High Speed Rail Study...High Speed Rail Study Phase 2 Appendix 4A March 2013 Quality information Document Appendix 4A Ref 60238250-3.0-REP-0301-4A Date March 2013High Speed Rail Study

High Speed Rail Study

Phase 2 Report

Appendix Group 4 Cost and program

In accordance with the east coast high speed rail (HSR) study terms of reference, AECOM and its sub-consultants (Grimshaw, KPMG, SKM, ACIL Tasman, Booz & Co and Hyder, hereafter referred to collectively as the Study Team) have prepared this report (Report). The Study Team has prepared this Report for the sole use of the Commonwealth Government: Department of Infrastructure and Transport (Client) and for a specific purpose, each as expressly stated in the Report. No other party should rely on this Report or the information contain in it without the prior written consent of the Study Team.

The Study Team undertakes no duty, nor accepts any responsibility or liability, to any third party who may rely upon or use this Report. The Study Team has prepared this Report based on the Client’s description of its requirements, exercising the degree of skill, care and diligence expected of a consultant performing the same or similar services for the same or similar study, and having regard to assumptions that the Study Team can reasonably be expected to make in accordance with sound professional principles. The Study Team may also have relied upon information provided by the Client and other third parties to prepare this Report, some of which may not have been verified or checked for accuracy, adequacy or completeness. The Report must not be modified or adapted in any way and may be transmitted, reproduced or disseminated only in its entirety. Any third party that receives this Report, by their acceptance or use of it, releases the Study Team and its related entities from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability.

The projections, estimation of capital and operational costs, assumptions, methodologies and other information in this Report have been developed by the Study Team from its independent research effort, general knowledge of the industry and consultations with various third parties (Information Providers) to produce the Report and arrive at its conclusions. The Study Team has not verified information provided by the Information Providers (unless specifically noted otherwise) and it assumes no responsibility nor makes any representations with respect to the adequacy, accuracy or completeness of such information. No responsibility is assumed for inaccuracies in reporting by Information Providers including, without limitation, inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the Report.

In addition, the Report is based upon information that was obtained on or before the date in which the Report was prepared. Circumstances and events may occur following the date on which such information was obtained that are beyond the Study Team’s control and which may affect the findings or projections contained in the Report, including but not limited to changes in ‘external’ factors such as changes in government policy; changes in law; fluctuations in market conditions, needs and behaviour; the pricing of carbon, fuel, products, materials, equipment, services and labour; financing options; alternate modes of transport or construction of other means of transport; population growth or decline; or changes in the Client’s needs and requirements affecting the development of the project. The Study Team may not be held responsible or liable for such circumstances or events and specifically disclaim any responsibility therefore.

High Speed Rail Study Phase 2

Department of Infrastructure and Transport March 2013

Appendix 4A HSR program development

High Speed Rail Study Phase 2 Appendix 4A

March 2013

Appendix 4A HSR program development

Prepared for

Department of Infrastructure and Transport

Prepared by AECOM Australia Pty Ltd Level 21, 420 George Street, Sydney NSW 2000, PO Box Q410, QVB Post Office NSW 1230, Australia T +61 2 8934 0000 F +61 2 8934 0001 www.aecom.com ABN 20 093 846 925

March 2013

AECOM in Australia and New Zealand is certified to the latest version of ISO9001 and ISO14001.

© AECOM Australia Pty Ltd (AECOM). All rights reserved.

In accordance with the east coast high speed rail (HSR) study terms of reference, AECOM and its sub-consultants (Grimshaw, KPMG, SKM, ACIL Tasman, Booz & Co and Hyder, hereafter referred to collectively as the Study Team) have prepared this report (Report). The Study Team has prepared this Report for the sole use of the Commonwealth Government: Department of Infrastructure and Transport (Client) and for a specific purpose, each as expressly stated in the Report. No other party should rely on this Report or the information contain in it without the prior written consent of the Study Team. The Study Team undertakes no duty, nor accepts any responsibility or liability, to any third party who may rely upon or use this Report. The Study Team has prepared this Report based on the Client's description of its requirements, exercising the degree of skill, care and diligence expected of a consultant performing the same or similar services for the same or similar study, and having regard to assumptions that the Study Team can reasonably be expected to make in accordance with sound professional principles. The Study Team may also have relied upon information provided by the Client and other third parties to prepare this Report, some of which may not have been verified or checked for accuracy, adequacy or completeness. The Report must not be modified or adapted in any way and may be transmitted, reproduced or disseminated only in its entirety. Any third party that receives this Report, by their acceptance or use of it, releases the Study Team and its related entities from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability. The projections, estimation of capital and operational costs, assumptions, methodologies and other information in this Report have been developed by the Study Team from its independent research effort, general knowledge of the industry and consultations with various third parties (Information Providers) to produce the Report and arrive at its conclusions. The Study Team has not verified information provided by the Information Providers (unless specifically noted otherwise) and it assumes no responsibility nor makes any representations with respect to the adequacy, accuracy or completeness of such information. No responsibility is assumed for inaccuracies in reporting by Information Providers including, without limitation, inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the Report. In addition, the Report is based upon information that was obtained on or before the date in which the Report was prepared. Circumstances and events may occur following the date on which such information was obtained that are beyond the Study Team's control and which may affect the findings or projections contained in the Report, including but not limited to changes in 'external' factors such as changes in government policy; changes in law; fluctuations in market conditions, needs and behaviour; the pricing of carbon, fuel, products, materials, equipment, services and labour; financing options; alternate modes of transport or construction of other means of transport; population growth or decline; or changes in the Client's needs and requirements affecting the development of the project. The Study Team may not be held responsible or liable for such circumstances or events and specifically disclaim any responsibility therefore.


March 2013

Quality information Document Appendix 4A

Ref 60238250-3.0-REP-0301-4A

Date March 2013


March 2013

Table of contents 1.0 HSR program development 1

1.1 Introduction 1 1.2 Implementation 1

1.2.1 Labour 1 1.2.2 Australian construction industry (civil works) 1 1.2.3 Weather 2 1.2.4 Land 2 1.2.5 Mining 2 1.2.6 Proposed contract boundaries 2 1.2.7 Design considerations 2 1.2.8 Contractors limitations 2 1.2.9 Project management 3 1.2.10 Enabling works 3 1.2.11 Central Station 3 1.2.12 Electrical and mechanical 3 1.2.13 Trackwork 4 1.2.14 Trains 4 1.2.15 National grid power supply 4 1.2.16 HSR testing and commissioning 4 1.2.17 Verification and validation 4 1.2.18 Operations 5

1.3 Line 1 Stage 1 program 7


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1.0 HSR program development

1.1 Introduction This appendix presents the scope and approach to developing an implementation and construction staging program for the preferred east coast High Speed Rail (HSR) system.

The order of implementation is driven by the cost-benefit analysis described in Appendix 5B.

The program details the necessary tasks in advance of procurement for constructing the first stage, and identifies stages in the development of the HSR system. It also defines gateways and decision points, consistent with relevant state and Australian government requirements. For subsequent stages, indicative timelines with costs by year are provided. Any changes in cost due to staging the delivery of the preferred HSR system would subsequently need to be identified and quantified.

1.2 Implementation The introduction of HSR into Australia presents a number of constraints.

1.2.1 Labour

Labour within the Australian market is currently at a premium and costs are being driven higher by the current mining boom. Construction of a complete line such as Sydney-Melbourne would far exceed the national labour capacity in both skilled and unskilled resources, from consultants and designers through to contractors and their workforces. The proposed Australian HSR infrastructure does not lend itself to a lot of mechanisation (unlike that in Taiwan, where a large proportion of the 285 kilometres of viaduct was produced in pre-cast factories) as much of the alignment is at-grade which will involve earthworks and conventional civil construction. Taiwan needed to permit the importation of large numbers of foreign workers to meet their ambitious, but recently achieved construction and commissioning program.

1.2.2 Australian construction industry (civil works) The Australian construction industry would be able to simultaneously take on a small number (three or four) of the proposed 30-kilometre long sections which are expected to each have a value of approximately $1.5 billion. These contracts are estimated to be able to be constructed in three years (following detailed design) but would require a significant amount of 24/7 operations, again something that is not common in Australia, except for tunnelling. The number of people employed increases significantly with multiple shift working adding to the resource demand. The local industry could not undertake what would be approximately 30 contracts of this magnitude concurrently, which the Sydney Melbourne line would require. If the contract lengths were extended to reduce the number of contracts awarded, it is likely to reduce the number of competing contractors, as many would not be willing to undertake major contracts of a $2-5 billion magnitude.

International contractors and consultants would be keen to participate in delivering the scheme, but the concurrent availability of skilled engineers and labour within Australia would be a major issue for government, consultants and contractors.

Electrical and mechanical (E&M) contracts of this scale (which cover items such as traction power and substations, overhead catenary, signalling and communications) are almost unprecedented in Australia and international consortia would be necessary.

The contract to manufacture (and most probably maintain) the rolling stock fleet is anticipated to be tendered for the total required fleet size for a given line, with staged delivery to suit the anticipated staging and incremental demand. Trains would need to be available early for test running and trial operations. Simulators would be required for driver training well in advance of the trains’ delivery for service. Train sets are likely to be delivered to, and assembled in, the maintenance depots, requiring these to be completed in sufficient time for this purpose.


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1.2.3 Weather

The nature of much of the alignment makes its construction highly susceptible to weather, particularly where significant earthworks are involved. The question of who maintains the risk of adverse weather would determine the project program, risk allowances and cost. With linear projects such as HSR, it is the last section to be finished that will determine the earliest possible opening date.

1.2.4 Land

All of the land necessary to construct each stage of the works would have to be available at the award of the construction contracts (the only exception might be any temporary land needed for construction purposes, not subsequently part of the permanent asset). Contractors are unlikely to accept any risk on the availability of land (over which they would have no control).

1.2.5 Mining

The HSR authority would need to negotiate restrictions to protect the alignment on mining leases in order to minimise the amount of money spent on stabilising mined out areas over which the railway passes. The actual cost of stabilising any existing workings is likely to be another area where contractors are unwilling to accept any risk.

1.2.6 Proposed contract boundaries

The infrastructure contracts have been identified as:

Central Station – demolition; excavation of the lower level; creation of the structural shell for the lower platforms which would serve the Sydney to Brisbane line; creation of the intermediate ticket hall and concourse; and construction of the upper platform level, including the entire station track approaches including the cut and cover tunnel sections from the southern side of the Cleveland Street Bridge. This is likely to be the biggest single contract (approximately $5 billion), with interfaces with the operational railways. However, advanced works are expected to have relocated the Country Link Services from their existing platforms, which are required to be demolished to create space for the five HSR platforms on each level for the HSR railway.

Three twin tunnel contracts (between eight and15 kilometres long), likely to be undertaken with the use of tunnel boring machines.

Nine civil infrastructure contracts, each approximately 30 kilometres long, which would include any major or minor depots (their earthworks and structures, with E&M fit out to be undertaken by others) and all necessary over/underpasses and bridges.

The E&M systems contracts, which are anticipated to be for the entire stage length, requiring design coordination at the earliest stages of the civil contract’s designs. These would be for the design, manufacture, installation, depot fit out, entire route testing and commissioning, and trial operations.

1.2.7 Design considerations

Design resources in Australia are finite, and even the larger international consultants would have limited resources only. The design required includes the preliminary design to confirm the actual land take required, followed by the employer’s outline design (along with all the necessary investigations, environmental statements, geotechnical and topographic surveys etc., and all of their approvals) which would be used to procure the construction contracts. These surveys could be undertaken as advance works to minimise the amount of concurrent design. The contractors would appoint their own designers for their detailed designs and all their temporary works design. All of the contractors’ designs would need checking and approval, requiring further design staff or consultants.

1.2.8 Contractors limitations

A pre-qualification condition for the design and construct contracts would be adequate financial strength to guarantee completion to the overall project program. One contract that delivers later than required will delay the entire railway. Large penalty clauses and parent company guarantees are common in such a project and contractors’ boards of directors are not likely to accept excessive risk to their organisations. There is therefore a limit to the amount of risk a single organisation will expose


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itself to, which limits the size of a single contract it will bid for or limits the number of bids the company will submit for concurrent work.

