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ITLS-WP-19-21.Pdf (PDF, 4.7MB) WORKING PAPER ITLS-WP-19-21 Overview of Australian Urban Road Tunnels By Peter Ridley Institute of Transport and Logistics Studies, University of Sydney Business School, NSW 2006, Australia November 2019 ISSN 1832-570X INSTITUTE of TRANSPORT and LOGISTICS STUDIES The Australian Key Centre in Transport and Logistics Management The University of Sydney Established under the Australian Research Council’s Key Centre Program. NUMBER: Working Paper ITLS-WP-19-21 TITLE: Overview of Australian Urban Road Tunnels “Ask not for whom the road tolls; it tolls for thee.” Bowdlerised from: John Donne [1624]; Devotions Upon Emergent Occasions, Meditation XVII. This paper collates data (location, size, cost of construction, ABSTRACT: maintenance and operation) on long Australian urban road tunnels exceeding 1 km in length with opening dates up to 2020. An understanding of traffic behaviour, demand and toll revenue leads to estimations of return on investment and costs. Operating constraints and parameters; traffic flow, pollution and energy consumption are used to evaluate the performance of the tunnels along with their safety (accidents and fire) record. EY WORDS: AUTHORS: Ridley CONTACT: INSTITUTE OF TRANSPORT AND LOGISTICS STUDIES (H73) The Australian Key Centre in Transport and Logistics Management The University of Sydney NSW 2006 Australia Telephone: +612 9114 1824 E-mail: [email protected] Internet: http://sydney.edu.au/business/itls DATE: November 2019 Overview of Australian Urban Road Tunnels Ridley Introduction Urban road tunnels in Australia have been the subject of considerable public controversy regarding cost, efficacy and safety. The purpose of this document is to collect data relevant to these issues for major Australian road-tunnels including; • tunnel location and geometry, • cost of construction, maintenance and operation, • traffic demand, toll revenue and return on investment, • operating constraints and performance parameters; traffic flow, pollution, energy consumption, • safety; traffic accidents and fire incidents. Sources of data are generally from public domain documents, which may be susceptible to problems with currency, rounding errors and interpretation. Data highlighted in red text are identified as being estimates. Tunnel inventory Road tunnels examined in this paper exceed one kilometre in length and are located in Sydney, Brisbane and Melbourne [55,71]. They are generally procured through public-private partnerships where the public sector provides a reference design and the facility is built, owned, operated by the private partner and transferred to public ownership after the concession period (up to 40 years) has expired. Superannuation funds own a large proportion of the equity in the toll-road operating companies for the following reasons [48]; • Diversification: there is a low observed correlation over time with other asset classes. • Illiquidity premium: unlisted infrastructure assets are illiquid with constrained exit options, providing an illiquidity premium for investors. • Inflation protection: infrastructure assets typically generate cashflows with built-in escalation regimes that protect against inflation. • Returns: investment returns have compared favourably with other asset classes over time. • Stable, defensive assets with low volatility: due to inelastic demand, most infrastructure assets can protect against an economic downturn, with higher average returns than traditional defensive assets such as cash or bonds. Table 1 shows that Transurban has a dominant position in the ownership and operation of these assets. Notable exceptions are; (1) Sydney Harbour Tunnel; Kumagi Gumi (50%), Transfield (25%), Tenix (25%) (2) M5 East; Road and Marine Services (100%), is the only currently publicly owned, un-tolled tunnel. (3) Queensland Motorways [81], (who owned, CLEM7, Go Between Bridge, Gateway Motorway and Sir Leo Hielscher Bridges; the Gateway Extension, Logan Motorway and Legacy Way) was sold in 2014 for $7.1 billion to a consortium comprising Transurban (62.5%), AustralianSuper & Tawreed Investments (37.5%). (4) NorthConnex will receive $0.8 billion of State and Federal Government funding; remainder Transurban (50%), Canada Pension Plan & QIDC (50%). (5) Eastlink; ConnectEast was refinanced is now owned by Horizon Roads (100%); consortium of eight overseas superannuation and pension funds. 