Annual Report 2012-2013 LINKING MELBOURNE AUTHORITY ANNUAL REPORT 2012-13 1 Published by Linking Melbourne Authority Building 1 Level 1 Brandon Business Park 540 Springvale Road Glen Waverley Victoria 3150 September 2013 Also published on www.linkingmelbourne.vic.gov.au © State of Victoria 2013 This publication is copyright. No part may be reproduced by any process except in accordance with provisions of the Copyright Act. Authorised by the Victorian Government 121 Exhibition Street Melbourne Victoria 3000 Printed on Australian made, carbon neutral, recycled paper using waterless printing. Contents Chairman’s report . 4 Around the world, CEO’s report . 5 there are few other Delivering for Melbourne . 6 organisations with LMA’s depth Our purpose and priorities . 6 of expertise Government priorities . 6 and experience Governance . 8 in planning, Our Board . 9 designing and Our people . 9 delivering large- Peninsula Link . 10 scale road Peninsula Link opens . 10 transport projects. Getting to opening day . 10 Environment . 12 Social benefits . 12 Engaging the community . 14 Availability Public Private Partnership . 15 East West Link . 16 Project benefits . 16 Planning for the East West Link . 18 Kick starting the market process . 20 Keeping communities informed . 21 EastLink service centres . 22 Supporting our people . 23 Abbreviations . 24 Financial statements . 25 Statutory information . 70 Disclosure index . 73 Chairman’s report Linking Melbourne Authority’s (LMA) achievements and record continue to demonstrate the advantages of using a specialist, multi-disciplinary body to oversee the delivery of PPP road projects. Around the world, there are few other placing most of the road in tunnel translates organisations with LMA’s depth of expertise into major improvements in the surface and experience in planning, designing and environment, including improvements to delivering large-scale road transport projects. the overall road network, reduced traffi c Our combination of engineering, planning, on parallel roads, better conditions for legal, commercial and communications skills walking and cycling, more attractive places us in a unique position to oversee all pedestrian environments and streetscapes, aspects of these projects, from inception improvements to tram and bus services, and planning through to construction and and support for urban renewal and new operation. commercial and residential development. LMA has convincingly demonstrated its LMA is well-suited to implementing this capabilities by delivering EastLink and integrated approach to the delivery of the Peninsula Link on schedule. On each of East West Link Stage One, as well as having these projects, the organisation has set the range and combination of skills needed new benchmarks for the delivery of modern to successfully deliver all other aspects of transport infrastructure, including innovative the project, including planning work for future fi nancing arrangements, outstanding stages. urban design and high levels of community engagement and participation. Each It is clear that the next 12 months will be an project has been accompanied by a major exciting, challenging and rewarding time new cycling and walking trail, extensive for LMA. I know that the organisation’s landscaping and high quality urban design. highly experienced and dedicated staff are more than equal to the task of planning The success of our approach to these and delivering the East West Link, and that projects shows that, with careful planning – as with EastLink and Peninsula Link – the and design, the benefi ts of investing in major ultimate result will be one that will be of benefi t road infrastructure can extend well beyond to residents, businesses and communities motorists and deliver signifi cant social, across the State. environmental, economic and community outcomes. I extend my thanks to our Chief Executive Offi cer Ken Mathers and the LMA team for Now, LMA is applying its expertise to their unwavering commitment to delivering delivering the fi rst stage of Melbourne’s new high quality transport projects. I also thank East West Link. Planning and building this the Minister for Roads and his staff for their fi rst stage poses particular challenges as it support throughout the year. needs to be fi tted into a well-established and highly developed inner city area. Finally, I would like to thank Tony Darvall, who served as Acting Chairman for most of In delivering EastLink, LMA oversaw the 2012-13. Tony’s leadership was instrumental construction of Melbourne’s fi rst outer in delivering Peninsula Link on schedule and suburban road tunnels to protect the completing the business case for the East Mullum Mullum Valley. In delivering the East West Link. I look forward to working with Tony, West Link Stage One, LMA will oversee the and my other fellow Board members over the construction of Melbourne’s longest road coming 12 months as LMA leads the way in tunnels to minimise the project’s impacts on taking Melbourne’s new East West Link from communities across the city’s inner-north. We the planning stages to reality. are committed