As a means of overcoming this, contractors are likely to form joint ventures. This strengthens the contractual performance guarantees from an employer’s perspective but halves (at best) the number of organisations bidding for the work.

1.2.9 Project management

The client would need a large team to manage these works, whether directly employed or through the use of consultants, or most likely as a combination of both. This team would change rapidly in skill sets and size as particular stages progress.

Traditionally, project management has been shown to be best undertaken by a strong client-led core team augmented with consultants of various skills and disciplines in an integrated project team. As an example, Taiwan High Speed Rail Corporation’s (THSRC, the consortium appointed to implement the railway) project management team exceeded 2,000 professionals for the implementation of that 345 kilometre railway, which was constructed concurrently by 15 major contractors’ joint ventures and completed over a total of seven years. The Taiwanese Government had a further team (Bureau of Taiwan High Speed Rail) overseeing THSRC. The Bureau was also responsible for providing all the necessary land to the consortium.

The size of the project management team during construction, commissioning and trial operations would be determined by the need to cover any 24/7 working to meet the program.

The recruitment and administration of teams of this size alone is a major task and requires a long lead-in period. It would likely be done in competition with the contractors looking to expand their workforce to deliver the works, and inevitably would be a global activity as it was in Taiwan.

The skill sets required vary and include land procurement; environmental and geological investigation; topographical survey; outline design (civil and systems) procurement; tendering; civil and station construction including tunnelling, electrical and mechanical systems, rolling stock, operations planning, testing and commissioning, verification and validation (in order to licence the railway to commence passenger operations); contract commercial management from procurement; and contract administration including that of the consultants contracts. All of these contracts would require final close-out, which can take years after physical completion.

1.2.10 Enabling works

It is common in major projects such as this to commence work on existing infrastructure (such as Central Station, utility diversions, relocation of existing operational railway infrastructure and track) earlier than the main construction contracts in order to minimise the delivery program risk and deal with these items, which are essentially the client’s risk, when any resultant delay is less critical and less expensive. Early studies and agreements with the freeholders of the infrastructure would be required to determine the scope and then procure this work so that it is completed before the main construction begins.

1.2.11 Central Station

Central Station would form a critical section of work for the implementation of HSR. Because of the physical constraints with existing and planned railway services at Central, insufficient space is available to place all of the required 10 HSR platforms at one level. A double deck solution has been proposed, with the first railway to be implemented commencing operations on the upper platform five deck. However, in order to ensure that HSR operation is protected from interference from the development of HSR to the north, the whole of the basic substructure (undercroft) would need to be built beneath it first.

1.2.12 Electrical and mechanical The electrical and mechanical contracts including the supply of the trains and trackwork need to be procured early in order to inform the designs for all the civil works and depots. These contracts would design, supply and install all of the depot equipment.


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These contracts would commission the equipment in the depots. They include all of the traction power substations, their control and overhead line equipment installation and include all requirements for signalling and communications.

The E&M contractors would supply and install control centre requirements, including their testing and commissioning. The control centres are typically located in secure (bomb proof) structures and are normally located in basements.

1.2.13 Trackwork

This is anticipated to be a single contract for the segment being constructed. The scope includes design, precast manufacture, first stage concrete installation, the slab track and track installation including all high speed turnouts and crossings, and is an essential component to achieve the noise mitigation specification.

1.2.14 Trains The specification of the trains determines many of the E&M requirements, so early tendering and award is essential. In addition, the manufacture of the train sets is a critical program activity to ensure the units are ready and assembled for test running. It is anticipated that the train sets would be assembled in the main depots, using the staff being trained to maintain them.

Simulators would be required well in advance of test running for driver training.

The rolling stock contract would require the contractor’s full involvement in the testing and commissioning as well as test running and trial operations, and it is likely that the train supplier would also have the responsibility to maintain the fleet for a specific contractual period.

1.2.15 National grid power supply An early power study would be needed to determine the high voltage supply requirements for HSR and the necessary supply points from the national grid.

Negotiation would be needed with the various grid suppliers for the electricity supplies, including any necessary extensions to the grid infrastructure. Orders would need to be placed with the appropriate companies to implement all necessary extensions to the national grid. The new supplies would need to be tested and commissioned in advance of any testing of the HSR power supply systems.

1.2.16 HSR testing and commissioning

The process of testing and commissioning is a series of discrete steps, which starts with individual system testing, during which each constituent part of the system is tested for functionality. This is followed by integrated static testing, when multiple systems are tested, interacting with one another without the movement of trains.

A test track (which needs to be in excess of 60 kilometres long to eventually permit testing at full operational speed) would then need to be established as an operational railway where the first train would be operated initially at low speed under the control of the various systems. As safety in each step is demonstrated, the speed of testing would be increased until the entire system is proven at full operational speed.

Test running is the next phase, where the train is permitted to travel beyond the test track and uses a completed station-to-station sector of the railway. Test running would ultimately finish with the trains operating along the entire route (in the first case, Central Station to Canberra).

This would then be followed by trial operations, when the railway is tested with passengers (non fare-paying) in order to complete all staff training, including station staff. During this phase, various emergency tests would be conducted in conjunction with the emergency services. Only following the documented successful achievement of all of the above would a licence be granted to commence commercial passenger services.

1.2.17 Verification and validation From the commencement of the employer’s outline design through to the commencement of passenger services, it is customary to have an independent technical reviewer monitor the


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development of the design, manufacturing and construction and the entire testing and commissioning process.

This technical reviewer (often called the verification and validation Engineer), who at all times would report directly to the HSR authority, would then recommend the issuing of a certificate to take the railway into service.

1.2.18 Operations

It is common practice to competitively tender the contracts for the operation of the railway. This contract may also include the maintenance of either the trains or the infrastructure, or both. These contracts require a tender period. The operator’s input would be required for the designs of the control centres and maintenance depots.

The operator would be responsible for recruitment and training of all staff, whether customer facing (at stations) or operational (drivers, maintenance staff).The operator is also likely to provide the trained staff to operate the test track and ultimately undertake the trial operations, in order that it is ready to commence operations once the certificate to take the railway into service is issued.

Figure 1 provides a high level diagram of the proposed HSR implementation program.


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Figure 1 High level HSR implementation program


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1.3 Line 1 Stage 1 program This program demonstrates how the first discrete stage of the HSR implementation program could be undertaken. It is based upon the high level program as shown in Figure 1 above.

The principle adopted for the civil contractors’ design and construction of the works is similar to that adopted in Taiwan, Spain and other international locations. It is that of breaking the route into nominal 30 kilometre sections, and then having longer rail systems installation and testing contracts overlaid on the civil contracts. This reduces the number of interfaces in the rail systems design and provides for an overall integrated design.

The rail systems packages include track, overhead catenary and traction power supply, signalling and communications. In addition to this, there is the train supply contract and depot fit-out.

The programs reflect the constraints and issues raised in Section 1.2 above.

In developing the civil works packages for Line 1, Stage 1, the route was broken down into subsections as per Table 1, with the high level Line 1, Stage 1 implementation plan shown in Figure 2. Table 1 Line 1 Stage 1 subsections

Line 1 Stage 1 construction sections

Section Location from and to Approx length (km)

Chainage Notes

1 Sydney Station 0.9 0 to 0.875 km

2 Sydney tunnel subsection 1 10.2 0.875 to 11.075 km Tunnel driven from Tasker Park towards Central

3 Sydney tunnel subsection 2 11.8 11.075 to 22.875 km Tunnel driven from Riverside Park, near Newbridge Road; Chipping Norton towards Belmore

4 Sydney tunnel subsection 3 8.2 22.875 to 31.08 km Tunnel driven from Holsworthy portal towards Chipping Norton

5 Glenfield to Douglas Park 31 31.08 to 62.08 km

6 Douglas Park to Yerringbool 31.7 62.08 to 93.8 km Extended to ensure section break clear of a tunnel

7 Yerringbool to Exeter 31 93.8 to 124.8 km

8 Exeter to Medway Junction/ Marulan

31.3 124.8 to 156.148 km Extended to clear a bridge

9 Medway Junction/Marulan to Goulburn Airport

31 156.148 to 187.148 km

10 Goulburn Airport to Lerida Road*

31 187.148 to 218.148 km

11 Lerida Road to Gundaroo* 31 218.148 to 249.148 km

12 Gundaroo to Canberra** 33.9 249.148 to 283 km * Includes rolling stock and major infrastructure depots. ** Includes Canberra Junction. Note: Due to the complexity and length of tunnelling in the urban areas this has been divided into shorter subsections than the rural areas. The nominal 30 kilometre sections have been adjusted in the rural areas to ensure the break in subsection is located at a suitable juncture, i.e. not in a remote area or on a structure/tunnel. It is assumed that all subsections are constructed concurrently.


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Figure 2 High level Line 1 Stage 1 implementation program



Appendix 4B Indicative capital cost estimates

High Speed Rail Study Phase 2 Appendix 4B

March 2013

Appendix 4B Indicative capital cost estimates

Prepared for



March 2013



In accordance with the east coast high speed rail (HSR) study terms of reference, AECOM and its sub-consultants (Grimshaw, KPMG, SKM, ACIL Tasman, Booz & Co and Hyder, hereafter referred to collectively as the Study Team) have prepared this report (Report). The Study Team has prepared this Report for the sole use of the Commonwealth Government: Department of Infrastructure and Transport (Client) and for a specific purpose, each as expressly stated in the Report. No other party should rely on this Report or the information contain in it without the prior written consent of the Study Team. The Study Team undertakes no duty, nor accepts any responsibility or liability, to any third party who may rely upon or use this Report. The Study Team has prepared this Report based on the Client's description of its requirements, exercising the degree of skill, care and diligence expected of a consultant performing the same or similar services for the same or similar study, and having regard to assumptions that the Study Team can reasonably be expected to make in accordance with sound professional principles. The Study Team may also have relied upon information provided by the Client and other third parties to prepare this Report, some of which may not have been verified or checked for accuracy, adequacy or completeness. The Report must not be modified or adapted in any way and may be transmitted, reproduced or disseminated only in its entirety. Any third party that receives this Report, by their acceptance or use of it, releases the Study Team and its related entities from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability. The projections, estimation of capital and operational costs, assumptions, methodologies and other information in this Report have been developed by the Study Team from its independent research effort, general knowledge of the industry and consultations with various third parties (Information Providers) to produce the Report and arrive at its conclusions. The Study Team has not verified information provided by the Information Providers (unless specifically noted otherwise) and it assumes no responsibility nor makes any representations with respect to the adequacy, accuracy or completeness of such information. No responsibility is assumed for inaccuracies in reporting by Information Providers including, without limitation, inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the Report. In addition, the Report is based upon information that was obtained on or before the date in which the Report was prepared. Circumstances and events may occur following the date on which such information was obtained that are beyond the Study Team's control and which may affect the findings or projections contained in the Report, including but not limited to changes in 'external' factors such as changes in government policy; changes in law; fluctuations in market conditions, needs and behaviour; the pricing of carbon, fuel, products, materials, equipment, services and labour; financing options; alternate modes of transport or construction of other means of transport; population growth or decline; or changes in the Client's needs and requirements affecting the development of the project. The Study Team may not be held responsible or liable for such circumstances or events and specifically disclaim any responsibility therefore.


