NSW Roads and Maritime Major Projects 2020

CFF National Conference Melbourne

October 2015

Jeff McCarthy Director Infrastructure Development Roads and Maritime Services NSW

Infrastructure – the big picture

2

In Australia, total engineering construction is declining …

 0

 30

 60

 90

 120

 150

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Work  Yet  to  be  Done

Work  Done

Commencements

Year  ended  June Source:  ABS,  BIS Shrapnel

$  Billion

Infrastructure – the big picture

3

... but not overall in NSW

NSW roads infrastructure

4

Roads engineering construction in NSW is picking up …..

 0

 2

 4

 6

 8

 10

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

New  South  Wales

Victoria

Queensland

South  Australia

Western  Australia

Other

Year  ended  June Source:  ABS,  BIS Shrapnel

$  Billion

NSW roads infrastructure

5

... led by the mega road

projects 0.0

7.0

2003 2006 2009 2012 2015 2018 2021 2024

North-­‐South  Bypass  Tunnel  

(QLD)

CrossCity

Tunnel  (NSW)

M7(NSW)

Airport   Link  (QLD)

Lane  CoveTunnel(NSW)

Source:  BIS  ShrapnelYear  ended  June

Forecast$  BillionNorthConnex

M1  -­‐ M2  Link  (NSW)

East  Link  (VIC)

Upgrade  M80  (VIC)

Gateway  Motorway  North(QLD)

East  West  Link  (VIC)

Pacific  Highway  upgrades  (NSW)

Princes  Highway  upgrades  

(NSW  /  VIC)

North   -­‐ SouthCorridor   (SA)

Bruce  Highwayupgrades  (QLD)

WestConnexStage  1  (NSW)

WestConnexStage  2  (NSW)

WestConnex                  Stage  3  (NSW)

East-­‐West  Link  (QLD)

Legacy  Way  (QLD)

Toowoomba   Second  Range  Crossing  (QLD)

Western  Sydney  Airport   Roads  (NSW)

The WAVE

6

… but its not just the mega projects

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

$4,500,000,000

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

RMS Major Projects Expenditure Western Sydney Infrastructure Program

Western Sydney Growth Roads

Sydney Commuter Wharf Upgrades

Regional NSW Major Road Upgrades

Princes Highway

Port Botany and KSA

Moorebank Intermodal

M1 Productivity Package

Hunter Roads

Great Western Highway & Bells Line of Road Established Sydney Roads

Easing Sydney's Congestion

Central Coast Roads

Bridges for the Bush

Bridge Rebuilding

Pacific Highway

Major Projects 2020

7

Forward work plan published ..on the website

•  Projects are named, announced, have known timeframes, and are funded

•  High level of certainty

1. Delivery methodology

•  “Programs of projects”

–  separate Program Offices accountable for delivery

–  Fully resourced, co-located, high performance team culture

–  Roads and Maritime has done it before (Pacific Highway, Hume Highway)

–  Western Sydney Infrastructure Program is underway

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Spend over first 5 years ($'000)

Western Sydney

Greater Sydney

Easing Sydney's Congestion

Pacific Highway

Freight & Regional

5 program offices accountable for delivery

Delivery Strategy

* Nb. Easing Sydney’s Congestion contains 400+ smaller projects

8

Program Offices

2. People

9

‘Professional resources’ demand model

Source: Avisian data modelling as at June 2015

•  Model contains: –  20 disciplines

–  4 phases (initiation, development, procurement, delivery)

–  All resources (white collar)

•  Objectives: –  Roads and Maritime continues

to be a ‘good, knowledgeable client’

–  ‘Rebuild’ of large project capability over 5 years

Delivery Strategy

0

500

1000

1500

2000

2500

3000

3500

1-Jun-15 1-Jun-16 1-Jun-17 1-Jun-18 1-Jun-19

3. Procurement challenge

10

60 projects = $14b

Project status   No. projects  

Total value projects to be

procured $m

Wave 5yr spend

$m  

In flight Under construction or contract awarded 30   0 4,100  Funded but not yet contracted Includes Pacific Highway, Woolgoolga to Ballina 46   10,200 8,200  State Infrastructure Strategy Development funded but delivery funding dependent on “poles & wires”  

16   3,500 2,400  

Development funded but delivery funding not yet confirmed   24   6,100 1,200  

Total   116   19,800 15,900  

Total indicative project values, includes Roads and Maritime costs

Delivery Strategy

•  Pacific Highway – Woolgoolga to Ballina “Delivery Partner” model”

–  155kms, new ‘packaging’ approach, industry engagement underway

11

The RMS Wave unpacked

Project Size   No. Projects (incl.  “in  flight”)  

“WAVE” 5yr Spend $m

(incl  “in  flight”)  

Projects to be procured $m

(excludes  “in  flight”)  

Up to $50m   26   600   700

$50m - $150m   45   2,800   3,100

$150m - $500m   28   5,200   6,700

Over $500m   13   6,500   8,200

Rolling Programs * (ongoing development & delivery)  

6   800   1,100

Grand Total   116   15,900   19,800

Total project values, includes RMS costs. Includes Pac Hwy Woolgoolga to Ballina *Includes portfolio of over 400 Sydney congestion easing projects

3. Procurement challenge Delivery Strategy

4. Engagement

In development – looking for feedback 12

Industry engagement strategy

Whole of industry

Program Office

specific

Pacific Highway

Western Sydney

Tailored interactions

Major Projects 2020 Forum

Easing Sydney’s

Congestion Greater Sydney

Freight and

Regional

Project Specific interactions

Tailored interactions

Delivery Strategy

Industry Forums (IPA, RA, ACA, CCF etc)

5. Our safety challenges

10,000 workers on RMS projects at the peak of the ‘Wave’

13

•  Industry partners with mature WHS systems and cultures •  Roads and Maritime on a steep learning curve

–  Work with industry – and learn –  Selected initiatives in next 12 months

•  Safety Forums ‘on topic’ •  Aggregated reporting of indicators + feedback •  ‘Top Risk’ frameworks (eg. Working Near Traffic)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Delivery Strategy

NSW Roads and Maritime Major Projects 2020

CFF National Conference Melbourne

October 2015

Jeff McCarthy Director Infrastructure Development Roads and Maritime Services NSW