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INFRASTRUCTURE

2016 EDITION

INTERVIEW WITH MINISTER FOR INFRASTRUCTURE DARREN CHESTER MP RAIL INSIGHTS: METRO, INLAND, LIGHT, AND HIGH SPEED THE TOP 20 KEY PROJECTS FROM AUSTRALIA’S INFRASTRUCTURE HISTORY

SPECIAL EDITION

100 YEARS of the Department of Infrastructure and Regional Development

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THE NATION


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INFRASTRUCTURE

2016 EDITION

INTERVIEW WITH MINISTER FOR INFRASTRUCTURE DARREN CHESTER MP RAIL INSIGHTS: METRO, INLAND, LIGHT, AND HIGH SPEED THE TOP 20 KEY PROJECTS FROM AUSTRALIA’S INFRASTRUCTURE HISTORY

RTN REBUILDING

THE NATION

SPECIAL EDITION

100 YEARS of the Department of Infrastructure and Regional Development

RTN REBUILDING

THE NATION

Published by

EDITOR’S FOREWORD This year marks a special time for Australian infrastructure, as you no doubt noticed from the cover of this edition. This year marks the 100th anniversary of the establishment of what is now the Department of Infrastructure and Regional Development. Australia has a long and proud history of infrastructure innovation, both on an individual project basis, and also as a nation. From harnessing the power of water and the sun to building some of the most iconic pieces of architecture in the world, Infrastructure Outlook – Rebuilding the Nation has always been excited about covering the latest developments in Australian infrastructure. And this edition is no different. Before you read about the current projects underway, we’ll take you down through the past century, with a visual exploration of the key projects from 1916 to today. That exploration will cover telecommunications, mass transit, roads, housing, power production, irrigation and future-proofing cities. The final point on that list is a critical one. Australia needs a coherent vision to help us prepare for our future. With a population of 24 million, some futurists expect this to double in the next 50 years. Fortunately, Australia has a successful history in terms of infrastructure growth. This year our team of journalists has gone deeper in our coverage, searching for comment and insights from the people actually driving the projects on the ground. We also explore education and how it needs to be the first step on a pathway to getting the young people of today trained and ready to make the projects of the future happen. We hope you enjoy this edition, and can see where our future is headed, while remembering and celebrating our wonderful past. Keith Barrett, Editor of Infrastructure Outlook – Rebuilding the Nation

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CONTENTS 06

MINISTER INTERVIEW...................................06 Darren Chester MP talks about the future of Australian infrastructure, and how the states work with the federal level to achieve positive outcomes.

PORT OF MELBOURNE.............................. 48 The recent 50-year lease agreement will see significant growth at Port of Melbourne, including a major return to being an international container facility.

POLITICS OF PROGRESS..............................14 Ben Hosking looks back at the past 100 years of the Department of Infrastructure and Regional Development, from its inception at the heart of World War I.

INLAND RAIL................................................52 The Inland Rail project isn’t merely a major infrastructure project – it presents opportunities for all Australians through helping develop trade on our busiest trade route.

INFRASTRUCTURE MILESTONES................18 Travel back to 1877 and follow the key infrastructure milestones in Australia’s history.

GATEWAY WA..............................................54 First impressions of arriving in Perth have been completely transformed as a result of Gateway WA.

PROFILE..........................................................26 John Holland is one of the most recognisable names in Australian construction. RTN speaks to Executive General Manager of Infrastructure, Jim Salmon.

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WESTCONNEX................................................28 WestConnex will slash travel times to Parramatta when completed – enabling the western city to become a genuine business district. BADGERYS CREEK........................................31 Not building a second airport for Sydney would cost far more than the estimated expenditure to put it in place, over the next decade. SYDNEY METRO.............................................35 After first being tabled in 2001, Sydney is finally about to get its underground metro project, including rapid transit services. SYDNEY LIGHT RAIL......................................40 The extensive rail work isn’t just taking place underground – a new light rail service will help bring trams back to the city’s CBD.

66

HIGH SPEED RAIL..........................................44 A current proposal is underway to pitch a high speed rail link between Sydney and Melbourne, which would emulate such services in Japan and take the travel time from 11 hours to 3.

EDUCATION.................................................58 Our education system must showcase STEM subjects as having a viable career in Australia in order to keep our skills pipeline pumping. TECHNOLOGY.............................................60 Technology has the capability to help increase productivity and the speed at which projects reach completion, but much work needs to be done to set the standards. INFRASTRUCTURE INVESTMENT............. 66 Adrian Hart from BIS Shrapnel writes about the long-term trends in infrastructure investment, and where it goes from here. FINANCING INFRASTRUCTURE................ 70 Has Australia landed on the best way to finance infrastructure projects? The government and infrastructure teams at CommBank talk through the landscape. PROJECT LIFECYCLE MANAGEMENT............................................74 Technological innovation allows for detail modelling on everything from pedestrian traffic to predicted degregadation of structures. It also allows for the exploitation of any ‘down time’ on a part of a project.

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INTERVIEW WITH DARREN CHESTER MP

INTERVIEW WITH

DARREN CHESTER MP The Government is aiming to deliver on a range of projects that focuses both on the development of Australia’s economic capability, and also the evolution of its cities and vital networks.

The Commonwealth owns and develops only a small part of Australia’s infrastructure, with major responsibility resting with the states, and yet the Commonwealth must take a leadership role. How do you approach this and how successful is this in practice? While the state and territory governments are responsible for operating and maintaining most infrastructure assets as owners, the Australian Government’s investment and policy role has evolved and expanded over the decades to the point where in recent years, the Commonwealth is generally the single largest funder of roads. The Commonwealth takes a national view of its investment in infrastructure, looking to support projects that provide positive economic benefits and improved productivity, whether on a key regional freight route or in our major cities. Funding decisions are underpinned by the early planning works and business case development undertaken by the states and territories. Decisions are also informed by Infrastructure Australia’s independent evaluation of all project business cases where Commonwealth funding of $100 million or more is being sought. The Commonwealth seeks value for money from its investments and in recent years has progressed significant reforms to the way it prioritises, selects, funds and finances projects. Examples include establishing best practice cost estimation methodologies, using project and cost benchmarking to drive better value for money in project design and the updating of the Australian Transport Assessment and Planning (ATAP) guidelines (formerly the National Guidelines for Transport System Management) to incorporate the latest developments in project appraisal. While the Commonwealth’s primary role is to provide funding and financing

