-2021 Delivery Plan outlined the Government’s commitment to invest over £100bn by 2021. 2.7.3. The Delivery Plan also outlines that maritime transport is essential to international trade as it facilitates the shipment of large volumes of goods at comparatively low transport costs, and it sets out the Government’s plans to encourage sustainable port development that will cater for long-term growth in import and export trade volumes by sea and its continued to support domestic freight movements. 2.7.4. It also highlights that two thirds of all freight is carried on the Strategic Road Network, outlining that effective road links to ports are vital to allow goods and services to be moved into and around the country efficiently and reliably. 2.7.5. The National Road Investment Strategy (DfT, 2015) also highlighted the importance of ports connectivity to the Strategic Road Network and the Strategy outlined the Government’s commitment to assess how to improve the ‘last mile’ of roads to ports to improve access by 2020. 2.7.6. In April 2018, the DfT published its Port Connectivity Study promoting investment in port access and connectivity for key ports in England, and to identifing how connectivity improvements could support economic growth. 2.7.7. As the NPAR Scheme will connect the Port of Newhaven to the Strategic Road Network (A26 to Lewes) and support the development of designated EZ sites, the Phase 1a Scheme is entirely consistent with the ambitions set out in the Industrial Strategy, the National Infrastructure Plan, the Road Investment Strategy and the ambitions of the DfT Ports Connectivity Study. Notably, Newhaven was visited specifically as part of the Ports Connectivity Study, promoting recognition of value of NPAR as a contribution to national infrastructure objectives. ALIGNMENT TO STRATEGIC ECONOMIC PLANS 2.7.8. Coast to Capital’s Strategic Economic Plan (SEP) promotes six key strategic priorities to which the growth of Newhaven has clear alignment: ¡ Enable investment in Growth Locations and Opportunity Areas - Newhaven is specifically identified as a key ‘Opportunity Area’ within the C2C SEP. This is expected to be re-affirmed in the revised SEP currently in preparation ¡ Successful Businesses – supporting business investment in growth and create the conditions for enterprise to flourish – the Newhaven EZ designation positions the town as a key focus for business growth and investment. NPAR directly enhances the attractiveness of Newhaven as a business location, by improving strategic road connectivity and signalling to the market that the public sector is supporting the delivery of the EZ through improved infrastructure. NPAR will help to unlock business investment opportunities in EZ sites by improving their accessibility, including direct unlocking of the East Quay site adjoining the Port estate ¡ Build Competitive Advantage - back investment and development where we can lead nationally and internationally - Newhaven is a key economic gateway for the Greater Brighton City Region and the wider South East. Improved port access will enhance the Port’s competitiveness and capacity to support UK international trade and exports. By enhancing the potential for the Newhaven Enterprise Zone sites to attract target regional and UK growth sectors, notably in environmental and clean technologies, the NPAR directly supports the town’s competitive advantage as a future growth focus for key business sectors ¡ Skills and Workforce – encouraging employers to invest more and making the most of our talent – Rebalancing of economic activity in the Greater Brighton City Region seeks to unlock growth capacity in Newhaven and enable existing and new higher value businesses to grow in the town. This rebalancing process will support Newhaven’s transition to a higher value economy supporting higher skilled jobs and driving improvements to the local labour market. The NPAR is one element in a multi-dimensional strategy to support this transition, complemented by wider initiatives to support skills enhancements, such as the UTC@harbourside, which is targeting ‘Clean, Green and Marine’ skills growth to support the town’s attractiveness for these sectors.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 34 of 128 East Sussex County Council 2.7.9. In recognition of the contribution of Newhaven towards the C2C growth ambitions, the LEP has supported a number of key schemes across the town, including committed support for the Enterprise Zone proposals and committed funds towards the Newhaven FAS scheme. 2.7.10. The development of Newhaven as a centre for renewable technologies is also recognised in South East LEP’s Strategic Economic Plan (SELEP SEP, 2014), noting that the town offers substantial potential for growth but is currently dominated by low value-added manufacturing and wholesale and retail trade employment. 2.7.11. The SELEP SEP also outlines that ‘East Quay at Newhaven is a key opportunity site… with future potential for other manufacturing and service activities in the Offshore Wind Farm (OWF) sector and subsequent attraction of supply-chain activities linked to OWF.’ 2.7.12. The SELEP SEP identifies a ‘Newhaven CleanTech & Maritime Growth Corridor’ as one of a series of strategic growth corridors (see Table 5). The Corridor encompasses much of the Greater Brighton area stretching from Seaford to the east and Shoreham to the West. The SELEP SEP indicates that this Corridor has the potential to support 5,225 new jobs and 12,890 new homes.

Table 5: SELEP SEP SELEP SEP (2014) – Newhaven CleanTech and Maritime Growth Corridor Newhaven hosts the ferry (mainly freight) service to Dieppe. The town offers substantial potential for growth but is currently dominated by low value added manufacturing, and wholesale and retail trade employment. The area offers potential to become a CleanTech and Maritime Growth Corridor. This will capitalise on proposed investments from E.ON in its operations & maintenance base for Rampion Offshore Wind Farm (OWF), Veolia in its Energy Recovery Facility, proposals for a Marine Enterprise & Training Centre, and the decision by Government to approve a new University Technical College (UTC) specialising in marine and environmental engineering. Newhaven Port & Properties (part of port owners Societe d’Economie Mixte Locale) has prepared a masterplan to increase the volume of trade through the port, establish this renewable energy cluster, and support the development of the fishing and marine leisure sectors.

2.7.13. Moreover, the SELEP SEP clearly acknowledges that ‘The Newhaven Port Access Road is an important requirement for re-establishing Newhaven as an important gateway to mainland Europe.’12 GREATER BRIGHTON CITY DEAL – REBALANCING THE CITY REGION 2.7.14. Newhaven is a critical element of the Greater Brighton City Region, offering capacity for growth in employment and housing which cannot be found in the city of Brighton & Hove itself given a lack of sites and the bounding effects of the coast and the South Downs National Park. 2.7.15. For Newhaven to become a more successful part of a more integrated Greater Brighton City Region economy the local authorities recognise the need for a long term, sustained investment in transport infrastructure, skills, housing and place-making initiatives to improve the connectivity of Newhaven and its quality of life as a place to live and work. The NPAR forms part of this investment plan alongside a range of other initiatives and investments, including the Newhaven Enterprise Zone.

12 South East LEP: Growth Deal and Strategic Economic Plan 2014 – para 2.128

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 35 of 128 2.7.16. The Greater Brighton City Deal (agreed March 2014) seeks to rebalance the economy by spreading business growth outside of Brighton, where capacity is limited. The City Deal states that: “The City Deal will help to spread growth and prosperity beyond the boundaries of Brighton itself, and into other key parts of the area. In Newhaven, to the east of Brighton and Shoreham and Worthing to the west, there is enormous scope for attracting businesses and creating jobs, particularly if these places can be joined together into a connected area.” 2.7.17. Specifically, Newhaven is identified as a hub for the Low Carbon and Environmental Goods (LCEGS) sector – focused on renewable technologies – noting that: “Investment in Newhaven has started to pay dividends, with investor interest supporting the development of the renewable energy and clean-tech sector” “There are opportunities to attract innovative firms in this industry around Newhaven and to facilitate innovation through skills.” 2.7.18. Brighton & Hove City Council, in collaboration with Brighton & Hove Economic Partnership are in the process of developing a new Economic Strategy for the City of Brighton & Hove within the context of the City Region, which includes Newhaven. The Strategy will comprise the following documents: ¡ An introductory robust evidence report that illustrates the current economic position of the City within the context of the Greater Brighton Economy ¡ A five year Economic Strategy for the period 2018 to 2023 ¡ A five-year Action and Implementation plan of transformative projects and investment initiatives to enhance the economy of Brighton & Hove (and wider economic impact beyond). 2.7.19. Newhaven has also been identified as one of the priority areas for economic growth and investment in the East Sussex County Council (ESCC) Council Plan. This Plan affirms the County Council’s intent to make East Sussex prosperous and safe and improve and develop roads and infrastructure. 2.7.20. The NPAR Scheme also contributes to the East Sussex Local Transport Plan (LTP3, 2011 – 2026) which is seeking to (a) Improve economic competitiveness and growth, (b) Improve safety, health and security and (c) Improve accessibility and social inclusion. The ESCC LTP3 identifies Newhaven as one of three areas in the County in the greatest need of investment in regeneration and development and it outlines that: “A key element of the economic life of the town is the port which provides cross-channel ferries to Dieppe and includes a business hub. There are a larger number of potential development sites within and close to the port which could contribute to creating sustainable economic growth in the area.” 2.7.21. As one of a package of proposed measures for Newhaven, the ESCC LPT3 demonstrates the County-wide commitment to: “promote the development to fund the construction of the Newhaven Port Access Road as appropriate to enable expansion of the port and the development of the Eastside, facilitating economic growth in the town.” 2.7.22. The NPAR is fully supported by and underpins the objectives of these key policy commitments by ensuring that the town has the necessary infrastructure in place to support Newhaven’s burgeoning economic potential and deliver the clear plan for growth that has widespread support across local and regional government and economic development agencies. 2.8 SCOPE: WHAT THE PROJECT WILL DELIVER BACKGROUND 2.8.1. In 1996 East Sussex County Council (ESCC) published proposals for the Newhaven Port Access Road between the southern end of the A26 Trunk Road and a proposed new outer harbour situated to the east of the mouth of the River Ouse. The proposals were part of the Newhaven Regeneration Programme put forward in the 1990’s with the objective of fostering economic and social regeneration in the area.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 36 of 128 East Sussex County Council 2.8.2. For practical reasons, the Newhaven Port Access Road was to be developed in two separate phases. The first phase involved the construction of a new road south of the A259 (Drove Road) across largely undeveloped land, terminating within the Port. The second phase involved the improvement of existing highway including the A259, the connecting road to the A26 and various ancillary works. 2.8.3. The first phase was capable of being implemented as a standalone scheme and the first section of the road was completed by a developer in 2015. The second section (Phase 1a) completes the route south into the Port land south of the Newhaven to Seaford Railway Line and Mill Creek, and is the subject of this business case which is being developed for submission to the Department for Transport for Local Growth Fund monies. 2.8.4. As well as improving access to the Port, the scheme has been designed to facilitate access to the Eastside development site, an area to the north east of the port designated for development in the Lewes Local Plan. 2.8.5. The scheme incorporated an “environmental buffer” area immediately to the east of the road. This incorporated essential planting and other landscaping works to compensate for the impact of the road and was closely integrated with proposals for the ecological and landscape enhancement of the wider Ouse Estuary. The environmental buffer scheme has been completed and includes cycleway/footway provision which forms part of the National Cycle Network route 2 between Seaford and Newhaven. PLANNING AND SCHEME DEVELOPMENT HISTORY Initial Planning Permission (1996) 2.8.6. The Newhaven Port Access Road has a long history, with the scheme first being conceived in the 1980’s. The Newhaven District Plan, adopted in 1983, included an allocation of land for the eastward extension of the Eastside Industrial Estate and for the expansion of the Port Area. The plan also established the principle of a distributor road to service those proposals. 2.8.7. In June 1994, the County Council’s Highways and Transportation Committee approved four route options for the Eastside Distributor Road (as it was then known) for consultation, an eastern and central alignment for the distributor road, together with two locations for a link between the distributor road and Beach Road. Following public consultation, in December 1994 the Committee resolved to approve the eastern alignment as the route for the Eastside Distributor Road (See Figure 16).

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 37 of 128 Figure 16: Newhaven Eastside Distributor Road

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 38 of 128 East Sussex County Council 2.8.8. Planning permission for the scheme was first granted in 1996 (LW/1751CC). The planning report makes reference to the development conforming to the aims of the County Structure Plan 1991, and that “the proposals would be subject to the general development policies concerning for example impact on habitat, visual impact and the impact on the strategic gap between Seaford and Newhaven.” 2.8.9. in terms of the route selection, the planning report states (Para 6.10) that “the route was chosen on the basis that it should closely follow the eastern edge of the Eastside Business Park expansion area.” It continues “The proposed eastern alignment was adopted by the Highways and Transportation Committee in 1994, following consultation…… This route would help to protect the gap between Newhaven and Seaford and would avoid further intrusion onto the levels which are of strategic environmental and nature conservation value.” The Head of planning advised the Committee that “I am satisfied that there are no alternatives to this approach that should be considered.” 2.8.10. In conclusion the Head of Planning advised the Committee that “In overall Planning terms there are no other routes for the road that would be appropriate.” 2.8.11. Planning Permission for the scheme was subsequently granted on 12 June 1996. The approved route and design of the bridge is shown on Figure 17 and Figure 18.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 39 of 128 Figure 17: Newhaven Port Access Road – Approved alignment

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 40 of 128 East Sussex County Council Figure 18: Approved Outline Bridge Design

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 41 of 128 Renewal of Planning Permission (2002) and Implementing the Planning Permission (2007) 2.8.12. The 1996 Planning Permission was renewed in September 2002, which also required the production of an Environmental Statement. The scheme was in all material respects identical to that first granted permission in 1996. 2.8.13. Chapter 5 of the Environmental Statement considered the alternative options for the Port Access Road, and is copied below: Alternative Options Considered A number of alternatives or part alternatives have been considered at various stages in the design process. At the feasibility stage of the Eastside Distributor Road (as it was then called) an eastern and western alignment were considered together with northern or southern links to Beach Road. There are no major alternatives which do not involve unacceptable impact upon the built-up area to the west or the Strategic Gap and open levels to the east. As this evolved into the Port Access Road in the context of the Newhaven Regeneration Programme, the eastern alignment was developed further because this allowed the most flexible point of entry to the southern port and also allowed the most efficient development of land at Eastside. At the same time, specific links to Beach Road were dropped from the proposal because similar, or greater, benefits could be achieved more cost effectively by an appropriate layout of estate roads. During the design process, detailed variations in alignment were considered and the adopted alignment was selected because it would minimise the disruption to wildlife habitat, particularly small ponds inhabited by great crested newts. Subsequently, renewed consideration was given to the feasibility of a “Pargut Link” to Beach Road as an alternative to the southern section of PAR, south of Pargut roundabout. It was concluded that, whilst feasible, such a link would not be a substitute for the full PAR and, at best, would be a stop gap measure if, for any reason, the full PAR were to be delayed. 2.8.14. The conditions of the 2002 application were discharged in September 2007. One of the conditions involved starting work on site which was achieved by marking out the boundary of the Newhaven Port Access Road with pegs. Changes in local context 2.8.15. Since the original proposals for the Newhaven Port Access Road were drawn up in the mid 1990’s, the local context in relation to the Port itself and its role within the regeneration plans for the town has changed which further support the need to deliver the Newhaven Port Access Road. These changes include: ¡ the development of a Newhaven Physical Vision prepared by consultancy BBP Regeneration which was published in April 2010 ¡ the development of a Port Master Plan by port owners Newhaven Port & Properties in January 2012 ¡ an application to develop the Eastside Business Park by a local developer, which included the delivery of Phase 1 of the Newhaven Port Access Road, submitted in 2011; the NPAR Phase 1 was completed in 2015 ¡ the identification of Newhaven as a Clean Tech and Maritime Growth Corridor in both the Coast to Capital Local Enterprise Partnership (LEP) and the South East LEP Strategic Economic Plan’s submitted to Government in March 2014 ¡ the establishment of the Newhaven Enterprise Zone as announced in the Chancellor’s 2015 Autumn Statement which came into effect in April 2017. Supporting the recognition of Newhaven as a growth hub for clean tech and maritime industries, the establishment of the Newhaven Enterprise Zone will enable the delivery of up to 55,000sqm of commercial development, 15,000sqm of refurbished commercial development and 2,000 jobs with the Port, and the Port Access Road is a critical opportunity asset within this.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 42 of 128 East Sussex County Council More recent consideration of alternative alignments (2012) 2.8.16. In 2012, East Sussex County Council commissioned WSP to carry out a scheme review of the details for the Newhaven Port Access Road. Within this review, as well as looking at the approved alignment (Phase 1A), WSP also re-considered the idea of a “Pargut Link” to Beach Road (Phase 1B). 2.8.17. At that time, there were proposals for a new superstore on the Eastside Business Park site and this alternative route had also been suggested by opponents to the bridge over Mill Creek. The plan of the alternative alignment is shown in Figure 19.

Figure 19: Newhaven Port Access Road: alternative alignment over Mill Creek (Phase 1b)

2.8.18. WSP’s findings are within the Design Review report which states that: “3.5 Phase 1A 3.5.1 The purpose of the Phase 1A option is to provide a continuation of the port access road from Pargut Roundabout over the Newhaven to Seaford railway line and Mill Creek terminating at a new roundabout in the tidemills area. The Phase 1A option roughly follows the line of the original 1997 proposal but includes minor amendments at the northern end to allow for the changes made to accommodate the Eastside Business Park proposal, the current proposed route is shown on drawings 1158204-SK-010 and 011 included in Appendix A.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 43 of 128 3.5.2 The main advantage of the Phase 1A option is that it provides better access into the existing east quay and unlocks the Tidemills area for future development, the current access is of a low standard and requires the navigation of a level crossing near the end of Beach Road. Newhaven Port Authority also have a long-term aspiration of creating a new outer harbour and ferry terminal off the east quay, the construction of Phase 1A of the port access road is fundamental to allow this future development to be carried out.

3.5.3 To achieve this access, the new road would rise from a height of approximately 2m above existing ground level at the Pargut Roundabout, cross the edge of the Pargut Bank, to an approximate height of 9m just north of the railway line. From this point the road crosses the Newhaven to Seaford Railway line and Mill Creek before terminating at a height of approximately 2m above existing ground level at a new roundabout just south of Mill Creek. The current Phase 1A proposal shows a three-span structure spanning both the railway line and the creek, further details of the structure and options considered are given in section 5 of this report. 3.6 Phase 1B 3.6.1 The purpose of the Phase 1B option is to provide an alternative for the Port Access Road from original 1997 proposal by providing access to the port area from Pargut Roundabout directly to Beach Road. The proposed route for this alternative follows a westward direction from the Pargut Roundabout, utilising the access road to the service yard for the new superstore development, and then crossing the Pargut flood defence bund finally connecting to Beach Road via Beach Close as shown on drawing 1158204-SK-007 included in Appendix A. 3.6.2 The main advantage with the Phase 1B option when compared with Phase 1A is that it could help alleviate traffic congestion at the junction between Railway Road and Drove Road by providing an alternative access into the existing port area. However it will not provide the same future potential development benefits as Phase 1A as there would be no new access to the east quay or Tidemills area. 3.6.3 There are also concerns with the Phase 1B option in that it has to cross the Pargut Bank flood defence bund. The exact height of the bund at this location is currently unknown, though spot levels on the supplied topographical survey suggest the height of bund to be approximately 3m. To ensure the flood defence bund is maintained whilst allowing for the access road geometry for an HGV, an earthworks / retaining solution would be required. An alternative of providing an at grade access road through the bund whilst providing a flood gate that could be closed when required could be implemented as an alternative, this would need further investigation should Phase 1B be taken forward as a viable option. 3.6.4 For Phase 1B there is a concern that the works would have an impact on business units located on both sides of the Pargut Bank. On the western side of the bund there are three large warehouse / manufacturing units located at the end of Beach Close. To provide a connection from the Pargut Roundabout to Beach Close would require the road to roughly follow the boundary between the properties, the gap between the buildings is only 26m wide at its narrowest. To construct a 7.3m wide access road with associated verges, footways / cycleways and retaining solutions would resulting in the loss of approximately 5m of each unit’s frontage that runs parallel to the proposed access road. All these units have several access points / loading bays located on these frontages and the use of them would be significantly affected by the new access road and possibly affect the viability of the units as a whole. 3.6.5 On the eastern side of the bund the road would initially follow the line of the service yard access road into the new superstore development, however to achieve the required vertical alignment to cross the Pargut Bank there would be a significant impact on maintaining the access into the service yard. In addition to the impact on the service yard access there could also be an impact of the commercial premises currently proposed opposite the superstore and possibly the superstore itself.”

