Great Northernilighwl, - Muchea to Wubin Stage 2

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Department of ArAmainroads Public Transport Transport rap Authority SUBMISSION COVERSHEET This coversheet should be included with all submissions to Infrastructure Australia. Please complete all fields. Organisation: Main Roads Western Australia Date: 10 August 2012 Submission title: Great Northern (Muchea to Wubin) Stage 2 Author(s): Main Roads WA Contact person: Maurice Cammack Position: A/Manager Project Programming Postal address: PO Box 6202, EAST State: Western Australia Postcode: 6892 Email address: [email protected] Telephone: _

Please email your submission to: submissions(a,infrastructureaustralia.qov.au Two (2) hard copies (one marked as the original) to: SUBMISSIONS Infrastructure Australia GPO Box 594 Canberra ACT 2600 Ph: 02 8114 1900

CONFIDENTIALITY If this submission contains material which you believe is confidential, this material should marked as confidential on this coversheet and the reason for claiming confidentiality must be provided. The material must also be marked as confidential in the body of the submission. Infrastructure Australia may review claims of confidentiality with the proponent. Document: Reason:

ACKNOWLEDGEMENT Please acknowledge the following submission guidelines: • This submission conforms with Infrastructure Australia's requirements as set out in Better Infrastructure Decision- Making: Guidelines for making submissions to Infrastructure Australia's infrastructure planning process, through Infrastructure Australia's Reform and Investment Framework (available at www.infrastructureaustralia.gov.au ). • Where any third party material has been incorporated into the submission, the appropriate rights to use this material have been obtained. • Infrastructure Australia may review claims of confidentiality with the proponent. • I have (please tick ): emailed my submission to submissionsinfrastructureaustralia.gov.au and posted 2 hard copies. El List of documents included in this submission (please complete page 2 of this coversheet) El Completed templates 11] GIS data El Other, please state: Signed: Name and Position (please print): Maurice Cammack A/Manager Project Programming Date: 10 August 2012 List of documents contained in this submission

Item Document Title Related initiative Version Author Date (if applicable) 1 (Muchea to Wubin) Draft Revision A Main Roads WA 10/8/2012 Stage 2 Infrastructure Australia Submission Draft Revision A Page 2 INFRASTRUCTURE AUSTRALIA

REFORM AND INVESTMENT FRAMEWORK

Stages I to 6 II Great Northern Highway — Muchea to Wubin Stage 2

Version: Draft Revision A

(To be read in conjunction with Infrastructure Australia's

Submission guidelines for the Infrastructure Priority List)

August 2012

Page I 0 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Proposal Summary

Initiative Name: Great Northern Highway - Muchea and Wubin Stage 2 Location (State/Region(or Western Australia, Wheatbelt North Region City)/ Locality): Name of Proponent Entity: Main Roads Western Australia Contact (Name, Position, Maurice Cammack — A/Manager Project Programming phone/e-mail): [email protected] Executive summary

The extraordinary increase in world iron ore demand and prices coupled with the exploration and development of oil and gas fields in Australia's North-West has led to substantial population and industry growth. The result is massive mining and construction activity putting strain on existing infrastructure and exceeding planned infrastructure upgrades including major freight routes from the Perth to the North-West.

The primary benefits associated with resolving this problem are: • Improved global competitive advantage through improvements in freight efficiency and increased freight network capacity; • The development of cities and regions including improved amenity for the communities along this important freight route; • Reduction in vehicle operating costs particularly for heavy vehicles; and • Reduced crashes, emissions and time savings.

Great Northern Highway (GNH) forms part of the National Land Transport Network linking the Perth Metropolitan area and Fremantle Port with the North-West of Australia, as well providing a link to Darwin and the Northern Territory. The Muchea-Wubin section of the GNH is experiencing ever-increasing volumes of traffic from heavy vehicles; including 36.5 m road trains and High Wide Loads (HWL). HWLs in particular result in significant delays and reliability issues for general traffic due to limited carriageway width, poor shoulders and limited overtaking opportunities. Safety also remains a particular issue with three fatalities over the last five years on sections that have not been upgraded.

The solution (preferred option) consists of works on 87 km of the Muchea-Wubin section of the GNH. The proposal is to reconstruct and realign selected sections of the Highway, upgrade intersections, widen the seal and construct additional passing lanes. Undertaking these works will provide a safer road network for the community and improve freight efficiency on a primary route from Perth to the North- West. These works will complete the upgrading of this section of road following the completion of the Stage 1 $125 million investment by the Federal Government.

Heavy vehicles account for a third of traffic using this route and with rapidly increasing traffic volumes (heavy vehicle increase of six per cent), narrow seal (currently 6.2m) given the high proportion of heavy vehicle traffic, limited passing opportunities and poor alignment, certain sections of the GNH result in dangerous and constrictive driving conditions. Reconstruction and realignment of this section of road is overdue when the mix of traffic, travel time variability and safety risk is taken into consideration. In addition, due to the poor geometry of the road, triple road-trains (53.5m long) must break down into double road-trains at the assembly area north of Wubin before they may continue their journey south. This results in considerable cost to the transport industry in terms of hours of operation and vehicle operating costs.