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INTERVIEW WITH DARREN CHESTER MP

support for state and territory delivered projects, it must also be an informed investor if it is to be a responsible manager of public funding, selecting projects and establishing financing arrangements which return value for money for the tax payer. Investments must be strategic – working in harmony to achieve national objectives – and address the most significant national challenges facing our transport networks. In particular, the Government considers long-term strategy challenges such as our growing population, particularly in our major urban areas. Australia’s population growth has been amongst the fastest in the developed world, with almost three-quarters of our growth in our four largest cities. The Government also focuses on improving the safety of our road network which continues to be responsible for the death of around 1,200 Australians each year, with accidents costing the economy around $27 billion. The Commonwealth has also released its Principles for Innovative Financing, which set out the Government’s goals for its substantial investment in Australia’s land transport infrastructure, its expectations on how projects are selected and consideration of alternative funding and financing options. The Principles reinforce the priority of projects that provide the greatest benefits, as well as the use of technology and the potential for alternative funding steams, such as user charging and value capture. The Principles also underline the Government’s commitment to support major projects through alternative financing mechanisms, in addition to traditional Government grants, to help leverage greater private sector investment and greater value from Commonwealth funding allocations. The performance of the Commonwealth’s recent investments show that the way we work with jurisdictions is producing the right outcomes. The Commonwealth’s Infrastructure Investment Program has returned an average economic benefit of $2.70 for every $1 spent. A large part of achieving this outcome can be attributed to disciplined project selection. The Commonwealth is also accelerating heavy vehicle road reform by working with states and territories through the Transport and Infrastructure Council and through the Council of

Australian Governments. This reform will see heavy vehicle infrastructure provided as an economic service, with clear links between the needs of users, the charges they pay, and the services they receive. Recent reports to Government have also recommended reforms that would see road user charges extended to all vehicles. This is a long-term and complex reform and the Australian Government is working with states and territories to investigate the costs and benefits of the broader use of road user charging. Infrastructure Australia has created the Australian Infrastructure Plan and this was announced in February 2016. Has the Government adopted this vision and if so what are the priorities for the Government in the short to medium term?

The performance of the Commonwealth’s recent investments show that the way we work with jurisdictions is producing the right outcomes. The Australian Infrastructure Plan (AIP) and Infrastructure Priority List provide an evidence base for government decision making and the Government will formally respond to the AIP in due course. Meanwhile, the Government has already started implementing a number of policies that address the Plan’s recommendations. In April 2016, the Government released its Smart Cities Plan which aims to deliver: jobs closer to homes; more affordable housing; better transport connections; and healthier environments. At the heart of this plan lies the Government’s City Deals policy which aims to create a shared vision for cities and a plan for governments, business and communities to coordinate their actions and investments. As part of the Smart Cities Plan, the Government, through my Department, has committed $50 million to accelerate planning and development works on major transformational infrastructure projects. The Smart Cities Plan directly addresses many of the recommendations

in the AIP, specifically relating to longterm coordinated planning and strategic infrastructure investment. A key priority for the Government is to strengthen the infrastructure assessment framework to enable more robust analysis of potential productivityenhancing infrastructure projects. The Government has consulted with states and territories to update the guidance on transport assessment and planning. The Australian Transport Assessment and Planning (ATAP) guidelines, released in August 2016, are a comprehensive framework for planning, assessing and developing transport systems and initiatives. The ATAP guidelines establish Australia as a global leader in infrastructure planning and evaluation and addresses many of the Plan’s recommendations on building best practice capability in the Australian infrastructure sector. Which major projects currently underway would you like to highlight as being of particular significance to the national plan? What specific benefits will flow to the community from these projects? There are a number of nationally significant projects underway, which are also supported by the states, territories and Infrastructure Australia, that demonstrate strong economic and social benefits for the whole nation. These projects are all included in the latest IA Infrastructure Priority List. In New South Wales the Australian Government is providing up to $3.5 billion (which includes $1.5 billion in direct funding and $2 billion through concessional loans), towards the WestConnex project in Sydney. Once complete, this 33 kilometre motorway will remove around 4,000 trucks per day from Parramatta Road, reduce congestion, improve travel times and bypass more than 50 sets of traffic lights. The project is expected to be a catalyst for urban renewal and revitalisation in the Parramatta Road precinct. In Adelaide, the North-South Corridor project is receiving a $1.7 billion Australian Government contribution to construct three significant stages: the Northern Connector, the Darlington project, and the Torrens Road to River Torrens Project. The North-South Corridor project will be almost 23 Continued on page 10 >>

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REDUCING THE RISK OF STEEL SUBSTITUTION With steel used on construction sites being sourced globally, the importance of independent technical validation of materials conformance and awareness of the consequences of failure of these materials has never been greater. Recent reports from both sides of the Tasman prove that it is simply not enough to think that just because a product has been ordered to an Australian or New Zealand Standard that the delivered product will automatically conform with that Standard. Having confidence that buildings and structures designed, specified and built to Australian Standards and Building Codes use materials - irrespective of their country of origin - that conform with the relevant Australian Standards and Building Codes is of critical importance. After all, it doesn't matter how well a building or civil structure is built if a higher risk of structural failure is 'built in' by using non-conforming building products. Australia and New Zealand Standards and building regulations specify minimum performance characteristics and detail 'fitness for purpose' of construction steels. Alarmingly, in recent times there has been an increase in the use of construction steels supplied as having been manufactured to "equivalent standards" or supplied as "equivalent" to steel grades referenced in an Australian Standard. What's more, these claims

often relate solely to strength of materials and not to other critical performance measures, such as ductility, required under Australian and New Zealand Standards. Together with the fact that documents provided with such materials are often not sufficient for anyone to validate the claims of conformity, the main question to be asked is always: “Can I see clearly that this steel complies?" ...and then rejecting any you cannot.