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 44 of 128 East Sussex County Council 2.8.19. On the basis that it was not considered viable because of concerns about the impact on business units and the Pargut Bank, and because it would not be expected to provide the same future benefits in terms of unlocking the port area for future development Phase 1B was therefore again discounted. Review of preferred option (2013) 2.8.20. In 2013 the outline design for Phase 1a was reviewed in light of the following land-use changes that have occurred since the original scheme planning permission granted in 1996: ¡ Construction of household waste management site on A26 New Road / A259 link junction ¡ New retail / commercial units constructed on Drove Road, including the HUB development (Lidl), KFC, a general goods outlet and an upper floor of office space ¡ Planning permission for ASDA development and adjacent residential development granted and proposed location for Pargut roundabout changed by the developer (Eastside Business Park) ¡ New access provided into the rear of the Parker Pen factory from the access road from the Drove Roundabout. 2.8.21. The Design Manual for Roads and Bridges (DMRB), with a design speed of 50kph, were used as the design standard to review the outline geometrical design of the PAR. In particular, outline geometrical design against the following standards from DMRB was carried out: ¡ TD 9/93 Highway Link Design ¡ TD 27/05 Cross-Sections and Headroom ¡ TD16/07 Geometric Design of Roundabouts ¡ TD 54/07 Design of Mini Roundabouts ¡ TD 42/95 Geometric Design of Major/Minor Priority Junctions. Implementation of Phase 1 2.8.22. The development of the Eastside Business Park included the construction of the Newhaven Port Access Road up as far as, and including, the Pargut roundabout. The proposals were submitted to Lewes District Council for planning permission in May 2011 under reference LW/11/0635 and planning permission was granted on 24 May 2012. 2.8.23. In view of the above, the implementation of the Newhaven Port Access Road was split into the following phases (as shown in Figure 20): ¡ Phase 1: This section of single carriageway runs south for approximately 750m from the A259 to (and including) the Pargut roundabout and constitutes the first part of the original 1997 proposals. This section has been constructed as part of the Eastside Business Park and was completed in late 2015 ¡ Phase 1A: This section of approximately 650m of single carriageway continues from the Pargut roundabout to the proposed Port roundabout and includes a new 122m long bridge over the Newhaven- Seaford branch line and Mill Creek canal. This constitutes the second part of the original 1997 proposals and is the subject of this business case.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 45 of 128 Figure 20: Newhaven Port Access Road: General arrangement

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 46 of 128 East Sussex County Council 2.9 SUMMARY - NPAR STRATEGIC CASE 2.9.1. There is LEP, County-wide, City Region and local policy support for delivering the NPAR Scheme as a mechanism for unlocking growth and enabling designated Enterprise Zone delivery as part of wider Newhaven growth ambitions. Newhaven itself is recognised by the local authorities and sub-regional partnerships as a strategically important regeneration and growth area and a priority location for future investment. 2.9.2. Newhaven is a key current and future employment location for the district of Lewes, with almost 65% of identified employment development land in the town. It also hosts a significant proportion of the existing commercial property stock across the local authority area, although much of it is now unsuitable for modern business requirements. 2.9.3. Newhaven’s port gives the town a specialist economic function and is a regionally significant asset - the port is critical to the delivery of ‘Clean, Green and Marine’ sector growth ambitions in the town. The NPAR is recognised by both the Coast to Capital and South East LEPs as an essential requirement for developing Newhaven as an important gateway to mainland Europe for cargo and passengers. 2.9.4. A series of investments have brought renewed focus in this agenda, including the proposed operation and maintenance base for E.ON’s Rampion offshore windfarm, a proposed Clean Tech Growth Centre and UTC@Harbourside. Moreover, the owners of Newhaven Port have wide-ranging plans to invest in infrastructure and development around the port, supporting its role in regeneration and business growth. 2.9.5. National infrastructure policy identifies the strategic importance of port connectivity to the Strategic Road Network and the recent launch of the DfT Port Connectivity Study recognises the importance of ‘last mile’ port access and connectivity for England’s key ports and how connectivity improvements can support economic growth. Through improved access to the Port of Newhaven from the Strategic Road Network, the NPAR scheme contributes directly to national policy aims. The continual development of infrastructure is promoted by the national Growth Plan as one of the key factors in delivering growth. This has been a principal and recurring argument for investment in each of the National Infrastructure Plans, the strategic infrastructure plan set out each year by HM Treasury since 2010. 2.9.6. The NPAR complements other commitments to invest in Newhaven via the Greater Brighton City Deal and the Growth Deals for the South East and Coast to Capital LEP areas. Enterprise Zone status across key sites in the town, including the important East Quay site which will be directly unlocked by the NPAR, re-affirms a joint commitment to bringing new growth to the town. 2.9.7. There is widespread commitment to encourage the development of a range of modern office and industrial premises in Newhaven to support a diverse range of sectors. Enterprise Zone status, which came into effect in April 2017, will help towards improving the town’s commercial property offer and the NPAR has clear and attributable impacts in supporting the prospects for commercial investment on key Enterprise Zone sites. 2.9.8. The Strategic Case for the NPAR responds directly to the current economic conditions, prevailing policy context for Newhaven, and it directly supports the recognised economic growth potential of the town and Port. It contributes to improved connectivity, enables improved segregation of Port traffic from the local network, and forms part of an integrated package of interventions to improve the attractiveness of Newhaven as a business and residential location both economic potential and environmental conditions.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 47 of 128

Newhaven Port Access Road Business Case July 2018 Chapter 3: Economic Case

3 ECONOMIC CASE

3.1 INTRODUCTION 3.1.1. The Economic case assessment is undertaken to ensure that all the options are assessed and to fulfil the treasury’s requirements for appraisal and demonstrating value for money. 3.1.2. The Economic Case identifies and assesses all the impacts of the scheme to determine its overall value for money. It takes account of the costs of developing, building, operating and maintaining the scheme, and a full range of its impacts. These include those impacts which can be monetised, as well as quantitative and qualitative impacts that cannot be monetised. The economic case considers the extent to which the scheme’s benefits will outweigh its costs. 3.1.3. Information will be presented on the following: ¡ Options appraised ¡ Assumptions ¡ Sensitivity and risk profile ¡ Appraisal Summary Table ¡ Value for Money statement.

3.2 ECONOMIC NARRATIVE 3.2.1. The economic case for investment in the completion of the Newhaven Port Access Road centres on its role in unlocking the town’s economic growth potential as a business and residential location and inducing investment by firms seeking to expand or locate in the Greater Brighton City Region. Newhaven town and port are integral elements of the wider Greater Brighton City Region economy, as recognised in the City Deal and wider strategic policy statements, set out in the strategic case. There is a recognised constraint on the capacity of Brighton and other parts of the City Region to accommodate new business growth and expansion of existing firms. Recent evidence prepared on behalf of Brighton & Hove City Council13, confirms that there is limited commercial space available for the current businesses and very low levels of new build forecast for immediate development. This means current businesses will struggle to expand in Brighton and new business will not be attracted to the area. The analysis concludes that working in conjunction with the surrounding authorities, including Lewes District, will be necessary to enable growth and is vital to keep the businesses in the Greater Brighton area. 3.2.2. Newhaven is a key current and future employment location for the district of Lewes, with almost 65% of the District’s identified employment development land being in the town. The key employment development opportunities in the town have been designated as Enterprise Zone in the recognition of the important role the town can play in meeting the growth needs of firms across the Brighton City Region. However, given imperfect competition, these sites need to be enabled to come forward for commercial development through improved connectivity and, in some cases, through addressing abnormal development costs associated with brownfield site conditions. NPAR will play a critical role in enabling these EZ development opportunities to come forward through improved connectivity and the improvements to the external perception of the town and its Port assets brought about by investment in new road connectivity, and thus securing the growth potential of the City Region and fulfilling the objectives of the Greater Brighton City Deal. 3.2.3. Enquires from business across the City Region, and from elsewhere, indicate that there is demand for commercial space in Newhaven but the delivery of new commercial development projects is constrained by the effects of imperfect competition, poor perceived connectivity and the poor image created by some of the industrial uses that dominate the town’s gateways. NPAR will contribute directly to improving connectivity and the relief of port traffic in the vicinity of some key EZ sites, improving their desirability as development locations. This impact will induce changes in the investment decisions of firms making Newhaven a potential locational choice given the productivity gains from improved connectivity associated with NPAR. These

13 Industrial Estates Audit Brighton & Hove – SHW December 2017

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 51 of 128 effects are reinforced by other local attributes and complementary interventions being promoted by the District Council, County Council and the Local Enterprise Partnership, outlined in the Strategic Case, addressing other constraints on productivity including housing growth delivery, skills development plans, place-making initiatives and area marketing to support the attractiveness of Newhaven as a locational choice, These complementary interventions include: ¡ Newhaven Port Access Road (Phase 1, completed Autumn 2015) ¡ The development of the new UTC@Harbourside (opened September 2015), a University Technical College with the University of Brighton as its University Sponsor and Veolia as Employer Sponsor. Specialising in marine and environmental engineering, the UTC attracts a high share of its intake from the immediate Newhaven / Peacehaven / Seaford areas, with some students attracts from across Sussex, including from Hastings to the East, Haywards Heath to the North, and Brighton and Worthing to the West. Whilst unfortunately it has recently been announced that the UTC is to close, partners are committed to working to find alternatives and hope that the site will remain in educational use for post-16’s ¡ Construction management and E.ONs Operations and Maintenance Base for the Rampion Offshore Wind Farm (OWF, to be completed in 2018) ¡ Newhaven Growth Quarter on Denton Island (completed April 2016) ¡ Local Growth Fund award for business space development on the privately-owned Beach Road site adjacent to East Quay ¡ Veolia in its Energy Recovery Facility in the town ¡ Significant water-front residential redevelopment in prospect at West Quay ¡ Flood defence improvements delivered Flood defence improvements delivered by the Environment Agency through the Newhaven Flood Alleviation Scheme (FAS) will be completed in 2019. The FAS, funded by the Environment Agency and with Local Growth Fund monies from the South East and Coast to Capital Local Enterprise Partnerships, will reduce the risk of flooding to approximately 430 homes and 390 businesses in and around Newhaven and will provide a 1 in 100 year standard of protection, including to the East Quay site ¡ Acquisition of Railway Quay by Lewes District Council to facilitate new development of this gateway site, to include potential residential and commercial development ¡ Planned development of key sites within the Town Centre to create a step-change in perceptions of Newhaven for visitors. Lewes District Council is currently finalising negotiations with a nationally recognised hotel operator, as well as plans for 112 residential flats, a new food retail offer, F&B outlets, community space, new leisure centre and 30,000ft² health hub ¡ Allocation of new sites for 1,500 homes in Newhaven being actively promoted through the adopted Lewes District Local Plan 2016 ¡ Improvements to the cycling and walking network and improved access to public transport, including a package of transport improvements being promoted through the Local Transport Plan (LTP3, 2011-2026). 3.2.4. NPAR will directly enable the Port estate to expand and facilitate the relocation of some of the industrial uses from the town’s gateways into the Port area, enabling higher value business activities to be attracted into the town, including growing businesses from Brighton, currently constrained by a shortage of space to grow. 3.2.5. Current published ONS Sub-National projections identify that Lewes District is expected to experience population growth in excess of 9,000 over the next 10 years, of which 2,850 will be of working age. Assuming 20% of the working age population remain economically inactive14, the District will generate resident-based employment demand in the order of 1,800 over the next decade. Given that Newhaven is a main employment location for the District and hosts at least 65% of currently allocated employment land, it is reasonable to expect employment demand in Newhaven to require capacity for in the order of 1,200 new jobs. In addition, as Newhaven’s regeneration moves forward, it would be reasonable to expect that the town will attract increased in-commuting from surrounding areas, adding to the levels of employment demand. As outlined in the Strategic Case, NPAR has the potential to enable the delivery of over 450 jobs on EZ sites in Newhaven, making an important contribution to addressing this deficit in employment capacity.

14 Based on evidence from ONS Annual Population Survey (2018), which suggests that 21.6% of working-age residents in East Sussex are currently economically inactive

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 52 of 128 East Sussex County Council 3.2.6. Without NPAR, the key EZ sites in Newhaven will be more constrained in terms of development prospects and the ability of the town to meet this demand for employment from resident population growth will be restricted. Given the known shortage of employment sites elsewhere in the City Region, notably in Brighton, this would result in increased and longer distance commuting to employment centres elsewhere in the South East. 3.2.7. In particular, the East Quay site will remain under-developed in the absence of NPAR, which will constrain not only the capacity of this major EZ site to accommodate new businesses, but will also inhibit the relocation of unattractive industrial uses from other EZ sites which are earmarked for higher value commercial uses, notably North Quay. 3.2.8. NPAR is therefore a critical infrastructure investment in enabling Newhaven to fulfil its potential economic role and to act as a key growth point in the Greater Brighton City Region. Without NPAR, there will be a deficit of employment capacity to meet not only the growth in the local working-age population but also to meet the demands of firms unable to grow elsewhere in the Brighton area. 3.2.9. The economic case includes a quantification of net additional job impacts arising from the influence of NPAR in inducing private investment on the designated EZ sites. NPAR is estimated to have the potential to support the delivery of over 450 net additional jobs in Newhaven, based on the commercial floorspace capacity of the EZ sites, applicable floorspace per job ratios and with adjustments to reflect leakage and displacement and the attribution of NPAR effects on the delivery of each site. The economic value of the net additional jobs has been assessed in terms of GVA, including net present value taking account of the anticipated delivery profile of commercial development derived from the EZ implementation plan15. 3.2.10. To determine the welfare benefits of these net additional jobs for inclusion in the assessment of ‘switching values’ associated with the Level 1 BCR, the GVA estimates have initially been converted to GDP estimates. Subsequently, an estimate has been made of new / re-entrants to the local labour market as a proportion of net additional jobs capacity as a basis for deriving an estimate of the present value of welfare benefits from NPAR to inform an adjusted BCR. 3.2.11. Newhaven offers substantial potential for growth but is currently dominated by low value added manufacturing, and wholesale and retail trade employment. Newhaven hosts a significant proportion of the existing commercial property stock across the local authority area, but much of it is now unsuitable for modern business requirements. Newhaven is identified as a growth corridor by both the Coast to Capital and South East LEPs focussed on CleanTech and Maritime industries. NPAR will therefore support dynamic clustering driven by the growth of the Port and facilitate a shift to more productive jobs as firms seek to capitalise on the improved locational attributes of Newhaven as an investment choice for firms in more productive sectors. 3.2.12. There is widespread commitment to encourage the development of a range of modern office and industrial premises in Newhaven to support a diverse range of sectors, including more productive sectors such as clean- tech and advanced manufacturing. EZ status, which came into effect in April 2017, will help towards improving the town’s commercial property offer for such firms, but requires the enabling role of NPAR to realise this potential. 3.2.13. There is potential to capitalise on the investments from E.ON at the Port in its operations & maintenance base for Rampion Offshore Wind Farm (OWF), Veolia in its Energy Recovery Facility, proposals for a Marine Enterprise & Training Centre, and the opening of a new University Technical College (UTC) specialising in marine and environmental engineering. These key opportunities would be compromised without NPAR. 3.2.14. Newhaven Port & Properties (part of port owners Societe d’Economie Mixte Locale) has prepared a masterplan to increase the volume of trade through the port. Without NPAR the delivery of the Port masterplan would be severely compromised. 3.2.15. National infrastructure policy identifies the strategic importance of port connectivity to the Strategic Road Network and the recent publication of the DfT Port Connectivity Study recognises the importance of ‘last mile’ port access and connectivity for England’s key ports and how connectivity improvements can support economic growth. NPAR specifically addresses this constraint in Newhaven.

15 Newhaven EZ Implementation and Investment Plan, March 2017, Cushman & Wakefield / Regeneris.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 53 of 128 3.2.16. The existing road access into the Port via Railway Road, Clifton Road and Beach Road is fronted by residential properties, a nursery school as well as local businesses. This access is unsustainable. 3.2.17. With the level of traffic on the existing access, including increasing numbers of HGV movements, as well as development sites starting to come forward as part of the Enterprise Zone on Railway Road and Beach Road, the existing access into the Port is sub-standard. This is creating unacceptable social and environmental consequences for those living and working along the road and affecting the development potential of the Port. 3.2.18. Continuing Phase 1 of the Newhaven Port Access Road southwards over the railway line and Mill Creek into the East Quay area of the port will provide a new direct access into this area, thus removing the constraints to further development and resolving the amenity and environmental impacts generated by traffic on the existing road into the port. This will allow the full development potential of the port to be realised, providing much needed jobs and benefits to the wider Newhaven area. 3.3 OPTIONS APPRAISED 3.3.1. Three transport interventions were considered which are set out in Table 6.

Table 6: Option concepts Options Description ¡ This option considers no new improvements to the existing Beach Do Nothing Road/Railway Road from the A259

¡ Rail Non-Road options ¡ Bus

Improvements to the ¡ This option considers the potential for on-line improvements to the existing port access existing Beach Road/Railway Road from the A259

¡ This option considers a single carriageway road running south for approximately 750m from the A259 to (and including) the Pargut roundabout Port Access Road ¡ Continues for approximately 650m from the Pargut roundabout to the proposed Port roundabout and includes a new 122m long bridge over the Newhaven-Seaford branch line and Mill Creek canal

DO NOTHING 3.3.2. No improvements on the existing access to the port via Beach Road/Railway Road would mean that: ¡ The constraints of the existing transport conditions will act as an inhibitor to growth with development being constrained by the transport issues discussed previously ¡ Private sector investment attracted to other areas with better accessibility and the opportunity to build on EZ designation to create a real step-change in the fortunes of Newhaven will be lost. ¡ Negative environmental impacts of congestion will be exacerbated. IMPROVEMENTS TO THE EXISTING PORT ACCESS 3.3.3. Improvements to the existing port access route via Beach Road/Railway Road have been considered and are not feasible due to: ¡ Existing road being fronted by residential properties with no room to make improvements e.g. road widening without demolition of properties ¡ Usage of the existing level crossing not being able to be reduced.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 54 of 128 East Sussex County Council 3.3.4. There is no scope to reduce travel time, alleviate congestion and therefore improve journey time reliability along the existing Beach Road/Railway Road access to the port therefore: ¡ Growth opportunities would not occur as the full development potential of the Port area could not be realised thereby impacting on regeneration and business growth ¡ Under-provision of jobs in Newhaven as access to development sites East Quay, Beech Road would be restricted ¡ There would be no opportunity to improve the amenity value and environment along Railway Road/Clifton Terrace/Beach Road. NON-ROAD OPTIONS Rail 3.3.5. The port has two operational railway stations (Newhaven Town and Newhaven Harbour) in close proximity providing both passenger and freight links, east to Seaford, and via Lewes west to Brighton and north to London. 3.3.6. Passenger links travel direct to London - the majority require a change at Lewes and the travel time to London via Lewes is approximately 1 hour and 20 minutes. The service is regular. Gatwick Airport is about 50 minutes away by rail, again assuming a change at Lewes. The freight link is currently unused. 3.3.7. Newhaven Marine station is proposed to be closed to passengers and will become freight only, with the railhead being extended further into East Quay. Public Transport 3.3.8. Bus services (Brighton and Hove buses services 12, 12A and 12 X) stop at Newhaven Town station which is located next to Railway Quay. In 2015 East Sussex County Council completed construction of a transport interchange at Newhaven Town station, significantly improving the connectivity between rail and bus services. PORT ACCESS ROAD 3.3.9. The original planning permission for the Newhaven Port Access Road (ref: LW/1751/CC) was granted in 1996.This permission was renewed in 2002 and following the discharge of relevant conditions in 2007 construction started but was not completed. The planning permission remains extant. 3.3.10. The development of the Eastside Business Park includes the construction of the Newhaven Port Access Road up as far as, and including, the Pargut roundabout. The proposals were submitted to Lewes District Council for planning permission in May 2011 under reference LW/11/0635 and planning permission was granted on 24 May 2012. Construction of this first section of the road was completed in 2015, although the business park has yet to be developed due partly to a lack of connectivity to the Port at East Quay. 3.3.11. Continuing the route southwards over the railway line and Mill Creek into the East Quay area of the port will provide a new direct access into this area, thus removing the constraints to further development. This will allow the full development potential of the port to be realised, providing much needed jobs and benefits to the wider Newhaven area. 3.3.12. The current impacts caused by approximately 275 HGV movements per day (See Figure 21) suffered by residents of Railway Road/Clifton Terrace/Beach Road will be alleviated improving the amenity and environment of the area, thus also increasing the viability of other residential developments in the vicinity.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 55 of 128 Figure 21: Railway Road / Drove Road – Observed count (Thursday 11 January 2018)

