artc & inland rail - home -...
TRANSCRIPT
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AUSTRALIA’S LARGEST
RAIL FREIGHT NETWORK OPERATOR
• ARTC is a company under the Corporations Act owned by the Commonwealth
• Independent Board
• Nearly 20 years of experience in operating, maintaining and building rail
infrastructure
• Operating on sound commercial principles
• Growing the volume of freight on rail
• Improving rail infrastructure through better asset management and a
programme of commercial and grant funded investment
• Promoting operational efficiency and uniformity of the network
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$6.5B
UPGRADE
ACROSS FIVE
STATES
SINCE 2004
PROJECTS FUNDED FROM ARTC BALANCE SHEET &
GOVERNMENT• Partnerships with the private sector
• Strong working relationships with customers, industry, adjoining network
owners, multiple levels of government, regulators and community
• Complex design & construct contracts, governmental agreements,
across State and Council borders
• Multiple financing & delivery models
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MEETING AUSTRALIA’S FREIGHT CHALLENGE
• Significant growth expected in freight volumes by 2030 (as much as double)
• Australia’s East coast population is expected to grow by 60% over the next 40 years, placing significant pressure on existing infrastructure and increasing road congestion in our capital cities
• Cost of congestion forecast to be $20b pa by 2020
• Strong growth in passenger transport demand is eroding surplus capacity on urban rail and road networks, increasing competition between passenger and freight services
• Without additional investment in infrastructure capacity, the repercussions will be felt at state and national levels
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INLAND RAIL OVERVIEW
• Inland Rail is a project of national
significance - a new 1700km freight rail
line via regional VIC, NSW and QLD
• Road-competitive rail service based on transit
time, reliability and cost (<24 hours Melb-Bris)
• Double-stack capability with initial 1800m
train length and future proofing for 3600m
• Performance and operating cost
advantages unachievable by the existing
coastal route
• Utilises more than 1200km of the existing
network – reducing community impacts and
land costs
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FIVE KEY FINDINGS OF THE BUSINESS CASE
ECONOMIC BENEFITS
Source: PwC 2015
Distribution of Inland Rail benefits as a proportion of total benefits
(discounted at 4%) excluding the residual value. Analysed over a 50
year appraisal period to 2073-74
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Reference Design and EISs for 2 NSW priority projects
• EIS publicly exhibited for Parkes to Narromine
• Construction of P2N commencing mid-2018
• EIS for Narrabri to North Star exhibited later this year
Concept Design is complete for the other 11 projects
• Contracts for Reference Design and EIS studies being
progressively let from Q4 2017
WHAT’S BEEN DELIVERED TO DATE
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11
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7 projects
• Albury to Illabo
• Illabo to Stockinbingal
• Stockinbingal to Parkes
• Parkes to Narromine
• Narromine to Narrabri
• Narrabri to North Star
• North Star to Qld Border
INLAND RAIL IN NEW SOUTH WALES
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• Over 40% of the total project cost will be invested in NSW – that’s over $4 billion of the cost of Inland Rail
• Inland Rail will boost the NSW Gross State Product by $2.6 billion – benefiting residents of NSW living in our cities and in our regions
• Northern NSW ($908M), the Central West ($480M), the North West ($427M) and the Murrumbidgee region ($199M) will all significantly benefit from Inland Rail
• Around 1000 jobs will be created in NSW during the construction period of Inland Rail – concentrated in Northern and North West NSW.
• NSW Producers will benefit from Inland Rail, opening up new options to both domestic and export markets.
• In 2050, up to 70 services per week (in each direction) will be diverted from the Sydney Metro Area by Inland Rail – relieving pressure on the Sydney Metro network.
BENEFITS IN NEW SOUTH WALES
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• Economic development and investment
in regional NSW will be boosted by
Inland Rail
• It is estimated that Inland Rail will
involve over $4 billion of capital
investment (estimated construction cost
including contingency and escalation)
in regional NSW over the next 10 years
• Hundreds of jobs will be created in
regional NSW over the construction
period and the ongoing operation of
Inland Rail
REGIONAL BENEFITS IN NEW SOUTH WALES
Source: PwC 2015
Economic impacts by region – Inland Rail construction and operations (GROSS
REGIONAL PRODUCT, 2014-15, dollars, $ million, 4% discount rate)
ECONOMIC IMPACTS OF INLAND RAIL BY REGION
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The 126km section from Toowoomba to Kagaru, including large scale tunneling,
will be delivered through a Public Private Partnership (PPP)
INVOLVING THE PRIVATE SECTOR VIA PPP
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Rationale for the PPP:
• effective risk management
• harness innovative design solutions
• opportunities for more efficient construction
methodologies
• provides innovative financing and funding solution
• drives greater value for taxpayers
WHY A PUBLIC PRIVATE PARTNERSHIP
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• A dedicated PPP project team is being established within ARTC
• Currently developing a detailed Implementation Plan for PPP transaction
• Legal, Commercial and Financial, Probity and Technical Advisors to be engaged by
early 2018
• Envisage a staged procurement process: Expression of Interest then an RFP
• EOI anticipated to be called in Q2 2018
ESTABLISHING THE PPP
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MAJOR OPPORTUNITY FOR INVOLVEMENT
• $7+ billion across the non-PPP
elements of the programme
• Major design and construction
opportunities, predominantly in
‘bread and butter’ railway
construction activities – design and
track & civil construction (including
regional contractors)
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LOOK AHEAD
12-18 MONTHS
• Commencement of construction on Parkes to Narromine
and potentially Narrabri to North Star projects
• Reference design and EISs across the rest of the
programme
• EOI and RFP process for the Gowrie-Kagaru PPP
LONGER TERM
• Procurement for construction of remaining projects
• First train currently scheduled for 2024/25