March 2013

Quality Information Document Appendix 4B

Ref 60238250-3.0-REP-0301-4B

Date March 2013


March 2013

Table of Contents 1.0 Introduction 1

1.1 Summary of indicative capital cost estimate 1 2.0 Approach 3

2.1 Classification of cost categories 3 2.2 Model development and application 3 2.3 Currency and considerations of the capital cost estimates 4 2.4 Cost build-up and unit pricing 4 2.5 Quantification of costs 4

3.0 Definition of cost categories 6 3.1 Tunnels (code 10) 6 3.2 Structures (code 20) 8 3.3 Earthworks (code 30) 9 3.4 General civil works (code 35) 9 3.5 Permanent way 11 3.6 Signalling and communications 11 3.7 Power 12

3.7.1 Power transmission 12 3.7.2 Power distribution 12

3.8 Stations and facilities 13 3.8.1 Station and station systems 13 3.8.2 Station car parks 14 3.8.3 Depots, stabling facilities and equipment 15

3.9 Land acquisition 16 3.9.1 Scope of land acquisition 16 3.9.2 Quantification of land to be acquired 16 3.9.3 Categorisation of land to be acquired 17 3.9.4 Unit pricing for land acquisition 17 3.9.5 Offset allowance for acquisition of environmentally sensitive lands 18

4.0 Rolling Stock and Client Development Costs 19 4.1 Rolling stock 21

4.1.1 HSR train sets 21 4.1.2 Maintenance rolling stock 21

4.2 Client development costs 22 4.2.1 Pre-phase and preliminaries 22 4.2.2 Planning, design and procurement 22 4.2.3 Construction 23 4.2.4 Commissioning 23 4.2.5 Benchmarking of client development costs 23


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1.0 Introduction This documents the approach, assumptions, basis of the estimate, and outputs of the estimation of indicative capital costs associated with the development of a HSR network.

All cost estimates presented in this section are in $2012 AUD. These estimates are indicative and represent the cost of developing the preferred alignment (as defined in Appendix 3B) and the railway (to the specification as outlined in Appendix 2B). They contain no contingency for varied scope, the staging of the development, inflation, the escalation of the cost of labour and materials or any other kind of risk aside from contractor’s risk.

Note that these estimates include the cost of developing the HSR infrastructure as well as land acquisition. The estimated capital costs of HSR rolling stock and client development costs are not included but are discussed in Section 4.

1.1 Summary of indicative capital cost estimate Table 1 shows an overview of the key characteristics of the alignment for each of the major metropolitan-to-metropolitan HSR segments. Table 1 Total lengths and costs of alignment – HSR major segments

Brisbane to Sydney

Sydney to Canberra

Canberra to Melbourne

Total alignment

Total length (km) 853.9 282.6 611.4 1747.8

Length in tunnel (km) 92.7 37.0 14.3 144.0

Length on bridges and viaducts (km)

98.1 10.8 23.3 132.2

Length at grade (km) 663.1 234.8 573.7 1471.6

Total cost ($B) 47.5 17.9 20.4 85.8

Cost per kilometre ($M) 55.6 63.3 33.4 49.1

An overview of the capital costs for the entire proposed HSR network is shown in Table 2 broken down by the key infrastructure cost categories. Table 2 Indicative capital cost – Australian HSR network

Key cost category Estimated Cost ($B)*

Tunnels 24.7

Bridges and viaducts 15.8

Earthworks 14.5

General civil works 6.9

Permanent way 6.6

Signalling – command 0.6

Signalling – communications 1.0

Power – transmission 0.5

Power – distribution 4.7

Stations 7.1

Land 3.5

Total 85.8 *Note: Figures have been rounded


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Table 3 to Table 5 provides an overview of the each of the regional-centre to regional-centre segments that make up the longer capital-to-capital major segments. Table 3 Indicative capital costs - Brisbane to Sydney

Cost category

Brisbane to GS spur

entrance

Gold Coast spur

Gold Coast

spur to Casino

Casino to

Grafton

Grafton to Coffs Harbour

Coffs Harbour to

Port Macquarie

Port Macquarie to Taree

Taree to Newcastle

Newcastle to Central

Coast

Central Coast to Sydney

Brisbane to

Sydney*

$B $B $B $B $B $B $B $B $B $B $B

Tunnels 0.9 0.9 1.5 1.4 0.7 0.1 - 1.0 0.1 9.1 15.7

Bridges and viaducts 1.4 0.5 0.7 0.5 1.5 1.3 1.9 1.2 0.4 0.8 10.2

Earthworks 0.3 0.5 1 0.5 0.7 0.7 0.6 2 0.4 0.7 7.4

General civil works 0.2 0.3 0.5 0.2 0.4 0.3 0.2 0.5 0.2 0.5 3.3

Permanent way 0.2 0.2 0.4 0.3 0.4 0.5 0.3 0.5 0.2 0.1 3.1

Signalling – command 0.04 0.02 0.03 0.02 0.03 0.03 0.02 0.03 0.02 0.02 0.3

Signalling – communications 0.03 0.03 0.06 0.04 0.06 0.05 0.03 0.07 0.02 0.09 0.5

Power - transmission - 0.07 0.03 0.01 0.02 0.06 0.01 0.05 0.01 0.01 0.3

Power - distribution 0.2 0.2 0.3 0.2 0.3 0.3 0.2 0.3 0.1 0.2 2.3

Stations 1.1 0.2 0 0.1 0.1 0.1 0.1 0.1 0.7 0.5 3

Land 0.6 0.2 0 0 0.1 0.1 0.1 0.1 0.1 0.3 1.6

Total 5.0 3.1 4.5 3.3 4.3 3.5 3.5 5.9 2.3 12.3 47.5 *Note: Figures have been rounded


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Table 4 Indicative capital costs – Sydney to Canberra

Cost category Sydney to Southern Highlands

Southern Highlands to

entrance of the Canberra spur

Canberra spur

Sydney to Canberra*

$B $B $B $B

Tunnels 6 0.1 0.6 6.6

Bridges and viaducts 0.5 0.8 0.3 1.6

Earthworks 0.8 1.3 0.3 2.4

General civil works 0.6 0.5 0.2 1.2

Permanent way 0.3 0.5 0.2 1

Signalling – command 0.1 0.03 0.02 0.2

Signalling – communications 0.1 0.1 0.03 0.2

Power - transmission 0.01 0.1 0.01 0.1

Power - distribution 0.2 0.4 0.2 0.8

Stations 1.6 0.3 0.5 2.5

Land 0.9 0 0.4 1.3

Total 11.1 4 2.8 17.9 *Note: Figures have been rounded

Table 5 Indicative capital cost estimates – Canberra to Melbourne

Cost category

Canberra spur to Wagga Wagga

Wagga Wagga to

Albury

Albury to Shepparton

Shepparton to Melbourne

Canberra – Melbourne*

$B $B $B $B $B

Tunnels 0.2 - - 2.2 2.4

Bridges and viaducts 1.8 0.7 0.6 0.9 4

Earthworks 2.2 0.8 0.6 1 4.6

General civil works 0.7 0.4 0.4 0.8 2.4

Permanent way 0.8 0.5 0.5 0.6 2.5

Signalling – command 0.1 0 0 0 0.2

Signalling – communications 0.1 0.1 0.1 0.1 0.3

Power - transmission 0.1 0 0 0.1 0.2

Power - distribution 0.6 0.3 0.3 0.4 1.6

Stations 0.2 0.3 0.1 1 1.5

Land 0.05 0.02 0.02 0.5 0.6

Total 6.85 3.12 2.62 7.6 20.4 *Note: Figures have been rounded


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2.0 Approach

2.1 Classification of cost categories Capital costs were quantified using a cost breakdown structure or classification to allow for a methodical and individual analysis. These cost classifications include key infrastructure elements, such as tunnels and bridges; facilities, such as stations, depots and substations; rolling stock and other HSR plant; and land acquisition. These key capital cost categories are shown in Table 6. Table 6 Classification of key capital cost elements

Classification Capital cost elements Description

10 Tunnels Tunnels

20 Bridges and viaducts Bridges and viaducts

30 Earthworks Earthworks

35 General civil works Various civil works undertaken along the certain lengths of the alignment

40 Permanent way Infrastructure and works associated with permanent way

50 Signalling and Communications Infrastructure associated with signalling and communications

60 Power Infrastructure associated with overhead line electrification (OHLE) and traction power

70 Stations and facilities Stations, depots and associated plant

80 Rolling stock HSR train sets and maintenance rolling stock

90 Land acquisition Land to be acquired permanently and temporarily for corridor preservation

00 Client development costs Costs to the development and governing body of HSR for: pre-phase and preliminaries; planning, design and procurement; construction and commissioning.

The approach to the development of the estimates for rolling stock and client development costs are discussed in Section 4.

2.2 Model development and application Capital costs of the route were assessed within an Excel-based model utilising a Visual Basic macro to compile data from the alignment data from Quantum and apply a unit rate for each cost component. The unit rates were built up in a bottom-up manner by the study team’s cost estimators. Capital cost components not quantified in Quantm, such as stations, depot, rolling stock and land, were manually estimated and entered into the model in the segments in which they apply.

Individual capital cost components were specified and quantified through the alignment development or applied as per the regularity of their occurrence along the alignment. For instance, earthworks were quantified in detail for each 200 metres of alignment section along the network; traction power substations were applied on the assumption that they would be situated approximately every 60 kilometres; while metropolitan stations and major maintenance and infrastructure depots are applied on an individual basis.

The model allowed for the aggregated and disaggregated analysis of individual alignment segments and for the network alignment as a whole, to support the identification of the preferred alignment sections that make up the overall network alignment.


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2.3 Currency and considerations of the capital cost estimates The capital cost estimates took into consideration the development of all aspects of the infrastructure, stations and facilities, rolling stock and land acquisition required for the construction of the proposed HSR network. However, it did not take into consideration the staging of the development, inflation, the escalation of the cost of labour and materials or any other kind of risk aside from contractor’s risk. All indicative capital cost estimates presented in this appendix are in $2012 AUD.

2.4 Cost build-up and unit pricing The indicative capital cost estimates of the various elements of infrastructure are comprised of indicative cost inputs, which themselves comprise estimates for constituent components. Capital cost estimates have been developed in a bottom-up manner, with unit prices developed for each of the cost components, through a variety of approaches. Figure 1 presents the process used for a typical build-up of a unit rate for a key infrastructure estimate, in this case a single tube tunnel. Figure 1 Example for unit costing build-up process

Unit rates derived for civil infrastructure were then benchmarked against recent domestic and international projects. Where benchmarks were not available or applicable, unit rates for infrastructure elements have been developed from first principle, with the constituent components (such as rates for supply and placement of concrete) corresponding to current domestic sales and delivery prices.

Unit prices for non-civil categories of infrastructure, such as electrical, signalling and communication infrastructure have been crosschecked against the sales and delivery prices of these cost elements in recent domestic conventional and international high speed rail projects.

Unit rates for the land acquisition analysis were sourced from state and territory government authorities.

2.5 Quantification of costs The infrastructure quantities within the key cost categories were estimated through three methods:

Through the findings from the application of the alignment software Quantum (such as for earthworks, tunnels and structures). Within a specified alignment, the alignment software identifies the location and quantities of required earthworks, retaining walls, structures and tunnels. For structures and tunnels, the software identifies the infrastructure type, its length and height (or depth). This specification corresponds with a unit rate which is applied on a linear basis along the length of this individual piece of infrastructure. The alignment software


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is the primary tool for estimating the quantity, type and specification of civil infrastructure required.

Through the application of costs on a linear or reoccurring basis along the length of the total alignment. Examples of key cost elements applied on a linear basis include most of those in general civil works (such as fencing, revegetation, and utilities relocation), permanent way (such as concrete slabs and rail) and power distribution (including OHLE). Several cost elements were applied with a specified regularity along the length of the alignment. For example, power distribution has autotransformers every 10 kilometres.

Through the individual application of costs for certain cost elements at specific locations specified in the alignment analysis. Cost elements (to which this basis of quantification applied) included, among others: stations, control and command centres, depots, and stabling yards.


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3.0 Definition of cost categories The key elements that make up the indicative estimates of the capital costs were grouped together into cost categories (numbered 10, 20, 30, etc.) to allow for a methodical and individual cost analysis of each major infrastructure type. Estimates were developed for each of the infrastructure elements within the cost categories as per the technical specification presented in early sections of this appendix. The following provides a description.

