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KPMG KIDS Report V4.0 GlobeLink Scoping Study Report Business Case – Stages 1 and 2 South Australia Department of Planning, Transport & Infrastructure December 2019 Prepared by KPMG on behalf of — KPMG.com.au Prepared by KPMG on behalf of the Department of Transport, Planning and Infrastructure, with technical support from AECOM the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered d by a scheme approved under Professional Standards Legislation. Disclaimer Important Notice If you are a party other than DPTI, KPMG: • owes you no duty (whether in contract or in tort or under statute or otherwise) with respect to or in connection with the attached report or any part thereof; and • will have no liability to you for any loss or damage suffered or costs incurred by you or any other person arising out of or in connection with the provision to you of the attached report or any part thereof, however the loss or damage is caused, including, but not limited to, as a result of negligence. If you are a party other than DPTI and you choose to rely upon the attached report or any part thereof, you do so entirely at your own risk. Limitations The responsibility for determining the adequacy or otherwise of our terms of reference is that of DPTI. The services provided under our engagement contract (‘Services’) have not been undertaken in accordance with any auditing, review or assurance standards. Any reference to ‘audit’ and ‘review’, throughout this report, is not intended to convey that the Services have been conducted in accordance with any auditing, review or assurance standards. Further, as our scope of work does not constitute an audit or review in accordance with any auditing, review or assurance standards, our work will not necessarily disclose all matters that may be of interest to DPTI or reveal errors and irregularities, if any, in the underlying information. In preparing this report, we have had access to information provided by DPTI, the supply chain study, stakeholder inputs and publicly available information. We have relied upon the truth, accuracy and completeness of any information provided or made available to us in connection with the Services without independently verifying it. Any findings or recommendations contained within this report are based upon our reasonable professional judgement based on the information that is available from the sources indicated. Should the project elements, external factors and assumptions change then the findings and recommendations contained in this report may no longer be appropriate. Accordingly, we do not confirm, underwrite or guarantee that the outcomes referred to in this report will be achieved. We do not make any statement as to whether any forecasts or projections will be achieved, or whether the assumptions and data underlying any such prospective financial information are accurate, complete or reasonable. We will not warrant or guarantee the achievement of any such forecasts or projections. There will usually be differences between forecast or projected and actual results, because events and circumstances frequently do not occur as expected or predicted, and those differences may be material. Electronic Distribution of Reports This Scoping Study was produced solely for the use and benefit of DPTI and cannot be relied on or distributed, in whole or in part, in any format by any other party. This version of the Scoping Study is dated 20 December 2019 and KPMG accepts no liability for and has not undertaken work in respect of any event subsequent to that date which may affect the plan. Any redistribution of this Scoping Study requires the prior written approval of KPMG and in any event, is to be a complete and unaltered version of the Scoping Study and accompanied only by such other materials as KPMG may agree. Responsibility for the security of any electronic distribution of this Scoping Study remains the responsibility of DPTI and KPMG accepts no liability if the Scoping Study is or has been altered in any way by any person. the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered d by a scheme approved under Professional Standards Legislation. GlobeLink Scoping Study, December 2019 Executive Summary The SA Government’s GlobeLink policy commits to a disciplined process to understand and quantify South Australia’s supply chain challenges and constraints; to identify and test the spectrum of possible solutions; and to identify solutions that support increased trade and investment and drive sustainable economic growth and employment. GlobeLink Scoping Study, December 2019 About GlobeLink South Australia has always been an export economy, built on natural advantages from extractive and productive industries, twinned with the historic comparative advantage of highly skilled manufacturing workforce; which produced value added products including vehicles, fuel refining, and food and beverage. The past few decades have seen South Australia impacted by a range of domestic and global factors that have eroded the standing of the South Australian economy and seen South Australia’s trade surplus narrow; with economic and social impacts accruing through reduced economic productivity and prosperity. GlobeLink is a SA Government policy, committing to an evidence-based examination of the freight challenges impacting South Australia’s trade – identifying the best mix of options to increase the reach of South Australia’s exports – and to reduce the cost of moving goods. The initial policy identified four reference projects, which are: • A non-stop freight road to connect from the South Eastern Freeway to Adelaide’s motorway network; • An intermodal export park to the south east; • A freight railway to replace the legacy Adelaide Hills segment of the ARTC track; and • A dedicated freight airport, to Adelaide’s south-east. These initial project options formed inputs to the GlobeLink Scoping Study, but were assessed against a broad range of alternative capital and non-capital options to identify options best placed to grow export trade and create economic opportunities. KPMG | v © 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Document Classification: KPMG Public GlobeLink Scoping Study, December 2019 Defining GlobeLink The GlobeLink Scoping Study commenced with a spatial definition of the GlobeLink Study Area. This saw the identification of GlobeLink’s freight catchment; as well as the identification of an infrastructure corridor for option identification. The initial infrastructure corridor reflected the GlobeLink reference projects; but was expanded during the study to allow a wider consideration of potential project options. Figure 1 below shows the GlobeLink freight catchment extending across the Victorian border, the initial infrastructure corridor and the expanded corridor, which encompasses all of Greater Adelaide. Figure 1: The GlobeLink defined areas Source: AECOM, National Key Freight Routes (DIRD) KPMG | vi © 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Document Classification: KPMG Public GlobeLink Scoping Study, December 2019 GlobeLink objectives KPMG developed a range of project objectives, which were tested with SA Government and freight industry stakeholders. These objectives were aligned with SA Government’s policy and industry priorities – and provided a basis to filter a longlist of potential options to a manageable shortlist for detailed inquiry. These objectives are: Boost state and national productivity to capitalise on market opportunity over the long term through improved freight system 29% 01 efficiency, connectivity and capacity Increase and attract new employment and investment 02 within the region and for South Australia 25% Improve safety and amenity, and achieve social benefits 03 that are considerate of 16% community views Attract industry and Government partnerships to 15% 04 create affordable outcomes Optimise the use of existing South Australian 15% 05 Infrastructure 0% 10% 20% 30% Stakeholder prioritisation of GlobeLinkobjectives KPMG | vii © 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Document Classification: KPMG Public GlobeLink Scoping Study, December 2019 SA’s primary freight networks Figure 2 below shows South Australia’s key freight road and rail freight corridors and their destinations, as well as key freight nodes. Figure 2: Map
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