There has been considerable interest and support from various government, industry and community stakeholders to improve this section of the highway. Page I 1 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A

Is this a new submission? : Yes Estimated cost of problems? ,':- The cost of the problem can be attributed to : increased travel times of freight movements, higher .. vehicle operating costs, crashes resulting in damage and delays, and social impacts such as noise and . pollution. Estimated Capital Cost of Initiative by Propone . Previous cost estimates are no longer current and ($M, nominal, undiscounted): are being reviewed. However, the order of cost for . this proposal is $280 million. .,, Commonwealth contribution sought by A contribution of 80% of the capital cost is being Proponent (SM, nominal, undiscounted): sought from the Commonwealth Government, this being $224 million. Other funding (source/amount/cash flow) ($M, " The remainder of the project costs will be funded by nominal, undiscounted): 1 the Western Australian State Government. Other . funding sources have been investigated but are not ; deemed to be appropriate or feasible for this , proposal. BCR by Proponent excluding Wider Economic : The BCR is being updated due to reflect the growth Benefits , in heavy vehicles and change in forecasts. Estimated program .I The delivery of the project is needed urgently given the existing delays and forecasted growth that will require these roads at an improved service level. The activities, budgets and timeframes are indicative and reliant on approval of project funding.

' Yea ctivity - lig,9j0 -., , I L l ed or si a ,, 1 il la_ . iliall welir 7P 2014/15 Planning and preconstruction 2015/16 Commencement of Construction 2016/17 Construction 2017/18 rernplete Construction TOTAL1

Page I 2 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to VVubin Stage 2, Draft Revision A Goal Definition

Goal Statements The key goals of this proposal are as follows:

1. Efficiency — a more efficient transport link between Perth and the North-West in terms of vehicle loads (mass and size) and reducing delays for all traffic 2. Reliability — a more reliable transport link between Perth and the North-West with a more consistent and predictable travel time 3. Safety —a safer route between Perth and the North-West reducing fatal and serious crashes.

Providing a safe and reliable freight corridor between Perth and the North-West of Australia will provide increased reliability and safety in moving freight to this "engine room" of the national economy. Providing a safe and reliable route for freight will not only provide greater reliability and productivity in the supply chain for the North-West, but will also ensure a safe and reliable route between the capital cities of Perth and Darwin.

This proposal will provide an important element in contributing to Australia's productivity by improving the efficiency, reliability and safety of transport linkages between Perth, Australia's North-West and the Northern Territory. Contribution to National Infrastructure Priorities Figure 1 represents the linkages between Infrastructure Priorities, Nation Building 2 Themes, Project Goals, and National and State Policies that the project provides.

xii: 1 Relevant IA iiiIMMIN.41‘ • Relevant Nation National Policies Priorities i Building 2 Themes iI

State Policies

Theme: National Freight Network - Networks and Corridors I

Moving Freight - Interstate Global Freight & Heavy Competitive Vehicle and Rail Advantage Freight Productivity y Theme: National Freight Network - Networks and Corridors

Figure 1 — Contribution to National Infrastructure Priorities Page I 3 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to VVubin Stage 2, Draft Revision A National Policies and Strategies

Infrastructure Australia Infrastructure Australia's strategic priorities include Increasing Productivity and Building on Global Competitive Advantage. These are critical if Australia is to realise the wealth of its resources and maintain the strong economic growth as forecasted in the short to medium term. Increase Australia's Productivity The transport Industry would receive gains in productivity and hence allow increased productivity in the industries it services; in this case the energy and resources sectors of the North-West. Vehicle running costs would be reduced, and more reliable freight movements would be possible at increased frequency. Building on Australia's Global Competitive Advantage Increased reliability and efficiency of the link, and the subsequent increased productivity of the transport industry, would help alleviate restrictions on the development of secondary / value adding industries in North-Western Australia to compliment and support the traditional resource industries. National Building 2 Program The Nation Building 2 program has 'Moving Freight' and 'Safety' as two of its four keys themes. As sub-elements to these key themes, this Proposal contributes to both the Network Regeneration and, Heavy Vehicle and Rail Freight Productivity. This is based on the existing safety and efficiency deficiencies of the corridor. As part of the Perth to Darwin Auslink corridor, this initiative will also provide a key role in enhancing connectivity between the capital cities of Perth and Darwin.

National Land Freight Strategy A National Land Freight Strategy is currently under development by Infrastructure Australia. GNH is a key road link and forms part of the national land freight network. The long term goals for the national freight network as emphasised by the study include: • Improved economic, social and safety outcomes; • High productivity vehicle capability and access; and, • Appropriate separation of personal transport and freight. The goals of this proposal contribute towards the outcomes being sought in the National Land Freight Strategy.

State Policies and Strategies Cities This submission recognises and contributes to the Infrastructure Australia supported Pilbara Cities initiative, that is, to develop 50,000 person cities in Karratha and Port Hedland. Pilbara Cities aims to increase the region's population from approximately 52,000 currently to 150,000 by 2035 and create attractive community environments which are not dominated by Fly-in and Fly-out workforces. The Pilbara Cities initiative was established in recognition of the need to support the unprecedented growth in Australia's North-West as the result of world demand for energy and resources. The Pilbara Cities initiative is considered urgent by many governments, industry and stakeholders because 30% of the nation's exports occur in the Pilbara and it is undertaken by only 0.2% of the population. State Development Policies and Strategies The Department of State Development works with industry, communities and government agencies to: • Enable the development of strategic industrial lands and infrastructure; and • Attract investment to Western Australia and assist the development of export markets.

