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RiverCity MotorwayLinking Brisbane Life
Investor Briefing - Wednesday 11 June 2008Peter Hicks, General Manager, Infrastructure Investment, Leighton Contractors
Bowen Hills(northern portal)
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Overview
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Background
RiverCity Motorway is the concessionaire appointed by BCC to
finance, build, design, construct, operate and maintain the $2 billion
North-South Bypass Tunnel (NSBT) / Clem Jones tunnel
Leighton Contractors sponsored the RiverCity Motorway consortium
with ABN AMRO and Bilfinger Berger
Rivercity Motorway was listed on the ASX in August 2006 and
Leighton Contractors have committed to an $80m investment at
completion
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Project Rationale
The NSBT is a 6km river crossing linking Brisbane's busiest roads,
bypassing the congested CBD of Australias fastest growing capital city
550,000 Brisbane River crossings per working day
Approximately 75% of trips across the river via a CBD bridge* are
through trips that are forced through the CBD
Through trips will benefit most from the NSBT given its role as a
CBD bypass road
High proportion of Brisbane River crossings are work related journeys
* CBD bridges are Story Bridge, Captain Cook Bridge, William Jolly Bridge and Victoria Bridge
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River crossing capacity
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Key Feeder Routes
Lutwyche Rd (65,000 vpd in 2005)Inner City Bypass (65,000 vpd in 2004)
Pacific Motorway (106,000 vpd in 2004)Ipswich Rd (51,000 vpd in 2005)
Shaftston Ave (65,000 vpd in 2004)
CBD
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Project Concession & Delivery
Concession period of 45 years from Financial
Close
Design and construction is being undertaken by
an integrated JV between Leighton Contractors
(50%) and Baulderstone Hornibrook / Bilfinger
Berger Civil (50%) under a fixed time, fixedprice contract
Vehicle Class Tolls (incl. GST)in 2002$
Cars $3.30
Light Commercial $4.95Heavy Vehicles $8.75
Contracted completion date of October 2010 - current target completion date is
December 2009
RCM will outsource operations and maintenance to Brisbane Motorway Services,
owned 50% by Leighton Services and 50% by Bilfinger Berger Services
RCM will undertake the tolling and customer service obligations in-house
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Key Statistics
10.4km of mainline tunnel excavation
3.5 million tonnes of tunnel excavation including 70% by TBM 35,000 precast lining segments for TBM tunnels
Major tunnelling equipment
2 TBMs approximately 12.5 metres
6 Roadheaders
Concrete used in the project 285,000 cubic metres
Peak workforce 1,200 people
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Strong management team
Flan Cleary has been CEO of RiverCity Motorway since October 2006
Flan was the General Manager of Westlink M7 and has over 30 years
experience in infrastructure and a proven track record
Prior to his role at Westlink, Flan managed the successful
commissioning and operation of the Eastern Distributor tollroad in
Sydney
Adam Hudson has taken over from Tony Spink since April as the Project
Director for LBBJV, with Graham Olsson as the Deputy Project Director
Adam has over 30 years of construction engineering and project
management experience working on a range of technically demanding
projects
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Construction Update
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Construction methodologies on route
BlueRoad Header
GreenTBM
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Mainline tunnels
Range of methodologies to suittopography
Mainline tunnels to be constructed using
two double shield Tunnel BoringMachines (TBMs)
12.4m diameter
77 cutters on cutterhead (315kN).
Fast excavation rate
Probe drilling min. 1 diameter ahead
Conveyor removal of spoil.