3.3.13. Figure 21 shows that there are 144 HGV movements northbound and 131 HGV movements southbound along Railway Road. Summary 3.3.14. Based on the above the option that has been taken forward as the preferred option is a Port Access Road 3.4 NEWHAVEN PORT ACCESS ROAD OPTIONS EARLY SCHEME HISTORY 3.4.1. The Newhaven Port Access Road has a long history, with the scheme first being conceived in the 1980’s. The Newhaven District Plan, adopted in 1983, allocated land for the eastward extension of the Eastside Industrial Estate and for the expansion of the Port Area. The plan also established the principle of a distributor road to service those proposals. 3.4.2. In June 1994, the County Council’s Highways and Transportation Committee approved 4 route options for the Eastside Distributor Road (as it was then known) for consultation, an eastern and central alignment for the distributor road, together with 2 locations for a link between the distributor road and Beach Road. Following public consultation, in December 1994 the Committee resolved to approve the eastern alignment as the route for the Eastside Distributor Road as shown in Figure 22.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 56 of 128 East Sussex County Council Figure 22: Route for the Eastside Distributor Road

3.4.3. Planning permission for the scheme was first granted in 1996, (ref LW-1751-CC). The planning report makes reference to the development conforming with the aims of the County Structure Plan 1991, and that: “the proposals would be subject to the general development policies concerning for example impact on habitat, visual impact and the impact on the strategic gap between Seaford and Newhaven.” 3.4.4. In terms of the route selection, the planning report states (Para 6.10) that: “the route was chosen on the basis that it should closely follow the eastern edge of the Eastside Business Park expansion area.” It continues “The proposed eastern alignment was adopted by the Highways and Transportation Committee in 1994, following consultation…… This route would help to protect the gap between Newhaven and Seaford and would avoid further intrusion onto the levels which are of strategic environmental and nature conservation value.” 3.4.5. The Head of planning advised the Committee that: “I am satisfied that there are no alternatives to this approach that should be considered.” 3.4.6. In conclusion the Head of Planning advised the Committee that “In overall Planning terms there are no other routes for the road that would be appropriate.” 3.4.7. Planning Permission for the scheme was subsequently granted on 12 June 1996. The approved route is shown on Figure 23.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 57 of 128 Figure 23: Newhaven Port Access Road scheme

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 58 of 128 East Sussex County Council RENEWAL OF PLANNING PERMISSION 3.4.8. The 1996 Planning Permission was renewed in 2002, which also required the production of an Environmental Statement. The scheme was in all material respects identical to that first granted permission in 1996. Chapter 5 of the Environmental Statement considered the alternative options for the Port Access Road, and is copied below: ¡ Five Alternative Options Considered: ¡ A number of alternatives or part alternatives have been considered at various stages in the design process. At the feasibility stage of the Eastside Distributor Road (as it was then called) an eastern and western alignment were considered together with northern or southern links to Beach Road. ¡ There are no major alternatives which do not involve unacceptable impact upon the built up area to the west or the Strategic Gap and open levels to the east. ¡ As this evolved into the Port Access Road in the context of the Newhaven Regeneration Programme, the eastern alignment was developed further because this allowed the most flexible point of entry to the southern port and also allowed the most efficient development of land at Eastside. At the same time, specific links to Beach Road were dropped from the proposal because similar, or greater, benefits could be achieved more cost effectively by an appropriate layout of estate roads. ¡ During the design process, detailed variations in alignment were considered and the adopted alignment was selected because it would minimise the disruption to wildlife habitat, particularly small ponds inhabited by great crested newts. ¡ Subsequently, renewed consideration was given to the feasibility of a “Pargut Link” to Beach Road as an alternative to the southern section of PAR, south of Pargut roundabout. It was concluded that, whilst feasible, such a link would not be a substitute for the full PAR and, at best, would be a stop gap measure if, for any reason, the full PAR were to be delayed. 3.4.9. Planning permission for the Newhaven Port Access Road was renewed on 18 September 2002. The conditions of the 2002 application were discharged in September 2007. One of the conditions involved starting work on site which was achieved by marking out the boundary of the Newhaven Port Access Road with pegs. MORE RECENT CONSIDERATION OF ALTERNATIVE ALIGNMENTS (2012) 3.4.10. In 2012, East Sussex County Council commissioned WSP to carry out a design review of the details for the Newhaven Port Access Road. Within this review, as well as looking at the approved alignment (Phase 1A), WSP also re-considered the idea of a “Pargut Link” to Beach Road (Phase 1B). 3.4.11. At that time, there were proposals for a new superstore on the Eastside site and this alternative route had also been suggested by opponents to the bridge over Mill Creek. Plans of both routes are shown in Figure 24.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 59 of 128 Figure 24: Newhaven Port Access Road: alternative alignment over Mill Creek (Phase 1b)

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 60 of 128 East Sussex County Council 3.4.12. WSP’s findings are within the Design Review report which states that: ¡ “3.5 Phase 1A 3.5.1 The purpose of the Phase 1A option is to provide a continuation of the port access road from Pargut Roundabout over the Newhaven to Seaford railway line and Mill Creek terminating at a new roundabout in the tidemills area. The Phase 1A option roughly follows the line of the original 1997 proposal but includes minor amendments at the northern end to allow for the changes made to accommodate the Eastside Business Park proposal, the current proposed route is shown on drawings 1158204-SK-010 and 011 included in Appendix A. 3.5.2 The main advantage of the Phase 1A option is that it provides better access into the existing east quay and unlocks the tidemills area for future development, the current access is of a low standard and requires the navigation of a level crossing near the end of Beach Road. Newhaven Port Authority also have a long term aspiration of creating a new outer harbour and ferry terminal off the east quay, the construction of Phase 1A of the port access road is fundamental to allow this future development to be carried out. 3.5.3 To achieve this access, the new road would rise from a height of approximately 2m above existing ground level at the Pargut Roundabout, cross the edge of the Pargut Bank, to an approximate height of 9m just north of the railway line. From this point the road crosses the Newhaven to Seaford Railway line and Mill Creek before terminating at a height of approximately 2m above existing ground level at a new roundabout just south of Mill Creek. The current Phase 1A proposal shows a three span structure spanning both the railway line and the creek, further details of the structure and options considered are given in section 5 of this report. 3.6 Phase 1B 3.6.1 The purpose of the Phase 1B option is to provide an alternative for the Port Access Road from original 1997 proposal by providing access to the port area from Pargut Roundabout directly to Beach Road. The proposed route for this alternative follows a westward direction from the Pargut Roundabout, utilising the access road to the service yard for the new superstore development, and then crossing the Pargut flood defence bund finally connecting to Beach Road via Beach Close as shown on drawing 1158204-SK-007 included in Appendix A. 3.6.2 The main advantage with the Phase 1B option when compared with Phase 1A is that it could help alleviate traffic congestion at the junction between Railway Road and Drove Road by providing an alternative access into the existing port area. However it will not provide the same future potential development benefits as Phase 1A as there would be no new access to the east quay or Tidemills area. 3.6.3 There are also concerns with the Phase 1B option in that it has to cross the Pargut Bank flood defence bund. The exact height of the bund at this location is currently unknown, though spot levels on the supplied topographical survey suggest the height of bund to be approximately 3m. To ensure the flood defence bund is maintained whilst allowing for the access road geometry for an HGV, an earthworks / retaining solution would be required. An alternative of providing an at grade access road through the bund whilst providing a flood gate that could be closed when required could be implemented as an alternative, this would need further investigation should Phase 1B be taken forward as a viable option. 3.6.4 For Phase 1B there is a concern that the works would have an impact on business units located on both sides of the Pargut Bank. On the western side of the bund there are three large warehouse / manufacturing units located at the end of Beach Close. To provide a connection from the Pargut Roundabout to Beach Close would require the road to roughly follow the boundary between the properties, the gap between the buildings is only 26m wide at its narrowest. To construct a 7.3m wide access road with associated verges , footways / cycleways and retaining solutions would resulting in the a loss of approximately 5m of each unit’s frontage that runs parallel to the proposed access road. All these units have several access points / loading bays located on these frontages and the use of them would be significantly affected by the new access road and possibly affect the viability of the units as a whole.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 61 of 128 3.6.5 On the eastern side of the bund the road would initially follow the line of the service yard access road into the new superstore development, however to achieve the required vertical alignment to cross the Pargut Bank there would be a significant impact on maintaining the access into the service yard. In addition to the impact on the service yard access there could also be an impact of the commercial premises currently proposed opposite the superstore and possibly the superstore itself.” 3.4.13. On the basis that it was not considered viable because of concerns about the impact on business units and the Pargut Bank, and because it would not be expected to provide the same future benefits in terms of unlocking the port area for future development Phase 1B was therefore again discounted. DESIGN REVIEW (2013) 3.4.14. The scheme comprises 650m of single carriageway which continues from the Pargut roundabout to the proposed Port roundabout and includes a new 122m long bridge over the Newhaven-Seaford branch line and Mill Creek canal; this constitutes the second part of the original 1996 proposals. Plans of the Newhaven Port Access Road are shown in Appendix B. 3.4.15. In 2013 the outline design was reviewed in light of the following land-use changes that have occurred since the original scheme planning permission granted in 1996: ¡ Construction of household waste management site on A26 New Road / A259 link junction ¡ New retail / commercial units constructed on Drove Road, including the HUB development (Lidl), KFC, a general goods outlet and an upper floor of office space ¡ Planning permission for ASDA development and adjacent residential development granted and proposed location for Pargut roundabout changed by the developer (Eastside Business Park) ¡ New access provided into the rear of the Parker Pen factory from the access road from the Drove Roundabout. 3.4.16. In agreement with ESCC, the Design Manual for Roads and Bridges (DMRB), with a design speed of 50kph, were used as the design standard to review the outline geometrical design of the PAR. In particular, outline geometrical design against the following standards from DMRB has been carried out: ¡ TD 9/93 Highway Link Design ¡ TD 27/05 Cross-Sections and Headroom ¡ TD16/07 Geometric Design of Roundabouts ¡ TD 54/07 Design of Mini Roundabouts ¡ TD 42/95 Geometric Design of Major/Minor Priority Junctions. Phase 1 3.4.17. Phase 1 consists of a majority of the original 1996 proposal and includes the NPAR between the Drove Roundabout and the up to and including a new Pargut Roundabout. This section of the scheme was constructed by a developer in 2015. Phase 1A 3.4.18. The Phase 1A option provides a continuation of the NPAR from Pargut Roundabout over the Newhaven to Seaford railway line and Mill Creek terminating at a new roundabout in the tidemills area. 3.4.19. To achieve this access, the new road would rise from a height of approximately 2m above existing ground level at the Pargut Roundabout, cross the edge of the Pargut Bank, to an approximate height of 9m just north of the railway line. From this point the road crosses the Newhaven to Seaford Railway line and Mill Creek before terminating at a height of approximately 2m above existing ground level at a new roundabout just south of Mill Creek. The current Phase 1A proposal shows a three-span structure spanning both the railway line and the creek. 3.4.20. The main advantage of the Phase 1A option is that it provides better access into the existing east quay and unlocks the southern port area for future development. The current access is of a low standard and requires the navigation of a level crossing near the end of Beach Road. Newhaven Port Authority also have a long-term aspiration of creating a new outer harbour and ferry terminal off the east quay and the construction of Phase 1A of the NPAR is fundamental to allow this future development to be carried out.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 62 of 128 East Sussex County Council Ground Conditions 3.4.21. An assessment of the geology of the site and ground conditions has been deduced from a number of previous investigations and reports that are listed below: ¡ Newhaven Port Access Road Preliminary Sources Study – WSP 2013 ¡ Newhaven Port Access Road Factual Report on Ground Investigation – Geotechnical Engineering 2014 ¡ Newhaven Port Access Road Geotechnical Options Report – WSP 2014 ¡ Newhaven Port Access Road Ground Investigation – WSP 2017. 3.4.22. The ground conditions are particularly challenging, with competent chalk bedrock up to 30m below existing ground level, overlain by two layers of gravels and alluvium. Thus the design incorporates a number of measures to deal with the predicted settlement of the high embankments, as well as significant piling to support the railway bridge. 3.4.23. A plan and section showing the ground conditions is shown in Figure 25.

Figure 25: Ground conditions

CYCLEWAY/FOOTWAY 3.4.24. The scheme design incorporates a new cycleway/footway alongside the new road, which will provide links to existing rights of way. STRUCTURE 3.4.25. The outline design for the new bridge over the railway and Mill Creek was approved through the planning permission granted in 1996 and renewed in 2002. The detailed design for the bridge has been developed from that concept and is shown in Figure 26 while Figure 27 shows the NPAR scheme plan.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 63 of 128 Figure 26: Newhaven Port Access Road – Bridge design

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 64 of 128 East Sussex County Council Figure 27: Newhaven Port Access Road – scheme plan

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 65 of 128 3.5 TRANSPORT SCHEME ASSESSMENT 3.5.1. Completion of the Newhaven Port Access Road 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. 3.5.2. For completeness we have undertaken a highway scheme economic assessment using information from an existing transport model which is described in the following sections. 3.6 TRANSPORT MODEL 3.6.1. The current base year of the Newhaven Transport Model is 2010. In July 2011, the model was updated to a 2010 base and traffic forecasts prepared for 2030 assessing various combinations of housing and employment development as part of the Local Development Framework process. The 2010 base year model has been reported on in the Newhaven Heights Assessment (June 2012) (‘MM June 2012 Newhaven Heights report.pdf’). 3.6.2. A forecast year of 2030 was used to assess the development. This transport evidence base was reviewed in July 2012 by Parsons Brinckerhoff on behalf of the Highways Agency and was deemed to be sufficient to assess the broad impact of the main development sites within the submission version of the Core Strategy with individual junction models used to understand the impact in more detail. 3.6.3. In April 2014 Parsons Brinckerhoff were commissioned by ESCC to undertake a study to assess the future performance of the A259 through Newhaven, in particular the Ring Road around the town centre. The 2010 NTM was used as the basis for revising the 2030 forecast year AM peak and PM peak models with updated growth and development information. The building of the 2030 forecast year models are reported on in the A259 Newhaven Movement & Access Strategy Ring Road Study (‘Newhaven A259 Study_Final2-ForIssue- Ex-Appendices.pdf’). 3.6.4. For the assessment of the impacts of the Newhaven Port Access Road it is intended that the following traffic models are used for the Major Scheme Business Case (MSBC): ¡ 2010 base year model: AM peak and PM peak ¡ 2030 forecast year model: AM peak and PM peak. 3.6.5. The 2010 base year model has been calibrated and validated to 2010 observed traffic conditions and forms the basis for producing forecast year models. The 2030 forecast year models are based on the 2010 base year model but include for background traffic growth between 2010 and 2030 and include any committed developments and infrastructure. 3.6.6. The 2030 forecast year model has been used to include the proposed NPAR scheme which can be used to compare the “without scheme” scenario with a “with scheme” scenario in order to undertake an assessment of the impact of the scheme. 3.6.7. A meeting was held on the 18 December 2015 with representatives of Coast to Capital Local Enterprise Partnership and their independent technical advisors for this scheme White Young Green (WYG) at which the transport model was discussed. It was explained that the transport model was deemed to be sufficient to assess the broad impact of the main development sites within the submission version of the 2011 Core Strategy with individual junction models used to understand the impact in more detail. However WYG suggested that the current transport mode is: ¡ updated in the core area of influence (i.e. Beach Road and the existing level crossing into the port) from buffer to simulation ¡ reviewed to assess whether the area where Beach Road connects to the B2109 Drove Road and the local junctions are coded as simulation 3.6.8. WYG’s view and recommendations are based on their view that the transport related benefits are not the key benefit for the scheme. 3.7 SCHEME COSTS 3.7.1. The tendered construction cost assumes a price base of 2018 Quarter 1. The construction contract includes a clause which requires the contractor to take the risk of construction inflation and make an allowance within the contract sum. Therefore construction inflation is included within the base construction cost.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 66 of 128 East Sussex County Council 3.7.2. The construction contract will include clauses to facilitate the transfer of appropriate risks from the Council to the contractor, such as risks associated with construction costs increasing above those predicted in the financial case. 3.7.3. The scheme costs do not include optimism bias as there is a tendered construction cost but do include for a contingency associated with risk, following the Quantified Risk Assessment (in alignment with DfT guidance) that has been undertaken. 3.7.4. Two Quantified Risk Assessment workshops were held during the development of the scheme, in May 2015 and July 2017. In addition the project risks have been reviewed with the preferred contractor who has taken these risks on-board and included them within the tendered construction cost. Those risks remaining with ESCC have been re-analysed and valued as a Risk Contingency of £1.617m (P50). 3.7.5. Table 7 gives a breakdown of the scheme cost estimate for the proposed Newhaven Port Access Road.

Table 7: Summary of scheme costs

Element of Scheme Cost

Construction costs (including construction inflation) £17,988,158

Preparation costs £1,720,105

Project Management and Supervision costs £949,569

Land and 3rd party costs £595,990

Monitoring and evaluation £150,000

Risk Allowance £1,616,644

Total £23,020,466

3.8 TRANSPORT ECONOMIC EFFICIENCY 3.8.1. It is understood and recognised that transport related benefits are not the key benefits for the Newhaven Port Access Road scheme however for completeness we have undertaken a highway scheme economic assessment using: ¡ TUBA v1.9.7 software, which uses model trip matrices and time and distance skims to monetise the costs and benefits of a scheme compliant with guidance set out in TAG and HM Treasury’s Green Book. 3.8.2. With advice from the Coast to Capital Local Enterprise Partnership independent technical advisers for the scheme, White Young Green (WYG) the SATURN model network was updated in the core area of influence (i.e. Beach Road and the existing level crossing into the port) from buffer to simulation with a time dis-benefit included to take account of the existing level crossing at the port entrance.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 67 of 128 3.8.3. In our meetings, DfT have been keen to understand the sensitivities around differing levels of development. Therefore two assessments have been undertaken taking into account differing levels of development at the Port as assumed in the 2011 Core Strategy. The transport model was deemed to be sufficient to assess the broad impact of the main development sites within the submission version of the 2011 Core Strategy with individual junction models used to understand the impact in more detail TUBA V1.9.7 HIGHWAY SCHEME ASSESSMENT 3.8.4. The TUBA assessment has been undertaken to assess the level of transport benefits associated with the Newhaven Port Access Road for the following scenarios: ¡ Scenario 1: 2011 Core Strategy development at the Port (100% Port development) ¡ Scenario 2: 2011 Core Strategy development at the Port: (50% Port development) 3.8.5. Table 8 outlines a summary of the results from TUBA for each scenario, providing the Analysis of Monetised Costs and Benefits (AMCB).