to setting new benchmarks for this project, not only in tunnel design and Ken Scott-Mackenzie construction, but also in making sure that Chairman 4 LINKING MELBOURNE AUTHORITY ANNUAL REPORT 2012-13 CEO’s Report With Peninsula Link now operating, we have turned our attention to developing the East West Link – one of the largest infrastructure projects ever undertaken in Australia and one that promises to deliver substantial and lasting benefi ts to Melbourne and Victoria. The beginnings of Peninsula Link stretch back more than 40 years to 1969 when land was fi rst reserved on the Mornington Peninsula for a freeway corridor. While the wait for a freeway standard connection between central Melbourne and the Peninsula has been a long one, the period between turning the fi rst sod at Frankston in 2010 and the opening of the road was just three years. Delivering a new 27 kilometre freeway – with nine interchanges, connections to 11 surrounding roads, 28 bridges and associated high quality urban design and landscaping – in such a short timeframe is a remarkable achievement that required a coordinated, consistent and The link is committed effort from LMA and our project partners. It is a particularly signifi cant achievement changing the given the challenging weather conditions that continually hampered construction activities – and I congratulate Southern Way and Abigroup for managing these conditions successfully way people and delivering the project on schedule. travel around Since opening to traffi c, the benefi ts of Peninsula Link have become apparent. The link is Frankston and changing the way people travel around Frankston and the Mornington Peninsula and between the Mornington the Peninsula and Melbourne’s CBD, with travelling on the freeway saving time in peak periods and relieving congestion on existing roads. The economic benefi ts generated by the new link Peninsula and will also become more apparent over the coming years. between the With Peninsula Link now open, our attention and energies have turned to delivering the fi rst Peninsula and stage of the East West Link. This exciting project is truly a once-in-a-generation endeavour Melbourne’s CBD, that is vital to Melbourne’s and Victoria’s future, and LMA is proud and pleased to have been nominated as the proponent for the East West Link by the Victorian Government. with travelling on the freeway During 2012-13, we assisted the Department of Transport, Planning and Local Infrastructure to prepare a business case for the East West Link and commenced the formal planning and saving time in consultation process for the section between the Eastern Freeway and CityLink (Stage One), peak periods with a further connection to the Port of Melbourne area. To ensure that LMA is able to meet and relieving the Victorian Government’s timeframes for delivering Stage One, we have also undertaken signifi cant engagement with industry ahead of the project’s intensive procurement period that congestion on will take place in 2013-14. I am confi dent that LMA’s unique combination of specialist skills existing roads. will enable us to design, develop and implement this important project in a way that meets community needs and expectations, and that delivers major transport, social and economic benefi ts. I thank the LMA Board, our Executive Management Team and our entire staff for their guidance, support and hard work throughout 2012-13. I also thank the Minister for Roads for giving LMA the opportunity to deliver the East West Link on behalf of the Victorian Government. We look forward to overseeing yet another important transport project and continuing to play our part in delivering the vital infrastructure Melbourne needs to secure its future economic prosperity and liveability. Ken Mathers Chief Executive Offi cer LINKING MELBOURNE AUTHORITY ANNUAL REPORT 2012-13 5 Delivering for Melbourne LMA is a Victorian Government authority with responsibility for overseeing the planning and delivery of complex road projects in Melbourne. Since its creation in 2003, LMA has overseen the delivery of EastLink and Peninsula Link, and has now commenced developing the fi rst stage of the new East West Link. Our purpose and priorities Government priorities LMA was established in 2003 as the Southern LMA is dedicated to delivering high quality, and Eastern Integrated Transport Authority well-planned and well-designed projects in (SEITA) to oversee the delivery of the $2.5 support of Victorian Government priorities. billion EastLink project. After the opening of With Melbourne’s population forecast to reach EastLink in 2008, the authority was renamed fi ve million by 2030, and with the volume of Linking Melbourne Authority to refl ect its role freight moved by the road network expected in delivering integrated transport projects that to double, the Government is implementing better link communities across Melbourne. planning and transport strategies to protect the city’s liveability and prosperity, and to LMA has overseen the construction of the 27 sustain the competitiveness of Melbourne’s kilometre Peninsula Link project by private economy.