1. Melbourne Metro Tunnel - Rail Infrastructure Alliance Preferred Bidder Announced 2
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IN THIS EDITION 1. Melbourne Metro Tunnel - Rail Infrastructure Alliance preferred bidder announced 2. Contract awarded for the $462.5 million Gawler rail electrification Stage 2 3. ACCC delays decision on whether Sydney Transport Partners can bid for Sydney Motorway Corporation 4. Melbourne Airport release Preliminary Draft Master Plan 2018 5. METRONET industry briefing – procurement timeline for Yanchep Rail extension and Thornlie – Cockburn link announced 6. AEMO releases Integrated System Plan for the NEM 7. PBO releases report on the trends affecting the sustainability of Commonwealth taxes 8. Industry news 9. Industry appointments 10. Infrastructure Partnerships Australia news Home About us Contact 1. Melbourne Metro Tunnel - Rail Infrastructure Alliance preferred bidder announced This week, a consortium comprising John Holland, CPB Contractors and AECOM, alongside Rail Projects Victoria and Metro Trains Melbourne, were announced as the preferred bidders for the $1 billion Rail Infrastructure Alliance (RIA), part of the $11 billion Melbourne Metro Tunnel project. The announcement of the consortium as the preferred bidder follows the shortlisting of two consortia for the RIA package of works in December last year. The RIA package of works includes: design and construction of the tunnel entrances in South Yarra and Kensington; station upgrades; and tunnel, track and signalling works along the Sunbury and Dandenong lines. Infrastructure Australia added the Melbourne Metro Tunnel as a High Priority Project to the Infrastructure Priority List in January 2017. Construction on the RIA package of works is expected to commence in late 2018 and be completed in 2025, alongside completion of the Metro Tunnel and Stations Works Package PPP. The RIA package is the last major contract to be awarded for the Melbourne Metro Tunnel project, following the award of the $6 billion Metro Tunnel and Stations Works Package Public Private Partnership (PPP) to the Cross Yarra Partnership (comprising Lendlease, John Holland, Bouygues and Capella Capital) in December 2017. This is in addition to the $1.1 billion Rail Systems Alliance contract to a Bombardier and CPB Contractors consortium the same month. Relevant link Read the Victorian Government's media release △ back to top 2. Contract awarded for the $462.5 million Gawler rail electrification Stage 2 The South Australian Government has awarded the $462.5 million Gawler rail electrification Stage 2 project contract to Lendlease, who are currently delivering the $152.5 million first stage of the project. In its 2017-18 Budget the then South Australian Government committed $242.5 million towards the project, with the Federal Government committing $220 million to the project between FY2019-20 and FY2025-26 in its May 2018 Budget. Stage 1 of the project between Adelaide and Salisbury is currently underway, while Stage 2 will electrify the rest of the Gawler rail line between Salisbury and Gawler, alongside the purchase of 15 additional three-car trains sets (see Figure 1 – red line). Figure 1: Overview of Gawler rail electrification project Source: South Australian Government The scope of works for Stage 2 of the upgrade includes: electrification of the Gawler rail line and Dry Creek Railcar Depot; replacement of the signaling system (including Automatic Track Protection provision); construction of an electricity feeder station at Kilburn; pedestrian level crossing enhancement; and fencing of the rail corridor. The full electrification of the Gawler rail line will be completed by 2020. Relevant links Read South Australia and Federal Governments’ joint media release View Gawler rail electrification – Stage 2 on infrastructurepipeline.org △ back to top 3. ACCC delays decision on whether Sydney Transport Partners can bid for Sydney Motorway Corporation This week, the Australian Consumer and Competition Commission (ACCC) delayed its decision on whether Sydney Transport Partners (led by Transurban) can bid for the 51 per cent divestment of Sydney Motorway Corporation (SMC), the owner and proponent of WestConnex. The ACCC will now hand down its decision on 6 September 2018 to “allow the ACCC sufficient time to consider the competition issues relating to the proposed acquisition.” The competition watchdog was supposed to deliver its decision on 19 July 2018 before final bids on WestConnex were due on 23 July. The original decision date for the review was 19 July 2018, the ACCC will now hand down its decision on 6 September 2018 to “allow the ACCC sufficient time to consider the competition issues relating to the proposed acquisition.” The ACCC was supposed to deliver its decision on 19 July 2018 before final bids on WestConnex