HOW CAN BE SURE THAT THE STEEL I'M RECEIVING MEETS THE AS/NZS STANDARDS? Unfortunately, one of the major problems associated with the selection and use of materials that conform with all relevant Standards is that of identification. Or, more specifically, who and what to believe. In some cases, even though the materials have been specified and ordered to an AS/NZS Standard, the materials that arrive are non-conforming. These problems are further compounded with issues relating to mixed supply (sometimes referred to as 'shandying'). Mixed supply is where conforming supply is declared, but either only a portion of the product supplied is sourced from a compliant supplier and some sourced from a different, non-compliant supplier, or alternatively, the material is sourced from a single supplier but the product

delivered does not consistently meet the Standard specified. Importantly, it does not matter whether this non-conformance is an intentional act of deception or 'counterfeiting' on behalf of the materials supplier, the builder or the contractor; or simply a matter of nonconformance through lack of correct process or an innocent misunderstanding of what constitutes conformance with Australian Standards. All that matters to the engineer, builder, building surveyor or customer is that the steel does comply. Using non-conforming building materials carries a high risk of 'builtin' failure - and the results are difficult to correct and far more costly than simply using compliant steel in the first instance.

FIRST ACRS TECHNICAL APPROVALS ACRS has also formalised its Technical Approvals processes for products used in Australia that are not covered by an AS/NZS Standard, but are under a recognised customer-based specification (such as a formal roads authority specification). Assessed with the same rigour, audit and validation as all ACRS product certifications, the first ACRS Technical Approvals were recently issued for 15.7mm strand and threaded bar. Assessment and audits are also currently underway for other products including reinforcing couplers and structural bolts.


Aren't Test Certificates the same thing? Test Certificates, ARE NOT the same as ACRS independent certification. Test certificates from the supplier are simply a “snapshot” of the manufacturer’s own test results of the material on the certificate, not its regular supply. ACRS certification demonstrates independently that the supplier manufactures consistently to the Standards stated on the certificate. Unless you are going to check and validate every single test certificate against every delivery, you should check the ACRS certificates for the manufacturer and supplier instead. Does ACRS certification add significant cost to the steel? ACRS certified steel should not cost any more. As a not-forprofit organisation, ACRS operates with the lowest cost model and only charges to recoup costs. Does ACRS certification limit my choice? ACRS currently certifies 48 steel manufacturers and suppliers located in 17 countries – and is constantly working with new manufacturers and suppliers around the globe. ACRS certification is not about creating a barrier to trade - it's about making sure that those who are doing the right thing aren't put at a competitive disadvantage by having to compete with inferior quality non-conforming products that are not 'fit for purpose' and are being sold at a reduced rate. How to I verify that the steel I'm using is ACRS certified? Confirm from your supplier where it sources its steel and check at www.steelcertification.com that they are all certified by ACRS. Then simply check the ACRS reference on the bundle tags on your steel deliveries to make sure the products are from those sources. The ACRS tag provides all of the information needed and, most importantly, the validity of the certificate number and other information can be checked and verified online quickly and easily at: www.steelcertification.com How do I specify ACRS certified steels? The easiest way to manage and minimise the risk of non-conforming construction steels, is to specify ACRS certified steels. SUGGESTED WORDING FOR STEEL VERIFIED BY ACRS AS MEETING LONG-TERM QUALITY LEVELS TO AS/NZS 4671, OR AS/NZS 4672: Steel reinforcing and steel prestressing materials for concrete shall comply with AS/NZS 4671 or AS/NZS 4672, respectively. Where applicable, materials shall be cut and bent in accordance with the requirements of the "Material and Structural Requirements for Reinforcing Steel" clauses AS 3600 and AS 5100.5, or the "Reinforcement" Clauses of NZS 3109. Acceptable manufacturers and processors of steel reinforcing and prestressing materials must hold a valid certificate of approval issued by the Australasian Certification Authority for Reinforcing and Structural Steels Ltd (ACRS), or other product certification system as shall be demonstrated to be directly equivalent to ACRS and approved as such in writing by the specifier. Evidence of compliance with this clause must be obtained when contract bids are received. SUGGESTED WORDING FOR STRUCTURAL STEELS VERIFIED BY ACRS AS MEETING MINIMUM REQUIRED TESTING LEVELS TO AS/NZS 1163, AS/NZS 1594, AS/NZS 3678, AS/NZS 3679.1, OR AS/NZS 3679.2 Structural steels shall comply with AS/NZS 1163, AS/NZS 1594, AS/NZS 3678, AS/NZS 3679.1 or AS/NZS 3679.2, as appropriate. Acceptable manufacturers of structural steel must hold a valid certificate of approval issued by the Australasian Certification Authority for Reinforcing and Structural Steels Ltd (ACRS), or other product certification system as shall be demonstrated to be directly equivalent to ACRS and approved as such in writing by the specifier. Evidence of compliance with this clause must be obtained when contract bids are received.

The only way to be truly sure that the materials being used conform fully with the appropriate Australian Standards and are fit for purpose, is through independent, expert, third party validation-based certification. In Australia, for construction steels - including reinforcing steels, structural steels and prestressing steels - this validation-based certification is provided by the ACRS Steel Compliance Scheme operated by the Australasian Certification Authority for Reinforcing and Structural Steels. ACRS provides fully independent assessment and certification for both Australian and internationally sourced construction steels. By using ACRS certified construction steels, builders and contractors can be confident that they are getting the AS/NZS compliant materials that they ordered, and engineers and building certifiers can be confident that steel meets the requirements of the Building Code and associated Standards. By providing effective continuous review

of both the manufacturer and the fabricator/ processor, ACRS provides a 'chain of certification' to reduce the risk of receiving and using non-conforming steels. For further information about the validity of certification for any materials being supplied into your project, please visit the ACRS website: www.steelcertification.com, or contact ACRS, Phone: (02) 9965 7216.

ABOUT ACRS JAS-ANZ accredited, ACRS (Australasian Certification Authority for Reinforcing and Structural Steels) is a notfor-profit independent Authority that provides expert, impartial assessment and certification that gives specifiers and customers the widest available choice of construction steel materials demonstrably compliant with Australian and New Zealand Standards. ACRS was established in 2000 with the support and endorsement of leading engineering and construction groups, Austroads, AIBS, Engineers Australia, SRIA, Consult Australia, Master Builders Association and the Housing Industry Association, and has become the leader in the field of steel conformity assessment and certification to Australian and New Zealand Standards. Indeed, with over 1,400 audits and 4,200 materials assessments now completed, ACRS is recognised locally and internationally for both its rigorous and practical scheme, and its expertise in the compliance of construction steels specifically to the requirements AS/NZS Standards.


