Major Schemes Full Business Case South Shields Transport Interchange i Contents Page 1 Executive Summary 1 2 The Strategic Case 4 2.1 Introduction 4 2.2 The Problem 4 2.3 Consequences of not solving the problem 7 2.4 Scheme Objectives 8 2.5 Policy Context 9 2.6 Potential Alternative Options 22 2.7 Scheme Details 24 2.8 Expected Outcomes of the Preferred Scheme 30 2.9 Scheme Constraints 34 2.10 Evidence from Similar Schemes 34 2.11 Summary of Strategic Benefits 41 3 The Management Case 42 3.1 Introduction 42 3.2 Programme Management 42 3.3 Project Planning and Governance 44 3.4 Strategic Risks and Uncertainties 46 3.5 Risk Management 47 3.6 Contingency Plan 47 3.7 Evidence of Similar Projects Undertaken 48 3.8 Communications and Stakeholder Management 48 3.9 Deliverability and Delivery Partners 49 3.10 Evaluation Plan 52 4 The Commercial Case 56 4.1 Introduction 56 4.2 Procurement Strategy 56 5 The Financial Case 58 5.1 Introduction 58 5.2 Project Cost Profile 58 5.3 Key Financial Risks 60 5.4 Accounting Implications 60 5.5 Operating Costs and Revenue Implications 60 6 The Economic Case 61 ii 6.1 Introduction 61 6.2 Scheme Options Appraisal 61 6.3 Modelling and Appraisal Assumptions 61 6.4 Key Modelling Assumptions and Model Outputs 67 6.5 Impacts on the Economy 72 6.6 Impacts on the Environment 75 6.7 Impacts on Society 77 6.8 Scheme Costs 80 6.9 Public Accounts 81 6.10 Headline Economic Impacts 82 6.11 Sensitivity Tests 84 6.12 Value for Money Statement 87 6.13 Distributional Impacts 88 Appendices Appendix 1 Additional Scheme Visualisations and Diagrams Appendix 2 Current Bus, Metro and Ferry Services Appendix 3 RACI Risk Responsibility Matrix Appendix 4 Project Risk Register Appendix 5 Economic Case TAG Worksheets Appendix 6 South Shields 365 Masterplan Appendix 7 Cash Flow Analysis Appendix 8 Programme Plan iii 1 Executive Summary This is the full business case for the provision of a new Transport Interchange in the centre of South Shields. It demonstrates the need for the facility, and the benefits that will accrue from its provision using the standard Treasury Five Case Model as follows: The Strategic Case shows how the proposal provides a strategic fit with national and local strategy and policy priorities. The Economic Case outlines how the proposal offers optimum value, by comparison with other options. The Commercial Case covers how South Tyneside Council, Nexus and Muse Developments will implement the scheme in a commercially viable way. The Financial Case demonstrates that the proposal is fundable and affordable. The Management Case explains how the preferred option will be successfully delivered by the key partners listed above, using best practice methodology for the management of benefits, risks and the overall project. A new Transport Interchange is essential for the future of South Shields, as it will form an integral part of the town centre masterplan South Shields 365. Once operational it will make public transport easier and safer to use, and will help to transform the image of the town centre and the way people access it and move around within it. Sustainable economic growth is a necessity for South Shields and attractive, accessible public transport facilities will be a major factor in achieving this, by making it easier for people to get to and from jobs and services across the area. The second key reason is, in their existing condition, the bus stands and the Metro station are below the standards of current best practice in accessibility terms, and require comprehensive modernisation to complement the scale and ambition of the rest of the South Shields 365 transformation proposals. In summary, the business case proposals are as follows: Provision of a new Transport Interchange which delivers bus and Metro facilities together on a single site which is accessible, integrated and under cover. Decommissioning of the existing Metro station, and the bus stands and shelters along Keppel Street and Chapter Row which no longer meet passengers’ needs, in favour of public realm improvements promoting town centre economic development and delivering improved road safety. The wider strategic benefits of the scheme can be summarised as follows: 1 Regeneration: Supporting the wider objectives of the South Shields 365 Masterplan. Ensuring seamless and sustainable transport connections to and between the Riverside, town centre and Foreshore areas. Employment: Helping to create and sustain town centre jobs by increasing local spend through better local transport links. Facilitating higher local GVA by increasing the proportion of local spend and making it easier for local residents to commute to jobs and training across the wider region. Tourism: Providing easier access by public transport to the regionally significant Foreshore area of South Shields. Training: Excellent access for local residents to training and education facilities in South Shields and further afield in Gateshead, Sunderland and Newcastle. Housing: Ensuring sustainable transport