Page I 4 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A The Department of State Development works to achieve growth for Western Australia through building strategic infrastructure and by leading and facilitating government and industry projects that create jobs and underpin Western Australia's long term development. The goals of this proposal contribute to the achievement of the Department of State Development goals.

Draft WA Regional Freight Transport Network Plan The route not only provides an important link in the national freight network, but is consistent with the network priorities and timing in the draft WA Regional Freight Transport Network Plan in servicing the future freight requirements of Western Australia. With the considerable growth in investment in mineral resources in the Pilbara and Kimberley, the importance of the initiative in releasing constraints to the development is clearly identified in the strategy.

WA Road Safety Strategy — Towards Zero Beyond the national and economic objectives, the initiative is seen as contributing to the improved safety outcomes for the wider community. "Towards Zero" is the Road Safety Strategy for WA to 2020. One of its four Safe System cornerstones is "Safe Roads and Roadside" with an overall aim is to reduce the number of serious and fatal road crashes by 40% by 2020. The Strategy has highlighted the need to improve the safety of key strategic routes radiating out of Perth.

The focus of the initiative in relation to state policies and strategies is summarised in Table 1

Table 1 Focus and Goals in Relation to Relevant State Plans

Focus Goals/ Project Goals Rationale Objectives

.,t Efficiency Efficiency— a more efficient The efficiency of the supply chain -VVA Regiona transport link between Perth and to major energy and resource ,reight the North-West in terms of vehicle developments has critical flow on Transport loads (mass and size) and reducing impacts to the wider freight etwork Plan" delays for all traffic network, including ports and the Perth metropolitan network

Capacity EEfficiency — a more efficient An efficient land transport corridor transport link between Perth and to the North-West is critical in the North-West in terms of vehicle ensuring effective use of the loads (mass and size) and reducing committed investment in the delays for all traffic productive capacity of the state's and nation's economies

Reliability Reliability — a more reliable A reliable freight link between transport link between Perth & the Perth and Darwin ensures North-West with more consistent & efficient and appropriate use of predictable travel time the wider freight network

— 111 Safety Safety —a safer route between Poor safety and a high number of Perth & the North-West reducing crashes has a significant impact fatal and serious injury crashes on the community

'1 aet,:: Safe System Safety —a safer route between Poor safety and a high number of trategy - transformation Perth and the North-West reducing crashes has a significant impact

owards . o - on key routes fatal and serious crashes on the community

Page I 5 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Addressing these goals will be critical in enhancing the productivity of both the Western Australian and Australian economies. The initiative seeks to address efficiency and safety deficiencies that impact on the productivity of major inputs into national and the state GDP, GSP and exports. Combined with the contribution to the economy, this comes at considerable cost to communities remote to the resource investment in terms of serious and fatal road crashes and reduced accessibility due to travel time delays.

Main Roads WA Corporate Policies and Strategies Main Roads WA has a range of corporate policies and strategies that support and identify the Perth- Darwin National Highway as being a high priority and a key infrastructure that will contribute to the prosperity of the national economy. These policies and strategies are summarised below. Main Roads' Strategic Asset Plan 2012/13 Main Roads WA annually prepares and Strategic Asset Plan as part of the state's budgetary process. This report outlines the proposed projects of the agency for the next 10 years with specific budgets and program dates for funded projects and indicative costs and programs for unfunded projects. The Strategic Asset Plan is based on the following principles: • Reliable and efficient movement of people and goods; • Facilitate economic and regional development; • A safe road environment; • Improved community access and roadside amenity; and • A well maintained road network. Main Road's 21C12 Corporate Plan The Main Roads WA 2K12 Corporate Plan outlines a number of strategic challenges and visions. The primary vision identified in the strategy is: "A safe and efficient road network that will support a vibrant community, help ensure the economic vitality of the state and enable environmental values to be enhanced." A key strategic challenge identified by the corporate plan is to provide infrastructure that meets the growing freight task and supports resource development. The proposed project will contribute to the Main Roads 2K12 Corporate Plan by providing a fit for purpose freight route to the North-West of Australia and reducing conflict with passenger vehicles. Proposal Prioritisation The Auslink Perth-Darwin Corridor report identifies the Muchea to Wubin section of the highway as a critical priority to address traffic constraints on the national network due to the narrow seal, lack of passing lanes, poor wide seal quality and the poor geometry of the road. The Federal Government has already invested $125 million into Stage one of the Muchea to Wubin section. A further $40 million investment into Bindi Bindi section is under consideration as part of the Nation Building Program One. These works will complete Stage 1 of the Muchea to Wubin section of GNH.

Stage 2 will significantly improve the efficiency, reliability and safety of the supply chain by completing the required improvements to this important link. The WA State Government remains committed to resolving impediments to freight productivity in areas of national economic significance and have prioritised the initiative within its forthcoming WA Regional Freight Transport Network Plan. Interstate Linkages GNH is an important link in the State and National road network and national land freight network enhancing transport efficiencies between Perth, the northern region of Western Australia and the Northern Territory. The highway also supports three of Australia's six largest tonnage ports and is the most direct land transport connection between Perth and Darwin.