Table 8: Newhaven Port Assess Road (Analysis of Monetised Costs and Benefits) Option 1 – 2011 Core Option 1 – 2011 Core Type Strategy development at Strategy development at the Port: 100% (£M) the Port: 50% (£M)

Greenhouse Gases 0.174 0.002

Economic Efficiency: Consumer Users (Commuting) 0.741 0.066

Economic Efficiency: Consumer Users (Other) 0.769 0.084

Economic Efficiency: Business Users and Providers 0.640 0.108

Wider Public Finances (Indirect Taxation Revenues) -0.423 -0.003

Present Value of Benefits (PVB) 1.901 0.257

3.8.6. The results in Table 8 show that with the assumed 2011 Core Strategy growth at the Port there are predicted Present Value of Benefits (PVB) of £1.901m when the proposed scheme is included. 3.8.7. If only 50% of the 2011 Core Strategy growth is assumed at the Port there are PVB benefits of £0.257m when the proposed scheme is included. 3.8.8. This could lead to a conclusion that the greater level of development included at the Port gives a greater level of benefits i.e. double the assumed development gives approximately seven times the benefit. 3.8.9. The total scheme costs is £23,020,466 which gives a Present Value of Costs (PVC) of £18.300m. 3.8.10. The assessment of the NPAR scheme has been undertaken using generalised travel costs which include journey times in the TUBA program only. No other assessment e.g. Air Quality and Noise has been undertaken as it is felt that the criteria for meeting the threshold for undertaking detailed Air Quality and Noise assessments would not be met. 3.8.11. The requirement for an air quality assessment is determined in accordance with traffic change criteria set out in HA207/07 DMRB Volume 11 Section 3 Part 1. The traffic change criteria are: ¡ road alignment will change by 5m or more ¡ daily traffic flows will change by 1,000 annual average daily traffic (AADT) or more ¡ HGV flows will change by 200 AADT or more ¡ daily average speed will change by 10 km/hr or more ¡ peak hour speed will change by 20 km/hr or more.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 68 of 128 East Sussex County Council 3.8.12. DMRB Volume 11, Section 3, Part 7 – Noise and Vibration 2011 HD213/11 Revision 1 provides threshold values against which changes in noise due to the project should be compared, and assessed. This is a permanent change in magnitude of 1 dB LA10,18h in the short term (i.e. on opening) or a 3 dB LA10,18h change in the long term (typically 15 years after project opening). The assessment considers the impact of changes in traffic flow and speed may have upon noise levels, as well as the extent to which the study area includes noise sensitive receptors, such as dwelling, schools and community facilities. If there is clear evidence that any threshold limits are likely to be exceeded then a detailed assessment will follow. 3.8.13. It is felt that given the level of benefits and therefore changes in traffic flows that the criteria for undertaking more detailed Air Quality and Noise modelling would not be met and therefore this has not been undertaken, With the NPAR scheme in place then traffic flows on the existing Railway Road would decrease therefore there is likely to be a beneficial impact in terms of Air Quality and Noise. 3.9 ENVIRONMENTAL ASSESSMENT 3.9.1. The Environmental Statement (ES) for the scheme was published in 2001 and formed part of the Planning Approval, which is still in place following commencement of some site works. Whilst the Planning Approval is still valid, changes in designation, assessment guidance and the length of time that has elapsed since the original assessment, mean that some further assessment work would be of benefit. 3.9.2. Existing (baseline) conditions were re-visited to check the current land-uses, species and habitats, landscape conditions and views into and out of the site (not an exhaustive list). The presence of great crested newts and other amphibians and protected species and the length of time since the original mitigation implementation, meant that these two topics needed re-assessment. 3.9.3. Some topics within the ES were assessed in line with the Design Manual for Roads and Bridges (DMRB). Air Quality, Noise and Landscape were assessed in line with DMRB and guidance in relation to these topics has changed thus: ¡ Air Quality, up-dated in 2007, via Interim Advice Note (IAN), 207/07 ¡ Noise and Vibration, up-dated DMRB guidance, 2011 ¡ Landscape and Visual Impact, via IAN 135/10 (2010). 3.9.4. As part of the design review (June 2013) an initial review of the ES was undertaken and further work identified to take account of changes to legislation and guidance since planning permission was granted. 3.10 ECONOMIC APPRAISAL RESULTS 3.10.1. Within WebTAG Unit A2.1 (December 2017) three levels of analysis are described which are differentiated on the basis of the maturity of the analytical techniques: ¡ Level 1: impacts which assume fixed land use excluding wider economic impacts ¡ Level 2: wider economic impacts which assume fixed land use (connectivity impacts) or do not require land use change to be explicitly quantified. ¡ Level 3: analysis in which either land use change is explicitly quantified (structural impacts) or supplementary economic modelling has been conducted. 3.10.2. The benefits that have been calculated/looked at for each of the above levels of analysis are described in the following sections. In ‘perfect markets’, all economic benefits attributable to a scheme would be captured through direct transport user impacts. 3.10.3. Given market imperfections, however, additional analysis is required to capture the full range of economic benefits as some of these benefits will not be covered in conventional traffic modelling-based impacts under Level 1 and Level 2 of the VfM assessment 3.11 LEVEL 1 - INITIAL BCR ASSESSMENT 3.11.1. Appendix C.1, Appendix C.2 and Appendix C.3 contain the Transport Economic Efficiency (TEE) table, Public Accounts (PA) table and an Analysis of Monetised Costs and Benefits (AMCB) table respectively for the Newhaven Port Access Road. 3.11.2. Table 9 outlines a summary of the results from TUBA for the Newhaven Port Access Road. This provides the Analysis of Monetised Costs and Benefits (AMCB) for fixed demand assignment.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 69 of 128 Table 9: Newhaven Port Access Road: AMCB (£m) Type Option 1 – 2011 Option 1 – 2011 Core Strategy Core Strategy development at the development at the Port: 100% (£M) Port: 50% (£M)

Greenhouse Gases 0.174 0.002

Economic Efficiency: Consumer Users (Commuting) 0.741 0.066

Economic Efficiency: Consumer Users (Other) 0.769 0.084

Economic Efficiency: Business Users and Providers 0.640 0.108

Wider Public Finances (Indirect Taxation Revenues) -0.423 -0.003

Present Value of Benefits (PVB) 1.901 0.257

Broad Transport Budget 18.300 18.300

Present Value of Costs (PVC) 18.300 18.300

Net Present Value (NPV) -16.399 -18.043

Benefit to Cost Ratio (BCR) 0.10 0.01

3.11.3. The Present Value of Benefits for the Newhaven Port Access Road is £1.901m while the Present Value of Costs (PVC) is £18.300m. This gives a Net Present Value (NPV) for the scheme of -£16.399m with a Benefit to Cost Ratio (BCR) of 0.10. 3.12 LEVEL 2 - WIDER ECONOMIC BENEFITS AND ADJUSTED BCR 3.12.1. Current guidance on the calculation of wider economic impacts is contained within WebTAG Unit A2.1 (December 2017) and are designed to capture the impacts of a transport intervention which are additional to those experienced directly by the transport user e.g. transport user benefits being journey time reductions and lower financial costs (considered together as part of the generalised travel costs) and fewer accidents. 3.12.2. Level 2 analysis builds upon Level 1 analysis to include wider economic impacts and other impacts, which can be estimated without the explicit quantification of land use change i.e. it assumes a fixed land use assumption. This can include static clustering, labour supply impacts and output change in imperfectly competitive markets. 3.12.3. Any results from a Level 2 analysis can be included within an Adjusted BCR as set out in guidance from the Department for Transport “Value for Money Assessment Framework16 published on the 20 July 2017. Within that guidance it states that uplifts may be used to provide an understanding of the potential scale of Level 2 benefits with a 10% uplift applied to Business User benefits calculated within the Level 1 analysis.

16 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/630704/value-for-money- framework.pdf

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 70 of 128 East Sussex County Council 3.12.4. This is an over-estimate because the 10% uplift relates to a specific Level 2 benefit i.e. output change in imperfectly competitive markets however it has been included and applied to the travel time benefits to emphasis the point that it would not make any significant change to the benefits. 3.12.5. The overall benefits calculated for Level 1 is £1.901m so even the addition of a 10% uplift to all benefits i.e. £0.190m will not significantly adjust the BCR position as shown in Table 10.

Table 10: Newhaven Port Access Road: Adjusted BCR (including Wider Economic Benefits) (£m) Option 1 – 2011 Core Option 1 – 2011 Core Type Strategy development Strategy development at the Port: 100% (£M) at the Port: 50% (£M)

Present Value of Benefits (excluding wider impacts) 1.901 0.257

Wider Economic Benefits (assuming 10% uplift) 0.190 0.026

Present Value of Benefits (adjusted) 2.091 0.283

Present Value of Costs (PVC) 18.300 18.300

Net Present Value (NPV) -16.209 -18.017

Adjusted Benefit to Cost Ratio (BCR) 0.11 0.02

3.13 LEVEL 3 WIDER ECONOMIC BENEFITS 3.13.1. As described in the Strategic Case, the strategic objectives of the NPAR Phase 1a investment are as follows: ¡ To support Newhaven’s economic transformation through rebalancing of economic activity across the Greater Brighton City Region ¡ To resolve traffic and associated environmental conflicts arising from Port traffic in residential communities ¡ To complete the strategic connectivity of Newhaven Port and support its growth as an economic asset ¡ To support the delivery of the Newhaven EZ by enhancing the attractiveness of Newhaven as a business investment location. DELIVERING THE NEWHAVEN ENTERPRISE ZONE – THE INFLUENCE OF NPAR 3.13.2. As part of the analysis for the Newhaven EZ Implementation and Investment Plan17 consideration has been given to the key business sectors that could be attracted to and grown-on in Newhaven and for which the enhanced connectivity of the town achieved through NPAR could be an important influence.

17 Ibid

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 71 of 128 3.13.3. This analysis reached the following conclusions:

The two best positioned priority sectors that the EZ could seek to attract in the short to medium term are environmental technology and services, and advanced engineering. Both these sectors build on existing local strengths and relate to the spatial pattern of employment in the wider area. Both sectors will potentially overlap with the marine sector (e.g. marine related manufacturing and offshore energy provision), building on existing strengths and infrastructure assets, notably the Port. Of these, advanced engineering is likely to generate the greatest employment opportunities. Opportunities in the creative and digital sector is considered to be dependent on the extent to which Newhaven can be effectively integrated into the Greater Brighton City Region - which NPAR will contribute towards through enhanced connectivity with the strategic road network. Manufacturing is a major employer in Newhaven and, despite recent job losses, the presence of high-tech manufacturing and evidence of growing manufacturing sub-sectors are likely to provide shorter term opportunities for growth. This is related to the advanced engineering sector, where Newhaven may become an attractive location for investment as pressure for land increases in other parts of the region. Newhaven is also well placed to benefit from investment in environmental technologies, however the scale of employment in this sector may be lower. Besides manufacturing, the current employment profile of Newhaven is dominated by low density uses and the EZ provides an opportunity to attract and retain more job-rich and higher value employment activities to the town.

3.13.4. Newhaven has substantial physical capacity for growth, including on large brownfield sites in around the Port, waterfront and town centre. The Lewes District Local Plan, adopted in May 2016, allocates 65% of the entire District’s employment land supply in Newhaven, reflecting the importance placed on the town as a growing employment centre. 3.13.5. The 2015 Autumn Statement confirmed the designation of the Newhaven Enterprise Zone, which commenced in April 2017. The EZ is a 79 ha development opportunity spread across 8 key sites in the town. Targeting high value manufacturing in the ‘Clean, Green and Marine’ sectors, most of the EZ sites are focussed on the Eastside of the River Ouse (See Figure 28). 3.13.6. Each EZ site has a role to play in delivering change in Newhaven. With its proximity to the Port, the East Quay site in particular offers an ideal opportunity for delivering clean-tech and port-related growth – this site is directly unlocked by NPAR. 3.13.7. NPAR will have a key influence over delivery of the Newhaven EZ. The relationship to the EZ sites is outlined below. Potential attribution of NPAR impacts to the delivery of economic outputs on each of the sites has been indicated, reflecting the variable extent to which NPAR will influence development outcomes and timings, directly and indirectly. The percentage attribution of economic outputs to NPAR for each EZ site is based on a judgement over the relative importance of NPAR as a contributory factor in bringing forward commercial development interest in each site, based on improved connectivity, better site profile and catalytic effects on market prospects (See Figure 29 to Figure 36). These impact attributions have been applied in estimating the jobs / GVA value of the wider benefits of NPAR in terms of unlocking and / or accelerating EZ site delivery (see ‘Quantifying Level 3 Wider Economic Benefits methodology below).

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 72 of 128 East Sussex County Council Figure 28: Newhaven Enterprise Zone sites and Newhaven Port Access Road

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 73 of 128 East Quay – 18.95ha Port land accommodating the Rampion O&M base. Enterprise Zone proposals Extensive capacity for new B2 development estimated at 9,750sqm. Current proposals for aggregate processing plant for part of the site but this will not deliverable without NPAR. Strong enquiry from luxury yacht builder from Southampton seeking 8,000sqm (up to 300 jobs) with south coast waterfront. East Quay is an ideal opportunity for this type of operation. NPAR influence Direct connectivity into East Quay increasing attractiveness as major port-side development opportunity. Development prospects are severely limited without NPAR. NPAR impact attribution 100%

Figure 29: East Quay

Avis Way Industrial Estate – 26.70 ha Established industrial estate on the edge of Newhaven with extensive mix of employers across a range of sectors. Poor quality business units requiring refurbishment to meet modern business standards and intensification of light industrial uses. Enterprise Zone proposals 5,034 sqm of refurbished business space completed to enhance appeal to higher value manufacturers and services – 4 units recently taken up by expanding local businesses and a new leisure service occupier. Ongoing refurbishment programme anticipated – estimated 5,200sqm future phases. NPAR influence Improved connectivity with the port, improving potential for supply-chain companies linked to environmental, marine and off-shore wind sector. Enhanced profile for the estate as part of wider connectivity benefits. Acceleration of 5,000sqm refurbishment investments NPAR impact attribution 25% Figure 30: Avis Way Industrial Estate

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 74 of 128 East Sussex County Council Railway Quay – 4.65 ha Key gateway site adjoining rail station, between the port and town centre. New UTC opened in refurbished building on-site. Development site acquired by Lewes District Council with Coast to Capital LGF support. Enterprise Zone proposals 2-3,000 sqm (potentially up to 5,000sqm) of new commercial business floorspace in ‘gateway’ building targeting higher value business uses. Possible residential as part of mixed use scheme NPAR influence HGV traffic diverted further from the site, improving profile and attractiveness for higher value businesses. Opportunity to create a ‘statement’ development at the gateway to the town centre, port and riverside. NPAR makes the site much more attractive for investment so could accelerate delivery. NPAR impact attribution 30% Figure 31: Railway Quay

Bevan Funnell (North & South) – 2.4 ha Redevelopment of obsolete industrial buildings accessed from Railway Road. Enterprise Zone proposals North site has planning consent for 80 homes and potential capacity for up to 10,000sqm of B1/B2. Similar mix anticipated for South site. NPAR influence Removal of HGV traffic from Railway Road will vastly improve attractiveness of these sites for residential and B1 uses so accelerating delivery of EZ ambitions. NPAR impact attribution 30% Figure 32: Bevan Funnell (North & South)

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 75 of 128 Eastside North 5.2 ha Substantial greenfield site with previous planning consent for an Asda supermarket. Asda pulled out in 2014 and no alternative development has yet been finalised. Site offers one of the largest opportunities for new employment- generating development linked to the Port’s existing operations. Enterprise Zone proposals Capacity for circa 9,000 sqm of B-class development NPAR influence The site is directly unlocked by NPAR phase 1, which will link the site with the Port land to the south and the A26 trunk road to the north, increasing attractiveness as business location. The site has challenging ground conditions (high groundwater levels and sited in floodplain) that necessitate piling so NPAR could support development values and thus viability. NPAR impact attribution 25% (given access already provided by NPAR Phase 1) Figure 33: Eastside North

Eastside South – 2.26ha Site accessed from Beach Road, with Phase 1 of small business units now delivered through LGF funds from Coast to Capital LEP. Occupiers include Surrey Nano Systems (local expansion) and Valet Pro (relocation from Hailsham). Enterprise Zone proposals Future phases of business units up to 7,800sqm in abeyance pending the NPAR. NPAR influence Reduced HGV traffic on Railway Road / Beach Road currently accessing the Port will significantly improve attractiveness for B1 uses and accelerate private investment. NPAR impact attribution 30% Figure 34: Eastside South

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 76 of 128 East Sussex County Council North Quay – 13.4ha Large riverside site at the entrance to the town currently in port-related / aggregates use. Proposals for short-medium term use as an asphalt plant but thereafter has potential for mixed commercial use. Potential for relocation of port uses facilitated by the NPAR. Enterprise Zone proposals Medium to long term capacity for circa 19,200 sqm of commercial B- class floorspace. NPAR influence Limited impact from the NPAR given timescales for future development but connectivity and new investment across the wider Enterprise Zone will improve the attractiveness of the site for commercial development in the medium term. NPAR impact attribution 20% Figure 35: North Quay

Town Centre Newhaven town centre is a focus for improvements to support the regeneration of the town and attractiveness for new businesses and residents through new investments in town centre facilities and public realm and intensification of employment uses. Enterprise Zone proposals Lewes DC is promoting a number of specific schemes including new hotel, expanded leisure centre, 1,584sqm of new retail space, and 1,858 sqm health hub, together with circa 91 residential units. NPAR influence Limited to general improvement in the attractiveness of the town centre through improved traffic flows and alleviation of HGV traffic close to the town centre. NPAR impact attribution 10%

Figure 36: Town Centre

3.14 QUANTIFYING LEVEL 3 WIDER ECONOMIC BENEFITS 3.14.1. The approach and methodology for the quantification of Level 3 Wider Economic Benefits is set out in the following sections. GROSS EMPLOYMENT BENEFITS 3.14.2. The calculation of Level 3 wider economic benefits has focused on distributional effects arising from the NPAR in terms of its influence on unlocking the delivery of key private sector development opportunities identified across the Newhaven Enterprise Zone. The sites, identified above, promote the growth of new job opportunities in Newhaven to respond to the recognised economic performance deficits set out in the Strategic Case and to create the capacity for the town to capture increasing levels of private investment and business growth through new local enterprise formation and overspill growth from businesses across the Greater Brighton City Region and beyond.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 77 of 128 3.14.3. As set out in the Strategic Case, the delivery of economic growth in Newhaven, including through the development of designated Enterprise Zone sites, is supported by a full suite of LEP and local authority strategies and policies and lies at the heart of the rationale for delivering the NPAR. 3.14.4. The quantification of Level 3 wider benefits has followed the principles of the HM Treasury Green Book in terms of assessing both the gross and net additional employment effects of unlocking and accelerating the delivery of these key Enterprise Zone sites, taking into account economic adjustments, including for leakage and displacement. 3.14.5. The calculation of gross jobs capacity is driven from the anticipated land use mix across each site in terms of the full range of prospective employment generating uses, primarily B-class uses. The anticipated development scale, mix and development take-up profile is based on the individual site assessments prepared by Cushman Wakefield as part of Enterprise Zone delivery planning. 3.14.6. Conversion of floorspace estimates to gross employment capacity applies recognised benchmark ratios for employment / floorspace densities derived from HCA guidance18. The site-by-site assessment is set out in Table 11.

Table 11: Conversion of floorspace estimates to gross employment capacity Floorspace Employment density Gross jobs EZ Site Use (sqm GEA) (sqm/job) capacity (FTE) East Quay 9,750 B2 32 259

Avis Way 5,200 B1c / B2 47 / 32 116

Railway Quay 3,000 B1a / B1c 12 / 47 173

Bevan Funnell 10,000 B1c 47 181

Eastside North 9,000 B2 / B1c 32 / 47 142

Eastside South 7,800 B2 / B1c 32 / 47 158

North Quay 19,200 B2 / B8 32 / 70 302

Town Centre 3,440 A1 / D2 18 / 65 100

Total 1,431

3.14.7. On the basis that the new development will target Cleantech, renewable energy and other business activities, it is likely that some occupiers of the new floorspace will operate on a two-shift pattern - in accordance with HCA employment densities guidance. On this basis, this estimate of jobs capacity is considered to be prudent. NPAR IMPACT ATTRIBUTION – ACCOUNTING FOR ‘DEADWEIGHT’ EFFECTS 3.14.8. For each of the EZ sites the impact assessment has considered the potential for the NPAR to influence the delivery of development and consequential jobs capacity. The assessment of impact attribution in effect reflects a view on ‘deadweight’ – the ‘business as usual’ impact, in terms of the level of employment generating development that could occur on each site in the absence of the NPAR.