INTERVIEW WITH DARREN CHESTER MP >> Continued from page 7

kilometres of new free-flowing roadway, connecting to the Port of Adelaide, improving travel times and connectivity for freight, business and private travel. Another key investment is the Inland Rail Project, to which the Australian Government has so far committed almost $894 million. This dedicated freight rail line of around 1,700 kilometres between Melbourne and Brisbane will help make interstate rail competitive with road freight for a number of commodities, including containerised freight, agricultural and resources products. The route will enable rail freight movement between Melbourne and Brisbane in under 24 hours and remove 200,000 truck movements from the nation’s road network. During construction, the project is expected to support an average of 800 jobs a year.

To help meet these challenges, the Australian Government is committed to the use of alternative financing and funding measures, where appropriate, to generate increased private sector involvement in infrastructure delivery and funding. Greater private sector investment will allow the Government to target its funding to initiatives that are not suited for private sector involvement, and states and territories are now required to examine the potential for private sector involvement in any business case they submit to the Australian Government.

How important are issues of sustainability in modern infrastructure planning?

The Commonwealth focusses on facilitating the greatest improvements to Australia’s transport networks’ level of service that can be reasonably achieved with the funds at its disposal. While there is no magic formula for project success, at its heart, successful project delivery can be measured in effectiveness – how well the final asset delivers the project objectives – and efficiency – the use of best practice project design, financing and delivery.

Sustainability in infrastructure planning is important in a number of different contexts. In our major cities land availability is often very limited and it is critical that broader land planning decisions consider future infrastructure requirements. The Australian Government is working with the states and territories, through COAG’s Transport and Infrastructure Council, on future infrastructure corridor and precinct protection. Based on expected infrastructure needs as identified by states, territories and Infrastructure Australia, decisions can be made by governments to apply planning mechanisms that prevent those corridors from development that may prevent future provision of infrastructure, or lead to high-cost alternatives such as tunnelling or property acquisition. The Australian Government is also looking for jurisdictions to maximise the use of existing infrastructure, such as by using technology to improve traffic management in urban areas rather than having additional lanes added to motorways, or through improved maintenance programs, to extend the life of the current road network. Sustainability also relates to funding of projects. There is a significant challenge in delivering the infrastructure needed to keep our cities moving and freight industry productive in the current constrained fiscal environment.

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There is good infrastructure and there are white elephants. What is the criteria for a successful infrastructure project in your view and how should success be judged?

investment decisions in the first place, backed by robust economic analysis. A fundamental question asked during this analysis is: what would be the financial, social and productivity cost to Australia if the infrastructure wasn’t built? A good project will deliver the best, most efficient solution to address the identified deficiencies. All too often, governments have committed to invest in major construction works without fully considering alternative solutions. Through the Government’s Principles for Innovative Financing, the Australian Government has emphasised the need to consider non-construction and enhanced construction solutions first – such as through the use of technology, regulatory changes or improved maintenance or operational practices – when selecting and designing projects. Ensuring this analysis happens prior to large public financial investments being made is critical. This requires governments to undertake detailed planning and development work well before the financial commitment is locked in. The Australian Government is helping the states and territories undertake this pre-construction work for

A good project will address a well identified need or deficiency. Governments must identify a problem first before considering possible project solutions. A good project will address a well identified need or deficiency. Governments must identify a problem first before considering possible project solutions. The primary function of the Commonwealth’s transport investment is to improve the movement of freight on our nationally significant corridors; relieve congestion in our largest urban centres; and improve safety outcomes, because the lives and liveability for all Australians depend on this. A single investment may be aimed at one or more of these priorities. At the option selection and delivery phase, value for money is often presented as being about optimising a project’s delivery arrangements – but just as important is making the right

our largest, transformational projects through a $50 million allocation to planning and development. IA also assists by undertaking independent reviews of proposals for major projects, including identifying opportunities for alternative solutions. From the Commonwealth’s perspective, as an investor, it is also about selecting the right financing structure for a project. Of particular interest to the Australian Government is expanding the use of alternative funding solutions to public infrastructure, including user charging and value capture mechanisms. Using well designed mechanisms which involve those who benefit directly sharing in the cost of infrastructure can help democratise

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INTERVIEW WITH DARREN CHESTER MP

major projects, placing greater pressure on Government financiers and delivery agencies to select projects with clear benefits to the public. People have been talking about a Very Fast Train project along the eastern seaboard for many years, but our small population has often been cited as a reason for this project being unviable. Is an upside to our growing population that it may deliver the scale to make ambitious projects of this kind a reality? There have been many studies into the feasibility of building High Speed Rail in Australia over the decades, which have highlighted the significant costs involved – the most recent study cited a figure of $114 billion. It is true that we have very significant distances between our major cities, with comparatively small centres in between them. There are no guarantees that HSR would deliver benefits to those regions. We just don’t have the level of population densities that nations with HSR systems of their own have – like Japan, China, Italy and France. While HSR is not a priority at this time, the Australian Government will continue to consider what role it could play in Australia’s long-term planning. This includes working progressively and carefully with the governments of New South Wales, Victoria, Queensland and the Australian Capital Territory on matters such as their level of interest in HSR, and their preparedness to protect a corridor for use by any future HSR line or another mobility technology. More broadly, we are continuing to monitor innovation and technology developments in transport systems, so we know what the potential opportunities could be for Australian transport systems in the future. Much of Australia’s key infrastructure in recent years has been financed through the Public Private Partnership (PPP) model. Where is that model at in 2016 and how can it be improved to deliver better results for all stakeholders – public and private? Public Private Partnerships remain an important type of contracting in Australia because, for the right projects, they can unlock the efficiencies of technology and