Page I 6 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Problem Identification

Problem Statement The extraordinary increase in world Iron Ore demand and prices coupled with the exploration and development of oil and gas fields in Australia's North-West has led to population and industry growth. The result is massive mining and construction activity putting strain on existing infrastructure and exceeding planned infrastructure upgrades including major freight routes from the Perth metropolitan area to the North West.

The provision of safe and efficient transport systems is more difficult given the demands for industry supplies and consumables to support the rapidly expanding iron ore industry in the North-West of Australia. This is due to the current condition of GNH in the Muchea to Wubin section which requires urgent intervention to resolve these issues.

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Figure 2: Perth Darwin Corridor Freight Routes (source: Auslink Perth Darwin Corridor Strategy —2007) Page 7 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Current Issues There is a large volume of traffic including freight traffic using the GNH as the primary route to the north of Perth including the North-West of Australia. This is creating a number of adverse issues and challenges in the areas of freight efficiency, safety and social amenity.

Western Australia is faced with falling competitiveness of its export system due to an inefficient freight network. It is attempting to deal with the following problems: • How to increase efficiency of the freight network to support the unprecedented increase in activity in the Pilbara and other areas in Australia's North West; • Providing a solution to the current volume of freight and the anticipated increase in freight of up to 75% in the next 15 to 20 years; • Reduce the cost of freight to improve the competitiveness of Australia's industry in the global market and support growth of the Mid-West and other regions to the north of Perth; and • Provide fit for purpose infrastructure for the route from Perth to Darwin.

Alongside existing freight routes, public support is diminishing due to freight density and the lack of fit for purpose freight routes to reduce impact on local communities. The following are the main issues raised by the community: • How to reduce the impact of high freight volumes on the GNH from Muchea to VVubin; and • Frustration in the community that while the project is supported in principal by a large number of community advocates, political parties and industry the primary issues remain unresolved. Future Scenarios It is anticipated that the issues will be exacerbated by the following future scenarios; • Inability to service needs of expanding cities and regions in Australia's north results in li mitation to expansion of these regions and demand not met by supply due to infrastructure li mitations; • Productivity of regions is limited by current standard and level of infrastructure resulting in increased freight costs; • Failure of region to capitalise on the competitive global advantage due to inadequate connections to areas of freight supply. • Continued frustration by the freight industry and general community that fit for purpose freight infrastructure has not been developed; and • The transport of freight through residential areas can have significant local effects by contributing to local air pollution, noise pollution and visual impacts.

Problem Preventing Goal Achievement There are a number of existing deficiencies on the GNH between Muchea and VVubin that constrain the achievement of the national and state strategic goals and objectives. Whilst some upgrades have been undertaken with previous Commonwealth and State funding contributions, delays for freight still remain due to long sections of sub-standard highway.

Page 18 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Table 2: Constraints to achieving project goals Project Goals - Existing Constraints to achieving Goals/Objectives

Efficiency — a more efficient Vehicle and freight efficiency in servicing economic transport link between Perth and development is compromised due to the current road the North-West in terms of vehicle geometry, condition and width resulting in inconsistent loads (mass and size) and reducing speed environment and increased vehicle operating delays for all traffic costs.

Significant delays due to general and freight traffic due to oversize vehicles increase delay and driver frustration • along the route has resulted in freight vehicles using alternative, longer routes

Triple road trains required to de-couple at Wubin limiting access to future industrial development areas further south.

Reliability — a more reliable Variable delays and travel times along the route due to transport link between Perth and the volume of oversize vehicles using a route with narrow the North -West with a more seal widths and inadequate passing opportunities. consistent and predictable travel time Multiple changes in travel speed results in vehicles travelling at different speeds , • Safety —a safer route between Inadequate width of the route increases the risk of Perth and the North-West reducing collision due to poor separation of vehicles. There will be fatal and serious crashes a continued tendency for vehicles to utilise the side/ of the road increasing risk of loss of control crashes. The poor road standard for use promotes fatigue / stress and an increased crash risk particularly for longer distance travel. Inconsistency with surrounding sections of the GNH can increases road safety risk in fatigued longer distance drivers.

Page I 9 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Problem Assessment Key Driver 1: Economic Activity Western Australia and particularly the North-West regions are experiencing developments and a transformation at a much faster rate than the rest of Australia in recent years and at the present time. This is demonstrated by: • $138 Billion worth of projects committed or under construction in WA that require development activities and supply of assets (Department of Mines and Petroleum, 2012); • Oil and gas investment presently amounts to 2 per cent of Australia's gross domestic product of which the majority is in the North-Westof Australia (Department of State Development, 2012); and • Loss of productivity due to infrastructure constraints and an inability to service growing needs of Australia's North-West resulting in loss of productivity state wide.