3.1 Tunnels (code 10) Several types of tunnels were considered for the proposed HSR alignment, with the differentiation of these types reflective of the number of tubes, the manner in which they were developed (cut and cover, mined, or via tunnel boring machine) and the diameter of the tubes. The indicative aggregate capital costs of the tunnels were comprised of the following key cost inputs and elements:

Preliminary earthworks and preparation for tunnel boring machine or other methodology.

Establishment of tunnel boring machine and plant and their ultimate removal.

Buildings (ventilation and temporary).

Cost per cubic metre of excavation (including allowances for fuel, maintenance, etc).

Spoil transportation and disposal.

Tunnel circumferential drainage and waterproofing.

Circumferential concrete lining.

Longitudinal drainage.

Backfilling the tunnel invert.

Walkway construction.

Ventilation – mechanical.

Cross passages at 250m centres.

Emergency ingress/egress shafts1.

Fire protection.

Temporary electrical supply, including ventilation.

Lighting.

Track, including trackslab.

Overhead line (catenary).

Communications and signalling.

Table 7 illustrates an estimate for a 5 kilometre long, urban, twin bore tunnel, using recent Australian rates. Similar estimates were made for shorter and longer tunnels, as well as different tunnel sizes and configurations. These were compiled into a single unit rate per kilometre. An additional provision of $20 million per kilometre is allowed for as yet unspecifiable safety requirements, shafts and crossovers in urban tunnels. These rates are shown in Table 8.

1 Certain cost inputs associated with tunnel construction (ventilation and emergency ingress/egress shafts) require land to be acquired. The cost allowance for land acquisition is in the land acquisition cost category and not the tunnel costs.


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Table 7 Example cost build-up of 5 km urban twin bore single track tunnel ($2012)

Note: Totals may not sum due to rounding. *Indexation has been applied to present cost estimates in $2012.

Item Sub item Unit Quantity Rate Labour Plant Materials Sub-contractor TotalEstablishment

1.1 Setup worksite/temporary works Item 1 25,008,500 - - - 25,008,500 25,008,500 1.2 Supply power Item 1 550,000 - - - 550,000 550,000

1.3 Supply tunnel boring machine Item 1 86,074,400 26,400 86,048,000 - - 86,074,400 1.4 Setup tunnel boring machine Item 1 697,600 580,800 116,800 - - 697,600 1.5 Turn tunnel boring machine Item 1 - - - - - - 1.6 Supply mucking equipment Item 1 2,686,000 66,000 2,620,000 - - 2,686,000 1.7 Demobilisation Item 1 2,367,900 181,500 1,271,400 - 915,000 2,367,900

Indexation on the above* 42,735 4,502,810 - 1,323,675 5,869,220 Total establishment 897,435 94,559,010 - 27,797,175 123,253,620

Tunnel works2.1 Excavation m3 594,470 70 34,630,237 5,510,643 1,619,081 - 41,759,960 2.2 Spoil removal m3 594,470 78 - 46,329,029 - - 46,329,029 2.3 Primary support m2 232,321 23 1,575,000 1,050,000 2,625,000 - 5,250,000 2.4 Waterproofing m2 232,321 66 - - - 15,402,867 15,402,867 2.5 Segmental support m2 224,310 397 - - - 89,151,563 89,151,563 2.6 Cross passages No 20 107,142 225,854 342,992 184,000 1,389,989 2,142,834 27 Backfill tunnel floor m3 65,000 300 - 19,500,000 - - 19,500,000 2.8 Pavement m2 - - - - - - -

2.9 Longitudinal drainage m 10,000 321 432,000 529,500 1,926,200 320,000 3,207,700 2.10 Cross tunnel drainage m2 30,136 50 - - - 1,494,000 1,494,000 2.11 Barrier m - - - - - - - 2.12 Precast panelling m2 - - - - - - - 2.13 Smoke duct m2 - - - - - - - 2.14 Structures item 1 11,600,000 3,480,000 2,320,000 5,800,000 - 11,600,000 2.15 Services duct m 10,000 920 - - 9,200,000 - 9,200,000

Indexation on the above* 2,017,155 3,779,108 1,067,714 5,387,921 12,251,898

Total tunnel works 42,360,245 79,361,271 22,421,995 113,146,341 257,289,851

Tunnel temporary services3.1 Power item 2 1,600,000 - - - 3,200,000 3,200,000 3.2 Lighting item 2 175,000 - - - 350,000 350,000 3.3 Ventilation item 2 1,200,000 - - - 2,400,000 2,400,000 3.4 Compressed air item 2 700,000 - - - 1,400,000 1,400,000 3.5 Pumping item 2 1,000,000 - - - 2,000,000 2,000,000

Indexation on the above* - - - 467,500 467,500

Total tunnel temporary services - - - 9,817,500 9,817,500

Fit out and otherVentilation - - - 6,000,000 6,000,000 Fire - - - 9,000,000 9,000,000 Electrical - - - 3,750,000 3,750,000 Lighting - - - 11,250,000 11,250,000 Track - - - 15,000,000 15,000,000

Extra over for slab track - - - 7,500,000 7,500,000 Overhead line and equipment - - - 9,062,500 9,062,500 Communication and signalling - - - 9,075,000 9,075,000 Mark-up (contractor overheads, supervision, site es tablishment) 28,550,068 114,787,385 14,798,517 119,302,270 277,438,241

Total fit out and other 28,550,068 114,787,385 14,798,517 189,939,770 348,075,741

Total cost of 5 km tunnel 738,436,712

Average cost per km 147,687,342


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Table 8 Indicative capital cost estimates – HSR tunnel types and portals

Tunnel type Unit rate ($M) Rate of measurement

Rural twin bore 150 per km

Urban twin bore 170 per km

Portals – Rural twin bore 18 Includes two sets per tunnel

Portal – Urban twin bore 18 Includes two sets per tunnel

3.2 Structures (code 20) Fifteen different types of structures (bridges) were considered for the alignment. These structures comprised bridges for various types of terrains and geology, for flood prone areas and for grade separations where roads or rail lines would need to pass over the proposed HSR alignment. Structure lengths were quantified by the alignment software.

For bridges, estimates were individually undertaken for five typical bridge types (types A-E in Table 9).

Table 9 Indicative capital cost estimation - HSR bridge types

Bridge type Structure description Typical characteristics/note Unit rate

($M) Unit of

measurement Type A ‘Super T’ Height <30 m, Span <20 m 90 Per route km

Type B Concrete Box Girder Height 30 m – 40 m, Span 20 m – 50 m 105 Per route km

Type C Balanced Cantilever Height >40 m, Span 50 m – 120 m 140 Per route km

Type D Cable Stayed Height N/A, Span 120 m – 200 m 175 Per route km

Type E Concrete Arch Height N/A, Span >200 m 215 Per route km

In order to facilitate and not overly complicate the processing, a singular bridge unit rate was assumed and used in the cost model, multiplied by the length identified by Quantm. This unit rate used was $110M per route kilometre.

All HSR structure types, their typical characteristics, units of measurement and their unit rates (applied to their lengths or occurrences) are shown in Table 10.

Table 10 Indicative capital cost estimation - HSR structure types


($M) Unit of

measurement All Typical bridge $110 Per route km

Type F Viaducts over poor soil – Super T Height <10 m, Span <20 m 70 Per route km

Type G Viaducts over water(–Concrete Box Girder)

Height <10 m, Span 20 m – 50 m over water 125 Per route km

Type H Box Culvert in flood prone areas Strahler Stream Order 2 30 Per route km

Type I Box Culvert in flood prone areas Strahler Stream Order 3 32 Per route km

Type J Box Culvert in flood prone areas Strahler Stream Order 4 71 Per route km

Type K Box Culvert in flood prone areas Strahler Stream Order 4+ 65 Per route km


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($M) Unit of

measurement Type L Road over rail Includes allowance for road

approaches to allow to be built off line

5 Each

Type M Rail over rail Includes allowance for increased earthworks to raise grade

5 Each

Type N Underpasses and farm crossings Assumed regularity of 2km intervals of non-metropolitan alignment

2.5 Each

3.3 Earthworks (code 30) Earthworks comprise the processes and activities involved with the excavation, movement and forming of ground associated with cuttings and embankments. Quantities of earthworks required for any given alignment section were identified in 200 metre sections by the alignment software.

Unit rates for earthworks were developed for both urban and rural settings and cross-checked and benchmarked against current outturn costs from major domestic infrastructure projects. An extra over allowance for additional sundry works and known unknowns is also included in both the rural and urban context.

The types of earthworks incorporated are shown in Table 11. Table 11 Indicative capital cost estimates – HSR earthworks, rural and urban

Earthwork type Unit rate ($) Unit of measurement

Rural

Mass Haul 2 Per m³ km Borrow 9 Per m³ Dump 7 Per m³ Fill 11 Per m³ Cut – rock 26 Per m³ Cut – non rock 9 Per m³ Extra over allowance 260,000 Per km Urban

Mass Haul 2 Per m³ km Borrow 40 Per m³ Dump 32 Per m³ Fill 21 Per m³ Cut – rock 56 Per m³ Cut – non rock 16 Per m³ Extra over allowance 260,000 Per km

3.4 General civil works (code 35) General civil works are a variety of activities which are likely to be required on a linear basis along either the entire length of the alignment (excluding in tunnels and on structures) or which are required for specified distances along the alignment (such as noise attenuation walls or special treatment in


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areas of mining subsidence). Many of these general civil works were applied to the majority of the length of the alignment; others were applied only in a single instance.

The unit rates for the general civil works are applied on a linear basis, either by linear metre or by linear kilometre. Many of the unit rates for the general civil works were developed from first principles, in a bottom-up manner, from constituent components, while others are representative of widely accepted domestic industry rates. All unit prices were benchmarked against recent out-turn costs from major domestic infrastructure projects.

The unit prices for the general civil works cost elements, along with their applicable location type and unit of measurement, are shown in Table 12.

Table 12 Indicative capital cost estimates - HSR general civil works

General civil works element Location Unit rate ($) Unit of measurement

Rural

Human and fauna proof fencing Rural 90,000 Per route km

Retaining wall – piled cantilever Rural 2,400 Per m2

Retaining wall – reinforced concrete Rural 2,200 Per m2

Slope stability – 10 to 30 degrees Rural 2,160,000 Per route km

Slope stability ->30 degrees Rural 5,780,000 Per route km

Noise Attenuation Walls Rural 4,800,000 Per route km

Site clearance and minor demolition Rural 135,000 Per route km

Utilities relocation Rural 125,000 Per route km

Urban

Human and fauna proof fencing Urban 200,000 Per route km

Retaining wall – piled cantilever Urban 2,900 Per m2

Retaining wall – reinforced concrete Urban 2,700 Per m2

Noise Attenuation Walls Urban 9,500,000 Per route km

Site clearance and minor demolition Urban 125,000 Per route km

Utilities relocation Urban 575,000 Per route km

Urban and rural

Intrusion detection – fencing Urban and rural 86,000 Per route km

Fencing for rock fall Urban and rural 2,100,000 Per route km

Extra over allowance for mine subsidence – tunnel

Urban and rural 80,000,000 Per route km

Extra over allowance for mine subsidence – at grade

Urban and rural 19,000,000 Per route km

Longitudinal drainage Urban and rural 475,000 Per route km

Cross drainage Urban and rural 390,000 Per route km

Minor access roads Urban and rural 1,500,000 Per route km

Revegetation landscaping Urban and rural 290,000 Per route km

Environmental protection measures Urban and rural 50,000 Per route km

Disruption to existing corridors Urban and rural 100,000 Per route km


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3.5 Permanent way The unit prices for permanent way have been developed from first principles in a bottom-up manner, with the specification of the concrete slab track modelled after the ‘Rheda 2000’ slab track system of Germany’s Nuremberg-Ingolstadt HSR line. Both ballasted and slab track permanent way unit prices have been cross-checked and benchmarked against current out-turn cost from recent domestic and international rail projects, respectively. The locations of crossovers and turnouts, aside from those located at stations, were note determined for the study. Accordingly, an assumed allowance for their provision has been applied on a linear basis along the alignment.

