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1. Analysis in THIS EDITION IN THIS EDITION 1. Analysis 2. Added 3. Status Changes 4. Updates 5. Projects removed from the Pipeline Home About us Contact 1. Analysis Project pipeline analysis October’s Pipeline Report sees activity across all economic and social infrastructure sectors throughout Australia and New Zealand. This includes the $15.8 billion North East Link (VIC) business case approval from Infrastructure Australia, a preferred bidder being selected on City Rail Link’s Systems ITC package (NZ) and shortlisting for the two Suburban Roads Upgrade Public Private Partnerships (VIC). The social infrastructure pipeline saw the addition of the North Shore Hospital in Auckland following a NZ$200 million (A$184 million) commitment from the NZ Government, as well as the Shoalhaven Hospital Redevelopment after the NSW Government’s $434 million commitment. Figure 1 below shows the current pipeline by status. The value of projects in the first three stages (yet to enter the market) totals $170 billion. This is $60 billion higher than October last year, with the top three jurisdictions being Victoria, NSW and New Zealand. Figure 1: Project pipeline by status Source: infrastructurepipeline.org In transport, five shortlisted consortia were announced by the Brisbane City Council for the Inner-City Infrastructure Works package of Brisbane Metro. Meanwhile, Request for Proposals (RFP) were issued to Lendlease, CPB Contractors and John Holland for Stage 2 of the Monash Freeway Upgrade. The New Zealand Transport Agency is also well underway with re-evaluating 12 designated road corridors. This follows the release of the Government Policy Statement on Land Transport and the Draft Transport Agency Investment Proposal. Re-evaluations and funding profiles are forecast to be complete by the end of 2018, which will confirm re-scope or re-schedule of major planned road projects. The NZTA has recommended that the original scope of the Tauranga Northern Link project be reduced, while Whāngārei to Port Marsden Highway and Port Marsden Highway to Te Hana have seen the NZTA recommend that safety improvements along the route be the short term priority, along with road corridor protection for future upgrades. Warkworth to Wellsford will also likely be removed from infrastructurepipeline.org as NZTA indicated the project is now still at least 10 years away. Investment in tunnels is forecast to surge Our analysis shows we now have 12 projects in the Prospective to Announced pipeline which are tunnel projects, or have major tunnel components. Tunnel projects, with a combined value of circa $50 billion, include: Announced F6 Corridor – Stage 1 – Extension Project (NSW) North East Link – Primary Package PPP (VIC) (CTH) Credibly Proposed Western Harbour Tunnel (NSW) Beaches Link Tunnel (NSW) Sydney Metro West – Tunnel – The Bays Precinct to Sydney CBD (NSW) Sydney Metro West – Tunnel - Westmead to The Bays Precinct (NSW) Prospective Pipeline Suburban Rail Loop - South East (VIC). Other projects which will have a major tunnel component include: Announced Inland Rail – Toowoomba (Gowrie) to Kagaru Sections PPP (CTH) (QLD) Melbourne Airport Rail Link (VIC) (CTH) Credibly Proposed METRONET – Morley to Ellenbrook Line (WA) (CTH) Snowy Hydro 2.0 (CTH) Prospective Pipeline North South Rail Link (NSW) (CTH). The North South Corridor – River Torrens to ANZAC Highway and ANZAC Highway to Darlington could also see major tunnels under part of Adelaide. SMEC, WSP and Tunnelling Solutions will undertake a technical study to assess the viability of tunneling for the two sections. The results of the technical study will form part of the business case to be prepared by PwC. Projects that are currently under procurement with tunnelling components include Brisbane Metro, City Rail Link, Cross River Rail and Westconnex Stage 3B. More announcements in Victoria as election edges closer The Victorian election campaign has seen a range of infrastructure commitments across the transport sector. The Victorian Government’s latest pledge to remove a further 25 level crossings at a cost of circa $6.6 billion adds to the list of project announcements. Major commitments by the Government so far include: Suburban Rail Loop – South East Additional 25 level crossing removals, and Western Rail Plan – fast rail to Geelong and Ballarat along with new track to Melton and Wyndham Vale. The Opposition has also committed to an array of transport infrastructure projects, headlined by a $4.1 - $5.5 billion grade separation and traffic light removal project and the revival and delivery of East West Link. In the long-term, the Opposition has also proposed faster rail connections to regional Victoria, with the Geelong section forming first stage. It proposed the first stage would be operational by 2022. The plan would also see the re-opening of V/Line services to Donald, Mildura, Horsham and Hamilton. Other Opposition commitments include the electrification of Frankston line to Baxter and procurement of 16 new-generation VLocity trainsets. A number of projects also have bipartisan support, which include: West Gate Tunnel North East Link Melbourne