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other expertise held by industry better than other methods of procurement. Australia is widely considered a world leader in the use of PPPs, however it is important to acknowledge they have only ever been a small proportion of the total investment in public infrastructure. Between 1995 and 2013, the aggregate financial closures of infrastructure PPP projects in Australia totalled approximately $50 billion, compared with over $1 trillion in overall infrastructure investment. The projects delivered by PPPs are nevertheless notable because they usually involve some, if not all, of the following characteristics. • A high level of financing, project management and/or engineering complexity. • An investment of hundreds of millions of dollars or more. • Enough cash flow can be generated by the asset to repay its financiers, either from direct users or as an availability payment in which governments clearly indicate their willingness to pay for an ongoing infrastructure service. While responsibility for procurement of new public infrastructure primarily sits with state, territory and local governments, the Commonwealth encourages private sector involvement where it aligns with our value for money interest. It is important that PPPs are well structured to maximise the benefits they can provide. The key factor in

all successful PPP structures is clear, well understood and agreed risk sharing arrangements. Australian governments have agreed to and use guidelines which set out a consistent approach to delivering PPP projects. In February 2016 these guidelines were updated to reflect the need to support opportunities for innovation by bidders and the use of modified funding and financing options, among other amendments. The Australian Government is also supportive of state and territory governments’ formalised processes for the private sector to bring forward unsolicited bids to develop infrastructure projects. The Commonwealth has also developed an unsolicited bid process for elements of the Inland Rail project, creating opportunities for industry to develop proposals for consideration by government. This is an area in which Australia has significant maturity, and while work remains to further develop this model, the Australian Government notes that the majority of jurisdictions have recently updated their unsolicited bid frameworks to reflect learnings from the last decade. Similarly, there are potentially opportunities for expanding the role of private sector investment in local government assets, particularly freight road networks and a number of jurisdictions and local governments are making progress in this space. 

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Welcome to our world. INDUSTRY LEADING KNOWLEDGE OF POLYMER SOLUTIONS, COUPLED WITH OVER 100 YEARS OF EXPERIENCE.

Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative engineered solutions accelerate performance for customers in a sustainable way. Tel: 07 3866 7444 www.trelleborg.com/engineeredproducts

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100 YEARS OF EVERYDAY INGENUITY

IN CRITICAL APPLICATIONS AND DEMANDING ENVIRONMENTS

T

his is the story of the growth of industry in Sweden and the world, of internationalization and technology, of research and discovery, and a changing world. It is the story of all the people who have been a part of the evolution, of their motivation and passionate commitment. Portraying the history of the Trelleborg Group is a multifaceted journey through time: a hundred years of history that is as much about the future as the past. Our innovativeness, technological development and endeavor for quality in the past have given us the experience we need for our future. This is a portrayal of a very special centenarian, which from humble beginnings at the start of the last century as a small rubber-production plant on the south coast of Sweden, took a huge step to evolve into a successful, technologically advanced leader with the world as its workplace. Today, Trelleborg AB is a global industrial group. Although more than 90 percent of our sales are made outside Sweden and only just over one in ten employees is Swedish, the head office is still located in precisely the same place in the town of Trelleborg as it was a hundred years ago. Polymer expertise remains the foundation of the operations, but our

structure and products have been developed and adapted to today’s society, in a way Henry Dunker and Johan Kock, who started the company, could hardly have imagined. Welcome to a journey from the present to the future and founded on the past. To the golden years after 1950, an exciting time when internationalization progressed at whirlwind speed, allowing rapid global expansion. And join us for the first half of the twentieth century, a period when many bold, experimental and arduous tasks were undertaken. When people like Henry Dunker and Johan Kock, their employees and thousands of anonymous people toiled in smoke, heat and dust at the dawn of the industrial age, people who are only memories now. This was the beginning of everything. This is the story of Trelleborg. You are welcome to join our future.

How it all began (1905 – 1914)

A secret meeting in Trelleborg marked the first beginnings of a new company: Trelleborgs Gummifabriks AB was formed on October 30, 1905. It was based on the fragile foundation of the proud Velocipedluftringsfabriken AB Velox, established in the town in 1896. Trelleborgs Gummifabrik was controlled by its dynamic young plant

manager Henry Dunker, also head of Helsingborgs Gummifabriks AB, who had long nurtured plans to take control of the Swedish rubber industry. Now he divided up his newly-acquired empire. The plant in Helsingborg was to focus exclusively on rubber footwear, while all other production of rubber products was assigned to the new company in Trelleborg. Trelleborg rapidly grew to become Scandinavia’s leading rubber company. Production initially comprised bicycle tires and technical rubber products but grew rapidly to include new products. Series production of car tires began in 1907 and rubber coats were launched in 1910. Both were key product groups which, together with the technical rubber products, were to provide the base for rapid expansion for some time to come. Today, Trelleborg continues to be a world leader in engineered polymer solutions. Now with 95 manufacturing facilities and nearly 16,000 dedicated employees across 46 countries worldwide, annual sales top $3.3 billion. With performance enhancing products tested to the highest level, our vastly talented workforce and an unmatched track record, you can be sure that the exact specifications of your project within Infrastructure, Oil & Gas, Renewable Energy and Mining will be met.

Our History In Brief

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100 YEARS OF THE DEPARTMENT OF INFRASTRUCTURE

POLITICS OF PROGRESS It’s been 100 years since the federal government introduced a political portfolio that would focus on the development of infrastructure in Australia. Ben Hosking charts us through the many changes that have helped build a nation.

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t’s interesting to note that the Australian federal government appointed its first minister for infrastructure (in this case, known as Public Works & Railways) in 1916, at the height of World War I. Despite material shortages, a workforce diminished by servicemen and women abroad and what would surely have been an administration focused on what was happening overseas, the future development of the nation was still a priority. The portfolio of Public Works & Railways was handled by 10 different ministers between November 1916 and April 1932 – a period that saw the construction of the Trans-Australian Railway system, the planning and completion of the Sydney Harbour Bridge, the building of Sydney’s City Circle underground railway and the depths of the Great Depression. December 1928 saw the creation of the Markets & Transport portfolio, led by Thomas Paterson and later John Moloney. With motorbody production reaching 90,000 units by 1926 (Holden alone building more than 36,000 of them), it’s no wonder that the government saw a need for a greater focus on roads and 1928 saw the naming and initial upgrading of the Pacific Highway, linking Sydney and Brisbane.