The elements of permanent way, their unit prices and unit of measurement are shown in Table 13. Table 13 Indicative capital costs estimates - HSR permanent way

Permanent way element Unit rate ($) Unit of measurement

Capping – dual track 410,000 Per route km

Turnouts and crossing 200,000 Per route km

Track – ballasted (dual track) 2,500,000 Per route km

Track – slab track (dual track) 3,550,000 Per route km

3.6 Signalling and communications These are the systems associated with train control and communications between the HSR fleet and various HSR facilities, including the control centres, stations and depots.

The various elements of signalling and communications, their unit prices, units of measurement and, where applicable, characteristics of their specification are presented in Table 14 and Table 15. Table 14 Indicative capital cost estimates - HSR signalling

Signalling element Unit rate ($) Unit of measurement Characteristic/note

Track crossover 6,000,000 Each Frequency every 20 km

Station crossover (terminus)

12,000,000 Each At each terminus station

Station crossover (through) 12,000,000 Each At every regional station Fixed balises2 2,000 Per route km Entire at grade length Control centre (premises, fit out and signalling equipment)

35,000,000 Each (two in total) Each located in separate Sydney CBD location. Secure compound with bomb-proof elements implemented. Underground location also feasible. Includes cost of signalling control, electrical and mechanical equipment. Does not include land acquisition. These are assumed to be leased.

2 A balise is an electronic beacon or transponder placed between the rails of a railway as part of an Automatic Train Protection (ATP) system.


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Table 15 Indicative capital cost estimates - HSR communications

Communications element Unit rate ($) Unit of measurement Characteristic/note

Control centre – communications equipment

10,000,000 Each Equipment only, does not apply to building

Train operations voice data 100,000 Per train set Included in rolling stock unit price

Train Wi-Fi 300,000 Per train set Included in rolling stock unit price

Train – driver cab 350,000 Per track km Included in rolling stock unit price

Cable route 125,000 Per route km Excludes sections in tunnels

Radio tower 800,000 Each Every 6.5 km in urban areas, every 12 kms in rural areas

Base station (within tunnels) 500,000 Each Every 500 m within tunnels

3.7 Power Power cost elements are those associated with the distribution and transmission of power to rolling stock.

3.7.1 Power transmission

Transmission refers to infrastructure associated with receiving power from the National Electricity Market (NEM) and converting it to a power level appropriate for providing traction power to the HSR rolling stock.

The length of cable feed required to connect the traction power substations to NEM substations was estimated once the potential locations for the HSR network’s traction power substations had been identified.

An allowance has been made under the assumptions that two new NEM substations will be required and an average of 25 kilometres of cable feed will required to connect the NEM to each of the traction substations. Unit prices were crosschecked and benchmarked against recent out-turn costs from recent major domestic and international rail projects.

The various elements of power transmission infrastructure, their unit prices and their units of measurement are presented in Table 16 below. Table 16 Indicative capital cost estimates – HSR power transmission

Power transmission element Unit rate ($M) Unit of measurement

Modification of existing transmission substation 5 Each

Construction of new transmission substation 50 Each

Cable feed to the NEM grid 0.5 Per km

3.7.2 Power distribution

Power distribution refers to the infrastructure associated with the provision of power to the HSR train sets. Power distribution infrastructure is the infrastructure associated with overhead line electrification (OHLE), traction power substations and autotransformers. OHLE is made up of several more granular cost inputs including: masts, outreach, catenary and contact wires.

The various elements of power transmission infrastructure, their unit prices and their units of measurement and, where applicable, their regularity are presented in Table 17.


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Table 17 Indicative capital cost estimates – HSR power distribution

Power transmission element Unit rate ($M) Unit of measurement Regularity

OHLE 1.5 Per route km Entire network length

Power distribution (traction power) substation

36.1 Each Every 60 kms

Autotransformers 5 Each Every 10 kms

3.8 Stations and facilities The stations and facilities cost category is diverse and covers buildings that would need to be constructed or modified and includes: stations and facilities associated with the maintenance of rolling stock and infrastructure; car parks for stations; and electrical and mechanical equipment and plant required for all those facilities.

For the purposes of the cost estimate analysis, the station and facilities elements were grouped into the following three subcategories:

1) Station and station systems.

2) Station car parks.

3) Depots, stabling facilities and equipment.

3.8.1 Station and station systems

There are 20 stations proposed for the Australian HSR network, made up of four metropolitan terminus stations, four metropolitan peripheral stations and 12 regional stations. For the purpose of cost estimating, each metropolitan station was costed individually based upon a relatively high level specification produced by the study team. With the exception of the Sydney North peripheral station, the cost estimates of peripheral stations were developed upon a uniform design specification. The cost estimates of all regional stations were based upon a uniform specification.

Metropolitan stations Terminus stations have been proposed for the four capital cities that comprise the key nodes of the proposed HSR network: Brisbane, Sydney, Canberra and Melbourne. The stations in Sydney and Melbourne would be located within the existing primary rail stations (Central and Southern Cross, respectively) while the stations in Brisbane and Canberra would be redevelopment of existing sites not currently utilised for rail based activities.

Indicative costs for the construction and/or redevelopment of the metropolitan stations have been developed from a relatively detailed specification produced by the study team. Additional provisions are included in the cost estimate for the disruption and relocation of existing rail services and associated works (such as the maintenance depot and stabling at Southern Cross Station) located adjacent to existing metropolitan stations.

The indicative cost estimates for metropolitan stations shown in Table 18 do not include the costs associated with acquisition of land in and around the stations; this is applied separately in the land acquisition cost estimate. In the case of the Canberra metropolitan terminus station, the estimate of the costs associated with the construction of a car park to service the station is also omitted from the total costs estimate in Table 18. These costs are allowed for in station car parks.


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Table 18 Indicative capital costs - HSR metropolitan terminus stations

Terminus station

Construction/redevelopment cost estimate

Relocation of operational

station services

Relocation of existing facilities

Total cost estimate

$M $M $M $M

Brisbane 438 200 638

Sydney 657 500 1,157

Canberra 325 325

Melbourne 115 200 150 465

Peripheral stations

Four peripheral stations have been proposed: Brisbane South, Sydney North, Sydney South and Melbourne North. With the exception of the Sydney North station, the peripheral stations are anticipated to comprise at-grade redevelopment of land and their cost estimates of metropolitan peripheral stations are developed upon a uniform design specification. Due to the topography of the northern entry into Sydney, the Sydney North station is assumed to be a shallow underground station, and its cost estimate is based upon an individual design specification.

The indicative capital costs associated with the construction of the peripheral stations is shown in Table 19. These estimates do not include an allowance for the cost of land to be acquired, which is reflected in the land acquisition cost. Neither do the estimates include the cost of construction of car parks for the peripheral stations, which are included in the costs of stations car parks.

Table 19 Indicative capital costs - HSR metropolitan terminus stations

Peripheral station Estimated cost ($M)

Brisbane South 100

Sydney North 153

Sydney South 100

Melbourne North 100

Regional stations Stations have been proposed near a dozen regional centres across Queensland, New South Wales and Victoria. A uniform design specification has been used in the development of an indicative estimate of the capital costs associated with the construction of regional stations. This estimate is $70 million per station, excluding land acquisition and the construction of car parks.

3.8.2 Station car parks

Purpose-built car parks have been proposed for all of the HSR stations except for the metropolitan terminus stations in Brisbane, Sydney and Melbourne. The amount of spaces at these car parks ranges from a minimum of 800 to a maximum of 11,000 in 2065.

There were three types of car parks assessed: those built at grade, multi-storey stacked car parks built above ground, and multi-storey stacked car parks built below ground. Estimated costs for each type have been benchmarked to domestic industry standards and are shown in Table 20.


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Table 20 Domestic construction industry standards - car park construction by type

Car park type Cost per car park space ($)

At grade 7,000

Multi-stacked (above ground) 26,000

Multi-stacked (below ground) 54,000

Given the average size of the car parks proposed, it was assumed that all station car parks of over 3,000 car spaces would be multi-storey, stacked above ground type. Note that the number of car spaces required for the stations reflects the maximum demand in the year 2065 and does not take reflect either the proposed staging of development or their minimum or maximum demand for any of the prior years.

3.8.3 Depots, stabling facilities and equipment

Various facilities associated with the maintenance of HSR rolling stock and infrastructure includes rolling stock maintenance depots, major infrastructure depot, minor infrastructure depots and stabling facilities. Included within each of these facilities are permanent buildings, fixed rail infrastructure, electrical and mechanical equipment and car parks.

Indicative capital costs for each of the facilities have been estimated as per the specification identified in the operations and maintenance plan (including high level design specification). For the purposes of the cost estimating, this cost subcategory has been broken into the following elements:

Rolling stock maintenance depots.

Major infrastructure maintenance depots.

Minor infrastructure depots.

Stabling facilities.

Rolling stock maintenance depots Two rolling stock maintenance depots have been proposed in locations near Goulburn, and near Lenaghan (Newcastle). It has been assumed that the land take up is 28 hectares for each depot and that each would comprise office space, amenities, train washing facilities, car parks, with six maintenance roads comprising three inspection roads and three lifting roads. Certain roads would be fitted with 20 tonne overhead cranes running the length of the facility; others with synchronised jacks to raise train sets to conduct bogie exchanges; and others with an overhead 10 tonne crane for moving equipment around the facility. It is assumed that each of these rolling stock maintenance depots will also serve as a stabling facility for the Canberra metropolitan terminus station (stabling at Goulburn) and the Newcastle regional station (stabling at Lenaghan).

The estimated capital cost of the construction and equipping of each of these rolling stock maintenance depots including the cost of plant is $170 million. This estimate does not include the cost of acquiring the land upon which the depots will be located, as this cost is included in the land acquisition estimate.

Major infrastructure depots

Three locations have been proposed for major infrastructure depots: Goulburn; Albury and Coffs Harbour, with the Coffs Harbour depot assuming the role of the primary infrastructure maintenance depot upon the development of the HSR segment from Sydney to Brisbane.

It has been assumed that the land take for the major infrastructure depots in Goulburn and Albury-Wodonga is five hectares and, for the Coffs Harbour depot 10 hectares. These depots would comprise workshops, tool store, staff amenities, storage area for large items, communications facilities and car parks.


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The estimated capital cost of the two major infrastructure depots in Goulburn and Albury-Wodonga are $5 million each, while the estimated capital cost of the major infrastructure depot at Coffs Harbour is $12.5 million. These estimates do not include the cost of acquiring the land upon which the depots would be located as this cost is included in the land acquisition estimate.

Minor infrastructure depots

Minor infrastructure depots are proposed to be located every 100 kilometres of the alignment in co-location with every second traction substation. The minor infrastructure depots are to be unmanned and would comprise rail siding with access to depot, overnight accommodation for an infrastructure maintenance crew, small workshop and tool store, car park, communication facilities and various plant and materials. The estimated land take for these minor infrastructure depots is 0.4 hectares.

The estimated capital cost of each of the minor infrastructure depots is $5 million. This estimate does not include the cost of acquiring the land upon which the depots would be located as this cost is included in the land acquisition estimate.

Stabling facilities

Three stabling facilities have been proposed for the network: one south of Brisbane near Greenbank one south of Sydney near Holsworthy and one north of Melbourne near Craigieburn. It has been assumed that the rolling stock maintenance depots would also serve as stabling facilities for Canberra and Newcastle stations.

The land take required for each stabling facility is between 7 and 28 hectares (depending on the number of stabling roads) and would comprise offices and amenities, general inspection platforms, wayside monitor, train washing facilities, storage and 10 stabling roads capable of accommodating 200 metre and 300 metre train sets.

The estimated capital cost for each of the stabling facilities has been estimated at $80 million. This estimate does not include the cost of acquiring the land upon which the stabling facilities would be located as this cost is included in the land acquisition estimate.

3.9 Land acquisition The land acquisition category of the capital cost estimate includes land to be acquired, for temporary and permanent purposes, for construction, development and operation of the proposed HSR network.