1 Overview of Australian Urban Road Tunnels Ridley M4 East has been recently opened and NorthConnex tunnel is currently under construction, where opening date given in Table 1 is only approximate. In various stages of planning and construction are; five more Sydney tunnel projects (New M5, M4-M5 Link, Western Harbour Crossing, Northern Beaches Link and F6 Extension) as well as Melbourne’s Westgate and North East Link. These tunnels have proposed opening dates later than 2020 and are not analysed in this paper. Several of the tunnels noted in Table 1 are a combination of two and three lane sections; these are designated as having a width of 2.5 lanes. Figure 1 gives a graphical view of the relative size (lane- km; excluding ramps) of each of the tunnels studied. Figure 2, Figure 3 and Figure 4 show the routes of each of the tunnels along with adjoining toll-roads, both existing and proposed. Table 1. Australian Urban road tunnels exceeding 1 km in length with opening dates up to 2020. Transurban Open Length Size % km lanes lane-km Sydney Harbour 0 Aug-92 2.8 2 11.2 Eastern distributor 75.1 Dec-99 1.7 2.5 8.5 M5 East 0 Dec-01 3.8 2 15.2 SYDNEY Cross City 100 Jun-05 2.1 2 8.4 Lane Cove 100 Mar-07 3.5 2.5 17.5 M4 East 51 Jul-19 5.5 2.5 27.5 NorthConnex 50 Jan-20 9.0 31 54.0 Clem7 62.5 Mar-10 4.8 2 19.2 BRISBANE Airport Link 62.5 Jul-12 5.7 2.5 28.5 Legacy Way 62.5 Jun-15 4.6 2 18.4 Citylink (Burnley & 3.4 MELBOURNE Domain)2 100 Dec-00 1.6 3 15 Eastlink (Melba & Mullum-Mullum) 0 Jun-08 1.6 3 9.6 1 NorthConnex is built with three lanes in each tube, however only two lanes will be marked on opening. 2 One way tunnels; Burnley 3.4km eastbound & Domain 1.6km westbound 2 Overview of Australian Urban Road Tunnels Ridley Figure 1. Tunnel size; lane-km. 3 Overview of Australian Urban Road Tunnels Ridley Figure 2. Sydney tollways; current and future proposals. [71] 4 Overview of Australian Urban Road Tunnels Ridley Figure 3. Brisbane tollways; current and future proposals. [71] 5 Overview of Australian Urban Road Tunnels Ridley Figure 4. Melbourne tollways; current and future proposals. [71] 6 Overview of Australian Urban Road Tunnels Ridley Construction Construction costs of road tunnels are outlined in Table 2. Original costs have been escalated via the CPI index to give an equivalent $2018 cost given in the second column. Table 2. Construction costs. Original cost Current cost $2018 Comment $bn $bn $M/lane-km3 RH= road header TBM=tunnel boring machine Sydney Harbour $0.55 $1.05 $ 93 submerged tube Eastern Distributor $0.73 $1.20 $141 RH stacked tunnel, eight on-off ramps M5 East $0.80 $1.20 $ 79 RH design “issues”4, three on-off ramps Cross City $0.68 $0.93 $111 RH four on-off ramps Lane Cove $1.10 $1.44 $ 82 RH two on-off ramps M4 East $3.80 $3.80 $138 RH under construction, four on-off ramps NorthConnex $3.00 $3.00 $ 56 RH no on-off ramps Clem7 $3.20 $3.81 $198 TBM one on-off ramp Airport Link $5.535 $6.25 $219 RH & TBM six on-off ramps Legacy Way $1.50 $1.58 $ 86 TBM no on-off ramps Citylink $0.986 $1.52 $101 RH two one-way tunnels 3.4km and 1.6 km Eastlink $0.80 $0.98 $103 RH no ramps 3 Does not include the write-down in value associated with re-sale after bankruptcy. 4 See [57]; Design issues include steep ramps 8% gradient, single mid-tunnel vent station, insufficient ventilation capacity for high HGV fraction. 5 This figure includes the additional $0.73 billion under-estimate in the tender price by the constructor. 6 Includes $0.154 bn compensation for leaking tunnel. 7 Overview of Australian Urban Road Tunnels Ridley Six of the tunnels were on-sold at a discount after bankruptcy of the original owner. Current values given in Table 3 include the write-down in value from Table 2 resulting from the resale. Table 3. Resale and current value 7 8 Resale Current value $2018 date $bn return $bn Sydney Harbour $1.05 Eastern distributor $1.20 M5 East $1.20 Cross City Jun-14 $0.48 70% $0.51 Lane Cove Jan-10 $0.63 57% $0.75 M4 East $3.80 NorthConnex $3.00 Clem7 Jul-14 $0.62 9 19% $0.66 Airport Link Apr-16 $2.00 10 36% $2.08 Legacy Way Apr-16 $? 11 ? $1.58 Citylink (Burnley & Domain) $1.52 Eastlink Sep-11 $0.44 55%12 $0.50 7 Six tunnels were on-sold for a fraction of their value after bankruptcy of the original owner. 8 Includes the write-down in value associated with re-sale after bankruptcy. 9 See [81]; sold as part of Queensland Motorways $7b package 10 See [80] 11 See [81]; sold as part of Queensland Motorways $7b package; price unknown 12 ConnectEast and East Link motorway on-sold to Horizon Roads for$2.2bn. 8 Overview of Australian Urban Road Tunnels Ridley Construction costs are predominantly determined by volume of material excavated. Prevailing geology determines the means of excavation. Sydney tunnels in soft sandstone are mined using a road-header (RH) whereas Brisbane tuff requires the use of a tunnel boring machine (TBM) for two lane tunnels and road header for three lane sections. Sydney Harbour tunnel was constructed using prefabricated concrete sections (120m long) which were submerged and joined on the harbour floor.
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