There are numerous economic drivers currently resulting in unprecedented construction, mining and development activities in Western Australia and particularly the North-West region. Activities that are relevant to this proposal include: • $169 Billion worth projects in planning stages in WA which do not have committed funding (Department of Mines and Petroleum, 2012); • Projected growth of port activity from 456 Million tonnes in 2012 to 1.1 Billion per annum in 2030 (Department of Transport and Nyder Consulting Ltd.), a 147% increase; • Development of the Pilbara including the Infrastructure Australia nominated priority to develop Port Hedland and Karratha to cities with permanent populations of more than 50,000 people each, more than doubling both city's populations in a 15 year period (Department of Regional Development and Lands, 2012); • WA freight on roads will increase by 70% to 2031, likely to be higher if population increases exceed Direction 2031 predictions (Department of Transport and Main Roads WA); • Road freight will double in the Pilbara and to the Pilbara by 2031 (Department of Transport and Flyder Consulting); • By 2016 Liquid Natural Gas investment will add 2.2 per cent to GDP growth (Deloitte, 2012); • Of the 14 gas liquefaction plants under construction or firmly committed around the world, eight are in Australia and if all the planned oil and gas investments come to pass, they will comprise more than 64 per cent of all Australian investment (Deloitte, 2012); • By 2020 oil and gas should be worth 3.5 per cent of the Australian economy (Deloitte, 2012); and • Capital expenditure in oil and gas projects is expected to average $23 billion in capital outlays per year until 2017 with oil and gas output expected to peak at $46 billion in 2020 (Deloitte, 2012).

As shown earlier in this report there is unprecedented economic activity as a result of world demand for energy and resources. The increases in iron ore production since early last decade has meant that exports have increased more than tenfold plus a number of major projects currently being planned by BHP, Rio Tinto, Fortescue and Hancock Prospecting. Each of these new mines require mining camps of 5,000 people or more during the construction phases which are planned to occur in the next 3 to 6 years before the mines become fully operational. Iron ore mines require large workforces during operation.

The developing or planned oil and gas projects in the North-West require even larger construction workforces than iron ore mines and can take up to ten years to design and construct. During these periods they require thousands of workers, mining camps and building components to be transported to these projects and the growth of cities to sustain the community. The development of an improved national highway to support this economic activity is of national importance to rectify the lack of service to key growth and development areas.

Page 110 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Key Driver 2: Population Growth The current population of Western Australia is estimated to be 2.4 million, an increase from 2.06 million people in 2006 (ABS, 2006). Perth currently accounts for approximately 1.8 million people; this was only 1.5 million in 2006 (ABS, 2006). It should be noted that in 2005 the state government under predicted this amount by 155,000 people in the whole state and 140,000 people in Perth's metropolitan area. This is primarily due to the energy and resources boom that occurred over the past seven years.

A range of factors described in this report contribute to the significant increases in population, these increases are summarised as: • Western Australia's population is estimated to be 3.06 million by 2026 (Department of Planning, 2012); and • Perth's population is estimated to be 2.26 million by 2026 (Department of Planning, 2012).

There have been considerable population increases in Perth in recent years with an expectation that migration of people from Australia's east coast will increase in coming years. This migration will continue as employment and business opportunities in Western Australia and in particular those driven by energy and resource projects in the North West. The population increase has two direct impacts which are, increased population in Perth including the already affected North East metropolitan suburbs and the growth of cities in the Pilbara. Key Driver 3: Heavy Vehicle & High Wide Load Activity This growth in demand in the North-West has resulted in growth of traffic volumes, heavy vehicles and HWLs for this corridor in the order of 10% per annum (compound) over the previous five years. Figure 3 shows the continual growth in HWL over this period, especially the sharp increase over the past year.

2000 — Total Permitted HWL Loads on GNH 1800 1600 1400 - 1200 ••• 1000 800 600 ••••••Total Permitted Loads 400 Permitted Loads >33 200 metre width 0 2007 2008 2009 2010 2011 2012

Figure 3: Total Permitted High Wide Loads on GNH - (source MRWA traffic and permit data)

The proportion of heavy vehicle has grown from 25% to 40% over the last 5 years. This growth in traffic has manifested itself in increased delays and fatal and serious road crash injuries along the corridor imposing a cost not only on the community, but a lack of reliability in servicing the North- West, imposing a much broader cost on the national and state economies.

Page Iii Main Roads WA - Infrastructure Australia Submission Great Northern Highway - Muchea to Wubin Stage 2, Draft Revision A As shown in Figure 4 below there has been a sharp increase in the percentage of heavy vehicles on GNH over the past six years resulting in increasing delays. Figure 5 shows the expected increase in general traffic forecasted for the next six years which is approximately 5% per annum. The resultant growth in forecast traffic volumes, freight volumes and HVVLs will have a significant impact on efficiency and safety.

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20 l ‘.o r-. on a __. i., a a a a a a ,, ,-,.n i-, .., (, Financial Year Ending Figure 4: Growth of permitted HWL and heavy vehicles as a proportion of traffic - 2004/05 to 2012 (source MRVVA traffic and permit data)

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400 i N ,r . co o N ,r ,o oo o o o o o o o o o N r N N ' 2 Financial sF6ar Ending " :''' oN - Figure 5: Existing and Forecast Growth of the GNH Traffic Volumes (source: MRVVA)

Page 112 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to VVubin Stage 2, Draft Revision A •

Problem Analysis Key Impact 1: Freight Efficiency and Delays The existing efficiency and safety constraints of the route have been identified in previous submissions. An investment of $125 million has already been made by the Federal Government for Stage 1 of the GNH between Muchea and Wubin section. This has now resulted in a stretch of highway with significantly different standards shown in Figure 8.

Whilst an increased number of passing opportunities exist along the corridor as result of recent upgrades, the frequency of HVVL and limited opportunities over considerable length in the northern section of the corridor results in significant delays to general traffic. If monetised, the costs of delays to general traffic in the corridor is estimated to be $16 million annually by 2017.