18 Homes & Communities Agency Employment Densities Guide 2013

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 78 of 128 East Sussex County Council 3.14.9. Given that the spatial and operational relationship between NPAR and the EZ sites varies according to location in the town, a judgement has been made on the extent to which the delivery of NPAR could influence the response of the private sector. This response is likely to arise from a variety of factors: ¡ the direct unlocking of a site by virtue of NPAR providing new direct access and thus enabling development to proceed; ¡ the indirect impact on a site as a consequence of NPAR improving traffic conditions in the vicinity of a site and thus improving the operational appeal of a site from a business perspective; ¡ the complementary impact on site delivery as a result of the generalised improvement in connectivity of Newhaven and its image for investors as a locational choice in the City Region. 3.14.10. For direct unlocking effects, an impact attribution of 100% has been ascribed given that proposed development in line with the EZ is unlikely to proceed without NPAR. This level of attribution relates only to the East Quay site. The Port has made clear that it will not proceed with investment in the new deep-water berth without the certainty of NPAR proceeding and the existing site would remain accessible only by an inadequate local road connection, preventing any significant investment occurring in the Port. 3.14.11. For all other EZ sites, the NPAR impact attribution is considered to be either indirect through improved traffic conditions and thus marketability, in which case impact attribution is considered to be no more than 30%, or complementary in terms of a more generalised improvement in investment appeal in which case impact attribution is considered to be in the range of 10% - 25%, depending on the proximity of NPAR and its propensity to have any material effect on site attractiveness. 3.14.12. In effect, the impact attribution reflects a view that beyond East Quay, at least 70% of the employment supported on the remaining EZ sites could come forward irrespective of NPAR and the modelling therefore deducts these jobs as ‘deadweight’. 3.14.13. Discussions have been held with the lead officers at the District Council with responsibility for EZ delivery to consider the potential influence of NPAR on development delivery within this framework. The impact attributions adopted in the assessment of NPAR wider benefits have therefore been verified by Officers with specific understanding of the operation of the land market in Newhaven and the reaction of potential investors / occupiers to the prospects of NPAR as new economic infrastructure in Newhaven. Inevitably, the impact attributions are judgement-based, but prudent levels have been adopted to ensure that the impact of NPAR is not overstated. Sensitivity testing has been applied in terms of reduced attributable impacts. ADJUSTING FOR NET ADDITIONAL JOB CAPACITY 3.14.14. Having considered the levels of ‘deadweight’ through the assessment of impact attribution, adjustments have then been made to the assessment of attributed gross jobs capacity at the EZ sites to estimate attributed net additional jobs capacity (See Table 12). These adjustments reflect the dynamics of the local economy in terms of travel to work patterns and levels of labour movement between Newhaven and other areas, as well as patterns of business demand for locations across the Greater Brighton area. The assessment adopts Greater Brighton as the ‘area of impact’ for the assessment of wider benefits. This influences judgements on levels of leakage and displacement to be factored into the net additional jobs capacity estimates: ¡ Leakage - an allowance of 5% has been reflected to account for job opportunities in Newhaven being taken by workers from outside of Greater Brighton. As a relatively self-contained labour market, levels of employment leakage are considered to be low ¡ Displacement - Deductions to gross jobs estimates have been made to account for a proportion of employment that would be displaced from within the County and City Region. Such effects will be mitigated by the fact that the target occupiers will be in the clean tech and renewable energy sectors seeking port proximity and therefore relatively specialised. Nevertheless, the improved attractiveness of Newhaven’s EZ sites over time is likely to lead to some level of displacement of existing companies relocating from elsewhere in the sub-region but with an expectation that they will be expanding and thus generating additional employment capacity. Based on equivalent estimates for sub-regional levels of displacement in former BIS research19 a 35% deduction has been applied to gross jobs estimates (after accounting for deadweight and leakage) in the benefits model to account for displacement effects

19 BIS Occupational Paper No 1. Research to improve the assessment of additionality (October 2009)

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 79 of 128 ¡ Multipliers – The business activities attracted to the EZ sites will generate downstream supply-chain effects and associated multiplier impacts across the local economy. A composite multiplier of 1.35 has been adopted based on established benchmarks for this type of project.20

Table 12: NPAR attribution factor

NPAR attribution NPAR attributed NPAR attributed net EZ Site Gross jobs factor jobs impact additional jobs impact

East Quay 259 100% 259 216

Avis Way 116 25% 29 24

Railway Quay 173 30% 52 43

Bevan Funnell 181 30% 54 45

Eastside North 142 25% 35 30

Eastside 158 30% 47 39 South

North Quay 302 20% 60 50

Town Centre 100 10% 10 8

Total 1,431 547 456

GROSS VALUE ADDED (GVA) IMPACTS 3.14.15. The net attributed jobs impact of NPAR has been quantified in terms of GVA impact by applying reasonable estimates of the GVA per worker profiled in terms of likely timescale for delivery and a persistence factor for employment impacts of 10 years. The GVA per worker benchmark adopted is £54,460, which reflects the ONS average for all jobs across East Sussex. The time profile (See Table 13) for delivery of development and thus jobs capacity has been derived from the EZ Implementation Plan21, although it is likely that these profiles could be accelerated.

20 HCA Additionality Guide Fourth Ed. 2014 21 Newhaven EZ Implementation and Investment Plan, March 2017, Cushman & Wakefield / Regeneris.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 80 of 128 East Sussex County Council Table 13: Take-up profile

Site Take-up profile

Avis Way 2020-25

Bevan Funnell 2020

East Quay 2019-24

Eastside North 2020-25

Eastside South 2012-22

North Quay 2028-33

Railway Quay 2021-25

Town Centre 2022-26

3.14.16. The net present value of projected GVA impacts has been assessed based on HM Treasury Green Book discount factor of 3.5%. 3.14.17. On this basis, the estimated cumulative net additional GVA (NPV) arising from NPAR would be £183m of which £91.5m is estimated to be attributable to the East Quay site. 3.15 SUMMARY – WIDER ECONOMIC BENEFITS 3.15.1. In summary, the influence of NPAR on the delivery of the Enterprise Zone sites combines: ¡ direct effects to provide much improved connectivity for East Quay and directly unlock capacity for 9,750sqm of new business space, linked to the Port ¡ indirect enhancement of the development potential of the Bevan Funnell and Eastside South sites by removing Port-related HGV traffic from local access roads, improving attractiveness for business investment on these sites ¡ complementary effects on the other EZ sites through wider connectivity improvements, enhanced management of HGV movements across the town and a step-change in the perception of Newhaven as an investment location. 3.15.2. Table 14 summarises the Level 3 wider economic benefits which shows a net additional jobs of 455 with a cumulative Gross Value Added (GVA) value of £183m with a cumulative GDP (NPV, Welfare Element Only) of £12.7m.

Table 14: Level 3 Wider Economic Benefits

Net additional Cumulative Cumulative GDP (NPV, Level 3 wider economic benefits jobs estimate GVA (NPV) Welfare Element Only

Direct jobs, GVA and Welfare-related GDP 216 £91.5m £6.4m impacts (East Quay)

Indirect attributed jobs, GVA and Welfare- related GDP impacts (based on attribution rates 239 £91.4m £6.4m for other EZ sites

Total EZ impact 455 £183m £12.7m

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 81 of 128 3.15.3. This demonstrates the significance of the direct links to East Quay from NPAR in driving EZ employment and GVA benefits, as well as welfare-related GDP benefits (considered latterly). These high-level estimates of the value of wider economic benefits from NPAR are based on single shift patterns. In reality, many of the businesses attracted to the EZ are likely to operate on at least two-shift working patterns, thus doubling the employment effects of NPAR as an enabling investment to support local economic growth. 3.16 SENSITIVITY TESTING 3.16.1. A number of sensitivity tests have been modelled to ‘stress-test’ the estimates of Level 3 Wider Economic Benefits., as follows: ¡ increased leakage to 10% and increased displacement to 50% ¡ exclusion of multiplier effects ¡ NPAR attribution reduced by 30% across all sites ¡ Combination of all sensitivities. 3.16.2. The results of these scenarios are set out in Table 15, individually and cumulatively:

Table 15: Sensitivity scenarios

Adjusted Level 3 Wider 10% leakage / 50% 30% reduced No multiplier Combined Economic Impacts displacement EZ attribution

82 Net jobs – East Quay 157 160 151 91 Net jobs – other EZ sites 175 178 168 172 Total EZ jobs impact 332 338 319 £34.6m GVA (NPV) – East Quay £66.7m £67.8m £64.1m £34.5m GVA (NPV) – other EZ sites £66.7m £67.7m £64.0m

Total EZ GVA impact £133.4m £135.5m £128.1m £69.1m

3.16.3. On this basis, in the worst case, with all sensitivity adjustments applied, the NPAR scheme would support an additional 172 net additional jobs in Newhaven and a cumulative GVA (NPV) impact of £69.1m. This is considered to be a very prudent assessment, but nevertheless demonstrates that the value of the Level 3 wider economic benefits, set against the scheme costs, would offer very good return on investment in economic terms even in the worst case scenario. Taking account to the projected benefits under the central case and worst case economic impact assumptions, NPAR offers an efficient and effective investment in economic infrastructure to support the delivery of well-established growth objectives for Newhaven. 3.17 WELFARE IMPACTS 3.17.1. Only the welfare component of the increased net additional jobs capacity can be taken into account in consideration of value for money. To estimate the welfare benefits, GVA estimates have been adjusted to GDP based on an adjustment factor derived from ONS22. 3.17.2. To derive the welfare component of the increased jobs capacity, estimates have been made of the proportion of previously unemployed workers likely to be re-engaged in the labour market as a consequence of the scheme. 3.17.3. Unemployment rates in Lewes District are below regional averages but Newhaven has a significantly higher unemployment rate than Lewes District and more substantial incidence of deprivation amongst local

22 Adjusted by a factor of 1.122 based on ONS data

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 82 of 128 East Sussex County Council communities. The propensity for new employment generating investment in Newhaven to support re- engagement in the labour market is therefore likely to be more significant than in other parts of the District. 3.17.4. For Newhaven to move to South East averages for unemployment, would require in the order of 185 unemployed workers to re-engage in the labour force (based on latest available estimates of unemployment in Newhaven). Given that the principal new employment source will be through new activity in the EZ, it is reasonable to ascribe this impact primarily to the jobs capacity being unlocked through the Newhaven EZ. 3.17.5. 185 jobs represents 13% of the gross jobs capacity of the EZ, of which 38% is attributable to the effects of NPAR, i.e. 71 gross jobs. Accounting for displacement within and leakage from the Greater Brighton City Region among the attributable NPAR jobs means that 21% of the NPAR attributable jobs located on the EZ are expected to be filled by residents re-entering the workforce. 3.17.6. The GDP value of these re-entrants to the labour force is estimated to be £44.0m (i.e. 21% of the estimated GDP derived from NPAR attributable jobs located on the EZ), reflecting the delivery profile for the EZ jobs and an assumption of 10 years job persistence. 3.17.7. To quantify the welfare benefit, 40% of the estimated GDP from these labour market re-entrants has been accounted for based on TAG 2.3, giving an estimated welfare value of £17.6m, with a net present value of £12.7m in the central case. 3.17.8. Alongside the central case, a further sensitivity has been included to reflect the potential for reduced levels of net additional NPAR attributable jobs achieved on the EZ and likely proportionately reduced levels of re/engagement in the workforce, in line with the Reduced EZ Attribution sensitivity outlined above23. Through this test, the results suggest that even if fewer attributable NPAR jobs are achieved on the EZ, the scheme still has potential to bring significant welfare-related GDP returns (See Table 16).

Table 16: Welfare Impacts: GDP Calculations

Workforce Re-entrants Central Sensitivity - 30% & GDP Estimates Case reduced EZ attribution

Gross Attributed Workforce Re-entrants 71 FTEs 50 FTEs

Cumulative GDP £44.0m £30.8m

Cumulative GDP (NPV) £31.8m £22.3m

Welfare Element of GDP (NPV) Benefits @ 40% £12.7m £8.9m

3.18 SOCIAL IMPACTS 3.18.1. This section covers the impacts of the transport system not considered as part of the economic or environmental appraisal. There are eight impacts that comprise the social impact appraisal, as set out by WebTAG Unit A4.1. These are assessed in the following sections.

23 Of the sensitivities carried out for the modelling of employment/GVA impacts, the reduced EZ attribution sensitivity is considered to be the only relevant test as (a) the modelling is seeking to determine the levels of re/engagement directly on the EZ - i.e. multiplier effects are already excluded - and (b) as the new entrants to the workforce will be residents of the district who would otherwise be unemployed, they effectively represent a proportion of the net additional jobs achieved on the EZ - displacement and leakage effects will therefore be negligible.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 83 of 128 Physical Activity 3.18.2. Physical Activity refers to the consideration of the interrelation between transport and health and the economic benefits accruing through reduced journey times for pedestrians and cyclists. The health benefits are assumed to be negligible in economic terms due to the low numbers of new commuters. Result: Negligible

Journey Quality 3.18.3. Journey Quality refers to the real and perceived physical and social environment including information, crowding and perceptions (rather than the reality) of safety. 3.18.4. The environment, (in terms of smoothness of ride), will improve. Travellers will benefit from better views, and from reduced stress as the NPAR will be built to modern standards reducing frustration and fear of potential accidents in comparison to the current situation. Result: Moderate Beneficial

Accidents 3.18.5. The scheme results in traffic rerouting to the NPAR from the existing access into the Port. The introduction of the new road is likely to reduce the number of accidents and the introduction of the NPAR will provide a safer route on average. Result: Slight Beneficial

Personal Security 3.18.6. The proposed route will provide significantly improved security, especially after dark. However the number of users at such times is likely to be low and so the benefit is slight. Result: Slight Beneficial

Severance 3.18.7. Severance refers to the separation of residents from facilities and services due to transport routes such as roads. The number of pedestrians crossing the proposed alignment at present is low, however there will be a reduction in the level of traffic on the existing access to the Port therefore the experience for pedestrians will improve. Result: Slight Beneficial

Option Values and Non-Use Values 3.18.8. The Option Values and Non-Use Values refers to the willingness-to-pay to preserve a transport service for trips not yet made (at least by a given mode). The NPAR does not include improvements linked directly to public transport, and therefore will not affect option values. No further assessment is considered appropriate or necessary. Result: Neutral

Accessibility 3.18.9. Accessibility refers in the context of WebTAG to access to services via Public Transport. The NPAR does not include improvements linked to public transport, and therefore will not affect accessibility. No further assessment is considered appropriate or necessary. Result: Neutral

Personal Affordability 3.18.10. Personal Affordability refers to the impact on individual’s private finances of a transport intervention. For the NPAR there is assumed to be no change in costs to modes other than by motor vehicle and these will only be minor. Result: Neutral

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 84 of 128 East Sussex County Council 3.19 DISTRIBUTIONAL IMPACTS 3.19.1. The purpose of Distributional Impact Analysis is to determine any differences in impacts of a transport intervention across different social groups, with particular reference to the impact upon equality through identifying the effects upon those who are disadvantaged compared to the majority of the population. 3.19.2. This DI appraisal has been undertaken in accordance with WebTAG Unit A4.1 and Unit A4.2. The DI appraisal identifies the impacts across specific social groups within the wider population, enabling due consideration of the issues and (if appropriate) mitigation. The appraisal process that has been undertaken for each of the following impact areas, as set out in WebTAG: ¡ User benefits ¡ Noise ¡ Air Quality ¡ Affordability ¡ Accidents ¡ Security ¡ Severance ¡ Accessibility. INITIAL SCREENING User Benefits 3.19.3. There will be a change in benefits to users in the area. Journey times will benefit however there will be disbenefits regarding cost. The guidance also states that any scheme which generates significant and/or concentrated user benefits requires a full DI appraisal. Given that the assessment of the user benefits has shown that there are low user benefits as a consequence of the NPAR no further Distributional Impact (DI) appraisal is required. Noise 3.19.4. An increase in noise levels for those close to a scheme means that it is considered necessary to undertake a full DI appraisal to determine whether there is a disproportionate impact on any particular vulnerable group. 3.19.5. It is felt that given the level of benefits and therefore changes in traffic flows that the criteria for undertaking more detailed Noise modelling would not be met and therefore this has not been undertaken, With the NPAR scheme in place then traffic flows on the existing Railway Road would decrease therefore there is likely to be a beneficial impact in terms of Noise therefore no further DI appraisal is required. Air quality 3.19.6. An increase in Air Quality levels for those close to a scheme means that it is considered necessary to undertake a full DI appraisal to determine whether there is a disproportionate impact on any particular vulnerable group. 3.19.7. It is felt that given the level of benefits and therefore changes in traffic flows that the criteria for undertaking more detailed Air Quality modelling would not be met and therefore this has not been undertaken, With the NPAR scheme in place then traffic flows on the existing Railway Road would decrease therefore there is likely to be a beneficial impact in terms of Air Quality therefore no further DI appraisal is required. Security 3.19.8. There will be a slight improvement in security for users, but as it is a small number of people, no further DI appraisal is required. Personal Affordability 3.19.9. Personal affordability is concerned with out of pocket non-business user costs. In the case of highway schemes, these are restricted to vehicle operating costs (VOC), which are essentially fuel costs and vehicle maintenance. 3.19.10. Given that the assessment of the VOC has shown that there are low user benefits as a consequence of the NPAR the scheme is therefore likely to have a low impact on non-business user costs of the scheme therefore no further DI appraisal is required.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 85 of 128 Accidents 3.19.11. WebTAG Unit A4.2 states that if the intervention causes any significant changes (>10%) in vehicle flow, speed, HGV use or a significant change (>10%) in the number of pedestrians, cyclists or motorcyclist using the road network, then a full assessment should be undertaken. 3.19.12. The new link road will result in a change in traffic patterns although only localised as there is s switch of traffic from the existing Railway Road/Beach Road on to the NPAR with a consequent reduction in any accidents on the existing access to the Port although this will only be small. It is therefore considered that a full DI appraisal would be disproportionate and no further DI appraisal is required. Severance 3.19.13. The NPAR will result in a change in traffic patterns affecting roads in the local vicinity. There is a reduction in the level of traffic on the existing access to the Port therefore there will be a reduction in the level of severance. Given that the effects of the NPAR are localised it is therefore considered that a full DI appraisal would be disproportionate and no further DI appraisal is required. Accessibility 3.19.14. The NPAR does not provide any benefits or disbenefits regarding accessibility, as existing routes will remain accessible and buses will operate as they do now. As such, no further DI appraisal is required. 3.20 APPRAISAL SUMMARY TABLE 3.20.1. This section sets out the qualitative and quantitate impacts of the transport scheme which will then be used to inform the Value for Money Statement. The competed Appraisal Summary Table is provided in Appendix D. 3.21 VALUE FOR MONEY AND SWITCHING VALUES 3.21.1. The Value for Money for the scheme is set out in Table 17.

Table 17: Value for money

Type Option 1 – 2011 Core Strategy development at the Port: 100% (£)

PV of Benefits (Level 1 excluding wider impacts) 1.901m

PV of wider impacts - GVA 183.0m

PV of estimated welfare impacts of NPAR wider benefits 12.7m

PV all benefits (including welfare impacts of NPAR wider benefits) 14.601m

Present Value of Costs (PVC) 18.300m

3.21.2. While the PV of all benefits, including adjustment for wider economic benefits (welfare component only) falls short of PV of costs, the justification for the scheme relies on the strategic economic rationale for NPAR as a key regenerative and rebalancing investment for Newhaven and the wider Brighton City Region. In the absence of the scheme, key established policy and economic development objectives will remain unrealised and the assets of the Enterprise Zone and the Port as drivers of growth will remain underutilised. 3.21.3. The critical benefit of the NPAR is its role in inducing private investment and wider economic benefits to be secured in Newhaven, enabling firms to establish and expand in the City Region. The estimated GVA impact of the scheme is £183m, which would clearly offer a very significant return on investment in economic development terms. Without the NPAR, Newhaven will not be able to deliver this growth potential, East Quay will remain underdeveloped and the land supply constraints in Brighton will continue to inhibit business growth. The NPAR therefore has a critical and demonstrable strategic economic role, notwithstanding the quantified BCR position of the scheme in Level 1 WebTAG terms.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 86 of 128 East Sussex County Council 3.21.4. Moreover, given that the attributable impact of the NPAR on the Enterprise Zone sites would amount to 547 gross jobs (338 less leakage and displacement), and that the Enterprise Zone is targeting a jobs growth, an additional quantifiable benefit could be ascribed to the scheme under WebTAG Level 3 benefits. Excluding the effects of leakage from, and displacement within, the Greater Brighton area and excluding the welfare benefits already ascribed to the 71 re-entrants to the labour market (£12.7m NPV), the additional GDP value of the remaining 267 net additional jobs located on the Enterprise Zone is estimated to be around £17m per annum, or £166m over 10 years, with a present value of £120m. Assuming 30% of GDP as the welfare component, in line TAG Unit A2.1, this would add £50m to the value of wider economic benefits (£36m at present values). 3.21.5. Even in a very prudent ‘worst case’ scenario, whereby 30% fewer net jobs are achieved on the Enterprise Zone and there are higher levels of leakage (-10%) and displacement (-50%), it is estimated that the scheme still has potential to bring around £23m of additional welfare-related GDP benefits over 10 years (£17m at present values), suggesting the scheme can deliver a positive return on investment.