3.9.1 Scope of land acquisition

Nearly all of the previous described key cost categories contain a land acquisition component. Land acquisition would be required for the following:

Corridor reservation and preservation, and development of the alignment.

Stations, depots and stabling facilities, including the purchase of land to relocate existing facilities.

Station car parks.

Traction power substations.

Tunnel ventilation and emergency ingress/egress shafts.

Purchase of land to offset encroachment onto environmentally sensitive land or land within national parks.

It is assumed that land required for HSR will be procured through compulsory acquisition, with the landowner paid the fair market value plus a compensatory uplift for the acquisition of a portion of the land, and not the entire property. In the absence of data on individual properties or on the ownership of these properties, general assumptions have been made about the magnitude of the compensatory uplifts in both rural and urban settings.

3.9.2 Quantification of land to be acquired

The amount of land to be acquired has been determined through a variety of methods. The largest acquisition, the HSR corridor itself, was determined by the alignment length. With an assumed


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average width of 60 metres spanning approximately 1,748 kilometres, the land take for the corridor alone will be approximately 10,500 hectares. The size of the land parcels to be acquired for stations, depots, stabling facilities and car parks is driven by the design specification provided by the station architects and the operation and maintenance specification and strategy. Land to accommodate tunnel ventilation shafts and emergency ingress/egress shafts is determined by the spatial requirements specified by the alignment team. An overview of the approximate area of land to be acquired is shown in Table 21. Table 21 Indicative land take - HSR land acquisition

Purpose of land take Approximate total land take (ha) Characteristics

Corridor preservation 10,500 Average width of 60 m

Stations and car parks 200 Average footprint of 12 ha

Depots 145 Vary

Land acquired to offset take up of environmentally sensitive lands /national parkland

2,220 Purchase 10 ha of adjacent undeveloped rural land for every hectare utilised

Acquisition of facilities to be relocated 15 Brisbane Transit Centre, Melbourne rolling stock maintenance depot and stabling yard

(conventional rail) Tunnel shafts 27 Approximate 600 m2 each

Total land take (approx.) 13,100 ha

3.9.3 Categorisation of land to be acquired

With some exceptions around the metropolitan stations, the land acquisition analysis did not take into consideration individual parcels of land, nor did consider the current ownership of the land. For these reasons, land identified for acquisition has been grouped into six main categories of land use zoning. The six land use categories are:

Land zoned for residential use.

Land zoned for commercial or business use.

Land zoned for industrial use.

Land zoned for rural (non-agricultural) use.

Land zoned for agricultural use.

Land zoned for other uses.

The location of the alignment, stations, depots and all other elements which require land acquisition were assessed through the study’s GIS toolkit systems, producing a precise breakdown of the area of land to be acquired by land use type, as well as the alignment segment and local government area (LGA) that this land is situated in.

This analysis allows for a quantification of the land to be acquired within each alignment segment by land use type, which can then be applied to a LGA specific, land use specific unit price.

3.9.4 Unit pricing for land acquisition

Unit prices for the land acquisition represent the most recent valuation of the unimproved land value of the specific land use type within the specific LGA expressed as a cost per square metre. Data sets of the most recent unimproved land values by the abovementioned land use types have been sourced from the state and territory Offices of the Valuer General (or equivalent) for the specific LGA or suburbs through which the HSR corridor passes.


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It has been assumed that land required for HSR will be procured through compulsory acquisition, with the land owner paid the fair market value plus a compensatory uplift for the acquisition of a portion of the land, and not the entire property.

Compensatory uplifts were applied to this base unit price reflective of the increase upon the unimproved land value that would be likely given that in most cases the acquisition would represent only a small fraction of the overall property. As discussed in the previous section, neither individual properties nor ownership of these properties are considered in this phase of the HSR study. General assumptions have been made about the levels of compensatory uplift that would be applicable to the land to be acquired for the proposed HSR network which are shown in Table 22. Table 22 Assumptions on compensatory uplifts - HSR alignment in rural and urban settings

Land use type Geographical setting Compensatory uplift (multiplied by)

Residential Rural 4 Commercial or business Rural 4 Industrial Rural 2 Rural (non-agricultural) Rural 2 Agricultural Rural 2 Other Rural 2

Residential Urban 10

Commercial or business Urban 10

Industrial Urban 5

Rural (non-agricultural) Urban N/A*

Agricultural Urban N/A*

Other Urban 5

Notes: Compensatory uplift factors have been obtained through discussions with state road and land development authorities. *In urban areas, rural (non-agricultural) and agricultural land uses do not occur.

3.9.5 Offset allowance for acquisition of environmentally sensitive lands

There are approximately two dozen instances along the proposed alignment where it would be necessary to acquire land that is either within a national park or classified as environmentally sensitive (such as with wetlands). Accordingly, an allowance has been included in the land acquisition cost estimates for the compensatory procurement of adjacent land, with an assumption made that 10 hectares of adjacent undeveloped rural land would be acquired for every hectare of environmentally sensitive land needed. The amount of land to be acquired as an offset has then been applied to the unit rate for non-agricultural rural land for the LGA in which the acquisition would occur, with a compensatory uplift of 100 per cent applied.

Approximately 220 hectares of land within national parks or classified as environmentally sensitive was identified for acquisition, equating to approximately 2,220 hectares of adjacent rural land to be purchased to offset this acquisition.


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4.0 Rolling stock and client development costs The indicative cost estimates for the non-infrastructure cost categories were aggregated separately from the infrastructure elements. A summary of these two cost categories – rolling stock and client development costs – are shown below for the major capital-to-capital segments of the proposed alignment. Table 23 Indicative capital costs of rolling stock and client development cost – HSR major segments

Brisbane to Sydney

Sydney to Canberra

Canberra to Melbourne

Total alignment*

Rolling stock 3.5 1.8 1.7 6.9

Client development costs 5.9 2.3 2.5 10.7

Non-infrastructure elements cost ($B) 9.4 4.1 4.2 17.7

Cost per kilometre ($M) 11.0 14.5 6.9 10.1

* Note: Figures have been rounded

Table 24 to Table 26 provide an overview of the indicative capital cost estimates for non-infrastructure elements for each of the regional-centre to regional-centre segments that make up the longer capital-to-capital major segments.


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Table 24 Indicative capital costs - Brisbane to Sydney

Cost category

Brisbane to GS spur

entrance

Gold Coast spur

Gold Coast

spur to Casino

Casino to

Grafton

Grafton to Coffs Harbour

Coffs Harbour to Port

Macquarie

Port Macquarie to Taree

Taree to Newcastle

Newcastle to Central

Coast

Central Coast to Sydney

Brisbane to

Sydney*

$B $B $B $B $B $B $B $B $B $B $B

Rolling stock 1.1 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.7 3.5

Client development costs 0.7 0.4 0.5 0.4 0.5 0.4 0.4 0.7 0.3 1.6 5.9

Total 1.8 1.0 0.5 0.4 0.5 0.4 0.4 0.7 0.4 3.3 9.4 *Note: Figures have been rounded


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Table 25 Indicative capital costs – Sydney to Canberra

Cost category Sydney to Southern Highlands

Southern Highlands to

entrance of the Canberra spur

Canberra spur

Sydney to Canberra*

$B $B $B $B

Rolling stock 1.7 0.1 0.0 1.8

Client development costs 1.5 0.5 0.3 2.3

Total 3.2 0.6 0.3 4.1 *Note: Figures have been rounded

Table 26 Indicative capital cost estimates – Canberra to Melbourne

Cost category

Canberra spur to Wagga Wagga

Wagga Wagga to

Albury

Albury to Shepparton

Shepparton to Melbourne

Canberra – Melbourne*

$B $B $B $B $B

Stations 0.0 0.0 0.0 1.7 1.7

Land 0.8 0.4 0.3 1.1 2.5

Total 0.8 0.4 0.3 2.7 4.2 *Note: Figures have been rounded

4.1 Rolling stock The rolling stock cost category includes HSR train sets of various types and rolling stock associated with the maintenance of the proposed HSR network. For the purposes of the cost estimation analysis, this cost category has been broken into the following two sub categories:

HSR train sets.

Maintenance rolling stock.

4.1.1 HSR train sets

Two different types of train sets have been proposed for the HSR network reflective of the staging of development and the gradual increase in patronage demand. The two types of rolling stock that have been proposed are given in Table 27 together with their unit rates.

These rates are reflective of cost estimates sourced directly from various suppliers in Europe and Asia as per the specification of the proposed Australian HSR network as well as benchmarked data on the procurement prices of train sets for several existing fleets across HSR systems in Europe and Asia. Table 27 Indicative capital cost - HSR train sets

Train set type Estimated cost per unit ($M)

200 m HSR train set 45

300 m HSR train set 70

4.1.2 Maintenance rolling stock

The operation and maintenance strategy identified six types of non-passenger rolling stock that are required for inspection and maintenance. These six types of rolling stock are given in Table 28


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together with their estimated capital costs. The unit prices for each type of rolling stock are benchmarked against data from recent domestic and international rail projects. Table 28 Indicative capital cost estimates - HSR non-passenger rolling stock

Rolling stock type Estimated cost ($M)

High speed ultrasonic rail analysis train (‘track train’) 100

Rail grinder 2

Flash butt welder 1

OHLE train 2

Kirow track mounted crane vehicles 5

Multipurpose vehicles 1

Track inspection vehicle 1

4.2 Client development costs Client development costs comprise non-construction costs borne by the governing body overseeing the development of the proposed HSR network. These costs have been grouped into four main client development cost categories: pre-phase and preliminaries; planning, design and procurement; construction and commissioning.

4.2.1 Pre-phase and preliminaries

This category of costs comprises those incurred before the detailed planning and design of the HSR network including the establishment of the HSR governing body itself. Components of pre-phase and preliminary costs include:

Legal and political aspects.

Feasibility studies.

Environmental impact assessment and other studies.

Urban development studies.

Acquisition of property and utilisation rights for property (exclusive of land acquisition costs).

Land development.

Consultation.

Insurances and warranties.

4.2.2 Planning, design and procurement

This category comprises costs those which would generally be incurred following the establishment up of a HSR governing body and the preservation of the designated corridor and key development sites for the proposed network. These costs represent those borne by the client in regard to the continued planning of the network, the processes through which construction contracts will be tendered to the public including a more detailed design, and the establishment of a project management framework to oversee the staged development of the network. Costs within this category include:

Route studies.

Design (for the procurement process).

Approval framework.

Alternative scenario calculations.

Cost estimations.

Procurement strategy.


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Tender process.

Project management.

Consultation.

4.2.3 Construction

Costs borne by the client during the construction phases are reflective of the processes required throughout the duration of the staged construction of the proposed network. These costs include:

Project management.

Compensations.

Preparatory works (clearing of terrain, preparation of construction sites, etc.).

Supervision.

Documentation and compliance.

Work execution.

Consultation.

4.2.4 Commissioning

The commissioning category of client development costs comprises those costs incurred leading up to and following the completion of construction works of the proposed network and the processes necessary to ensure it is suitable for operation. Commissioning costs include those incurred by:

Testing.

Approval.

Taking into operation.

Consultation.

4.2.5 Benchmarking of client development costs

Client development costs make up a significant component of overall capital costs and vary widely from one country to another reflective of differences in the length and complexity of HSR networks, of the particular country’s employment and wage structures, and of their legal, legislative and political frameworks.

Estimates for the client development costs for the proposed Australian HSR system have been benchmarked against the following seven European HSR lines:

France (TGV Mediterranee).

France (Vaires-sur-Marne – Baudrecourt).

Germany (Rhine/Main).

Germany (Erfurt – Leipzig/Halle).

Spain (Madrid – Barcelona).

Italy (Rome – Naples).

United Kingdom (HS1).