The changing road environment and HWL operating conditions, combined with the fatigue of long distance trips, contribute to an increased road crash risk.

The Muchea-Wubin section of the GNH is experiencing increasing volumes of heavy vehicles, which includes 36.5 metre road trains and HVVL movements. The development and expansion of the energy and resource projects north of the State will result in the increase in the frequency of HWL movements upwards of additional 100 movements per day. An estimate of the existing and forecast delay, due to HWL, is shown in Figure 6 below:

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Figure 6: Estimated General Traffic Delay as a result of HVVL on the GNH (source: Arup and MRWA)

Page 113 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A By not having a fit for purpose freight route there are often long delays due to high proportion of freight vehicles and High Wide Loads (HWL's). Guidance from Austroads, shown in Figure 5, demonstrates that given the length of road without safe passing opportunities, particularly for large freight vehicles, that this section of road would be best described as "restricted". Given the role of this road in servicing the freight demand of the North-West, these constraints have a significant impact on efficiency and reliability of logistical planning for the North-West.

Overtaking opportunities over the preceding 5 km (1) Current-year design volume (AADT) Percentage of slow Percent length Description vehicles (3) providing overtaking (2) 5 10 20 Excellent 70 - 100 5,670 5,000 4,330 Good 30 - 70 4,330 3,670 3,330 Moderate 10 - 30 3,130 2,800 2,470 Occasional 5-10 2,270 2,000 1,730 Restricted 0 - 5 1,530 1 330 1,130 41 Very Restricted ( 0 930 800 670

Figure 7: Guidance on Providing Overtaking Lanes on Rural Roads (Source: Austroads)

Travel time can be used as an indicative measure for the preferred level of service for rural highways. This measure is particularly relevant for the freight corridor between Perth, Darwin and the North- West given the number of freight vehicles, including HWL vehicles. Due to a substantial amount of the GNH is not being fit for purpose in terms of the level of freight on the highway, delays and the percent of time following for all vehicles has increased. These delays and poor efficiency of the highway is forecast to get significantly worse with freight traffic, including HWL, increasing to service the North-West.

Crashes have occurred as a direct result of the narrow seal width causing vehicles to drop onto the unsealed shoulders and then lose control — indicative of the rural run off road crash type being targeted in the WA Road Safety Strategy Towards Zero. Key Impact 2: Social Amenity and Safety With the forecasted traffic growth, there will be an increased number of serious crashes (should the historic crash rate be maintained). Although some sections where fatalities had historically occurred have been upgraded in the past ten years, the crash rate for the entire section between Muchea and Wubin remains reasonably static pre and post recent upgrades. The inconsistent road geometry, combined with fatigue and driver frustration due to percent time following, is likely to be a contributing factor to this rate.

The existing serious crash rate for the Muchea-VVubin sections that have not been upgraded is 4.29 crashes per 100MVkmt compared to the state wide average of 3.2 serious crashes per 100 MVkmt. There were 42 crashes on the section, excluding those upgraded, between 2008 and 2011, three of which were fatal and 10 crashes involving serious injury. 61% of the crashes were classed as non- collision or hit object which indicates a loss of control.

Page 114 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Root Cause Servicing current and future major energy and resources developments requires local port facilities, predominantly for the export of bulk materials, rail infrastructure (for transfer of bulk materials to port) and road infrastructure. Due to the remoteness of the region and relatively small populations of the local communities, a significant proportion of services for both the energy and resources sector and local communities are transported from Perth by road freight.

The lack of a dedicated fit for purpose freight route connecting the Perth metropolitan region to the northern parts of Australia is detrimental to Australia's economy. The unforseen increase in world iron ore demand and prices coupled with the exploration and development of oil and gas fields in Australia's North-West has led to population and industry growth. The result is massive mining and construction activity putting strain on existing infrastructure and exceeding planned infrastructure upgrades. Previous Government Interventions The Federal Government has already invested $125 million into Stage one of the Muchea to Wubin section. Whilst this investment has improved conditions, further investment is urged as there is still a significant length of sub-optimal national highway and overall efficiency as the primary freight route to Darwin via the North-West is poor. This proposal seeks to upgrade the section between Muchea and Wubin to a consistent with the purpose and use of the National link.

Previous government interventions include:

• road improvement works along the Great Northern Highway between Muchea to Wubin for the construction of 13 passing lanes and Improvement Works along this strip; • Federal Government funding for widening and various improvements between 2006/07 and 2008/09. • In 2006 a further 30 km of reconstruction and upgrading of the road between Bindoon Hill and New Norcia.

The works and funding have been considerably impacted by the energy and resources growth over the past year and impacted on the ability to complete projects in their original funding allocations. This is due to construction cost increases of more than 10% per annum during this time as labour and capital costs increased due to competing demand for the their supply.

A further $40 million investment into Bindi Bindi section is under consideration as part of the Nation Building Program One. These works will complete Stage 1 of the Muchea to Wubin section of GNH.

Stage 1 works included upgrading of 75 km of the GNH between Muchea and Bindi Bindi have been completed under a program alliance arrangement. However there still remains 28 km of works to be completed between Muchea and Bindi Bindi, and 59 km of works in the Bindi Bindi to Wubin section of the highway.