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Newhaven Port Access Road Business Case July 2018 Chapter 4: Financial Case

4 FINANCIAL CASE

4.1 INTRODUCTION 4.1.1. This chapter sets out the Financial Case for the Newhaven Port Access Road. The funding and budget sources are broken down to show where the capital for the project has originated from. The risks associated with this investment are discussed and a quantified risk breakdown is provided. 4.1.2. This chapter describes: ¡ How much the proposed scheme is expected to cost, and how this has been calculated? ¡ Risks that could affect the cost of the scheme ¡ How the scheme will be paid for and by whom ¡ The anticipated profile of expenditure over time (whole life costs). 4.1.3. This chapter deals with costs and accounting issues. The question of value for money is dealt with separately in the Economic Case. The information presented in this section demonstrates that the scheme is affordable. Information will be presented on the following: ¡ Costs ¡ Budgets / Funding Cover ¡ Accounting implications. 4.2 COSTS 4.2.1. The capital cost of the scheme, at 2018 Quarter 1 prices, including future inflation, client costs and non- recoverable VAT has been estimated at £23.020m. 4.2.2. The scheme has been through a competitive tender process which resulted in ESCC appointing a preferred contractor in January 2018. Following this appointment an extensive design review and value engineering exercise was carried out to arrive at an agreed construction contract sum of £17.933m which has to be formally accepted by ESCC once funding is approved. The scheme cost includes: ¡ Design and other preparatory work costs ¡ Cost of the works, including work for others (Network Rail approval/consent) ¡ Site supervision ¡ Land and property costs ¡ Quantified Risk Assessment ¡ Allowance for construction inflation. Out-turn price adjustment 4.2.3. The tendered construction cost assumes a price base of 2018 Quarter 1. The construction contract includes a clause which requires the contractor to take the risk of construction inflation and make an allowance within the contract sum. Therefore construction inflation is included within the base construction cost. Quantified Risk Assessment 4.2.4. The construction contract includes clauses to facilitate the transfer of appropriate risks from the Council to the contractor, such as risks associated with construction costs increasing above those predicted in the financial case. 4.2.5. The scheme costs do not include optimism bias as there is a tendered construction cost but do include for a contingency associated with risk, following the Quantified Risk Assessment (in alignment with DfT guidance) that has been undertaken. 4.2.6. Two Quantified Risk Assessment workshops were held during the development of the scheme, in May 2015 and July 2017. In addition the project risks have been reviewed in January 2018 with the preferred contractor who has taken these risks on-board and included them within the tendered construction cost. 4.2.7. Those risks remaining with ESCC have been re-analysed and valued as a Risk Contingency of £1.617m (P50 and is discussed in greater detail in Section 5.8 of the Management Case.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 91 of 128 VAT 4.2.8. No allowance for VAT has been made as the scheme is promoted by a local authority. Summary Table 4.2.9. Table 18 gives a breakdown of the scheme cost estimate for the proposed Newhaven Port Access Road.

Table 18: Summary of Scheme Cost Element of Scheme Cost

Construction costs (including construction inflation) £17,988,158

Preparation costs £1,720,105

Project Management and Supervision costs £949,569

Land and 3rd party costs £595,990

Monitoring and Evaluation £150,000

Risk Allowance £1,616,644

Total £23,020,466

4.2.10. The build-up of the cost estimate and spend profile over time is shown in Table 19.

Table 19: Spend profile 2012 / 2017 2017 / 2018 2018 / 2019 2019 / 2020 2020 / 2021 Total

Construction £5,858,323 £11,677,359 £452,476 £17,988,158

Land and 3rd £25,070 £282,000 £257,000 £31,920 £595,990 party costs

Preparation £831,539 £430,004 £481,562 £1,720,105

PM and £19,217 £33,694 £330,348 £566,310 £949,569 Supervision

Monitoring and £150,000 £150,000 Evaluation

Sub-Total £875,826 £440,698 £6,952,232 £12,500,670 £634,396 £21,403,822

Risk £595,606 £1,021,038 £1,616,644

Total £875,826 £440,698 £7,547,838 £13,521,708 £634,396 £23,020,466

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 92 of 128 East Sussex County Council 4.3 BUDGET / FUNDING COVER 4.3.1. There are no third party contributions towards the scheme costs. 4.3.2. £10m of Local Growth Fund monies, was provisionally allocated to the scheme through Coast 2 Capital Local Enterprise Partnership’s Strategic Economic Plan in July 2014. 4.3.3. ESCC has allocated £13.020m from its Capital Programme towards the Newhaven Port Access Road.This is confirmed in a letter of intent, written by the Council’s Section 151 officer contained in Appendix E. In addition to underwriting the ESCC contribution, the letter also confirms that the Council will underwrite any potential increase in scheme costs above those set out in Table 18. 4.3.4. ESCC would welcome, at the appropriate time, discussions with the DfT around the timing of their funding. 4.3.5. Table 20 currently shows the proposed profile of expenditure between DfT and ESCC funding across the financial years of construction, but this is flexible and we are happy to discuss this.

Table 20: Assumed annual profile of expenditure 2012 / 2018 2018 / 2019 2019 / 2020 2020 / 2021 Total

East Sussex County Council £1,316,524 £2,547,838 £8,521,708 £634,396 £13,020,466

Department for Transport £5,000,000 £5,000,000 £10,000,000

Total £1,316,524 £7,547,838 13,521,708 £634,396 £23,020,466

4.4 ACCOUNTING IMPLICATIONS 4.4.1. The Newhaven Port Access Road once completed will become adopted highway, maintainable at public expense. Future maintenance costs will therefore be the responsibility of the Highway Authority (ESCC). These maintenance costs have not been included in the scheme costs as they will become part of the Authority’s road network maintenance budget. The new road will be added to the Authority’s Highway Asset Management Plan (HAMP) and assessed and included in the County Council’s maintenance regime. 4.5 SECTION 151 OFFICER DECLARATION 4.5.1. The Section 151 Officer declaration is included in Appendix E.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 93 of 128

Newhaven Port Access Road Business Case July 2018 Chapter 5: Commercial Case

5 COMMERCIAL CASE

5.1 BACKGROUND 5.1.1. The Newhaven Port Access Road (NPAR) is a key priority for the Council’s plans for the economic regeneration of Newhaven. Along with the investment being made in the flood defences in the town by the Environment Agency and the two Local Enterprise Partnerships, Coast to Capital (C2C LEP) and South East (SE LEP), will help the viability of commercial and housing development sites in the Newhaven area. 5.1.2. Various economic studies and traffic modelling has identified that the current poor access into the Port via Railway Road/Beach Road is a constraint to development. Therefore the NPAR will provide a new direct access into the East Quay area of Newhaven Port which will alleviate the current traffic and amenity issues generated by traffic, particularly HGV’s, on Railway Road and Beach Road generated by the existing Port operations, and enable the development that is identified within the Lewes District Local Plan and the Port’s Masterplan, the LEPs Strategic Economic Plan’s and as part of the Newhaven Enterprise Zone. 5.1.3. In this context, the strategic objectives of the NPAR Phase 1a investment are as follows: ¡ To support Newhaven’s economic transformation through rebalancing of economic activity across the Greater Brighton City Region. ¡ To resolve traffic and associated environmental conflicts arising from Port traffic in residential communities; ¡ To complete the strategic connectivity of Newhaven Port and support its growth as an economic asset; ¡ To support the delivery of the Newhaven Enterprise Zone by enhancing the attractiveness of Newhaven as a business investment location. 5.1.4. In summary, the influence of Newhaven Port Access Road on the delivery of the Enterprise Zone sites combines to deliver: ¡ direct effects to provide much improved connectivity for East Quay and directly unlock capacity for 9,750sqm of new business space, linked to the Port; ¡ direct enhancement of the development potential of the Bevan Funnell and Eastside South sites by removing Port-related HGV traffic from local access roads, improving attractiveness for business investment on these sites ¡ indirect effects on the other Enterprise Zone sites through wider connectivity improvements, enhanced management of HGV movements across the town and a step-change in the perception of Newhaven as an investment location. 5.2 THE SCHEME 5.2.1. The Newhaven Port Access Road scheme involves the construction of 700m of new single carriageway road. The new road rises from a height of approximately 2m above existing ground level at the Pargut Roundabout, across the edge of the Pargut Bank, to an approximate height of 9m just north of the railway line. From this point the road crosses the Newhaven to Seaford Railway line and Mill Creek on a new 3 span bridge before terminating at a height of approximately 2m above existing ground level at a new roundabout just south of Mill Creek. 5.2.2. The ground conditions are particularly challenging, with competent chalk bedrock up to 30m below existing ground level, overlain by two layers of gravels and alluvium. Thus the design incorporates a number of measures to deal with the predicted settlement of the high embankments, as well as significant piling to support the railway bridge. 5.2.3. A plan and section showing the ground conditions is shown in Figure 37.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 97 of 128 Figure 37: NPAR ground conditions

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 98 of 128 East Sussex County Council 5.2.4. The scheme design incorporates a new cycleway/footway alongside the new road, which will provide links to existing rights of way. 5.2.5. The outline design for the new bridge over the railway and Mill Creek was approved through the original planning permission granted in 1996 and renewed in 2002. The detailed design for the bridge has been developed from that concept and is shown in Figure 38 with the NPAR scheme shown in Figure 39.

Figure 38: Newhaven Port Access Road – Bridge design

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 99 of 128 Figure 39: Newhaven Port Access Road – scheme plan

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 100 of 128 East Sussex County Council 5.2.6. The scheme cost estimate is shown in Table 21.

Table 21: Summary of scheme cost Element of Scheme Cost

Construction costs (including construction inflation) £17,988,158

Preparation costs £1,720,105

Project Management and Supervision costs £949,569

Land and 3rd party costs £595,990

Monitoring and Evaluation £150,000

Risk Allowance £1,616,644

Total £23,020,466

5.2.7. Key dates from the current scheme programme are shown in Table 22.

Table 22: Current scheme programme Detail Date Conclusion of design review Mid February 2018

Revised contract price End February 2018

Vegetation clearance Mid February 2018 - Early March 2018

Contractor engagement with Network Rail and Early March 2018 – September 2018 Environment Agency Submission of business case to DfT July 2018

Funding decision and award of contract August 2018

Construction start September 2018

Construction period 19 months

Scheme complete Early 2020

5.3 PROCUREMENT OPTIONS 5.3.1. As part of the Design Review carried out in 2013, WSP considered procurement options for the Newhaven Port Access Road (NPAR). Their findings were summarised within Chapter 8 of their Design Review Report (Appendix F). This recommended that ESCC considered delivery of the PAR using a design and build route under NEC3 Option A conditions of contract. 5.3.2. In May 2015 a procurement workshop was held by the County Council and WSP staff to further consider the options for procuring the scheme. By this time £10million of Local Growth Fund monies had been provisionally approved via the Coast 2 Capital LEP’s Strategic Economic Plan.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 101 of 128 5.3.3. Subsequently the Department for Transport (DfT) had determined that it was to retain oversight approval of the funding. The outcome of the May 2015 Procurement Workshop was reported in WSP’s technical note attached at Appendix G. This also recommended that ESCC considered delivery of the PAR using a design and build route under NEC3 Option A conditions of contract. 5.3.4. In these current financially austere times, cost certainty is a major consideration for Local Authorities. East Sussex County Council has committed over £13million towards the scheme from its own Capital Budget, to be augmented by the LGF monies. However the LGF contribution is fixed at £10m and therefore the risk of any overspend sits with East Sussex County Council. Therefore, the County Council was also committed to, and has ensured, that the proposed scheme was an attractive proposition for the marketplace, could be procured and was commercially viable. 5.3.5. Drawing on experience gained delivering the Bexhill to Hastings Link Road, which experienced cost increases using the NEC3 Early Contractor Involvement Design and Build, Option C Contract procurement approach, the Project Board were keen to investigate other potential delivery routes, and particularly any that could mitigate against cost increases. The Board were also keen to look for ways to save procurement costs and the time needed to procure a contractor. 5.3.6. In 2016 Hampshire County Council let their new Generation 3 Construction Framework Contract (Gen 3) and East Sussex County Council (along with a number of other Authorities), were able to utilise this contract. A further review of the procurement options was carried out by the Project Board and this is described in the report at Appendix H. The Project Board decided to utilise this new Framework Contract to procure the construction of the Newhaven Port Access Road (NPAR). 5.3.7. In line with the earlier recommendations the Project Board decided to let the contract under NEC3 Option A. it was acknowledged that there is a risk of increased costs due to the contractor over charges for accepting increased contractual risk however after discussion it was decided that we would have greater control over the final project costs if we adopted an option A contract, it was understood that this meant that the supplier would have to price the risk. As experts in this field of work it was agreed that they were best placed to price this risk and importantly manage it throughout the project. We have reviewed with the supplier their risk log and have shared ours. Through review and agreement all identified risks have been apportioned to the party best placed to manage them. 5.3.8. The Hampshire Gen 3 Framework has limited design capability, and so the contract would be a traditional construction only contract, with the detailed design of the scheme being completed in advance by WSP. WSP have significant invested knowledge in the Newhaven Port Access Road scheme having been involved since 2011, initially to undertake a scheme review, and latterly commissioned in 2013 through the IESE Framework to develop the scheme’s detailed design. 5.4 PREFERRED PROCUREMENT AND CONTRACTING STRATEGY 5.4.1. As outlined in Section 5.3, a traditional approach to project delivery has been taken. The detailed design was completed by WSP and the construction of the scheme was tendered through Hampshire CC’s Gen 3 Framework of contracts for highway construction works, for schemes up to the construction value of £25m. For schemes with a construction value of between £8m and £25m, the following three companies are on the framework: ¡ BAM Nutall ¡ Skanska ¡ Carillion. 5.4.2. The NPAR scheme sat well within the scope of works intended to be procured through this Framework and offered several advantages over a traditional stand alone contract: ¡ It saved time as there would be no need to go through OJEU advert and PQQ processes since this has already happened in awarding the framework to the three contractors. ¡ It saved procurement costs as many of the contract documents are already written as standard and tender processes are in place. Therefore, only scheme specific documents would need to be prepared. ¡ It maintained a competitive element to the construction price 5.4.3. There were also some disadvantages, in that it is a construction contract with limited ECI or design capability. However as the NPAR design had been fairly well advanced by the time the Framework became available, WSP were engaged to take the schemes detailed design through to completion, particularly in regard to the

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 102 of 128 East Sussex County Council Geotechnical aspects and structure design. This additional work was however offset by the removal of the contractor design element under the previous proposal. Whilst this could limit the amount of ECI available, much of this benefit would be in the manner in which the scheme is constructed, rather than the design. This buildability element would still come through the tender process, as this would be the contractors competitive edge. Design 5.4.4. WSP were commissioned to develop the schemes detailed design through the Improvement & Efficiency South East (IESE) Framework Contract in 2013. Following the decision to utilise the Hamphire CC Framework for construction, WSP’s commission was extended by mutual agreement to cover the full detailed design required to allow a traditional “build only” construction contract to be tendered. 5.4.5. WSP manage the scheme from their Birmingham Office, with a dedicated Project Manager, who then co- ordinates and manages the input of the various specialist design teams and advisors necessary to complete the design. WSP has extensive experience of carrying out this type of work for various local authority clients. If additional and/or specialist resources are required, WSP are able to source staff from other offices across the country to support the project. 5.4.6. Further detail and examples of WSP’s experience are given within Appendix I. Construction 5.4.7. Hampshire CC’s Gen 3 Framework is an OJEU-compliant framework that offers: ¡ fast procurement and mobilisation – considerably quicker than full tendering ¡ cost-effective solutions – due to lower procurement costs and the combined buying power of multiple authorities ¡ high quality suppliers that meet rigorous quality and financial standards - selected via an easy-to-follow competitive process. 5.4.8. Hampshire CC also provide access to their collaborative and highly experienced procurement team who provide advice and support to the authorities using the Framework, including East Sussex County Council. 5.4.9. The Newhaven Port Access Road falls under Framework 3, for works with a value between £8,000,000 to £25,000,000, and with three contractors on the Framework, BAM Nuttall, Carillion, and Skanska. 5.4.10. Utilising the Gen 3 Framework also afforded the opportunity to hold pre-tender workshops with the bidders during the development of the scheme and contract documents. Two such workshops were held, in December 2016, and July 2017. All three contractors attended both workshops and these allowed East Sussex County Council to present the scheme to the bidders and to ensure that they understood the aims and objectives of the scheme as well as the constraints to the design. Another benefit of the workshops was gaining early contractor involvement, which shaped the final form of the design and the contract, and allowed early consideration of the various construction methods and access requirements that will be required during construction. 5.4.11. Tender documents were sent out to the three contractors on the Gen 3.3 Framework on 29th October 2017, with a return date of 20th December 2017 (extended by 3 weeks at the request of the contractors). Skanska and Carillion both declined to tender. 5.4.12.

5.4.13.

5.4.14. Every precaution was taken by ESCC to ensure that Bam Nuttall were not aware they were the sole bidding supplier. All documentations and correspondence was through our electronic procurement portal, with no direct contact with Bam Nuttall. The tender return included declarations relating to the “Form of Tender” and “Collusive Tendering”.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 103 of 128 5.4.15. Bam Nuttall submitted a compliant tender and this was assessed against the previously set criteria. In terms of quality, they scored very highly particularly for the questions regarding construction programming and temporary access, and for their proposals to manage the interface with Network Rail. To make a value for money comparison, the tender price was compared against two independent preconstruction estimates, and although slightly higher than the estimates it was comparable. Alongside their compliant tender Bam Nuttall also offered a number of value engineering suggestions which in their opinion would reduce the tender price. Questions asked by Bam Nuttall at the tender interview stage gave comfort that they were not aware they were the only bidder. 5.4.16. The results of the tender were considered at the NPAR Project Board meeting in January 2018. The Board fully discussed the tender process and that only one compliant tender had been returned. However it was confirmed that with a compliant tender being received there was no requirement to perform a new procurement. The Board discussed whether Bam Nuttall tender should be accepted or if it would be beneficial to re-tender the construction via another route and/or under different contract terms. It was decided that the cost and time delay associated with a new tender would most likely outweigh any possible increase in value for money, and hence the Board decided to appoint Bam Nuttall as preferred bidder for the schemes construction. 5.4.17. BAM Nuttall is a leading edge supplier of civil engineering services and is fully focused on delivering quality infrastructure projects. Specifically in relation to the Newhaven Port Access Road (NPAR), BAM Nuttall will bring experience of construction of large structures over water in environmentally sensitive areas for both private and public customers. Their tender submission gives extensive details as to how they will manage the various project risks and challenges, including the Network Rail interface, through their dedicated rail team. Their proposed project team have significant experience in the successful delivery of similar types of schemes. 5.4.18. Further detail and examples of Bam Nuttall’s experience are given within Appendix J. 5.4.19. The scheme is also benefiting from a successful collaboration between the design team and the potential construction team. Bam Nuttall has submitted a number of value engineering changes to the design which they suggested would result in a more economically advantageous tender. This resulted in a programme of early contractor involvement design work involving WSP and Bam Nuttall to explore these value engineering measures further and arrive at a revised contract sum saving from the original tender price and resulting in tender price lower than the pre-tender estimates. 5.4.20. This review of the scheme information has also confirmed that construction is achievable within the 19 month period envisaged. WSP will continue to be engaged as the principal designer under the CDM Regulations and therefore this relationship between designer and contractor will continue throughout the construction phase of the project. 5.5 PROCUREMENT ARRANGEMENTS 5.5.1. ESCC has an experienced Procurement Team, who are part of the Orbis Initiative, which is a formal shared service collaboration between East Sussex, Surrey and Brighton & Hove Councils. With specified procurement resource for the Communities, Environment and Transport (CET) Directorate, the Strategic Economic Infrastructure Team are supported by Procurement Specialists at every stage of the procurement process, who are experienced in undertaking the procurement options and requirements related to the design and delivery of transport infrastructure schemes. 5.5.2. ESCC has experience of delivering similar schemes e.g. In December 2015, the Bexhill to Hastings Link Road opened. This new road, including a bridge over a railway, was jointly funded by ESCC and the DfT and is already delivering significant economic benefits to the two towns – further information is available at https://www.eastsussex.gov.uk/roadsandtransport/bexhillhastingslinkroad/about/. 5.5.3. This procurement option has been selected to deliver the Newhaven Port Access Road taking into account recent experience with the Bexhill to Hastings Link Road. In particular to gain greater cost certainty, the decision has been taken to move from the Option C contract used for the BHLR to an Option A contract for the Port Access Road. 5.5.4. A number of key staff engaged on the Port Access Road, including the NPAR Project Sponsor, Project Manager and the NEC3 Project Manager were also involved with the BHLR and bring that experience and lessons learnt from that project.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 104 of 128 East Sussex County Council 5.6 COMPETITION ISSUES 5.6.1. The Hampshire CC’s Gen 3 Framework of contracts for highway construction works is for schemes up to the construction value of £25m. For schemes with a construction value of between £8m and £25m, the following three companies are on the framework: ¡ BAM Nutall ¡ Skanska ¡ Carillion. 5.6.2. There are no competition issues with the supply chain as the use of the Hampshire CC Gen 3 Framework, means the three contractors have been selected following EU procurement rules via the OJEU advert and PQQ processes. This approach also maintains a competitive element to the construction price. 5.7 RESOURCE MANAGEMENT 5.7.1. ESCC recognises the importance of having a multi skilled team of staff to deliver the Port Access Road using a mix of County Council employees and external expertise provided by consultants. 5.7.2. The scheme has a dedicated Project Manager, as well as a dedicated NEC3 Project Manager, both of whom are permanent East Sussex County Council employees, and were involved in the development and delivery of the Bexhill Hastings Link Road and other schemes for the County Council. The Project Sponsor is an Assistant Director within the Communities, Economy and Transport Directorate, and he has the authority to engage additional resources on the project if deemed necessary. The organagram for the project through the design and construction phases are set out in the Management Case of the business case. 5.7.3. WSP has been engaged on the project since 2011, when they were first engaged to carry out a scheme review. In 2013 they were competitively re-engaged through the IESE Framework to develop the scheme further and have since carried out the detailed design of the scheme. As a consequence, they have a vast amount of invested knowledge in the scheme. Their services will be retained during the construction phase to deal with any design queries that may arise and to provide support to the NEC3 Project Manager in supervising the contractor. 5.7.4. Bam Nuttall were required to provide details of their proposed construction team within their tender submission. The proposed team feature a number of long standing Bam Nuttall employees with significant experience gained on similar schemes. 5.8 RISKS AND MITIGATION 5.8.1. As described in the Management Case, there is a risk management strategy for the Newhaven Port Access Road, and a project risk register which leads to a quantified risk assessment. 5.8.2. The risks associated with procurement were mitigated by adopting the Hampshire CC’s Gen 3 Framework, and this has resulted in Bam Nuttall as the preferred bidder. 5.8.3. Through the tender and early contractor involvement value engineering processes, construction risks have been allocated to the party best placed to manage them, and the Gen 3 construction contract includes clauses to facilitate the apportioning and transfer of appropriate risks from the Council to the contractor. 5.8.4. Those risks remaining with ESCC have been re-analysed and valued as a Risk Contingency of £1.617m (P50) and is discussed in greater detail in Section 6.8 of the Management Case. 5.8.5. The main identified construction risks, together with their allocation and mitigation are shown in Table 23.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 105 of 128 Table 23: Identified construction risks Risk Mitigation Owner