Client development costs on these high speed lines ranged from 7.5 per cent to 16.5 per cent of the aggregate capital costs, with the bulk of these costs incurred during the construction phase. Given the length of the proposed Australian HSR network when compared to the above networks (between 2.5 to 16 times longer), and that client development costs from the benchmarked networks included land acquisition costs, an estimate of 11.5 per cent of the aggregate capital costs has been assumed for this cost estimation analysis. The breakdown of this cost is shown below in Table 29.


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Table 29 Summary of development cost components

Development cost component Assumed cost (% of aggregate indicative capital expenditure)

Pre-phase and preliminaries 1.7

Planning, design and procurement 3.0

Construction oversight 6.2

Commissioning 0.6

Total 11.5



Appendix 4C Operating and maintenance costs

High Speed Rail Study Phase 2 Appendix 4C

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Appendix 4C Operating and maintenance costs

Prepared for



March 2013



In accordance with the east coast high speed rail (HSR) study terms of reference, AECOM and its sub-consultants (Grimshaw, KPMG, SKM, ACIL Tasman, Booz & Co and Hyder, hereafter referred to collectively as the Study Team) have prepared this draft final report (Report). The Study Team has prepared this Report for the sole use of the Commonwealth Government: Department of Infrastructure and Transport (Client) and for a specific purpose, each as expressly stated in the Report. No other party should rely on this Report or the information contain in it without the prior written consent of the Study Team. The Study Team undertakes no duty, nor accepts any responsibility or liability, to any third party who may rely upon or use this Report. The Study Team has prepared this Report based on the Client's description of its requirements, exercising the degree of skill, care and diligence expected of a consultant performing the same or similar services for the same or similar study, and having regard to assumptions that the Study Team can reasonably be expected to make in accordance with sound professional principles. The Study Team may also have relied upon information provided by the Client and other third parties to prepare this Report, some of which may not have been verified or checked for accuracy, adequacy or completeness. The Report must not be modified or adapted in any way and may be transmitted, reproduced or disseminated only in its entirety. Any third party that receives this Report, by their acceptance or use of it, releases the Study Team and its related entities from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability. The projections, estimation of capital and operational costs, assumptions, methodologies and other information in this Report have been developed by the Study Team from its independent research effort, general knowledge of the industry and consultations with various third parties (Information Providers) to produce the Report and arrive at its conclusions. The Study Team has not verified information provided by the Information Providers (unless specifically noted otherwise) and it assumes no responsibility nor makes any representations with respect to the adequacy, accuracy or completeness of such information. No responsibility is assumed for inaccuracies in reporting by Information Providers including, without limitation, inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the Report. In addition, the Report is based upon information that was obtained on or before the date in which the Report was prepared. Circumstances and events may occur following the date on which such information was obtained that are beyond the Study Team's control and which may affect the findings or projections contained in the Report, including but not limited to changes in 'external' factors such as changes in government policy; changes in law; fluctuations in market conditions, needs and behaviour; the pricing of carbon, fuel, products, materials, equipment, services and labour; financing options; alternate modes of transport or construction of other means of transport; population growth or decline; or changes in the Client's needs and requirements affecting the development of the project. The Study Team may not be held responsible or liable for such circumstances or events and specifically disclaim any responsibility therefore.


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Quality Information Document Appendix 4C

Ref 60238250-3.0-REP-0301-4C

Date March 2013


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Table of Contents 1.0 Introduction 1 2.0 Unit operating costs 2

2.1 Traction power 2 2.1.1 Overview 2 2.1.2 Power consumption 2

2.2 Station operating costs 3 2.2.1 Assumptions 3 2.2.2 Station labour 3 2.2.3 Train crew 5

2.3 Infrastructure operations 7 2.3.1 Assumptions 7 2.3.2 Control (signalling and fleet operation) 7

2.4 Staff recruitment and training 8 2.5 Ticketing and advertising 8 2.6 Car parking costs 9 2.7 Other on-board costs 9

3.0 Maintenance costs 10 3.1 Infrastructure maintenance 10 3.2 Maintenance labour 11 3.3 Maintenance materials 11 3.4 Operation of track maintenance rolling stock 12 3.5 Rolling stock maintenance 12

3.5.1 Key assumptions 13 3.6 Station maintenance 13

4.0 Administration staff 14 5.0 Insurance 14


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1.0 Introduction This report summarises the High Speed Rail (HSR) unit costs used in the financial model and economic evaluation. All of the costs in this section are expressed in 2012 $AUD.

The costs form three groups:

- Operating costs, which include:

Traction power.

Station operation.

Train crews.

Staff recruitment and training.

Infrastructure operations.

Ticketing and advertising.

Car parking – cost of sales.

Other on board costs.

- Maintenance costs, which include:

Infrastructure maintenance.

Maintenance labour.

Rolling stock maintenance.

- Administration costs:

Administration staff.

Insurance.


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2.0 Unit operating costs

2.1 Traction power 2.1.1 Overview

Traction power cost for the HSR network represent the cost of the energy required to power the HSR train sets and is comprised of two components – the actual power consumption of the HSR train sets and the transmission network cost. Estimates of the traction power consumption were derived from RAILSIM® rail simulation software and are shown in Table 2. The transmission network cost was estimated by the study team’s energy economists and is benchmarked against current network charges for domestic bulk-user, sub-transmission connections. Traction power costs were estimated by dividing the traction power consumption estimates by the number of route kilometres in each major segment by service type. This first calculation allowed for the estimation of power consumption (kilowatt hours or kWh) per kilometre by service type. These figures were then divided by the number of vehicles (carriages) for each train set type (200m or 300m) to arrive at an estimate of the kilowatt hour per vehicle kilometre for each service type by major segment. These were then applied at the bulk user energy rate and expressed as cents per vehicle kilometre.

An overview of the key assumptions used to estimate traction power costs is shown in Table 1. Table 1 Key operational expenditure assumptions – traction power

Cost component Assumption Source

Power consumption (kWh per vehicle km)

Various by service type and segment

RAILSIM

Bulk energy rate $0.085 per kWh Benchmarked against various domestic bulk user rates for conventional electrified rail

Transmission network cost

14.5% of the total traction power costs

Current network charges for domestic bulk user sub-transmissions connections

2.1.2 Power consumption

Traction power requirements of the various types of HSR services have been estimated using RAILSIM. The estimated power requirements for each trip by each service type are shown in Table 2. Table 2 Traction power requirements per trip by service type, 200m train sets

Service type Power consumption (kWh)

Power consumption kWh / train km

Sydney-Melbourne – Express 29,317 36

Sydney-Melbourne – Regional express 31,111 38

Canberra-Melbourne – Regional express 24,578 38

Sydney-Canberra – Regional express 12,433 45

Brisbane-Sydney – Express 31,202 39

Brisbane-Sydney – Regional express 33,837 42

Gold Coast-Sydney – Regional express 31,930 41

*Note: Power consumption for 300m trains was estimated on a pro-rated basis upon the estimates for 200m trains operating the same service types.


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Auxiliary power

It has been assumed that auxiliary power for the train sets, including an allowance for the maintenance of minimum lighting and air conditioning and heating while trains are stabled overnight, would be equivalent to 10% of the per trip traction power consumption.

Bulk energy rate

It has been assumed that a HSR network would be classed as a bulk user of energy and would be able to negotiate a bulk user price. A bulk user rate of between 7 and 10 cents per kilowatt hour was derived from current bulk user rates for conventional rail networks in NSW, Queensland and Victoria. An assumed unified rate of 8.5 cents per kilowatt hour has been adopted throughout this estimate.

Transmission network cost

The transmission network cost is an annual fee with fixed and variable components that the HSR network would pay to power distributors for the right to connect to and access a bulk supply of energy. This charge would vary over the staging program, reflecting the connection voltages to the network and the total demand of the network. This cost would increase as more segments of the network became operational. It is estimated that the network access charge would be equivalent to 14.5 per cent of total traction power cost, with this figure consistent with existing domestic network charges for bulk user sub-transmissions connections.

2.2 Station operating costs 2.2.1 Assumptions

Station operating costs comprise labour, utilities (mostly electricity for lighting, air conditioning and equipment) and sundries. Station maintenance costs are included in network maintenance costs. Key assumptions for each of these components are summarised in Table 3. Table 3 HSR station costs - key assumptions

Cost component Assumptions Measurement Source

Labour

Minimum base station staff numbers

4 shifts of FTE comprising 17 employees (constant up to 1 million passengers per annum)

Estimate

Station staff increase factor based on patronage

2.56 new employees per million passenger increase in station arrivals, departures and interchanges

Estimate

Salaries by station employee type

Varies by employee type Typical industry rates

Utilities Equivalent to 80% of peak energy requirement

6,600 hours of operation per annum Station electrical and mechanical specification

Sundries 30% of direct labour Total station staffing costs Estimate

2.2.2 Station labour

Assumed staffing levels for the HSR station are illustrated in the graph shown in Figure 1. The minimum number of employees is based on assumptions made about the station type’s peak hour requirements for platform and gate attendants, customer service, ticket vendors, station management and administration. It is assumed that there will be no luggage screening and associated staff. The number of staff is a function of the total passenger numbers handled by the station (arrivals, departures and interchanges).


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Figure 1 Indicative station staff levels

For a station with a patronage of 1 million or less (a typical regional station), this equates to 17 staff in total; a station with a patronage of 40 million (typically a capital city station) would require 117 staff in total. Stations are assumed to be staffed throughout their operating hours, with higher numbers present during the morning and evening peaks.

Employee salaries were benchmarked to current station salaries, with twenty five per cent added to the basic salaries to reflect employer superannuation contributions and other employer-funded benefits. The average station staff salary is $68,500, with a total employment cost of $85,475.

Utilities

The electrical consumption for each station was estimated using a rate of consumption per square metre benchmarked against London’s Blackfriars Station. This rate, 0.056MWh per square metre was then applied to the areas of the proposed HSR stations. An overview of the estimated energy consumption of the HSR stations is shown in Table 4.


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Table 4 Electric energy requirements of HSR stations

Station Annual energy consumption (MWh)

Brisbane 1,100

Brisbane South 500

Gold Coast 500

Casino 500

Grafton 500

Coffs Harbour 500

Port Macquarie 500

Taree 500

Newcastle 500

Central Coast 500

Sydney North 1,200

Sydney Terminus 1,700

Sydney South 500

Southern Highlands 500

Canberra 900

Wagga Wagga 500

Albury-Wodonga 500

Shepparton 500

Melbourne North 500

Melbourne 1,200

The cost is calculated using an assumed domestic retail energy unit rate of $0.16 per kilowatt hour.

Sundries

Sundry station operating costs are assumed to be equal to 30 per cent of station labour costs and are equivalent to $22,500 per staff member per annum.

2.2.3 Train crew

Train crew costs represent labour costs of staffing train sets. These costs assume:

Between 1,150 and 1,300 productive hours of train crew employee types per annum.

Train operational hours for drivers include travel to/from stabling yards, while operational hours for conductors and attendants do not.

A variable on-cost (expressed as a percentage of employee salary) to reflect lodging costs for non-returning crew.

An additional on cost of 15 per cent on total employee salaries (excluding lodging costs) for train crew administration.


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The key assumptions used in this cost estimation are shown below in Table 5. Table 5 Train crew costs – key assumptions

Cost component Element or Assumption Measurement Source

Labour

Staff wages Varies as per employee type Typical industry rates

On costs 47 - 51% comprising superannuation, employer funded benefits, staff lodging for non-returning services and train crew administration

Estimate

It has been assumed that each train would have one driver, two conductors and four attendants. Salaries for drivers, conductors and attendants have been benchmarked against current domestic salaries for similar positions. Some consideration has been given to the provision of higher salaries for HSR drivers than for conventional rail given the greater level of training, a much higher specification of technology and greater responsibility. Three components of on-costs were applied to train crew costs by employee type

25 per cent, representing the allowance for employer superannuation contributions and employer-funded benefits (including a 5% allowance for payroll tax).

Between 6.5 per cent and 10 per cent, representing allowances for staff lodging for non-returning services.

15 per cent, representing an allowance for the cost of train crew administration staff. This is applicable only to the base salary and superannuation component and is not applicable to the on-cost component for staff lodging.