Need for Government Intervention

Transport links that service the North-West are required to deliver goods and services in an efficient, reliable and timely manner. Without transport linkages performing to a desirable level of service, the North-West energy and resources sector will be less and less competitive within increasing global competition for resource. Whilst efficiency and reliability is a significant contributor to the operating performance of governments and private organisations with interests in energy and resources, the

Page 115 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to VVubin Stage 2, Draft Revision A need that transportation is undertaken in a safe way is not only important to the direct beneficiaries in terms of its workforce and potential disruption, but also to the wider community at large.

For this particular problem a government response is required to address the adverse effects on the community currently being experienced. Restricting the number and scale of energy and resources projects in Australia's North-West will constrain Australian economy.

Government intervention is required to promote growth through the provision of essential key infrastructure. The State and Commonwealth Governments are working with industry to deliver improved communities in the North-West of Australia as well as infrastructure to support the energy and resources industry. The projects include port upgrades, community facilities, water and waste water, power and roads. Some of these are being provided through joint funding arrangements which are unfortunately not appropriate for the provision of supporting infrastructure.

Page 1 16 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Option Generation Selection Criteria

The assessment criteria used reflects the themes and goals of the initiative whilst considering any associated impacts. The criteria used to assess the options are:

• Efficiency (reduction in traffic delay); • Supports Economic Development; • Reliability (consistency in travel times); • Safety (reduction in serious and fatal crashes); and • Local Economic Benefits (Rapid BCR) (for shortlisted options).

The criteria have been weighted equally and reflect the project goals of efficiency, reliability and safety for freight traffic between Perth and the North-West. Quantitative measures have been used, where possible, as a guide to score the options. The preliminary options to be assessed reflect a variety of regulatory, governance and capital investment cohorts of options.

Options Description

Option 1: Reform and Regulatory Control Policy options have been explored; however, there are no appropriate alternatives in this area. The current designated freight route from Perth is the only HVVL freight land transport route connecting to the North-West of Australia, of which there are two main freight routes, one to the east Pilbara mining region and the west Pilbara oil and gas region.

Road pricing options are not appropriate given the type of function that GNH performs. Western Australia is already seen as an innovative leader in Australia in Heavy Vehicle regulatory reform in providing allowances for High Productivity Vehicles and there is limited room to move with additional concessions without an Infrastructure Improvement response.

Reducing the number of oversize permits using the GNH would significantly reduce HVVL and associated delays on the corridor. Overall this is expected to improve efficiency and reliability for all users of the corridor but would require an alternative freight corridor to be in place. Without such an alternative, the energy and resources investment in the North-West is likely to be significantly adversely impacted, resulting in slower freight and output of resources to be considerably constrained therefore stifling State and national economic development.

Option 2 -Coordination of Permit Issue/Operations (Governance) Better coordination of issuing permits would involve options such as spreading the vehicles evenly over the day and the allocation (and potential enforcement) of timeslots, imposing curfews, restricting to night travel, etc. Given the large number of current and forecast HVVL this is likely to have a minimal impact on efficiency and reliability of the corridor.

Option 3 - Rail alternative route (Capital) Rail has limited distribution capabilities and still requires a road freight network for support and end user delivery. The cost to construct a freight train network to and within the North West of Australia is cost prohibitive and would affect the utilisation and efficiency of the current road and freight network in the north west of Australia. Page 117 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to VVubin Stage 2, Draft Revision A Option 4 - Sea Port Alternative Route (Capital) Port Hedland, Dampier and other proposed ports in the Pilbara region are export oriented and not suitable for movement of freight for the Pilbara and surrounding regions. Additions to ports and associated infrastructure such as road or rail are cost prohibitive for the current and expected freight cargoes. State Supply ships were often used in previous decades, but now operate sporadically with li mited cargo movements and is inefficient, cost prohibitive and not effective for a variety of freight types.

Option 5 - /North West Coastal Highway Upgrade (Capital) This option would propose to keep GNH as the HWL route, and upgrade NWCH to promote it as the preferred general freight route. Significant upgrades would be required to enable HWL traffic to use Brand Highway and North West Coastal Highway. The longer route to the East Pilbara and further north towards Darwin would not improve efficiency to a large extent and does not address the problem of the poor road conditions on GNH.

Option 6 - GNH Upgrade - Perth to Pilbara (Capital) This is the preferred route for both HWL and general freight traffic with origin and destinations in the East Pilbara areas and further north towards Darwin. Many sections along the entire route require upgrading. The priority section for upgrade is between Muchea and VVubin. Options for upgrading this section include:

• Widen, realign, provide passing opportunities and construct pull over bays to improve efficiency, reliability and safety; and • Provide pull over bays, remove vegetation encroachment and relocate signs as a do minimum option to facilitate HWL.

Whilst recent investment in the corridor has addressed some safety related issues and reduced crashes, the corridor, between Muchea and VVubin, still experiences significant delays due to frequency of HWL.

Option 7- GNH Upgrade - Darwin to Pilbara (Capital) This option would provide an alternative route to service the Pilbara, via Darwin as opposed to Perth. This is a longer route to the Pilbara and is often subject to flooding, thus would be less efficient and reliable. For example the distance from Darwin to Newman is 2,850 kilometres as opposed to only 1,200 kilometres for Perth to Newman.

Page 118 Main Roads WA - Infrastructure Australia Submission Great Northern Highway - Muchea to VVubin Stage 2, Draft Revision A Option Assessment

Multi Criteria An evaluation of the options was undertaken using the criteria defined above. A summary of the option analysis is contained in Table 3.