access between South Shields town centre and the housing growth sites identified within the Borough Local Development Framework and the developing Local Plan. These proposals will play a pivotal role in the transformation of South Shields town centre through the South Shields 365 Masterplan being driven forward by South Tyneside Council and their scheme partners, Muse Developments. South Shields 365 represents an ambitious set of proposals that will increase the economic potential of retail and leisure in the town centre. It combines the resources of public sector organisations with private sector investment leverage, to ensure that the scheme is delivered on time and to budget, and with the lowest possible call upon public funds. This business case demonstrates how the Transport Interchange is an integral element of a wider programme, as well as a valuable public transport asset in its own right. Investment will deliver a high-profile gateway facility to South Shields town centre providing sustainable access to major new retail and leisure developments that will create jobs, making the town centre an attractive place to visit, leading to higher rates of local spend. The proposals will increase personal safety, security and accessibility, and reduce road accident risk for pedestrians in the Keppel Street, Chapter Row and Smithy Street areas. Public transport use is high in the South Shields area, and by delivering high quality facilities that bring people to the heart of the new town centre there will be mutual benefits to the local economy, environment and society, thus underpinning the key objectives of the South Shields 365 Masterplan. 2 Figure 1: Proposed Metro platform 3 2 The Strategic Case 2.1 Introduction The Strategic Case provides answers and evidence linked to the two fundamental questions that should underpin every business case: • What is the identified problem? • How will the proposed measures address this problem? In addition to answering these two key questions, the Strategic Case outlines the case for change with a clear rationale for making the investment, confirms the strategic fit, and sets out how this investment will further the aims and objectives of all parties committed to making a real difference to the future of South Shields through the implementation of a bold, imaginative blueprint commanding widespread stakeholder support across the public and private sectors. It provides a shortlist of options and specifies the business need for the development project, outlining how the scheme will assist economic regeneration and identifies a series of aims closely aligned to regional and wider government objectives. Following this introduction the Strategic Case includes sections on: • The identified problem • Scheme objectives • The policy context at a local, regional, and national level • Local background data including socio-economic and transport service data • Consideration of alternative options • Scheme details including the context and description • How the proposed measures address the problem • Strategic risks and uncertainties • Evidence from similar projects • Summary of strategic benefits 2.2 The Problem The fundamental issue addressed by this proposal is that of ensuring that public transport plays its full part in helping to deliver the transformation of South Shields town centre. South Tyneside Council and Muse Developments have an exciting vision of a regenerated centre, South Shields 365, which is attractive, accessible and liveable for both residents and visitors, and creates and sustains year-round employment and economic growth. The current condition and location of the bus stops and Metro station would not help to fulfil this objective. 4 Existing Town Centre Transport Provision Existing public transport facilities date from the early 1980s when Metro arrived into the town centre via a new alignment from Chichester, terminating at a new station above King Street and just short of the old terminus at Mile End Road. Buses formerly congregated in Market Place, but following Metro’s arrival facilities were concentrated on Keppel Street and Chapter Row, with a row of parallel enclosed bus shelters on the eastbound carriageway catering for most routes leaving the town centre for other areas of the town and further afield. These shelters are of low quality in terms of townscape and public realm and are in need of major remodelling to improve pedestrian permeability and reduce the potential for pedestrian/vehicle conflict. Overall, this area has a confusing ambience dominated by the backs of shops, refuse storage, highways, guard rails and crossing points. Figure 2: Existing street layout in central South Shields Keppel Street, Chapter Row and Church Way are all highway-dominated by bus only lanes, presenting potential road safety risks to pedestrians. To counteract these risks, the highway authority has introduced large sections of guard rail which corral pedestrians away from natural desire lines into formal crossing points.