were due on 23 July. The ACCC has noted that the decision to extend the review to 6 September “may have flow-on impacts for the WestConnex sale process.” In May of this year, the ACCC published an initial statement of issues in May which identified “preliminary competition concerns” around the proposed acquisition. The NSW Government first announced that it would proceed with a sale of 51 per cent of SMC in August 2017, with an aim of having the transaction closed by mid-2018. As of publication, the NSW Government has not indicated whether it will extend the final bid date in response to the ACCCs decision to extend its review timeline. Read the ACCC’s media release △ back to top 4. Melbourne Airport release Preliminary Draft Master Plan 2018 This week, Melbourne Airport released their Preliminary Draft Master Plan 2018, outlining the proposed development of the airport out to 2038 and beyond. The Master Plan recommends the development of a third and fourth runway and additional upgrades to airside and landside facilities to accommodate projected growth. The Draft is a revision of the previous Master Plan approved by the Commonwealth Government in December 2013. The purpose of the Master Plan, as a statutory document, is to detail planning initiatives for the airport site, providing clear direction for development of the airport and associated facilities. As Australia’s largest curfew-free airport, the Draft forecasts strong passenger (see Figure 2) and freight air services demand growth out to 2037-38, with passenger growth expected to nearly double over this time to 67 million passengers. Figure 2: Melbourne Airport passenger forecast to 2038 Source: Melbourne Airport The airport's annual freight task, which currently caters for about 30 per cent of Australia’s air freight, is also expected to almost double over the same period to 900,000 tonnes per year by 2038. Over the next five years Melbourne Airport plans to fully implement the Runway Development Plan (RDP) which comprises a new parallel east-west runway and an extension of the existing east-west runway. The Draft notes that previous improvements in operating efficiencies at Melbourne Airport have delayed the need for the third runway to be developed by over 10 years. However, the Draft states that further efficiency improvements could no longer delay the need for a third runway at Tullamarine, with the third runway expected to be operational between 2022 and 2024. Key infrastructure initiatives to be delivered by 2038 include: expanding terminal facilities south of the existing Terminal 4 Precinct including a new terminal pier expansion (Terminal 5); further expanding the internal road network and main forecourt; creating new and expanded pier facilities to the existing terminals; relocating freight activity to the Southern Freight Apron; developing wide-body aircraft parking positions in the midfield; and completing stages 3 and 4 of the elevated road network. The Draft states that the proposed Melbourne Airport Rail Link is envisaged to be operational by 2038 (shown as the dark blue line in Figure 3 and 4) with land to “be safeguarded for ground-based transport access, including future rail connections.” Figure 3: 2038 Development Concept Plan Source: Melbourne Airport Beyond 2038, Melbourne Airport will look to develop a fourth runway parallel to the existing north-south runway, and a sixth terminal and related airside facilities in the midfield development area. Further, land on the western side of the airport has been safeguarded for future aviation development, with the Draft noting development of west and middle areas of the airport would require additional transport access from existing roads to the north or west of the airport. The proposed road network upgrades around the airport are depicted in Figure 4, with the Melbourne Airport Link, Bulla Bypass and Calder Freeway upgrade expected within the next two decades. While not expected in the near term, Melbourne Airport anticipates the Calder Freeway to Hume Highway section of the proposed Outer Metropolitan Ring Road would be considered a priority by the Victorian Government. Figure 4: Future road network access Source: Melbourne Airport The Draft states Melbourne Airport will continue to work with the Victorian Government and private operators to improve the access to Melbourne Airport. Public submissions on the Preliminary Draft Master Plan are due by 8 October 2018. Following consideration of submissions, a Draft Master Plan is expected to be provided to the Commonwealth Transport and Infrastructure Minister for consideration in December 2018. Relevant links Read the Melbourne Airport Preliminary Draft Masterplan 2018 View Melbourne Airport Third Runway on infrastructurepipeline.org View Melbourne Airport Rail Link on infrastructurepipeline.org △ back to