Table 3. Summary of Preliminary Option Evaluation • Efficiency 'Supports Economic Reliability (reduction in Development Safety Option delays to (qualitative (Consistency (reduction in Consider in travel serious and Cost general assessment based on (Yes/ No) ti traffic) investment) mes) fatal crashes) Reduce the Number of HWL permits V x x v v/s/ No using GNH Better coordination v x uv v vs/ of issuing No permits Rail alternative V,/ ,/ x vs/ x No route

Sea Port alternative vv V x v,/ v No route

Major Brand Highway and North West Coastal v v ,/ v ,/ No Highway Upgrade for HWLs GNH Upgrade —Perth to Vs/ V,/ V,/ vv,/ vv Yes Pilbara

GNH Upgrade —Darwin to x V x V v 3 Pilbara

Assessment Description X Does not meet criteria V Partially meets criteria VV Meets the criteria VVV Exceeds the criteria

Page 119 Main Roads WA - Infrastructure Australia Submission Great Northern Highway - Muchea to Wubin Stage 2, Draft Revision A The Preferred Option

Based on the preliminary analysis undertaken for this report, the preferred option to contribute to the project goals of efficient, reliable and safe freight transport to the North-West is the upgrade of the existing GNH alignment. This will have the impact of improving HWL operations and limit the impact on general traffic and surrounding community. The preferred options have been broken down into the following sections, shown in Figure 8, to assist in analysis and further commentary.

Table 4 Sections for Upgrading the GNH for Efficient, Reliable and Safe Freight Movements

Section SLK Length

Mt Yule to Walebing (DP8C) 138.7 to 145.7 7km Waddington to Mt Yule (DP 8A & B) 126.7 to 138.7 12km Lyons to Miling (DP12 part) 177 to 184.1 7km Miling to Pithara (DP12 part & DP13) 184.1 to 223.4 39.3km

Bindoon South (DP3C part) 60.8 to 62.3 1.5km Muchea to Chittering (DP2) 37.1 to 44.7 7.6km

Wubin Realignment (0P14) 253.4 to 255 1.6Km

Total 87km

The total cost of upgrading the sections listed above is estimated to be $280 Million. Whilst not considered in the evaluation, a key implication is the need to provide efficiency and reliability improvements in the short term given the amount of mineral and energy investment in the North-West forecast over the next 5 years. Some of those options listed above would take at least 5 years to design, build and construct. Option 6, has design work undertaken and complete and ready to be constructed within a short timeframe. This initiative will provide the following benefits. • The realignments could involve a significant shortening of these sections which would lead to decreased travel times and improved freight efficiency. • The improved alignment and wider seal will significantly improve safety for all road users. • Transport operators and other motorists will not be compelled to utilise the unsealed shoulder. This will reduce vehicle wear and damage, while also reducing fatigue and stress. As a consequence, transport and economic efficiency will be increased and the road will operate at an improved service level. • The wider surface will provide greater separation between vehicles and eliminate the deterioration of the shoulders. • Widening the seal will significantly reduce the requirement for routine and specific shoulder maintenance; that will consequent in, the reduction of sporadic naturally occurring shouldering materials. Therefore the project will provide economic and environmental benefits.

Due to the current condition and poor geometry of the Link, triple road-trains (53m long) must break down to double road-trains at Wubin to continue the journey south. Once all the works proposed in the Link Improvement Strategy are completed, it would be possible to permit triple road-trains to travel a further 160km south of Wubin to the Wongan Hills-Calingiri Road (93 SLK), where they would be

Page I 20 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A required to break down to double road-trains; primarily due to steeper terrain and higher volumes of traffic.

Preferred option delivery risk

In summary, the risks associated with the preferred option are identified in the table below.

Table 5 - Preferred Option Risk Mitigation

The timing of improving freight Medium Immediate upgrade options are required efficiency and reliability to the and those around the existing GNH route North-West may impact on energy would be require the minimum time out of and resources investment the evaluated options given the "readiness" of design Demand for energy and resources Low Require options that offer the flexibility to may subside and reduce traffic service alternative markets and functions. demand along corridor The preferred option also services the Perth Darwin national highway route and is required to maintain national "connectivity" in the road network.

Financing options

Alternatives to public funding of the upgrade of this corridor are limited due to the diverse nature of users and distance from the end user (predominantly in the North-West). Direct industry contributions or heavy vehicle user pays system to fund the preferred option would require wider implementation and consideration with the implementation taking a considerable amount (i.e. years) of time. It is considered the funding of the option is compatible with Commonwealth funding based on:

• Part of the existing National Freight Network • Indirectly contributes to wider national and state revenue

Page I 21 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Solution Evaluation

Main Roads WA is committed to the project and is currently undertaking additional planning and project development work regarding the proposed infrastructure.

Page I 22 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Appendix A: Maps

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20 0 20 40 60 80 100 Kilometres SOUTH WEST AREA ROAD NETWORK

Figure 5: GNH — Muchea to Wubin (source: Main Roads Western Australia)

Page I 23 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A Figure 8. GNH Muchea to Wubin — Crash History, Overtaking lanes, and seal width

Page I 24 Main Roads WA — Infrastructure Australia Submission Great Northern Highway — Muchea to Wubin Stage 2, Draft Revision A