Tunnel support installation occurs directlybehind TBM - Operators protected by
shield while pre-cast lining installed
Mainline tunnel will be 100% sealed
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Design & Construction
Roadheaders used for tunnelling at and near the surface entries
to achieve the required cross-sections for the designed lane
widths and configurations
In areas of low rock cover, canopy tubes and spilling bars used
to reinforce the ground above the tunnel
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Tunnel boring machines (TBMs)
TBMs have advanced 1km as they travel
south towards Woolloongabba
Both TBMs have cleared Brisbane Exhibition
Grounds
Now excavating rock & placing tunnel lining
below Brisbanes Fortitude Valley TBMs on track to be under Brisbane river by
Sept 2008 & expected to break through at
Kangaroo Point late 2008, then finish journey
at Woolloongabba by mid 2009
More than 13,500 concrete tunnel lining
segments have been manufactured
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Tunnel boring machines (TBMs)
TBMs have advanced 1km as they travel south towards
Woolloongabba
Both TBMs have cleared Brisbane Exhibition Grounds
Now excavating rock & placing tunnel lining below
Brisbanes Fortitude Valley
TBMs on track to be under Brisbane river by Sept 2008 &
expected to break through at Kangaroo Point late 2008, then
finish journey at Woolloongabba by mid 2009
More than 13,500 concrete tunnel lining segments have
been manufactured
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Roadheader tunnelling
Well advanced with 65% of the
excavation with roadheader machines
now complete
Kangaroo Point - 5 roadheader
machines have been working 40 metres
underground excavating ShafstonAvenue on and off ramps and sections
of the mainline tunnels, with final line
working commencing
Woolloongabba started excavating 900 metres of tunnel digging
section of northbound and southbound tunnel towards Pacific Motorwayand the southern ventilation tunnel
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Bridge Construction
Project remains on target to complete all
bridges by end of 2008, with 11 of 18
bridges being constructed at either end of
the tunnel already substantially complete
New local bridge at Woolloongabba
opened at end of May 2008, benefiting
local residents and includes 1.5km bike
patch
New bridge provides residents and
businesses with means of traversing
Ipswich Road
Activity Progress
Advance by TBMs 1km
Roadheaderexcavation
225,000m3
No. tunnel lining
segmentsmanufactured
13,5000
Bridges substantiallycomplete
11 of 18
Surface roads 43,750m2(30%)
No. people working 1,600
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Project Risk & Mitigation
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Key Risks
Construction / Completion Risks:
Geological risks implications for time, cost and safety
Specialised equipment technical & procurement risks
Resources / IR
Public interface
Other Risks materials, MEC, tolling equipment
Equity Risks:
Traffic
Tolling strategy
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Geological Risks - mitigants
Detailed bore hole testing regime during tender phase BCC
data supplemented by LBBJV further investigations Tunnel design reflects underlying geology
Primarily Brisbane Tuff overlying rock of the Neranleigh-
Fernvale formation
Both types of rock are extremely hard
Equipment selection purpose-built TBMs Fully tanked (sealed) mainline tunnels
G l i l Ri k
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Geological Risks
E i t i k iti t
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Equipment risk - mitigants
Early specification and procurement of TBMs
Reputable manufacturer - Herrenkeneckt Significant technical support from Herrenkeneckt on the
ground
Early commencement of roadheader works, multiple
faces
Comprehensive insurance program
E i t S l ti
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Equipment Selection
R & IR
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Resources & IR
Integrated Joint Venture approach most effective
resources from each of the partners are applied
Early and professional recruitment program both in Australiaand overseas
Enterprise Bargaining Agreement ensures workplace
harmony
Site specific inductions
Create safety-first culture extensive education, risk
analysis, and independent Safety Management Team
P bli I t f
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Public Interface
Our Approach:
Continue and build upon BCCs extensive consultation
No surprises
Always available
Guests within the community
Stakeholders
BCC
RCM JV Partners
Other Risks
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Other Risks
Pre-cast tunnel lining segments
factory was established early Maximise fit-out during
excavation
Co-ordinated procurement of
tolling equipment & back office
Early appointment of IV (pre-
Financial Close)
Co-location of IV, RCM, BCC
