MM - Wider Economic Benefits and Business Case Development 2016

Assess and understand the wider economic impact of local development to help unlock infrastructure funding and support economic growth.

Our specialist team will support you throughout the scheme lifecycle - from strategic definition to delivery. By engaging with you early in the process, we use data and analysis to support business cases and assist project development. At the end of the project, we can assess the impact your intervention has made on local economic growth.

We apply market-leading tools and engage our multi-disciplinary expertise to help you in the development and delivery of key infrastructure schemes. We support local regeneration and economic growth to achieve wider social and economic benefits.

Building the case for local economic growth

Our market-leading capabilities and tools will help you to deliver.

• Our Transparent Economic Assessment Model (TEAM) provides the hard evidence to secure funding for infrastructure improvement schemes across the UK

• The Total Impact (TI) model captures the economic activity supported by an organisation

• Our Investment Sifting and Evaluation Tool (INSET) enables us to conduct a multi-criteria assessment, weighting and prioritisation process to help you to select an appropriate investment option

One-team approach

We engage with a wide range of stakeholders to ensure all aspects of scheme development are explored and to enable us to create a bespoke solution tailored to your specific requirements. Our economists and analysts work alongside our transport planners and modellers to develop suitable, affordable and achievable transport development schemes. We pride ourselves on helping our clients to deliver.

Multi-disciplinary experience

Our local experts apply multi-disciplinary experience gained from working on some of the largest, most critical transport infrastructure development schemes in the UK. Leveraging our global knowledge and skills, we help you to develop the best solutions tailored to your local needs.

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Connecting your world

Whatever your needs or ambitions and wherever in the world you are, we can align the right combination of expertise.

Working with us you get the advantage of size and stability that come from a US$2bn organisation. We employ over 16,000 people, delivering projects in Africa, Asia Pacific and Australasia, Europe, the Middle East, North and South America, and South Asia. But you get the kind of openness, friendliness and personal commitment you might associate with a much smaller business.

We understand the important role of transport in local communities. By developing local transport infrastructure, we enable long-term economic and social regeneration for the benefit of local businesses, residents and investors.

Enabling economic growth

We have unrivalled knowledge of government policies and practices. Whatever the challenges of your project, we have the in-house experience and specialist expertise to give you the analysis that helps you to achieve scheme success.

Define the opportunity

We research, identify and plan the opportunity by applying our specialist knowledge and management systems. We apply our cross-sector knowledge to ensure the end solution meets the full scheme requirements.

1. Deliver a winning

business case

Our project feasibility assessments and evidence of wider economic benefits ensure a successful and robust business case is developed.

3.

Understand the impact

Our economists and analysts conduct an economic impact assessment to understand the full socio-economic benefits to be achieved by improving infrastructure. Our evidence helps ambitious projects to become reality.

2.

4.Secure investment

We help you define the strategic requirements and specific needs of the project by considering the economic, social and environmental impacts of the infrastructure improvement schemes. By assessing project feasibility, we ensure that schemes are achievable and deliverable.

5.Focus on delivery

With experienced project managers, we ensure the scheme is supported during the implementation phase. We ensure scheme delivery by our active involvement during the project pre-feasibility stage to ensure the scheme will be a success.

We help to guide you from project inception to scheme delivery.

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Our specialist skills and sector knowledge assist you at five key stages of scheme development

Unlocking scheme funding to support development in a heritage city

Opportunity

Local commuters and visitors to Chester faced regular journey delays as a result of congestion across the city’s bus routes and roads. The proposed bus interchange will relieve road congestion in Chester and improve linkages between pedestrian walkways and cycle ways.

Solution

We conducted a range of economic and social impact assessments to quantify the impact of potential improvement plans for Chester’s transport network. By applying our TEAM model, our economists and analysts were able to demonstrate the wide range of social and economic benefits that a new transport interchange would bring to Chester, once the bus station moved from its current location and allowed development land to be unlocked.

Outcome

By building a strong business case, we were able to support Chester and Cheshire West Council to secure investment from the Local Growth Fund. We identified the major benefits to be gained by developing a large brownfield site, which will enable further socio-economic regeneration in the area. Our study identified £60M of economic benefits that could be realised over 60 years by implementing the development scheme for a cost of £21M.

