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Port Botany - Sydney Airport Precinct Scoping Study Prepared for Infrastructure NSW

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Port Botany - Sydney Airport Precinct Scoping Study Prepared for Infrastructure NSW Port Botany - Sydney Airport Precinct Scoping Study Prepared for Infrastructure NSW December 2011 Oliver Steele 25 September 2012 Project Director Infrastructure NSW GPO Box 5341 Sydney NSW Re: Port Botany – Sydney Airport Precinct Scoping Study Dear Oliver I am pleased to provide you and the Infrastructure NSW (INSW) Steering Committee with our Port Botany – Sydney Airport Precinct Scoping Study. As agreed, we have removed certain pieces of confidential information from this version of the report compared to the final report sent to you on 2 December 2011. In reading this reissued report, it should be noted that our work concluded on 2 December 2011 and the report was constructed based on information, data and analysis current at that date. We have not sought further information and our report has not been updated since that date. As a result, material events may have occurred since we originally issued our final report in December 2011 that are not reflected in this reissued report and this may impact our analysis, findings and the solutions discussed herein. Port Botany and Sydney Airport are critical economic assets to Australia which in the short to medium term will retain their economic pre-eminence. However, they face capacity constraints, a growing passenger and freight task, and surface access challenges that are caused by competing demands on the infrastructure network in the Precinct. In a precinct where private vehicles and road freight dominate modal choices, available capacity on freight and passenger rail suggest there is potential to shift travel demand to more efficiently use the existing infrastructure network. This will require an integrated approach to tackling the transport task, addressing the public transport service offering, and improving rail freight competitiveness. Our report finds that the usual approach of focusing on mega infrastructure projects will not deliver relief in the short term. Whilst such mega projects may be required in due course, a more efficient approach also requires short term, better use measures. This report takes a fresh approach to identifying solutions. In particular, it identifies a package of small, pinch-point focused, productivity enhancing measures to improve public transport use, to relieve road congestion and to improve the efficiency and cost of rail freight. Since the evidence base for these measures is weak in places - particularly how they fit together – we recommend that Transport for NSW lead the development of a short term Action Plan. An integrated program of reform and work could be implemented in three to five years. We would welcome comments from you and the Committee. Yours sincerely Oliver Jones Partner Liability limited by a scheme approved under Professional Standards Legislation Release Notice Ernst & Young ("Consultant") was engaged on the instructions of Infrastructure NSW ("Client") to undertake a scoping study for the Port Botany Sydney Airport Precinct ("Project"), in accordance with the engagement agreement dated 10th February 2012 including the General Terms and Conditions (“the Engagement Agreement”). The results of the Consultant‟s work, including the assumptions and qualifications made in preparing the report, are set out in this Consultant's report dated 5th December 2011 ("Report"). You should read the Report in its entirety including the Engagement Agreement, disclaimers and attachments. A reference to the Report includes any part of the Report. No further work has been undertaken by the Consultant since the date of the Report to update it. Unless otherwise agreed in writing with the Consultant, access to the Report is made only on the following basis and in either accessing the Report or obtaining a copy of the Report the recipient agrees to the following terms. 1. Subject to the provisions of this notice, the Report has been prepared for the Client and may not be disclosed to any other party or used by any other party or relied upon by any other party without the prior written consent of the Consultant. 2. The Consultant disclaims all liability in relation to any other party who seeks to rely upon the Report or any of its contents. 3. The Consultant has acted in accordance with the instructions of the Client in conducting its work and preparing the Report, and, in doing so, has prepared the Report for the benefit of the Client, and has considered only the interests of the Client. The Consultant has not been engaged to act, and has not acted, as advisor to any other party. Accordingly, the Consultant makes no representations as to the appropriateness, accuracy or completeness of the Report for any other party's purposes. 4. No reliance may be placed upon the Report or any of its contents by any recipient of the Report for any purpose and any party receiving a copy of the Report must make and rely on their own enquiries in relation to the issues to which the Report relates, the contents of the Report and all matters arising from or relating to or in any way connected with the Report or its contents. 5. Subject to clause 6 below, the Report is confidential and must be maintained in the strictest confidence and must not be disclosed to any party for any purpose without the prior written consent of the Consultant. 6. All tax advice, tax opinions, tax returns or advice relating to the tax treatment or tax structure of any transaction to which the Consultant‟s services relate (“Tax Advice”) is provided solely for the information and internal use of Client and may not be relied upon by anyone else (other than tax authorities who may rely on the information provided to them) for any purpose without the Consultant‟s prior written consent. If the recipient wishes to disclose Tax Advice (or portion or summary thereof) to any other third party, they shall first obtain the written consent of the Client before making such disclosure. The recipient must also inform the third party that it cannot rely on the Tax Advice (or portion or summary thereof) for any purpose whatsoever without the Consultant‟s prior written consent. 7. No duty of care is owed by the Consultant to any recipient of the Report in respect of any use that the recipient may make of the Report. 8. The Consultant disclaims all liability, and takes no responsibility, for any document issued by any other party in connection with the Project. 9. No claim or demand or any actions or proceedings may be brought against the Consultant arising from or connected with the contents of the Report or the provision of the Report to any recipient. The Consultant will be released and forever discharged from any such claims, demands, actions or proceedings. Infrastructure NSW Port Botany – Sydney Airport Precinct Scoping Study Ernst & Young i Contents 1. Executive summary ......................................................................................................... 1 2. Introduction .................................................................................................................... 5 2.1 Background to the Scoping Study ................................................................................................................... 5 2.2 Aim and Purpose .......................................................................................................................................... 5 2.3 Our Approach .............................................................................................................................................. 6 3. Sydney’s International Precinct Today .............................................................................. 7 3.1 Economic Importance of the Precinct ............................................................................................................. 7 3.2 Land Transport Network ............................................................................................................................... 8 3.3 Current Infrastructure Proposals.................................................................................................................. 10 3.4 Governance in the Precinct .......................................................................................................................... 11 4. Problem Identification: The fruits of growth .................................................................... 12 4.1 Capacity Constraints on International Gateways ............................................................................................ 12 4.2 Current and Growing Road Congestion in the Precinct .................................................................................... 15 4.3 Inadequate Public Transport Provision .......................................................................................................... 21 4.4 Unreliable and Uncompetitive conditions for Rail Freight ................................................................................ 26 5. Findings and Initial Conclusions ...................................................................................... 34 6. Recommendations for Next Steps .................................................................................. 37 6.1 A Short Term Action Plan to 2015 or 2017 ................................................................................................... 37 6.2 Developing the Long Term Transport Improvement Plan for the Precinct ........................................................ 40 Appendix A Solution Identification ...................................................................................
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