NSW Roads and Maritime Major Projects 2020 CFF National Conference Melbourne October 2015 Jeff McCarthy Director Infrastructure Development Roads and Maritime Services NSW
NSW Roads and Maritime Major Projects 2020
CFF National Conference Melbourne
October 2015
Jeff McCarthy Director Infrastructure Development Roads and Maritime Services NSW
Infrastructure – the big picture
2
In Australia, total engineering construction is declining …
0
30
60
90
120
150
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Work Yet to be Done
Work Done
Commencements
Year ended June Source: ABS, BIS Shrapnel
$ Billion
Infrastructure – the big picture
3
... but not overall in NSW
NSW roads infrastructure
4
Roads engineering construction in NSW is picking up …..
0
2
4
6
8
10
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
New South Wales
Victoria
Queensland
South Australia
Western Australia
Other
Year ended June Source: ABS, BIS Shrapnel
$ Billion
NSW roads infrastructure
5
... led by the mega road
projects 0.0
7.0
2003 2006 2009 2012 2015 2018 2021 2024
North-‐South Bypass Tunnel
(QLD)
CrossCity
Tunnel (NSW)
M7(NSW)
Airport Link (QLD)
Lane CoveTunnel(NSW)
Source: BIS ShrapnelYear ended June
Forecast$ BillionNorthConnex
M1 -‐ M2 Link (NSW)
East Link (VIC)
Upgrade M80 (VIC)
Gateway Motorway North(QLD)
East West Link (VIC)
Pacific Highway upgrades (NSW)
Princes Highway upgrades
(NSW / VIC)
North -‐ SouthCorridor (SA)
Bruce Highwayupgrades (QLD)
WestConnexStage 1 (NSW)
WestConnexStage 2 (NSW)
WestConnex Stage 3 (NSW)
East-‐West Link (QLD)
Legacy Way (QLD)
Toowoomba Second Range Crossing (QLD)
Western Sydney Airport Roads (NSW)
The WAVE
6
… but its not just the mega projects
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
$4,000,000,000
$4,500,000,000
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
RMS Major Projects Expenditure Western Sydney Infrastructure Program
Western Sydney Growth Roads
Sydney Commuter Wharf Upgrades
Regional NSW Major Road Upgrades
Princes Highway
Port Botany and KSA
Moorebank Intermodal
M1 Productivity Package
Hunter Roads
Great Western Highway & Bells Line of Road Established Sydney Roads
Easing Sydney's Congestion
Central Coast Roads
Bridges for the Bush
Bridge Rebuilding
Pacific Highway
Major Projects 2020
7
Forward work plan published ..on the website
• Projects are named, announced, have known timeframes, and are funded
• High level of certainty
1. Delivery methodology
• “Programs of projects”
– separate Program Offices accountable for delivery
– Fully resourced, co-located, high performance team culture
– Roads and Maritime has done it before (Pacific Highway, Hume Highway)
– Western Sydney Infrastructure Program is underway
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Spend over first 5 years ($'000)
Western Sydney
Greater Sydney
Easing Sydney's Congestion
Pacific Highway
Freight & Regional
5 program offices accountable for delivery
Delivery Strategy
* Nb. Easing Sydney’s Congestion contains 400+ smaller projects
8
Program Offices
2. People
9
‘Professional resources’ demand model
Source: Avisian data modelling as at June 2015
• Model contains: – 20 disciplines
– 4 phases (initiation, development, procurement, delivery)
– All resources (white collar)
• Objectives: – Roads and Maritime continues
to be a ‘good, knowledgeable client’
– ‘Rebuild’ of large project capability over 5 years
Delivery Strategy
0
500
1000
1500
2000
2500
3000
3500
1-Jun-15 1-Jun-16 1-Jun-17 1-Jun-18 1-Jun-19
3. Procurement challenge
10
60 projects = $14b
Project status No. projects
Total value projects to be
procured $m
Wave 5yr spend
$m
In flight Under construction or contract awarded 30 0 4,100 Funded but not yet contracted Includes Pacific Highway, Woolgoolga to Ballina 46 10,200 8,200 State Infrastructure Strategy Development funded but delivery funding dependent on “poles & wires”
16 3,500 2,400
Development funded but delivery funding not yet confirmed 24 6,100 1,200
Total 116 19,800 15,900
Total indicative project values, includes Roads and Maritime costs
Delivery Strategy
• Pacific Highway – Woolgoolga to Ballina “Delivery Partner” model”
– 155kms, new ‘packaging’ approach, industry engagement underway
11
The RMS Wave unpacked
Project Size No. Projects (incl. “in flight”)
“WAVE” 5yr Spend $m
(incl “in flight”)
Projects to be procured $m
(excludes “in flight”)
Up to $50m 26 600 700
$50m - $150m 45 2,800 3,100
$150m - $500m 28 5,200 6,700
Over $500m 13 6,500 8,200
Rolling Programs * (ongoing development & delivery)
6 800 1,100
Grand Total 116 15,900 19,800
Total project values, includes RMS costs. Includes Pac Hwy Woolgoolga to Ballina *Includes portfolio of over 400 Sydney congestion easing projects
3. Procurement challenge Delivery Strategy
4. Engagement
In development – looking for feedback 12
Industry engagement strategy
Whole of industry
Program Office
specific
Pacific Highway
Western Sydney
Tailored interactions
Major Projects 2020 Forum
Easing Sydney’s
Congestion Greater Sydney
Freight and
Regional
Project Specific interactions
Tailored interactions
Delivery Strategy
Industry Forums (IPA, RA, ACA, CCF etc)
5. Our safety challenges
10,000 workers on RMS projects at the peak of the ‘Wave’
13
• Industry partners with mature WHS systems and cultures • Roads and Maritime on a steep learning curve
– Work with industry – and learn – Selected initiatives in next 12 months
• Safety Forums ‘on topic’ • Aggregated reporting of indicators + feedback • ‘Top Risk’ frameworks (eg. Working Near Traffic)
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Delivery Strategy
NSW Roads and Maritime Major Projects 2020
CFF National Conference Melbourne
October 2015
Jeff McCarthy Director Infrastructure Development Roads and Maritime Services NSW