and LBBJV senior management
Time-critical materials
Mechanical & Electrical
Tolling System
Minor Approvals &
Independent Verifier
certification
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Traffic Risk
Traffic risk mitigants
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Traffic risk - mitigants
Limited river crossings in Brisbane
Current and increasing need for a CBD by-pass
Competent investment-grade forecasts by Maunsells underpinRCMs base traffic case
High car dependency among Brisbane residents
High congestion on competing routes
Significant time travel savings by the NSBT in 2010
High economic and population growth in the NSBT catchmentareas
Maunsell
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Maunsell
Maunsell is an experienced forecasting team, as demonstrated
in the table below:
Toll Road ForecastMeasure Client and yearof assignment Actual revenuetraffic results in2001
Difference fromforecasts
M2 MotorwayAverage dailytraffic at main tollplaza in 2001
RTA, NSW1990/91 Approx 56,000 8%
City LinkMonthly revenuefor October 2001(all days)
Transurban 1994 19.9 m 8%
407 CanadaAnnual revenue2001
Macquarie 2000 C$244.1 m 0.2%
Storebaelt Bridge,Sweden
Average daily
traffic volume2001
Macquarie 1999 21,210 0.0%
M7, SydneyAverage dailytraffic volume,2002
Leighton/Macquarie Bank /Transurban,
Up to 100,000ADT in early 2006
Still in ramp up butexceedingforecasts
Traffic congestion in Brisbane 2010
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Traffic congestion in Brisbane 2010
High car dependency among Brisbane residents:
1.52 vehicles per household compared to 1.41
in Sydney
c.75% of journeys to work are by car (2001),of which 89% with only one occupant
Poor public transport alternatives
Traffic congestion in Brisbane 2010
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Traffic congestion in Brisbane 2010
Brisbane employment distribution 2006
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Brisbane employment distribution 2006
Growth in Brisbane continues to
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Growth in Brisbane continues tooutpace Australia
High population growth
Australias fastest growing capital city
Forecast to increase by 39% from
1.77 m in 2004 to 2.46 m in 2026
Strong growth among younger age
groups relative to other cities
Brisbane recorded 2.0% population growth
relative to 1.5% for the rest of Australia in
the year to September 2007
High economic & employment growth QLD experienced 4.8% growth in gross
state product over the 10 years to Jun 07,
compared with 3.5% for the rest of
Australia
QLD experienced employment growth of
3.75% relative to a national average of
2.5% (for 06-07)
TransApex and RCM
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TransApex and RCM
Transapex and other road
infrastructure in Brisbane continue to
meet original forecasts (or earlier): Airport Link concession was
awarded in May, with a
contracted completion date of
mid 2012 (v end 2012)
BCC has announced Northern
Link will be accelerated to an
expected 2014 opening (v
2016)
Key traffic conclusions
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Key traffic conclusions
Confidence in traffic numbers is supported by:
Experience of the Maunsell team
Network enhancements
Current and increasing need for NSBT in Brisbane
Sustained population and employment growth
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Tolling
Tolling system
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Tolling system
Fully electronic, free-flowing tolling system Tolls in both directions
Fully interoperable with Brisbanes Gateway Bridge and
Logan Motorway, and every other Australian electronic
toll road
Over 160,000 QML Gateway electronic tags already in use,
with QML moving to free-flow tolling by July 2009
Proven electronic tag and video-based technology
Utilised on Gateway Bridge, Logan Motorway,Melbournes CityLink and Westlink M7
RCM plans an aggressive tag marketing campaign as
road opening approaches
Progress Update
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Progress Update
Development of tolling system back office is taking shape Group has completed the business requirements definition
and specified several major interfaces
Financial system
Vehicle database
Address database
The Group is developing a flexible and scalable tolling
system back office capable of meeting the requirements of
NSBT and future toll roads RCM is on track to complete tolling system back office in the
first quarter of 2009
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Conclusions
RiverCity Motorway
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y yLinking Brisbane Life
Detailed risk assesment & risk management regime in place
Construction is on-track for early completion
RCM management expect tolling back office to be ready prior to
expected opening date
RCM remains confident of its traffic forecasts given continued
high employment and population growth rates