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For two years from April 1930 to 1932, the portfolio was given a sharper focus, simply but broadly handling ‘Transport’. John Moloney continued his role as Minister for Transport until Robert Parkhill took over in early 1932. It was a time of upheaval and change for the country with the Statute of Westminster declaring the British Colonies independent states in 1931 and the Depression and Australia’s decision to pursue economic austerity measures in an attempt to curb its effects ultimately prolonging it. In an attempt to protect the viability of its railway systems, it was the early 1930s that saw most state governments introduce legislation that was meant to impede the spread of road-going transport services. This kind of anti-competitive legislation remained in some states as late as 1973, despite intervention from London’s Privy Council in 1954. Rail started to wane in the ‘50s, regardless. 1932 saw the Department of Transport and Department of Works & Railways disbanded and in April of that year the responsibilities of both departments were assumed by the new Minister of the Interior, Archdale Parkhill. The Department of the Interior existed until June of 1941, encompassing a

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100 YEARS OF THE DEPARTMENT OF INFRASTRUCTURE

vast number of responsibilities, including astronomy and meteorology, forestry, passports and immigration, railways, public works and much more. Five different ministers handled the portfolio until it reduced back to the Department of Transport. The growth of the nascent aviation industry saw the creation of the Department of Civil Aviation in November of 1938 (having previously been a branch of the Department of Defence), running concurrently with the Transport portfolio. This department ran continuously until the end of 1973, including 14 government ministers and five Director-Generals. World War II saw the RAAF train 37,000 aircrew during the 1940s. Australian manufacturing continued to be the primary driver of economic recovery postdepression, with the first true Holdens – the 48-215, or FX – rolling off the line in 1948. Sydney had started planning its urban freeways as early as 1943. It was within this atmosphere that the second iteration of the Department of Transport existed between 1941 and March 1950. Some of the country’s largest infrastructure projects were commenced during this time, including the formation of the Commonwealth-State Housing Agreement and the start of the Warragamba Dam and the Snowy River Hydro Scheme. Shortly after the 1941 formation of the Transport portfolio came the creation of the Department of Supply & Shipping, existing from September 1942 to April 1948. Largely influenced by the effects of WWII, the department was responsible for such things as the procurement of non-military supplies, the control of shipping (including the operation of government-owned and chartered ships and the best utilisation of the coastal fleet), control of coal production, control of the production of strategic resources and control over the importation, allocation and use of various limited resources and supplies. After the end of WWII, more than two million people immigrated to Australia and the government was busy rebuilding the economy and its returned servicemen and women. Thus the new Department of Shipping & Fuel had a more civil focus than its predecessor, controlling navigation services to prevent congestion in shipping routes and fishing grounds, creating policy with regard shipbuilding and subsidising the operation of Australian-built ships. Existing a little over a year, the Department of Fuel, Shipping & Transport ran from March 1950 to May 1951, led by Minister George McLeay. It dealt with almost identical responsibilities as the former department, adding transport matters including Commonwealth railways and the Transport Advisory Council. Australia’s love affair with rail hadn’t ended when the long-running Department of Shipping & Transport was created in May 1951. By 1953, NSW had the largest fleet of fully air-conditioned carriages in the world and Victoria’s Gippsland line was the first to be electrified, starting in 1954. Eight different ministers

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handled the portfolio until it was superseded by the third iteration of the Department of Transport in December of 1972. But not before it had assisted in the construction of Perth’s Narrows Bridge and the start of upgrades of the Hume Highway between Sydney and Melbourne. There was a period of stability within the Department of Transport between the end of 1972 and its conclusion in May of 1982. Only three ministers led the portfolio during the years that saw the National Highway Network created, as well as the opening of the Opera House in 1973. Steam power on the railways finally died the same year and 1980 saw planning begin on Sydney’s M5 SouthWest Motorway.

The growth of the nascent aviation industry saw the creation of the Department of Civil Aviation in November of 1938, running concurrently with the Transport portfolio. Things became more splintered in the 15 years that followed, with the name and responsibilities of the department changing no less than four times, including the Department of Transport & Construction (May 1982 – March 1983), Department of Transport (March 1983 – July 1987), Transport & Communication (July 1987 – Dec 1993) and the Department of Transport again from December 1993 to March 1996. May 1982 also saw the formation of a new Department of Aviation (the former Civil Aviation department ending at the end of 1973). This was abolished in 1987 when Prime Minister Bob Hawke created a ‘super’ department, merging Aviation and Transport. The Department of Transport still handles both aviation and marine responsibilities to this day. In March 1996 a new department was created – Department of Transport & Regional Services – that would, at least on paper, herald the introduction of a new focus on regional Australia that is still in place today. This department existed for two years, led by John Sharp and Mark Vale – replaced by the Department of Transport & Regional Services in October 1998, which lasted until December of 2007. Minster Anthony Albanese took on the gargantuan role of Minister of Infrastructure, Transport, Regional Development & Local Government in December 2007 before his position contracted in September 2010, becoming the Minister of Infrastructure & Transport. Albanese was replaced by Warren Truss as head of the Department of Infrastructure & Regional Development in September 2013 when the LNP gained control of parliament, placing Warren Truss in charge, later replaced by Darren Chester in 2016. 

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© Greg Gardner Photography

Urbanisation is an unprecedented challenge; by 2050 the world’s urban population will exceed six billion.

Keeping Australia moving for over 50 years Here in Australia population is growing by more than 1 million people every three years. That’s the size of Adelaide. So, how will our cities, and the networks and resources that support and surround them, cope? How can we sustain Australia’s national prosperity? Help communities stay healthy, be better connected and thrive? In short, how can we keep Australia moving, and improving?

the public and private sector, keeping Australian people, products and resources on the move. We have shaped all modes of transport in Australia over the last fifty years – aviation, highways, maritime and rail – improving connectivity, safety and the economic wellbeing of Australians.