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 106 of 128 East Sussex County Council 5.9 MAXIMISING SOCIAL VALUE 5.9.1. ESCC is fully aware of the Public Services (Social Value) Act 2012 and the obligation that this places on the authority to ensure that the procurement of services over the European Union (EU) threshold provides an opportunity to improve the economic, social and environmental well-being of our area. 5.9.2. The Orbis Procurement Strategy ensures that commercial arrangements and contracts awarded by the Council’s provide great value for money, and that we use our procurement spend to provide the best possible social value for our residents.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 107 of 128 5.9.3. The Strategy is divided into eight key themes, one of which is Social Value, and the ambitions and key actions to deliver this are set out below: Social Value What is our ambition? We will deliver additional value for our residents through the way in which we spend money on goods, works and services. This will be done by considering economic, social and environmental well-being in relation to our procurement processes, stakeholder engagement and contract implementation across the supply chain. We will ensure greater visibility and influence over our supply chains, and work with our suppliers to utilise and positively deliver local benefits from public and private sector partners. We will continue to create opportunities for Voluntary and Community Sector (VCS) organisations to become part of our supply chains.

Key actions in 2015 – 2018 to achieve our ambition 1. Focus on increasing our spend with local suppliers across all categories, with a particular emphasis on developing local supply chains in sectors that will deliver the biggest impact on economic growth, including employment and skills opportunities, over the longer term. 2. Engage with our suppliers and markets to identify and secure apprenticeships and other work opportunities for local residents, to proactively address skills shortages. 3. Use our influence within the region to increase local spend in all counties and secure apprenticeships and other work opportunities on a wider scale. 4. Engage with our suppliers to raise awareness of environmental and sustainability requirements which need to be factored into future contracts as appropriate. 5. To have consistent and aligned policies across the partnership that use best practice and learning. 6. Implement mechanisms for identifying, monitoring and measuring Social Value, which allow us to be open and transparent about the benefits achieved and the cost of delivery. 7. Use our Social Value Strategy for Procurement to ensure that we are meeting the actual need of our local communities. 8. Develop stronger links with other organisations (including business groups, LEP’s, Schools & Colleges, VCS and community groups) in order to deliver the Social Value Strategy for Procurement. 5.9.4. In addition, Skills East Sussex (SES) is the county’s strategic body for employment and skills. The group aims to drive an improvement in local employment and skills in order to increase economic prosperity in East Sussex. Using a firm evidence base, it agrees and sets priorities, and provides direction for the county’s approach to employment and skills. 5.9.5. SES has identified a number of sectors and issues where it wants to make a difference by working together. SES is committed to improving the delivery of skills for the engineering, construction, health and social care, creative, digital and media and land-based sectors. Guidance on how businesses can engage with education and the support that can be offered are set out in the leaflet at Appendix K. 5.9.6. Hampshire CC’s GEN 3 Framework Contract does not include any particular Social Value requirements, therefore as part of the scheme specific requirements for the Newhaven Port Access Road construction contract, this element was included within the Contractors Quality Submission. This question was scored at 12.5% of the Quality Submission, 5% of the overall tender assessment. Tenderers were required to submit details of Social Value actions, activities or allowances to be undertaken during or as a result of this project. 5.9.7. Bam Nuttall's submission included: Social Value between starting and completion date – immediate added value The ‘Local Multiplier’ - BAM Nuttall will enable ESCC to declare an increase in its spend with local construction suppliers as well as implement measures for identifying, monitoring and measuring Social Value (SV). BAM Nuttall will place orders for as much material and equipment and as many subcontractors as possible with companies in East Sussex. We will use recognised local multiplier calculations to demonstrate that for every £1 spent with BAM Nuttall, we will create economic value worth at least £2. ‘Local Multiplier 3’ (LM3) is a measure of how income entering a local economy then circulates around it. The Project Board will challenge Operations to achieve £2 county benefit for every £1 project spend.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 108 of 128 East Sussex County Council A SV and Local Economic Benefit (LEB) assessment has been carried out on recently completed and current projects in the Leeds area. BAM Nuttall created SV of £24m Social Profit (21% of project budget) and LEB of 2.08 (£1 : £2.08) through its M62 Smart Motorway and Leeds Flood Alleviation projects. Local employment - BAM Nuttall will engage with the local workforce market to identify and secure apprenticeships and other work opportunities for local people, to proactively address skills shortages. We will provide significant economic and social benefits by improving skills of a number of local residents. The Project Board will: · Challenge Operations to employ one local person for every £4 million of project turnover, all receiving a skills and training plan to develop to a level that improves their future economic prospects and resilience. · If the timing is right in respect of the annual recruitment cycle, engage a local apprentice on the project. · Influence our supply chain to support the achievement of local employment and skill improvement targets by encouraging local recruitment. Promoting the sector and providing opportunities - All GEN3 partners promote the construction industry as a career choice. We will take every opportunity to engage with the people of Newhaven to introduce them to construction. We will: · Build relationships with local educational institutions, eg Newhaven Campus of Sussex Downs College and the University Technical College. · Provide ‘Ambassadors’ with specific skills to present to young people at such institutions to promote construction as a varied and rewarding career. · Provide work experience placement employability support by working with organisations to ensure the placement is provided to those who would otherwise struggle to gain work experience, eg working with: · Job Centre Plus to provide work experience to the long term unemployed and full-time opportunities for local people working less than 16 hours per week. · REMPLOY to offer placements to people with disabilities. · The ‘Generation Talent Group’ to offer placements to young people (18 to 24) not currently in employment, education or training (NEETS). · NACRO to identify employment opportunities for ex-offenders. All direct and supply chain recruits will be trained and developed as part of our wider ‘National Skills Academy’, including NVQ opportunities. Local links – business groups - BAM Nuttall will develop links with business groups, the LEP and VCS to enable ESCC to deliver its SV Strategy for Procurement. We will arrange a start-up meeting where programme and drawings will be available and the Project Board, Operations and supply chain there to discuss visitor’s concerns. Follow up information will be provided via our attendance at monthly Newhaven Chamber of Commerce meetings to report on progress and programme to promote the link with the project and with the project website/’Facebook’ page. We will also enable site visits to coincide with strategic activities, eg bridge section lifts. Local links - schools and colleges - We have identified academy stakeholders: · Primary Harbour, Denton Community, Breakwater and High Cliff · Secondary UTC@Harbourside, Sussex Downs College and Seahaven Initial visits will make students aware of the project and to warn them of hazards on construction sites. Follow up visits will outline immediate employment opportunities and construction careers as well as update project progress. Post visit inter school art competitions will be sponsored. Site visits will again be offered to coincide with strategic activities, with post visit inter school art competitions again sponsored. Local links - voluntary and community sector - Hillcrest and Denton Island Community Centres have been identified and our approach will be as to that for education establishments. Initial visits will be

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 109 of 128 made to make centre users aware of the project and site visits will again be offered to coincide with strategic project activities. Again, follow up information will be provided via the website/’Facebook’. Social Value after the completion date - legacy added value Local businesses - BAM Nuttall will develop local supply chains in sectors to deliver the biggest impact on economic growth, including employment and skills opportunities, over the longer term. We will identify local suppliers whose offer was included at tender to initially work with to bring them up to our minimum standards. We will also host a ‘Meet the Buyer’ event at Newhaven to enable companies to meet Operations with the opportunity of winning support packages, eg catering and cleaning. Each will be offered a senior manager from Operations to work with them as a Business Mentor. As planned completion approaches, mentors will offer help to develop business plans to ensure future success and growth, including identifying future opportunities with BAM Nuttall, other contractors and the wider BAM group. Environment and sustainability - BAM Nuttall will raise awareness of environmental and sustainability requirements by delivering in-house training to employees and selected people from its supply chain. Task specific awareness training, eg toolbox talks and activity plan briefings, will be provided on site. In-house environmental training, led by visiting Environmental Advisor, Arjun Thiru and the Site Environmental Engineer. will comprise: · One day mandatory Site Environmental Awareness Training Scheme · Half day mandatory good practice on site and specific environment issues BAM Nuttall is a partner in Supply Chain Sustainability School (SCSS) and will bring the service to Newhaven PAR. A self-help assessment allows each to test its sustainability strengths, as well as identify development areas via an action plan, e-learning and sustainability training. CITB sponsors SCSS and provides free support. This approach to providing immediate and legacy added value will be led by Project Manager, Derren Kinnell, the process having already been started with such a selection factor being made at tender. Formal procurement and development, mindful of such selections, will begin at the starting date and continue to the completion date. Engaging with the local workforce market and developing links will begin at the starting date and continue well beyond the access dates.

This holistic approach will enable ESCC to fulfil the majority of its obligations to its customers under the Act, ie improve the economic well-being of Newhaven and East Sussex generally, meet the increasing expectations of businesses, its residents and taxpayers, support its drive to offer more opportunities for apprentices and skills development and provide greater community benefit from its contracts, deliver broader value to its residents and the local economy, improve the environmental well-being of Newhaven and deliver broader value to its environment. 5.9.8. Since their appointment as preferred bidder, discussions have been held with Bam Nuttall and the exact number and details of activities that will be undertaken has been agreed with East Sussex County Council’s Employability and Skills Strategy Manager to ensure that the activities undertaken support and compliment the aims of Skills East Sussex, and those of the Enterprise Zone. 5.9.9. The agreed targets are shown in Appendix L. 5.9.10. The delivery of these activities will be monitored by the NPAR Project Manager and will be reported back to the Employability and Skills Team. In the event of under performance against these requirements the NPAR Project Manager will be responsible for ensuring the contractor takes the corrective actions necessary to meet the requirements. 5.10 CONTRACT MANAGEMENT 5.10.1. Discussions with Bam Nuttall have confirmed that the 19 month construction period is achievable and their compliant tender included a programme showing how this will be achieved. The programme will be further refined following the early contractor involvement value engineering exercise, and this will lead to submission of a contract programme after award of the construction contract.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 110 of 128 East Sussex County Council 5.10.2. The NEC construction contract will be managed by a dedicated NEC3 Project Manager, who is a permanent East Sussex County Council employee. He will bring comprehensive experience and lessons learnt through the Bexhill to Hastings Link Road, which he also managed. 5.10.3. The NEC3 Project Manager will be supported on site by WSP, who will be retained to provide technical, ecological and commercial input and advice during construction. 5.10.4. A project Contract Board will be set up and membership will include the ESCC Project Sponsor and the Construction Director from Bam Nuttall. The role of the Contract Board will be; ¡ To facilitate the achievement of the overall objectives referred to above ¡ To reduce bureaucracy and duplication of effort and enhance efficiency and economy ¡ To work with the Scheme Main Project Board in receiving and providing information. 5.10.5. CEMAR - Contract Event Management and Reporting tool, an all-encompassing web-based contract management and reporting software, will be used to manage NEC contract correspondence, covering as it does, every component of the NEC contract, particularly change management, early warnings, project manager’s instructions and compensation events. A secure, cloud-based, simple-to-deploy solution, focussed around event rather than document management, CEMAR is deeply intuitive, translating the administrative processes of the contract into workflows orientated to contractually-identified roles and responsibilities. 5.10.6. Compensation events will be managed using CEMAR as it will correlate directly with our programme. Each entry will be held on a project dashboard to chart progress, actions and completion. All people on the project will have access to CEMAR, so it will be completely transparent. Every project record will be managed by CEMAR and stored on ‘ProjectWise’, our BIM Common Data Environment. 5.10.7. The funding for the scheme comes from two sources. East Sussex County Council has allocated £13.271m from its Capital Programme towards the cost of the scheme. This will be augmented by £10m of Local Growth Fund monies, which were provisionally allocated through the Coast 2 Capital LEP’s Strategic Economic Plan and which are the subject of this business case. 5.10.8. Within the construction contract payment mechanisms are as follows: ¡ The contract is an NEC3 Engineering and Construction Contract (ECC) Option A ¡ The assessment interval is four weeks ¡ The contractor will be paid for completed work in accordance with the accepted activity schedule ¡ Prompt payment to the contractor, and subcontractors by the contractor, are covered in the contract. Payments are required to be within 28 days of receipt of a valid demand for payment.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 111 of 128

Newhaven Port Access Road Business Case July 2018 Chapter 6: Management Case

6 MANAGEMENT CASE

6.1 OUTLINE OF THE APPROACH TO PROJECT MANAGEMENT 6.1.1. The management of the development and delivery of this project will be undertaken by East Sussex County Council and will follow the County’s corporate Project Management Toolkit as shown in Figure 40.

Figure 40: Project management toolkit

6.1.2. The Project Management Toolkit, which is based on Prince 2, has six clear aims: ¡ To standardise our approach to managing a project with specific additional requirements for certain projects (e.g. building or ICT projects); this equally can be applied to all projects ¡ To set out some of the key responsibilities of managers who are sponsors of a project or are project board members ¡ To provide practical guidance for anyone who needs to manage a project ¡ To provide examples and templates of documents used in the process ¡ To provide helpful checklists for managers and sponsors/board members at key stages of a project ¡ Enable these processes to be applied to big or small projects and use them in a way that is most appropriate for the project. 6.1.3. All LGF projects are following this process; along with additional reporting of the LGF programme to the CET Capital Board on a monthly basis and Team East Sussex, private/public body which is the East Sussex ‘sub-board’ of the South East Local Enterprise Partnership (SE LEP) that aims to drive forward economic growth and prosperity in the county of East Sussex, on a quarterly basis. 6.1.4. The project organisation chart and the roles and responsibilities of the members of the overall team are described below. 6.1.5. The Project Board is accountable for the success of the project. They support and assist the project sponsor to collectively monitor and control the project’s overall progress. 6.1.6. The Project Board is responsible for the strategic management of the project and have the appropriate authority to commit resources to the project in accordance with the Council’s Constitution. General tasks include: ¡ appointing the project manager ¡ signing off the project brief and business case ¡ approving the PID ¡ agreeing project controls ¡ authorising project start ¡ authorising variations to expenditure ¡ managing key risks in the highlighted risk log ¡ and authorising project closure. 6.1.7. The Project Board comprises: ¡ Director for Communities, Economy and Transport ¡ Assistant Director - Operations (and Project Sponsor) ¡ Assistant Director - Economy 6.1.8. The Board is chaired by , the Director for Communities, Economy and Transport.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 115 of 128 6.1.9. The Board is supported and advised by officers from Strategic Economic Infrastructure, Planning, Highways, Procurement, Legal and Finance. 6.1.10. The Project Sponsor (Senior Responsible Officer) is is the ESCC senior officer and project sponsor responsible for the delivery of the Newhaven Port Access Road scheme. has been the ESCC Assistant Director of Operations for eight years and was responsible for the delivery of the Bexhill to Hastings Link Road. 6.1.11. He is in a senior position within the County and supports (and is seen to support) the aims of the project. This sponsorship legitimises the work of the project. The Project Sponsor is the person who has overall responsibility for the project and is accountable for its success. The Project Sponsor focuses on realisation of the business and service benefits that the project provides and has visible commitment and authority, with enough seniority to influence and engage with stakeholders and ensure that adequate funds and resources are committed to the project. 6.1.12. The Project Manager is . She has overall day-to-day control of the project and is responsible for ensuring it is delivered. is a Highways Engineer and Project Manager with over 25 years’ experience gained in a local government highways environment covering all aspects of highway improvement and maintenance schemes from feasibility through to construction, and she is PRINCE2 accredited. The Project Manager reports to the Project Sponsor. 6.1.13. The Project Manager is supported by WSP who are engaged to undertake the detailed design of the Port Access Road, and a number of East Sussex County Council colleagues, including Procurement, Legal, Finance and Estates. 6.1.14. The project is managed through the following regular meetings: ¡ Monthly progress meetings of the project board ¡ Fortnightly meetings between the Project Manager and WSP’s Project Manager ¡ Other ad-hoc meetings between the Project Manager and Procurement, Legal, Finance and Estates colleagues 6.1.15. WSP’s Project Manager is . Gareth has over 27 years’ experience in highway engineering, including design, traffic engineering and project management for Local Authorities and Highways England, covering both new build and improvement schemes. Gareth is a Principal Engineer, lead designer and project manager specialising in highway design to DMRB and Local Authority standards and experienced in NEC Supervisor and Project Manager roles. His experience has included design, project management and delivery of schemes and programmes of work covering new highway links, junctions, bus route infrastructure, cycling infrastructure, local safety schemes and development highway schemes. is responsible for managing and co- ordinating WSP’s input into the scheme. Project Organisation 6.1.16. Organograms showing the ESCC project management structure for both the design and construction phases of the project are shown in Figure 41 and Figure 42.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 116 of 128 East Sussex County Council Figure 41: Project Organogram: Design Phase

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 117 of 128 Figure 42: Project Organogram: Construction Phase

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 118 of 128 East Sussex County Council 6.2 PROJECT INITIATION DOCUMENT (PID) 6.2.1. The PID describes the scope of the project, how the required outcomes will be delivered, who will do what, when it will be delivered and how much it will cost. The approved Project Brief has been used as a starting point to inform the PID. It has been produced by the Project Manager in consultation with the Project Sponsor and details every key stage of the project and decision points. The PID is a formal agreement of how the project will be achieved and has been included as Appendix M. 6.3 PROJECT PLANNING AND OVERALL PROGRAMME 6.3.1. The Project Execution Plan is attached in Appendix N. It identifies how the project will be managed and the various reporting mechanisms that are in place. 6.3.2. The Project Manager has ownership of the project programme. Activities have been carefully examined by the Project Manager and WSP’s Project Manager to ensure that timescales are based on recent experience and aims to minimise delays by maximising the opportunities for parallel working. 6.3.3. Team plans will be required for individual activities on the Project Plan as appropriate. These will be managed by each team manager who will be responsible for ensuring progress is made against the plan and to escalate issues and concerns to the Project Manager as soon as estimates fall outside agreed tolerances. 6.3.4. The project programme is in Appendix O. This is the tender programme submitted by Bam Nuttall, and will be refined on contract award to form the accepted programme under the NEC Contract. It shows a 19-month construction period. 6.3.5. The current programme key dates are shown in Table 24.

