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Invitation for Expressions of Interest in Regional Fast Rail Project

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Invitation for Expressions of Interest in Regional Fast Rail Project Invitation for Expressions of Interest in Regional Fast Rail Project 31st May 2001 Rail Projects Group Department of Infrastructure Level 8, Nauru House 80 Collins Street Melbourne VIC 3000 Telephone: (03) 9655 8989 Facsimile: (03) 9655 6688 Executive Summary Background This document invites expressions of interest from interested parties for the delivery of the infrastructure upgrade element of the Regional Fast Rail Project (the Project). The State’s Linking Victoria initiative, launched on 28 February 2000, provides a blueprint for generating over $1.5 billion of vital transport infrastructure. At the heart of the Linking Victoria initiative is the Regional Fast Rail Project, one of the largest projects in the history of Victoria’s rail industry. Other major investments in Victoria’s transport infrastructure include the redevelopment of Spencer Street Station, a program of gauge standardisation, the reopening of several country rail lines and the development of a transit link to Melbourne Airport. On 5 September 2000, the State announced the Project, which will introduce fast rail services between Melbourne and the Ballarat, Bendigo, Geelong and Latrobe Valley corridors. Nearly six million passengers are carried each year on the Project’s four rail corridors. Communities in these regions have a combined population of more than half a million people and represent 40 per cent of Victoria’s rural and regional population. Their travel opportunities are currently limited by ageing rolling stock and by rail infrastructure that cannot currently support fast rail operation. The Project will help overcome many of the obstacles to growth in regional Victoria and provide a major boost in terms of its economy, population, employment and quality of life. Feasibility studies completed during 2000 indicated an $810 million project cost to deliver the travel time targets of the State. From its Growing Victoria fund the State has subsequently reconfirmed its commitment of $550 million to the Project to cover infrastructure upgrades, and incremental rolling stock and net operational impacts. The RPG believes that this commitment should deliver most of the targeted journey time improvements. The State is seeking to elicit from the private sector innovative infrastructure concepts that will improve travel times and provide best value for money. At this point of the Project’s development the focus is on delivering the two principal physical components of the Project, which are: · the development of rail infrastructure that would allow shorter journey times within quality, safety, reliability and capacity parameters; and · the procurement of a fleet of new DMUs capable of a sustained speed of at least 160km/h. As part of a separate process, the new high-speed trains will be delivered progressively from 2004 onwards. The infrastructure works required for the Project are to be completed by late 2005. New service patterns will be determined later in the Project, closer to the commissioning of the new rolling stock and upgraded infrastructure. 2 Since the Premier’s announcement in September 2000, the RPG has discussed the Project with a range of industry participants and in December 2000 held a market forum for interested parties with expertise in rail engineering and operations, finance and construction. The RPG has drawn upon these discussions and the valuable comments from many forum participants to further refine the Project. This EOI document is the first stage of a bidding process for the Project’s infrastructure upgrade component that will lead to the award of contracts during 2002. The State is seeking partners capable of designing, constructing and delivering the infrastructure upgrades within the framework of a cooperative and productive working relationship with the RPG and the lessees of the existing infrastructure. The bidding process will be divided into two phases, with the contracts for country works due to be executed in March 2002. The Project is being implemented with the support of NEGA and FAL, the private sector rail operators and track access providers affected by the Project. Project Objectives The State’s objectives for the Regional Fast Rail Project are as follows: · Journey times: to secure the delivery of a fast rail service between Melbourne and Geelong, Ballarat, Bendigo and the Latrobe Valley that will achieve shorter express rail journey times and the best value for money, within the context of the State’s financial commitment to the Project. · Quality: to ensure that the faster rail service provides safe, convenient, comfortable and affordable rail services for the travelling public. · Patronage: to achieve a substantial and sustained increase in rail patronage on the four rail lines. · Cost: to minimise the long-term costs to the taxpayer associated with the upgrading, maintenance and operation of the upgraded rail network. · Risk transfer: to transfer risk to the private sector where it is appropriate to do so. · Timeliness: to secure the delivery of the Project in a timely fashion, in accordance with target dates and deadlines set by the State. · Accountability: to manage the Project in a transparent and accountable way, in consultation with stakeholders and in accordance with the highest standards of probity. In meeting these objectives, the State seeks to obtain the best value for money by drawing upon innovation and creativity from the private sector to the maximum extent possible. Journey Time Objectives The State seeks to obtain the best journey time outcomes available. The State’s Target express journey times between the four regional centres and Melbourne, which are shown in the table below, were announced in September 2000. The State has estimated that the Maximum express journey times shown below should be achievable for the 3 level of funding available by applying a conventional approach to project delivery. However, the State expects that, given the flexibility it is providing to the private sector to apply innovation and creativity, these Maximum journey express times can be bettered. Line Existing journey Target express journey Maximum express time (minutes) times (minutes) journey times (minutes)* Ballarat 85-104 60 64 Bendigo 100-125 80 84 Geelong 52-67 45 45 Latrobe Valley 115-145 90 95 (Traralgon) * On the basis of the State’s financial commitment to the Project of $550 million. Rail Projects Group The Department of Infrastructure and the Department of Treasury and Finance have jointly established the RPG to manage the delivery of the Project, the Melbourne Airport Transit Link and the Spencer Street Station Redevelopment. In carrying out this role in relation to the Project, the RPG will: · provide authoritative advice to the State on all aspects of the Project; · provide high level input to policy and program formulation; · implement contractual outcomes enabling the Project to proceed; · conduct high level negotiations with public and private stakeholders; · develop and deliver a communications strategy; and · ensure that the Project is integrated within the Linking Victoria policy and other Government policies, guidelines and standards, including those relating to rail safety and accreditation. The RPG reports to a Cabinet Committee chaired by the Minister for Transport. Graham Cunningham and Gail Moody are the Executive Director and Deputy Executive Director respectively of the RPG, and Brian Tymms is the Project Director. Purpose of the EOI This EOI is issued by the RPG and seeks expressions of interest from suitably qualified Respondents for the design, construction and delivery of the Metropolitan and Country Works Packages. The State is seeking innovative approaches from the private sector that will offer shorter travel times, identify value capture opportunities and provide the best value for money. Respondents will need to demonstrate their ability to undertake the infrastructure upgrades within an existing complex contractual and regulatory environment that will necessitate working effectively with several key stakeholders. 4 The purpose of this EOI process is to: · advise the market of the Project, its components and its proposed structure; · invite responses from market participants so that the RPG can select a short list for each Country Works Package and a Panel of Respondents from which a short list will later be selected for the Metropolitan Works Package; · advise the market of the evaluation criteria for selecting Short-Listed Parties and Panel members; · set out the proposed timetable for the Project’s delivery; and · receive informed comment from Respondents on the proposed delivery and financing structure of the Project. The RPG has determined the commercial structure for the infrastructure upgrade component of the Project. However, there are a number of issues on which Respondents may wish to comment. Some of these issues are: · the proposed project timetable; · the bid packaging and the phasing of the work; · the engineering standards/accreditation approach set out; · the proposed contracting method to achieve journey time targets in the country area; · the proposed contractual allocation of risk; · the proposed approach towards value capture opportunities; · the proposed approach to possessions/occupations; and · the process to be adopted for performance assessment and acceptance handover. Appendix B sets out a complete list of the information sought from Respondents. Scope of Works Works will be required in both the country and metropolitan areas. For each Country
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