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01 Murchison Highway Upgrades Tasmanian Government 2012 Submission to Nation Building 2 Program Murchison Highway Upgrades September 2012 Department of Infrastructure, Energy and Resources Priority assigned by jurisdiction for NB2 Priority seven under Moving Freight funding consideration Details of full scope of project, including Information on project objectives, strategic objectives, service requirements, project context and options analysis is discussed in status and project phase(s) seeking the Stage 1-6 template. funding. Information on the technical and delivery Note: It is expected that this will be largely aspects of the project, including benefit cost addressed through the main IA submission. analysis, project risks and delivery program is However, the Department requires cost discussed in the Stage 7 template. estimates to be provided using the Best BCRs for Murchison Highway upgrades are: Practice Cost Estimation Standard and at both P50 and P90. Also to use both 4% • Discount Rate (7%) and P50: 0.76. and 7% for BCRs. • Discount Rate (7%) and P90: 0.71. • Discount Rate (4%) and P50: 1.20. • Discount Rate (4%) and P90: 1.13. Alignment with objectives of NB2 The Murchison Highway Upgrades is submitted under the Moving Freight theme Note: This should include how a project (Local Freight sub-program) of Nation Building aligns with the overarching objective of 2. NB2, as well as how it aligns with the This project focuses on road upgrades to objective of each relevant NB2 subprogram. provide a consistent standard for high productivity vehicles. The Murchison Highway is the key transport corridor linking western Tasmania to export ports, industrial areas and population centres in north west Tasmania. Alignment with broader Commonwealth The project aligns with a number of and state/territory policies and plans Infrastructure Australia’s strategic priorities, including: Note: Specific plans/policies to be • addressed (at a minimum) include the Expand Australia’s productive capacity Commonwealth’s Infrastructure Investment • Increase Australia’s productivity Framework; the National Urban Policy; the National Ports and Land Freight Strategies; • Build on Australia’s global competitive and the Australian Government advantages commitment on the incorporation of ITS for major urban roads (as appropriate). • Reduce greenhouse gas emissions • Improve social equity, and quality of life, in our cities and our regions The project aligns with the National Land Freight Network Strategy’s strategic initiative of freight infrastructure improvement and access through road upgrades to provide consistent standard for high productivity vehicle access on the key transport corridor linking western Tasmania to ports and cities in north west Tasmania. The project aligns with the National Ports Strategy strategic priority of improving 1 | Page landside efficiency. Further details are contained under Goal Definition (Stage1 - 6 template). Overall financial exposure including Full details of cost estimates are outlined in identification of other partner funding the Stage 7 template. Note: It is expected that this will be addressed in the main IA submission. Identification of key strategic risks to the A Risk Management Register has been project developed for the project. Risks are detailed in the submission under Costs, Risks and Note: It is expected that this will be Funding (Stage 7 template). addressed in the main IA submission Quantification of the expected benefits Project benefits are outlined in the Stage 7 from the proposal template. Note: It is expected that this will be addressed in the main IA submission. Information regarding the extent to The need for Government funding is which the potential for private sector discussed in the Stage 7 template. involvement or investment has been evaluated Note: It is expected that this will be addressed in the main IA submission. Likely impacts from the project proposal Further details on the impacts are outlined in on citizens and the market Problem Identification, Assessment and Analysis (Stage 1-6 template). Note: Detail is needed on how each proposal will impact citizens and the market (as two distinct groups) – positively or negatively, and the extent of the impact Identification of key stakeholders in the Further details on key stakeholders and project and the complexity of relationships are discussed in the Stage 7 stakeholder relationships template. Extent of multijurisdictional and/or No other jurisdictions or private sector entities private sector involvement in the are involved in developing this proposal. proposal Details of the level of innovation and An ITS solution is not considered to be information technology involved in the applicable to the issues this project proposal, including in relation to addresses. information technology requirements to successfully manage/implement the proposal 2 | Page Note: Detail is to include identification of any new/untried methodologies or technologies to be used in the project, as well as IT requirements for the proponent agency to successfully manage or implement the proposal. Details of the proposed procurement Procurement methods for the proposal are methods for the proposal discussed in the Stage 7 template. Note: It is expected that this will be addressed in the main IA submission. Level of complexity in construction, and Further details on construction and related any known issues in relation to the issues are discussed in the Stage 7 template. construction of the project, including environmental and heritage considerations Note: It is expected that this will be largely addressed through the main IA submission. However, the Department requires sufficient detail to fulfil its probity and accountability requirements, so any additional information not explicitly addressed in the main IA submission should be provided here. Any known issues in relation to There are no foreseen contractual or service contractual or service delivery delivery issues. obligations stemming from the proposal Note: This is to include any issues that are not currently present but could reasonably be foreseen. Details of the proposed governance The governance model for this project is arrangements for the proposal outlined in the Stage 7 template. Note: This should be largely addressed in the main IA submission. However, the Department requires an explicit statement about the experience of the management team in delivering similar proposals and whether there are any expected knowledge gaps or training needs to successfully implement the proposal. Details of the proposed delivery The delivery timetable is outlined in the Stage timetables and whether there are any 7 template. known challenges to achieving those timeframes 3 | Page Note: It is expected that this will be addressed in the main IA submission. Details of any significant The key interdependencies for the project are interdependencies for the project outlined in the Stage 7 template. Note: It is expected that this will be addressed in the main IA submission. 4 | Page Proposal Summary Initiative Name: Murchison Highway Upgrades Location (State/Region(or City)/ West Coast, Tasmania Locality): Name of Proponent Entity: Tasmanian Department of Infrastructure, Energy and Resources (DIER) Contact (Name, Position, phone/e- David Spence, General Manager Infrastructure Strategy mail): Department of Infrastructure, Energy and Resources Tel: (03) 6233 2089 Email: [email protected] Executive summary The Murchison Highway is the key freight and passenger route connecting the west and north west regions of Tasmania. The West Coast region is the centre of Tasmania’s mining industry, with major, long-term producers located at Mt Lyell, Rosebery and Savage River. In 2011, approximately 2.8 million tonnes of mineral resources were moved out of the West Coast, the majority for export through Burnie Port and a private facility at Port Latta. Several major new mines are proposed in the area, the majority of which will use the Murchison Highway as the primary freight transport route, reflecting the dispersed and remote location of most mine sites. The West Coast region also has an expanding aquaculture industry, focused on Macquarie Harbour. In 2011, the Murchison Highway carried 260 000 tonnes of freight, which is forecast to increase to 650 000 tonnes by 2030 The Murchison Highway between Cradle Mountain Development Road and Anthony Road is part of the primary road freight corridor connecting Zeehan, Strahan and Queenstown and most major mines on the West Coast, with Burnie Port and the National Network. The existing Highway does not meet the Tasmanian guidelines for High Productivity Vehicles. The road has narrow lane widths, tight curves and insufficient overtaking opportunities. The Tasmanian Government has undertaken significant strategic and corridor planning on the West Coast, including joint development with industry and local government of the Western Tasmania Industry Infrastructure Study (2012). The Government has identified a package of projects to improve efficiency and safety on the Murchison Highway between Cradle Mountain Development Road and Anthony Road, starting with a $21 million investment by the Tasmanian Government on priority sections of the Murchison Highway. The upgrades proposed under Nation Building 2 build on this investment, to deliver an efficient, safe and compliant heavy vehicle freight corridor. Is this a new submission? Yes Estimated cost of problems? The strategic framework and transport system problems to which
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