The scheme is now under construction and is expected to open in spring 2017.

£60MEconomic benefit over 60 years

£21MDevelopment scheme cost

Project

Chester Bus Interchange

Client

Cheshire West and Chester Council

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Project

Finningley and Rossington Regeneration Route Scheme (FARRRS II) (renamed The Great Yorkshire Way)

Location

Doncaster, UK Client

Doncaster Metropolitan Borough

Expertise

Transport planning, economic benefit assessment

A route to economic success

Opportunity

Improved access at Robin Hood Airport Doncaster Sheffield (RHADS) will increase the airport’s footfall and improve economic activity in the local area. The new road scheme reduces journey times and relieves local congestion, leading to wider environmental and economic benefits for the city-region.

Solution

Using TEAM, we calculated the economic impact of the proposed road through the new jobs and Gross Added Value (GVA) that could arise on development land along its route. We also assessed the indirect (supply chain) and induced (consumption) effects linked to economic development activity along the route. As a result, TEAM was able to clearly demonstrate how the route could generate £2101M of GVA over the appraisal period.

Outcome

Our insight highlighted the main economic benefits that the scheme offered and identified many non-quantifiable benefits, such as improved accessibility to South Doncaster’s growing tourism economy. Improved accessibility would also improve commuter journeys, retain local graduate-level talent, and improve opportunities for small and medium-sized businesses to grow and prosper. The input of our market-leading skills and expertise enabled the scheme to receive a grant from Sheffield City Region Investment Fund for £9.1M towards the capital cost of Phase II.

Our support of Phase II follows on from a successful Regional Growth Fund bid, which we drafted to secure funding for Phase I based on the employment effects.

“Our sincere thanks to Mott MacDonald who have done a great job with the FARRRS planning application and the contractor procurement”Neil FirthDoncaster Metropolitan Borough Council

Location

Chester, UK

Expertise

Business case development, economic social impact assessment

We identified a potential £35bn worth of benefits to the North by maximising the role of the North of England’s freight and logistics sector.

On behalf of the Transport for the North, we produced the Northern Freight and Logistics Report, which highlights the major role for the freight and logistics sector to play in supporting and rebalancing the UK’s economy.

Multi-skilled teamOur diverse team of transport planners, transport modellers, economists, and market researchers supported the delivery of this report.

Market-leading toolsBy applying TEAM, we identified a potential £35bn worth of user and non-user benefits, an additional £13-20bn of wider economic benefits, and up to 38,000 new jobs for the Northern economy.

£35bnPotential worth of benefits

38,000New jobs created for the Northern economy

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Creating a gateway to economic growthOpportunity

Over 1.3M passengers pass through Cardiff Airport each year. With passenger numbers increasing, Cardiff Airport’s importance as an international gateway to the Cardiff Capital Region and wider South Wales is also continuing to grow. The railway connecting Rhoose Cardiff International Airport rail station to the centre of Cardiff, and other cities in the region, is essential to support the increasing number of passengers travelling to the airport and surrounding Enterprise Zone. Transport for Wales commissioned Mott MacDonald to consider potential options for improving rail access to Cardiff Airport, to support the growing tourism industry, as well as improving connectivity for commercial users associated with the Enterprise Zone and local residents.

Solution

Our team of expert analysts assessed the economic development potential associated with options to improve the rail access at Cardiff Airport. We identified the potential benefits for a range of scheme options, and developed a number of solutions to mitigate possible scheme risks. We took account of previous studies and engaged with scheme stakeholders by conducting consultation workshops and interviews in order to understand the ways in which transport infrastructure influences economic development in the area.

Outcome

The aim of the project is to provide Transport for Wales with the best option to improve the airport’s rail access. By understanding the wide range of socio-economic constraints and benefits to localised development, we have provided robust evidence to support the business case development. Our transport modellers identified the requisite level of passenger demand to support the scheme business case. Improvements to rail access at Cardiff Airport will support the region’s growing tourism and commercial industries, and better access to the surrounding Enterprise Zone will help stimulate growth of local businesses. Rail access improvements will help ensure access to Cardiff Airport is built to withstand a growing future demand.