The variable amount for staff lodging on-costs is shown in Table 6. Table 6 Train Crew - lodging on cost assumptions

Employee type Lodging on cost

% of annual salary

Driver 10%

Conductor 8.5%

Attendant 6.5%

Salaries for each train crew employee type are shown in Table 7.


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Table 7 Train crew –salaries by employee type

Employee type Annual salary Total annual cost of employee type including on-costs (2012 $AUD)

Driver $100,000 $135,000

Conductor $85,000 $114,750

Attendant $65,000 $87,750

Train crew administration 15% of train crew salaries (excluding on-costs for staff lodging)

The estimated cost of a train crew is $606 per hour.

2.3 Infrastructure operations 2.3.1 Assumptions

Infrastructure operations comprise the operation of the control centres.

The key assumptions used in the cost estimation for infrastructure operations are summarised in Table 8. Table 8 Infrastructure operating costs – key assumptions

Cost component Assumptions Measurement Source

Labour

Staff numbers 5 shifts of 10 employees (excluding management)

Managers for key

disciplines

Domestic conventional rail systems

Staff wages Varies by employee type Typical industry rates

Maintenance of equipment and plant

Annual cost of maintaining control and

command centre equipment

10% of capital costs Estimate

Sundries 20% of direct labour Total control centre staffing costs

Estimate

2.3.2 Control (signalling and fleet operation)

There would be two control centres located in locations in Sydney, with one functioning as the primary operations centre, and the other serving as a backup centre in case of emergency. Both centres will have the capability to operate the entire network, though only one will be fully staffed.

Costs of operating these control centres comprise staff labour, maintenance and replacement of control centre plant and equipment.

Labour costs assume one full time general manager and five shifts of 10 staff (excluding managers) at the primary centre. It is assumed that the second centre will be unmanned, though its equipment would be serviced and maintained with the same regularity as the primary centre. Staffing levels at the control centre would gradually increase in line with the staged development of the network; the staffing numbers below represent the required staffing levels upon completion of the entire network. The salaries assumed for employees are shown in Table 9.


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Table 9 Staffing requirements and costs – control centres

Employee type Number of staff Total annual cost of employee type including 25% on-costs

(2012 $AUD)

Annual cost of employee type

Fleet controller 2 $0.16M $0.3M

Signalling and communications controller

2 $0.16M $0.3M

Maintenance controllers 2 $0.16M $0.3M

Control centre general staff 50 $0.09M $4.7M

Total labour costs – control centre $5.6M

The capital cost of signalling and communications equipment and infrastructure for each control centre was estimated to be $35 million. It is assumed that maintaining and operating this plant and equipment would cost 10 per cent of the capital costs, or for both centres, $7 million per annum.

2.4 Staff recruitment and training Prior to commencement of operations of the Australian HSR network, it will be necessary to recruit and train an adequate number of staff to meet the level of skills required for the operation and maintenance of the network.

The key assumptions used in the estimation of costs associated with staff training and recruitment are summarised in Table 10. Table 10 Staff training and recruitment – key assumptions

Cost component Element or assumption Measurement Source

Staff training and recruitment

Pre-commencement training and recruitment (two years leading up to

commencement)

25% of aggregate non-station labour costs

Estimate

Year 1 – 5 of operations of each major segment


Estimate

Year 6 – onward for each major segment


Estimate

Staff recruitment and training costs have been assumed to begin two years prior to the commencement of operations for each major segment. For the first of those two years, 25 per cent of the full year labour costs for the full number of non-station staff have been allowed. For the first five years of operations of each major segment, staff recruitment and training costs are assumed to be equal to 20 per cent of the aggregate salaries of all non-station staff. From the sixth year of operations onward for each major segment, staff recruitment and training costs have been assumed to be equal to 10 per cent of the aggregate salaries of all non-station staff.

2.5 Ticketing and advertising Commercial ticketing consists of costs paid by the HSR authority to third parties or agents for commission on ticketing. Consultation with network operators and European rail ticketing agencies indicates these commissions are between 3 to 5 per cent of ticket sales.


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This cost also includes advertising, promotion and sales administration, including the cost of maintaining websites and help desks. These are assumed to be equivalent to a further 3 per cent of ticket revenue, giving a total cost for this activity of 7 per cent of ticket revenue.

2.6 Car parking costs Car parking costs include utilities, operation of equipment, labour and maintenance expenses associated with the HSR car park facilities.

These costs are assumed to be equivalent to 25 per cent of revenue earned from car parking, based on the operating margins achieved at domestic capital city airports over the past decade. The operational cost estimate does not take into consideration the capital costs of constructing the car parks; these are included in the capital costs.

2.7 Other on-board costs It is assumed that on-board services such as catering will cover their costs. Neither costs nor revenues are included in the analysis for these activities.


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3.0 Maintenance costs The following summarises the various cost categories associated with the maintenance of the proposed HSR network. The estimated cost for each of the major segments is identified and the method by which the cost has been estimated is discussed, as are the assumptions used for quantification.

3.1 Infrastructure maintenance Infrastructure maintenance includes the inspection and maintenance of all HSR infrastructure, including tunnels, structures, permanent way, signalling and communications, and power. It does not include maintenance of stations, which is discussed in Section 3.6.

The key assumptions used in the estimation of infrastructure maintenance costs are summarised in Table 11. Table 11 Infrastructure maintenance costs - key assumptions

Cost component Element or assumption Measurement Source

Labour

Staffing numbers Maintenance employee type per km of HSR route

Operations and Maintenance Plan (See

Appendix 2C)

Staff wages Varies by employee type Typical industry rates

Maintenance of infrastructure

Materials required in depot used each year

Spares required in major and minor infrastructure

depots

Operations and Maintenance Plan (see

Appendix 2C)

Operation of maintenance rolling stock

Traction power costs for high speed track

recording train same as HSR express service. Diesel vehicles use

5,000L of fuel per annum. 10% of capital value in

maintenance per annum

Operations and Maintenance Plan (See

Appendix 2C)

Estimate

Infrastructure maintenance is broken into the following three subcategories of costs components:

Labour of maintenance teams.

Maintenance of infrastructure.

Operation of the maintenance rolling stock.

These costs are presented in Table 12. Replacement costs and the frequency of replacement are allowed for separately in the financial model and are in addition to the allowances below.


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Table 12 Breakdown of estimate of infrastructure maintenance costs ($2012AUD)

Cost component Annual estimated cost / route-km

Labour of maintenance teams $32,200

Maintenance of infrastructure $75,300

Operation of the maintenance rolling stock $2,800

Cost per route km per year $110,300/route-km

3.2 Maintenance labour Labour associated with the maintenance of the proposed HSR network is comprised of the following employee types:

Track maintenance.

Train control and communication system maintenance.

Overhead line equipment and traction power substation maintenance.

Civil, tunnels, and structures maintenance.

The staffing requirement of each operations and maintenance employee type was estimated in the draft operation and maintenance plan (See Appendix 2C) and is provided in Table 13. Table 13 Infrastructure operation and maintenance staffing requirements, 2035

Employee type Requirement Total annual cost of employee type including 25% on-costs

(2012 $AUD) / km

Number of employees in

2035

Track maintenance 1 for each 10 km of route $11,719 33

Train control and communication system maintenance

1 for each 20 km of route

$5,877 17

Overhead line equipment and traction power maintenance

1 for each 12 km of route $9,760 27

Civil, tunnels and structures maintenance

1 for each 20 km of route $5,877 17

Total maintenance staff $33,233 94

3.3 Maintenance materials The materials required to maintain the railway would be stored at major and minor infrastructure depots in accordance with the Maintenance and Operations Specification and Strategy. The spares required at each of the major depots comprise materials for the maintenance of tunnels, structures, permanent way, electrical and signalling infrastructure and assorted plant and machinery. The estimated annual cost of materials to be used in the maintenance of the network (upon completion of the network) is $132 million per annum in current prices. This does not include infrastructure renewals; these are separately derived from asset lives and base capital costs (e.g. replacement of the overhead line every 15 years).

Spares required for the minor infrastructure depots (to be located along side every second traction substation) comprise a ten metre section of slab track, assorted other materials and a crane truck. It is


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assumed that the annual cost of the unmanned minor infrastructure depots spares will be $50,000 per depot per year.

3.4 Operation of track maintenance rolling stock It has been assumed that seven types of rolling stock will be required for the maintenance of the HSR network. These are:

2 x high-speed ultrasonic rail analysis trains (100 kilometres per hour with 300 kilometre productivity per shift provides 9600 kilometres inspected in 32 shifts).

1 x rail grinder (12.5 kilometres per shift with 5 shifts per week equates to 3200 kilometres in a year).

3 x flash butt welders (one per major infrastructure depot).

2 x overhead line equipment trains.

2x Kirow cranes (for switch and crossing renewals and emergency use, based at major infrastructure depots).

2 x multi-purpose excavators per infrastructure depot.

12 x track inspection vehicle (‘moto-lorry’) – (one per minor depot).

The regularity of the use of the abovementioned rolling stock is set out in the Operations and Maintenance Plan. Power costs for the track geometry train are assumed to be those of an express train with an extra 10 per cent allowance for auxiliary power. The diesel-powered maintenance rolling stock is assumed to have an average fuel consumption of 5000 litres of diesel fuel per unit per annum with annual maintenance equivalent to 10 per cent of their capital cost. The estimated annual cost of the maintenance and operation of non-passenger rolling stock is $3.7 million per annum.

3.5 Rolling stock maintenance Rolling stock maintenance comprises the maintenance of the HSR fleet, the operation and maintenance of the network’s rolling stock depots, and other labour associated with rolling stock maintenance. An overview of the types and frequencies of rolling stock maintenance is summarised in Table 14.


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Table 14 Rolling stock maintenance – types and frequencies

Facility maintenance level Maintenance activity Frequency (min)

Level 1

Interior clean and inspection Daily

Exterior clean Daily

Toilet discharge 2 days

Exterior visual check Daily

Brake and door function test Daily

Potable and non-potable water replenishment 14 days

Wheel inspection Daily

Level 2

Running gear inspection 90 days

Replacement of consumables (e.g. brake pads, filters, etc) 90 days

Major clean 90 days

Interior fittings inspection 90 days

Level 3

Safety equipment check 1 year

General component inspection 1 year

Systems check 1 year

Level 4 Component exchange 3+ years

Level 5 Full vehicle overhaul 15 years

3.5.1 Key assumptions

Rolling stock maintenance is estimated to cost $0.40 per vehicle-kilometre, based on benchmarks from 12 and 16 car train sets on Japan’s Shinkansen HSR line and 18 car train sets on the United Kingdom’s HS1 network, with an adjustment to reflect the faster speeds proposed in this project.

It is assumed that rolling stock maintenance will be outsourced to a private supplier of HSR-specific maintenance services. While the costs of constructing the depots are included in the capital costs, it has been assumed that the depots will be leased to the maintenance contractor. Accordingly, costs associated with the operation of the maintenance depots including utilities, procurement of materials and upkeep of the facilities are assumed to be borne by the private supplier and are included in the assumed per vehicle km unit rate.

3.6 Station maintenance Station maintenance is assumed to cost 1 per cent of the capital cost associated with the station’s construction and development. Minor routine maintenance is included in general station staffing costs.


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4.0 Administration staff Administration costs of the railway comprise the management costs of the railway operator. These include:

General management.

Information technology.

Human resources.

Accounts and payroll.

Occupational health and safety.

Project management.

Communications.

Government relations.

Property.

Finance.

The administration cost of the HSR network is assumed to be 7.5 per cent of other operating costs (excluding depreciation).

5.0 Insurance Insurance costs cover the public liability and accident insurance that will be required for the operation of the proposed HSR network.

Insurance for the HSR network is assumed to cost 2.5 per cent of total revenue.

Documents

High Speed Rail Study...High Speed Rail Study Phase 2 Appendix 4A March 2013 Quality information Document Appendix 4A Ref 60238250-3.0-REP-0301-4A Date March 2013High Speed Rail Study