Table 24: Current programme dates Programme element Programme Date

Conclusion of design review Mid February 2018

Revised contract price End February 2018

Vegetation clearance Mid February 2018 - Early March 2018

Contractor engagement with Network Rail and Early March 2018 – September 2018 Environment Agency

Submission of business case to DfT July 2018

Funding decision and award of contract August 2018

Construction start September 2018

Construction period 19 months

Scheme complete Early 2020

6.3.6. In order to maintain the project programme, and to acquire a tendered construction cost for this business case, the decision was taken to go out to tender in Autumn 2017. With a preferred contractor now on board (as described within the Commercial Case), construction activities can proceed without delay and without the need for further procurement once the Secretary of State’s decision is made.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 119 of 128 6.3.7. In addition and again to maintain the project programme, East Sussex County Council are carrying out a package of ecological mitigation in advance of main construction starting. The site has recently been cleared of vegetation, and a licence for the translocation of Great Crested Newts has been granted by Natural England. Work is currently underway trapping and relocating the newts. 6.3.8. Subject to funding approval being given, all the necessary arrangements are in place for construction of the Newhaven Port Access Roads to commence. 6.4 CONTRACT MANAGEMENT ARRANGEMENTS 6.4.1. The construction works are procured under an NEC3 Option A contract and the contract documents set out the roles and responsibilities of each party together with management and communication requirements. 6.4.2. The NEC3 Project Manager will be Bob Pape BSc MSc MICE MCIHT. He will be responsible for the construction of the scheme once on site. Bob has over twenty years of full time experience in NEC Project Manager & Supervisor roles responsible for highway schemes and before that was employed as a Resident Engineer. Most recently, with ESCC, Bob acted as the NEC Project Manager on the £100m+ Bexhill to Hastings Link Road scheme. The BHLR scheme along with many of his previous jobs also included the construction of large highway bridges over railways. 6.4.3. As NEC3 Project Manager, Bob will work in parallel with the Project Manager during the construction, and also report to the Project Sponsor. 6.5 CONTRACT PROJECT BOARD 6.5.1. In addition to the ESCC Project Board which will continue to meet throughout the duration of construction, a separate Contract Project Board will be established to support the Project Sponsor in the executive control of the project, by providing stakeholder and technical input to decisions affecting the scheme’s delivery. The ultimate authority and accountability will rest with the Project Sponsor. 6.5.2. The main objectives of the Contract Project Board are to: ¡ To secure a working relationship between all those involved in meeting or contributing to the scheme objectives. ¡ To provide leadership, commitment and motivation for a successful public/private partnership. ¡ To create and maintain a partnering process and team culture. ¡ To achieve mutually beneficial outcomes for the Parties. ¡ To ensure that all decisions support best value for the taxpayer, and ¡ To give strategic direction to the management of the contract and to ensure that the wider, cross cutting and longer term issues are properly considered. 6.5.3. The Membership will include the ESCC Project Sponsor and the Construction Director from the preferred contractor. The Contract Project Board will be advised and supported by the ESCC scheme Project Manager, ESCC NEC3 Contract Project Manager and the contractor’s Project Manager, 6.5.4. The role of the Contract Project Board will be: ¡ To facilitate the achievement of the overall objectives referred to above ¡ To reduce bureaucracy and duplication of effort and enhance efficiency and economy ¡ To work with the Scheme Main Project Board in receiving and providing information. Terms of Reference 6.5.5. The Contract Project Board is responsible for providing the Project Sponsor with the information and guidance required to discharge executive control of the project. The Project Sponsor is accountable to the Scheme Main Project Board for the delivery of the project. 6.5.6. Specific examples of matters that are within the remit of the ECI Contract Project Board include: Contract Documentation and Change Management ¡ Considering and subsequently recommending changes to the scheme and considering any implications (financial or otherwise) which flow from such changes.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 120 of 128 East Sussex County Council Budget/Investment Issues ¡ Considering and providing recommendations on budget issues, programme and risk. Key Performance Indicators ¡ Monitor the use of Key Performance Indicators and the level of achievement against targets set. ¡ Taking benchmarking advice from other contracts and establishing future targets. ¡ Considering all issues connected with continuous improvement. Supply Chain management ¡ Considering proposals to make best use of supply chain management techniques. Innovation ¡ Considering all issues relating to innovation and agreeing proposals regarding the implementation and monitoring of any innovation. 6.6 CHANGE MANAGEMENT 6.6.1. The Newhaven Port Access Road is being managed through the County Councils Project Management toolkit which outlines the process for managing change within a project; Managing changes to the project ¡ Change control is the management process for requesting reviewing, approving, carrying out and controlling changes to the project's deliverables. ¡ Any requests to change the definition of a project need to be assessed by the project manager and approved by the sponsor and, possibly, the board. ¡ If the change is agreed, the project manager will record details and assess the impact on a change control form. This should then be passed to the sponsor or board, who must decide whether to approve the change. ¡ Evaluating the change may involve reassessing risks, issues and changes to the project schedule. Changes could require additional funding, and this needs to be secured and the budget updated. If the change is approved, the project manager must ensure all documentation is updated and implement the changes. ¡ Communicate these changes to everyone who needs to know. ¡ If the change is not approved, the project manager should go back to the original project definition or suspend the project as instructed by the sponsor or board. Changes during construction 6.6.2. During construction, CEMAR - Contract Event Management and Reporting tool, an all-encompassing web- based contract management and reporting software, will be used to manage NEC contract correspondence, covering as it does, every component of the NEC contract, particularly change management, early warnings, project manager’s instructions and compensation events. 6.6.3. A secure, cloud-based, simple-to-deploy solution, focussed around event rather than document management, CEMAR is deeply intuitive, translating the administrative processes of the contract into workflows orientated to contractually-identified roles and responsibilities. 6.6.4. Compensation events will be managed using CEMAR as it will correlate directly with our programme. Each entry will be held on a project dashboard to chart progress, actions and completion. All people on the project will have access to CEMAR, so it will be completely transparent. Every project record will be managed by CEMAR and stored on ‘ProjectWise’, a BIM Common Data Environment. 6.7 RISK MANAGEMENT 6.7.1. In order to ensure the understanding and management of risks associated with the project, two risk workshops and a risk review have been held in May 2015, July 2017 and January 2018. The workshops were attended by senior officers of the County Council (Communities, Economy and Transport Director, Assistant Director/Project Sponsor, and Assistant Director Economy ) and key members of the project team, including the scheme Project Manager and Design Project Manager, design leads for structures and geotechnical engineering and procurement and construction representatives. The workshops were facilitated by WSP Risk Management professionals.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 121 of 128 6.7.2. Most recently, the risk register has been reviewed with the preferred contractor, to ensure that there is no duplication of risk allowance within the construction and overall scheme budgets, and that the risks are owned by the party best placed to manage them. 6.7.3. The risk register identifies mitigation measures to manage the risk, estimates of cost and delay and the probability of the risk occurring. 6.7.4. The current risk register is contained in the Risk Report, included in Appendix P. 6.7.5. The risks are regularly reviewed by the Project Board at their meetings. 6.8 RISK MANAGEMENT PLAN 6.8.1. The Risk Management Plan (included in Appendix Q) sets out how project risks will be identified, managed, monitored and reported. The current top five risks, and the mitigation being undertaken are shown in Table 25.

Table 25: Top five risks Overall Risk Score Risk Mitigation

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 122 of 128 East Sussex County Council 6.9 PROJECT ASSURANCE 6.9.1. Whilst the scheme is not of sufficient cost to require formal Gateway reviews, the Project Board were keen to ensure that appropriate independent assurance was provided. Therefore colleagues from ESCC’s Legal, Finance and Procurement Teams were invited to attend Project Board meetings and to provide that independent assurance and challenge. These services sit outside the Communities, Economy and Transport Directorate of ESCC, instead falling under Governance Services headed by the Assistant Chief Executive (Legal) and Business Services under the Chief Operating Officer (Finance and Procurement) as can be seen from the ESCC Structure Chart shown in Figure 43.

Figure 43: Project assurance structure chart

6.9.2. At all major decision and go/no go points for the project, their views have been sought and agreement gained to proceed. Their independent challenge and advice has resulted in additional specialist resources being employed on the project to manage particular issues, and ensured that the project remained focussed on its aims and objectives. 6.9.3. In particular, the Procurement processes leading up to the scheme going out to tender followed a rigorous Gateway and sign off process as shown in Figure 44.

Figure 44: Gateway and sign off process

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 123 of 128 6.9.4. Each numbered gateway signifies a series of tasks has been completed, including a review of costs and risks. Gateways are signed off by senior managers in Procurement to ensure we are progressing our projects appropriately. A project cannot continue until a completed gateway is signed off. In particular, a tender cannot pass Gateway 2, Gateway 3 and Gateway 4 until the Strategic Sourcing Plan has been reviewed and signed off by Senior Managers in the Legal, Finance and Procurement Teams. 6.10 STAKEHOLDER MANAGEMENT 6.10.1. The project team are committed to effective communication and consultation with stakeholders will be carried out to the County’s consultation standards contained within its Consultation Guidance Manual. These standards have been developed to ensure consistency of practice and quality and have been informed by good practice and, national and local thinking. 6.10.2. The project team has developed a draft Communications Strategy which details the approach to implementing the County’s standards on the project (see Appendix R). This document will be updated as the project progresses. 6.11 CONSULTATION 6.11.1. No further formal public consultation is planned since this occurred through the planning permission processes and adoption of the Lewes Core Joint Strategy and LTP3 Implementation Plan, and the need for, and details of the scheme are established. 6.11.2. Whilst we are engaging with key stakeholders and will be providing further public information on the proposals, particularly as construction draws nearer, there is no requirement or obligation for the County Council to revisit elements of the planning process as this is unnecessary. The submission of details required by a condition attached to a planning permission is not an application for planning permission and therefore is not subject to the same consultation requirements as a planning application. Notwithstanding this, when details of the bridge are submitted there will be consultation with the County’s specialists, which will include ecology and landscape, and the South Downs National Park Authority. Hence, specialist consultees will be able to make a judgement as to whether or not the final design of the bridge reflects current ecological and landscape considerations. 6.11.3. Regardless of the length of time since Planning Permission was granted, delivery of the road is also supported by the Lewes District Joint Core Strategy, which was adopted by both Lewes District Council and the South Downs National Park Authority in 2016. This Strategy was fully consulted upon, including public exhibitions in Newhaven Town Centre, and meetings with key stakeholders as well as an Examination in Public. 6.11.4. The Newhaven Port Access Road also features in East Sussex County Council’s Implementation Plan 2016- 2021 for our third Local Transport Plan, which again was subject to a comprehensive public and stakeholder consultation in late 2015. 6.11.5. A Community Liaison Group will be set up during the construction period. Although as yet, details of this group have not been finalised, typically, as has happened with other schemes where a group has been set up, this has consisted of representatives of the local community, other public bodies, the contractor and representatives of ESCC. Usually meetings are held quarterly. 6.11.6. The preferred contractor will also develop a public engagement plan and will provide a public liaison officer to manage public relations and communications.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 124 of 128 East Sussex County Council 6.12 LETTERS OF SUPPORT 6.12.1. A number of letters of support for the scheme have been received, and these are included at Appendix A. ¡ Maria Caulfield MP ¡ Coast 2 Capital Local Enterprise Partnership ¡ South East Local Enterprise Partnership ¡ Team East Sussex ¡ Locate East Sussex ¡ Newhaven Port and Properties ¡ Lewes District Council ¡ Newhaven Town Council ¡ Bright-Tech ¡ Surrey NanoSystems Ltd ¡ Ctec Energy ¡ Veolia ¡ Brett Aggregates. 6.13 KEY STAKEHOLDERS 6.13.1. The below provides a summary of discussions with key stakeholders, although it does not represent an exhaustive list and is intended only to identify the main stakeholders. Full consultation was undertaken as part of the schemes development as required by the statutory processes. Department for Transport 6.13.2. The project has been in regular contact with the Department for Transport (DfT) since it was announced in October 2014, that DfT were to retain approval of the Local Growth Fund monies business case and funding. 6.13.3. There have been a number of meetings to discuss the business case development and DfT are regularly updated both formally through their Quarterly Reporting process, and informally as suits progress with the business case. Coast 2 Capital Local Enterprise Partnership 6.13.4. The Newhaven Port Access Road scheme was included within Coast 2 Capital Local Enterprise Partnership’s (C2C LEP) Strategic Economic Plan in 2014, and subsequently £10m of Local Growth Fund money was awarded towards the scheme costs subject to the submission of a business case. 6.13.5. The scheme is a key priority for C2C LEP and alongside other investment being made by the LEP in the Newhaven area it will increase the viability of sites within Newhaven and enable the full development potential of the Port area to be realised. 6.13.6. The project team regularly provide C2C with updates on the schemes progress. Lewes District Council 6.13.7. Lewes District Council (LDC) state that the Port Access Road is a key component of the Newhaven Enterprise Zone, which was came into being in April 2017. The road will provide a new direct access into the East Quay EZ site and relieve traffic from the existing residential roads which in turn will benefit other EZ sites. LDC strongly support the road and consider that it is critical to future investment and growth plans within the Enterprise Zone and the wider town. Newhaven Port and Properties (NPP) 6.13.8. Newhaven Port and Properties are the Statutory Harbour Authority for Newhaven Port. They have planning permission to extend the port southwards, developing 3 hectares of quayside/operations area and constructing a 300m new berth with depths of 8m below chart datum. 6.13.9. Development within the Port area is constrained by the existing access along residential roads, and NPP strongly support the construction of the new Newhaven Port Access Road, and say that it is imperative it goes ahead. 6.13.10. The project team meet regularly with NPP regarding the Newhaven Port Access Road.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 125 of 128 Statutory Environmental Bodies 6.13.11. The Statutory Environmental Bodies were consulted as part of the scheme’s planning application process. Their responses are detailed within the reports that were considered by the Planning Committee in granting permission. Although concerns were raised, it was considered that mitigation would be possible and this led to several conditions being attached to the permission. 6.13.12. More recently, Natural England have been consulted for advice regarding the licence application for the translocation of great crested newts and a licence has now been granted by Natural England. 6.13.13. Recent discussions and site meetings have also taken place with the Environment Agency and Marine Management Organisation relating to the various licences and consents that will be required for construction. South Downs National Park Authority 6.13.14. Planning permission for the scheme was granted by East Sussex County Council first in 1996 and renewed in 2002. All the conditions except one were discharged in 2007 and construction of the road commenced. The 2007 permission remains extant. The remaining planning condition relating to the detail of the structure over the railway and Mill Creek, has to be discharged before construction of the second part of the scheme can commence. 6.13.15. The South Downs National Park Authority came into being in 2011, and although it was East Sussex County Council that originally granted planning permission, part of the site now lies within the South Downs National Park. As a result, discharge of the remaining condition needs agreement of Planners from both East Sussex County Council and the South Downs National Park Authority. 6.13.16. A site meeting to explain the scheme has been held with the scheme Project Manager and both sets of Planners. The SDNPA are content that the Port Access Road planning permission remains extant. Friends of Tide Mills 6.13.17. The Friends of Tide Mills are a group of local residents who are interested in conserving the Tide Mills environment. Whilst they accept the need for development in Newhaven, they oppose the bridge over the railway and Mill Creek. We have had extensive correspondence with their representatives, and met with them to explain the scheme and listen to their concerns. CAN: Community Action Newhaven 6.13.18. Community Action Newhaven are a local action group. They oppose what they consider to be inappropriate development within the Newhaven Port Area, and have formally objected to various planning applications for development within the Newhaven area. 6.13.19. They have written to East Sussex County Council Planning Department challenging the validity of the Newhaven Port Access Roads planning permission and demanding that advance works such as vegetation clearance cease and that further consultation be carried out. The Head of Planning and Environment has replied, strongly rebutting their assertions, restating the planning position that permission remains extant, and confirming that there is no reason that advance work should cease, nor any requirement for further public consultation. Representatives from CAN have visited ESCC Offices to examine the schemes planning files. 6.13.20. Further to that they have continued their correspondence with ESCC Directors challenging the scheme and making Freedom of Information requests. They have also contacted the Ombudsman regarding the scheme, although they were advised he would not investigate their concerns. 6.13.21. ESCC continue to respond to their written queries and have had telephone discussions with their representatives to further explain the County Council’s position. 6.14 BENEFITS REALISATION AND SCHEME EVALUATION 6.14.1. In line with the ESCC Project Management Toolkit, a Benefits Realisation Plan has been produced, and has also been updated at key points throughout the project. The NPAR Benefits Realisation Plan is included at Appendix S. 6.14.2. DfT’s Monitoring and Evaluation Framework for Local Authority Major Schemes states that evaluation is an integral element in understanding how well National and Local Government are delivering services and investing public finances. Demonstrating delivery of transport improvements that are good value for money and drive economic growth, whilst balancing the need for sustainability, will be vital to securing future funding.

ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 126 of 128 East Sussex County Council 6.14.3. Learning about which schemes are the most effective in achieving these objectives and responding to local transport issues will build the evidence base to support future decision making and share lessons about delivery of best practice. 6.14.4. The Framework continues that it is recognised that it needs to be cost effective and proportionate, and that the framework aims to strike a balance between ensuring evidence is available to demonstrate which schemes offer the best value for money and to facilitate programme level analysis without being too much of a burden on Local Authorities. 6.14.5. All scheme promoters are required to monitor their scheme's progress against a set of standard measures, and the following measures (covering inputs, outputs, outcomes and impacts) will be monitored for all schemes: ¡ Scheme build ¡ Delivered scheme ¡ Costs ¡ Scheme Objectives ¡ Travel demand ¡ Travel times and reliability of travel times ¡ Impacts on the economy ¡ Carbon Impacts. 6.14.6. The Newhaven Port Access Road scheme is a key component of the Newhaven Enterprise Zone and will enable development and regeneration in the Newhaven Area. The objectives of the Newhaven Port Access Road are set out in the Strategic Case but are: ¡ To support Newhaven’s economic transformation through rebalancing of economic activity across the Greater Brighton City Region ¡ To resolve traffic and associated environmental conflicts arising from Port traffic in residential communities ¡ To complete the strategic connectivity of Newhaven Port and support its growth as an economic asset; ¡ To support the delivery of the Newhaven EZ by enhancing the attractiveness of Newhaven as a business investment location. 6.15 MONITORING AND EVALUATION PLAN 6.15.1. The formulation of a Monitoring and Evaluation plan is the responsibility of the scheme’s Project Manager, and the Project Sponsor will be accountable for its successful implementation. 6.15.2. The first phase of the development of the benefits realisation plan will involve utilising the strategic scheme objectives to support the development of desired outputs and outcomes of the scheme. 6.15.3. The desired outputs are the actual benefits that are expected to be derived from the scheme, and will be directly linked to the objectives. 6.15.4. In order to establish whether the benefits of the scheme are being realised, we will develop measurable indicators, including an indication of when the benefits will appear or are likely to be realised. 6.15.5. Using the specific indicators, ESCC will undertake a benefits review, to review the expected benefits against the actual benefits, and whether there are any new benefits (or disbenefits), which were not expected. 6.15.6. This will be undertaken through the monitoring of the delivery of the scheme, through the collection of quantitative data, and comparing pre and post scheme data. Alongside this we will also liaise with key stakeholders to undertake qualitative monitoring, and the development of programme case studies. 6.15.7. This will help inform a post implementation evaluation report, which will outline whether the package of measures has achieved the specified objectives, outputs and outcomes. 6.15.8. A Monitoring and Evaluation Plan has been prepared and has been submitted to DfT for approval. The plan is included at Appendix T.

NEWHAVEN PORT ACCESS ROAD ESCC/WSP/GENECON Project No.: 70045406 | Our Ref No.: 70045406/001 July 2018 East Sussex County Council Page 127 of 128 ESCC/WSP/GENECON NEWHAVEN PORT ACCESS ROAD July 2018 Project No.: 70045406 | Our Ref No.: 70045406/001 Page 128 of 128 East Sussex County Council