In aviation, we were responsible for shaping Brisbane Airport in the early 1980s getting it ready in time It’s our focus at Arup. We are driven to open for World Expo 88 – the year to transform the lives of Australians of Australia’s Bicentennial. We have by improving transportation, water upgraded and extended it since, as and sewage systems, power networks, we have Sydney, Melbourne, and homes, offices, parks, theatres and most recently Perth Airport. Able to stadiums, and more. accommodate up to 40m passengers a year, Perth now has an airport befitting We work across all areas of infrastructure design offering planning, of its national importance as Australia’s resource capital. design and consultancy services to


Our highways specialists have created smarter, faster, safer travel for freight and passengers. Not to mention more consistent, reliable travel with improved amenity for the communities alongside. We are designing smart motorways for Melbourne’s M1, NSW’s M4 and introducing Diverging Diamond Intersections to Australian soil for the first time – with the Bruce Highway upgrade on the Sunshine Coast. These new intersections help move traffic © PoMC

faster, more efficiently, can be cheaper to build, require less land and more benefits beside. We have earned an enviable reputation for the delivery of large, complex projects, such as the Pacific Highway upgrade in NSW. This year we celebrate © Kim Johnsen Photography

20 years working alongside Roads and Maritime Services on the upgrade – the largest, most enduring road construction project ever undertaken in the country. Travel times have reduced, communities have improved amenity and economic activity has increased. We are also proud to have seen fatalities halved and continuing in a downward trend. In maritime, we are helping improve the movement of freight, creating a future strategy for the Port of Melbourne. Our work in rail is helping decongest our cities, through Melbourne’s Regional Rail Link, the city shaping Cross River Rail in Brisbane, Inland Rail connecting Brisbane to Melbourne and light rail schemes for the Gold Coast, Canberra and Sydney. We keep Australia’s resources clean, sustainable and on the move through our work on wind farms, offshore oil and gas platforms, water desalination plants and pipelines state-wide. We create infrastructure that works effectively now and is adaptable to changing demands in the future. We keep Australia on the move, ensuring we create a long and lasting legacy for current and future generations. © John Gollings

We shape a better world | www.arup.com


INFRASTRUCTURE HISTORICAL TIMELINE

INFRASTRUCTURE MILESTONES Despite being one of the younger nations in the world, Australia boasts impressive infrastructure. We take a look at 20 of the country’s most important infrastructure projects. By Ben Hosking ustralia as we know it is ‘only’ 230 years old. Despite its tender age, myriad significant infrastructure projects have helped it keep up with the latest technologies and engineering advancements seen elsewhere in the world. As the country’s population rockets past 24 million and projections suggest as many as 42 million people will call Australia home by 2050, infrastructure will continue to be a hot topic amongst politicians, engineers and the public. We thought it pertinent to take a look back at some of the more important projects undertaken over the last 140 years, covering telecommunications, mass transit, roads, housing, power production, irrigation and future proofing cities.

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PERTH-ADELAIDE TELEGRAPH LINE

Before the construction of the Perth to Fremantle telegraph line in 1869, the only way to carry messages over long distance in WA was by letter. Getting information from other states could take weeks. In 1874, both the WA and SA governments approved funding for the construction of a telegraph line from Albany to Adelaide – known as the East-West, or Inter-colonial line – at a cost of £33,000. The line took two years to complete, spanning 2,432 kilometres along a route that largely followed the coast, using almost 30,000 telegraph poles. In operation for 50 years, the service transmitted 11,000 messages in its first year alone.

1877 CANBERRA, BUILDING A NATION’S CAPITAL It took the federal parliament 10 years to decide on a location for the country’s new capital city, with parliament calling Melbourne home in the interim. With a decision finally made, Commonwealth surveyor Charles Scrivener was sent to Canberra to find a suitable location, advised to choose somewhere picturesque, with views. An international competition to design the new capital saw over 130 entries received – the winner being American Walter Burley Griffin and his wife Marion. Construction commenced in 1913, however politics and WWI hampered progress and it wasn’t until 1927 that the first Parliament House was opened – Griffin having long since removed himself from the project in circumstances similar to Jorn Utzon and the Opera House.

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SYDNEY HARBOUR BRIDGE While the first earth was turned on the construction of Sydney’s Harbour Bridge in 1923, it was over a century before that convict architect Francis Greenway proposed a bridge to link Dawes Point to the south and Milsons Point to the north. Dozens of plans were considered and rejected before the famous arch design was chosen. It took nine years to complete the bridge, opening on 19 March, 1932. Spanning 504 metres across the harbour and consisting of 52,800 tonnes of steel trusses and six million steel rivets, it is the world’s largest steel arch bridge, measuring 50m across and 143m from water level to top.

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INFRASTRUCTURE HISTORICAL TIMELINE

1879

SYDNEY TRAM SYSTEM As with most mass transit systems, Sydney’s tram system was one that developed and changed over decades, starting as a limited horse-drawn service in 1861 linking the train line and the harbour. Trams really began to connect the city with the introduction of Baldwin steam trams in 1879, with new lines spreading out from the city in all directions. Although hilly areas like the North Shore and Edgecliff utilised cable trams, steam-powered operation continued until 1898 when electrified trams were first introduced. By its peak in the 1920s, Sydney’s tram system was the second largest in the Commonwealth (second only to London), eventually closing in 1961. MELBOURNE TRAM SYSTEM Melbourne’s first public transport network began as a privately run horse-drawn service in the late 1860s, without the aid of rails. This same entrepreneur, Francis Clapp, brought cable trams to Melbourne in 1877, the colonial government passing legislation allowing its use in 1883. Local councils within the proposed network boundaries set up a trust to fund the building of tracks and engine houses, with the infrastructure then leased to Clapp’s company to run until 1916. By 1940, all of Melbourne’s trams would be electric. Today, Melbourne’s famous tram system is the largest in the world.

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TRANS-AUSTRALIAN RAILWAY Arguably the first great infrastructure project in Australia post-federation, the linking of the eastern states and WA by rail was a condition of Western Australia joining the Commonwealth. Prior to this, the only link between the West and the rest was an arduous sea voyage and a single telegraph line. Joining Port Augusta in SA and Kalgoorlie in WA – 1693 kilometres in total – construction began in 1912, consuming 2.5 million sleepers and 140,000 tonnes of rail with more than 3,400 workers employed at the peak of the five-year project. The first passenger service rolled out of Port Augusta in October 1917, reaching Kalgoorlie 42 hours later.