Airport Rail Link, and Waurn Ponds Duplication – Stage 2. The Opposition also supports North East Link, however it is proposing to complete East West Link first, with both projects constructed in tandem. The North East Link Authority would be tasked with delivering both projects, if the Opposition is elected. The Hurstbridge Line Upgrade and Dandenong to Cranbourne Duplication have also had bipartisan commitments, however the timing and composition of the projects vary. The Government has pledged $530 million to duplicate track between Greensborough and Montmorency, and between Diamond Creek and Wattle Glen, whereas the Opposition would duplicate track between Greensborough and Eltham stations. While the Government has committed to the Dandenong to Cranbourne Duplication, the Opposition has said it would extend the line to Clyde first, before duplicating the line. WA and SA asset sales progress WA TAB, the principal provider of online and retail outlet wagering services in WA, has been moved to announced following the WA Government's confirmation that it will proceed with the sale. Legislation enabling the sale is expected to be introduced to Parliament in early 2019. Along with Landgate and the recently announced Operation of SA Diesel Generators, these are the only three asset transactions confirmed to occur in the short-term (see Figure 2). Figure 2: Brownfield divestment Pipeline, by status Source: infrastructurepipeline.org BACK TO TOP 2. Added Shoalhaven Hospital Redevelopment (NSW) CREDIBLY PROPOSED - On Thursday, the NSW Government announced $434 million funding to redevelop Shoalhaven District Memorial Hospital. Planning money for the project was allocated in the 2018-19 NSW Budget, and the redevelopment will likely include expanding surgical and emergency department facilities. Operation of SA Diesel Generators (SA) ANNOUNCED - The South Australian Government will conduct a tender process to lease out operations of the State's back-up diesel generators for 25 years. Expressions of Interest will be released in early November. North Shore Hospital (NZ) ANNOUNCED - In October , the New Zealand Government announced it would commit NZ$200 million (A$184 million)to build a new elective surgery unit at North Shore Hospital. The expansion will be co-funded by the Waitemata District Health Board (DHB), which will contribute an additional NZ$20 million (A$18 million) to the project. The business case is currently under development but it is expected that the new unit will have capacity of 120 beds and four new operating theatres. North East Link (VIC) (CTH) ANNOUNCED – The Federal Government announced that the project had been elevated to High Priority Project status on Infrastructure Australia's Infrastructure Priority List. This follows IA completing its assessment of the project's business case. Registrations of Interest for the Primary Package tunnel PPP opened in September, and all primary and proposed secondary packages of the North East Link have been added to infrastructurepipeline.org. These include: Primary Package - Tunnel PPP - the availability PPP for the tunnel between M80 Ring Road and the Eastern Freeway Secondary Package 1 - interchange works between the tunnel and the M80 along with upgrades to two kilometres of the M80 Secondary Package 2 - interchange works between the tunnel and the Eastern Freeway, along with a section of the Eastern Freeway works between Springvale Road and Bulleen Road as part of the project Secondary Package 3 - upgrades to seven kilometres of the Eastern Freeway between Bulleen Road and Merri Creek, and Secondary Package 4 - a section of the upgrades to the Eastern Freeway planned between Springvale Road and Bulleen Road. BACK TO TOP 3. Status Changes WA TAB (WA) ANNOUNCED - On 9 October, the WA Government confirmed that they would proceed with the sale of WA TAB. 35 per cent of the sale proceeds will be placed into a racing infrastructure fund. Legislation allowing for the sale of the asset will be introduced into Parliament in early-2019. City Rail Link – Systems Integration, Testing and Commissioning – Systems ITC (NZ) PREFERRED BIDDER SELECTED - In October, City Rail Link Limited announced that it had entered into an Interim Project Alliance Agreement with an RCR Tomlinson and WSP Opus joint venture - known as the SITS Alliance. The Alliance will now develop an Alliance Proposal with government partners. If successful, the Alliance will be awarded the contract by May 2019. Land Use Victoria (VIC) RECENTLY CLOSED - In the fourth quarter of 2018, the Victorian Government reached contractual close with Victorian Land Registry Services (VLRS) for a 40-year concession to operate the land titles and registry functions of Land Use Victoria. VLRS is owned by First State Super. BACK TO TOP 4. Updates Fishermans Bend Tram Link (VIC) PROSPECTIVE PIPELINE - The Fishermans Bend Tram Link Framework released in October reaffirmed the findings of the 2017 Integrated Transport Plan. Tram lines are proposed to run along Turner and Plummer Streets, connecting to the Melbourne CBD via a new bridge at Collins Street across the Yarra River.
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