Project

Cardiff International Airport

Location

Cardiff, UK

Client

Transport for Wales

Expertise

Business case development, economic social impact assessment

Supporting the Northern Powerhouse’s growth plans

Interventions identified in the report:

• Increasing network capacity for freight to, from and within the North on railways and waterways

• Addressing pinch-points on the road network, particularly considering the pivotal role played by the M62

• Developing strategically located freight interchanges or distribution centres (Multimodal Distribution Parks), which are well connected by rail and waterways

• Delivering growth for Northern ports by improving connectivity to and from these hubs and enabling shipping lines to offer more

The strategy set out in the report recommends support to reduce the cost of freight transport, expand the global market share for the North in the logistics sector and attract inward private investment into the Northern Powerhouse area and the UK as a whole

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Evidencing economic impact

Project

30 James Street Hotel

Location

Liverpool, UK

Opportunity

Liverpool is a major tourist destination and renowned for its historic links to RMS Titanic. The 30 James Street Hotel is the former home of the White Star Shipping Line, owners of the RMS Titanic, and a key part of the hotel’s attraction is its unique styling and décor based on the iconic Titanic. With an average occupancy at over 90% the hotel makes a substantive contribution to tourism and heritage-led tourism in Liverpool.

Solution

To understand and quantify the impact of 30 James Street Hotel on the Liverpool City Region economy, we applied our Total Impact (TI) model and wider economic benefit analysis. Our evidence of the economic impact of 30 James Street Hotel on the City Region identified the additional visitors attracted to Liverpool by the unique hotel and the additional economic productivity they support as their expenditure flows through the local economy.

Outcome

Our evidence was used by Signature Living to demonstrate the wider economic impact of the hotel on Liverpool and its growing tourism industry. We identified 66 jobs in tourism were supported by the 4,700 annual guests staying at the hotel. Through the multiplier effects of the hotels operation, the economic footprint of the hotel in the city is substantial with over 80 jobs and £4.4M of GVA supported. We placed these findings within the wider story of the region’s successful visitor economy and Liverpool’s heritage-inspired regeneration of recent years.

£4.4MGross Value Added (per annum)

Bringing policy and investment together

Opportunity

The wide range of projects to consider, combined with a multitude of complex funding streams, made decision-making to award project funding a difficult exercise in the Liverpool City Region (LCR). We helped the LCR to develop an evidence-based approach to selecting, organising and prioritising transport projects. By identifying projects suitable for funding and engaging in early application preparation, LCR were able to create a pipeline of projects ready for funding.

Solution

We carried out multi-criteria assessments on projects proposed by Partner Authorities. The assessments categorised projects according to their suitability to apply for funding. Before being prepared for business case development, WEBTAG and economic and social analysis is conducted to package the projects by size, mode, and other key details.

Outcome

Our experts have played an integral role in shaping the future of transport investment in the LCR by supporting the development of the Transport Investment Pipeline. The proactive approach to scheme development means that the LCR can prepare projects for funding applications in advance of award availability. The process has also ensured that transport funding across the LCR is coordinated thereby maximising effeciency and capitalising on synergies. We are now enabling the LCR to capitalise on new funding opportunities.

Project

Liverpool City Region Transport Investment Pipeline

Location

Liverpool City Region

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A Transport Plan for Growth:

The LCR’s new Local Transport Plan articulates the City Region’s strategic direction for transport, both to those within the transport industry and to partners in health, housing, land-use planning, education and economic development.

The Transport Investment Pipeline offers a flexible, live shortlist of schemes that can respond to socio-economic and political change and new funding opportunities in pursuit of City Region objectives.

Client

Signature Living Ltd.

Expertise

Total Impact Model

Client

Merseytravel and Liverpool City Region Partner AuthoritiesExpertise

Policy and strategy development, economic and social analysis, transport scheme development, transport scheme appraisal

Need help developing a scheme business case?Want to understand the socio-economic impact of your project or operations?

Call us, we’ll listen.

Stephen Cox Chris Hardwick

+44 (0)151 482 9916 +44 (0)151 482 9924

[email protected] [email protected]

Engineering. Management. Development.

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