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PACIFIC HIGHWAY It wasn’t until decades after the advent of the motor car that Australia could boast a serious network of roads worthy of the title ‘highway’, and it wasn’t until August 1928 that the collection of highways and by-ways that we know today as the Pacific Highway was officially proclaimed a state highway (called the North Coast Highway until 1931). Stretching 960 kilometres from the northern end of the Harbour Bridge to Brisbane, the route has changed a number of times over the ensuing decades as bypasses were constructed to speed up the journey or black spots avoided. As of May 2016, only 11 per cent of the Pacific Highway was still single carriageway.

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INFRASTRUCTURE HISTORICAL TIMELINE ESTABLISHMENT OF PUBLIC HOUSING As servicemen and women returned from WWII, it was increasingly apparent that Australia was suffering from a housing crisis. A 1944 report estimated a 300,000 shortfall in dwellings, forcing the government to step in, creating the CSHA (Commonwealth-States Housing Agreement) in 1945. The CSHA allowed the federal government to make long-term loans to the states in order to build public housing, which would then be rented or purchased by tenants. Around 112,000 homes were built between 1945 and 1956, often consisting of whole new suburbs and related infrastructure. Today, there are some 427,000 public housing dwellings nationwide.

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NARROWS BRIDGE IN PERTH Before Narrows Bridge was built in Perth, WA, bridges had only ever been built using timber frameworks. While the idea of crossing the Swan River between Mill Point and Point Lewis had been tossed around since 1849, by the 1940s the government saw a river crossing as imperative. Costing a then-astronomical $2.6 million, the precast, prestressed concrete bridge was the largest of its kind at the time, measuring 396.5m long and 27.4m wide. Construction also required the reclamation of 60 acres of land for the approach to the bridge, along with 160 Gambia piles that provide adequate foundation in the soft, silty location.

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HUME HIGHWAY Originally known as Great South Road, the Hume Highway (aka Hume Freeway and Hume Motorway in Victoria and parts of NSW respectively) links Australia’s two largest cities, Sydney and Melbourne and is one of the country’s oldest main roads, dating back as far as its dirt track origins in 1848. By the early 1960s, highway standardisation began, seeing many of the historic towns along its route bypassed and the single carriageway road doubled. The Hume Highway has been an ongoing development project ever since, with the last town, Holbrook, not bypassed until mid-2013, completing the transition to dual carriageway.

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INFRASTRUCTURE HISTORICAL TIMELINE WARRAGAMBA DAM At the time of construction, Warragamba Dam (located 65 kilometres south-west of Sydney) was the highest concrete gravity dam built and remains one of the largest specifically designed for urban water supply. Despite being suggested 80 years before, a series of severe droughts meant a secure water source for the rapidly expanding post-war Sydney area was necessary. Construction took 12 years, 1.2 million cubic metres of concrete and 1,300 workers from 25 countries working 24 hours a day, seven days a week, ending in 1960. The dam’s catchment area spans over 9,000 square kilometres and has never run dry.

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SNOWY RIVER HYDRO Located in southern NSW, the Snowy River Hydro Scheme is still the largest and most complex engineering project undertaken in Australia. Construction took 25 years at a cost of $820 million – a figure in the billions by today’s standards – and was completed in 1974. Featuring 16 major dams, seven power stations, a pumping station and 225 kilometres of tunnels, pipes and aqueducts, the Snowy River Hydro supplies water to the farming industries of inland NSW and Victoria, as well as providing around 10 per cent of NSW’s electricity. An estimated 100,000 people worked on the project, including workers from over 30 countries, many of whom migrated to Australia specifically for the project.

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SEWERAGE SYSTEM ESTABLISHMENT In 1965, 45 per cent of Australian homes still weren’t connected to a sewerage system, instead making do with the outdoor loo. Apart from the inconvenience of having to go outside to relieve yourself in the middle of the night, outdoor toilets only had their contents collected once a week. The Whitlam government started an expansive project to connect the remainder of the country to the sewerage system, spending $330 million between 1967 and 1979 before being cancelled by the Fraser administration. By that time, unsewered properties in Sydney fell from 158,884 in 1973 to 95,505; 88,000 from 160,000 in Melbourne and sewered properties in Perth rose from 46 to 69 per cent.

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INFRASTRUCTURE HISTORICAL TIMELINE SYDNEY KINGSFORD SMITH AIRPORT The history of Sydney’s main airport dates right back to 1923 when the government acquired the land in Botany for the purpose. Prior to this, a private firm leased the land, with its first aircraft taking off in 1919. This makes Kingsford Smith (as it was renamed in 1953) the world’s longest continuously running commercial airport. By 1966 a new international terminal was needed and construction wasn’t completed until May 1970 when it was officially opened by HM Queen Elizabeth II. The first American Boeing 747 arrived in October of that year, greatly expanding world travellers’ horizons, as well as speeding up cargo transit.

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JOONDALUP RAILWAY LINE, PERTH The Joondalup railway line is a story of people power and a government willing to listen. In 1979, the rail line to the south of Perth was closed in the belief that trains played no part in the future of the city. Prolonged and successful lobbying eventually saw the line re-opened in 1983. The ALP took the idea of a northern rail line linking Perth and Butler to an election and won an increased majority. The first soil was dug in 1989 with construction complete in 1992 where it proved so popular that some services had to be doubled due to overcrowding. Some 17 trips were taken on the line in 2014-2015.

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1990 HUNTER EXPRESSWAY Stretching 40 kilometres between the Newcastle Link Road interchange on the M1 and the New England Highway north of Branxton, the Hunter Expressway bypasses a mass of traffic lights and congestion through towns including Maitland, Lochinvar, Greta and Branxton. A link road was originally proposed in 1988, but the road design was not approved until 2001 with a price tag of $1.5 billion. It proved to be one of the largest infrastructure projects the Hunter has ever seen, boasting 52 bridges, six interchanges and 800m of high bridges. Construction began in 2010 and was completed in 2014, reducing traffic on the bypassed parts of the New England Highway by up to 45 per cent.

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INFRASTRUCTURE HISTORICAL TIMELINE NATIONAL HIGHWAY NETWORK Thanks to the lobbying of the Royal Automobile Association in 1973, using phrases like ‘shortening the length’ and ‘reduced mileage’, the federal government introduced the National Roads Act 1974. The Act took on most of the RAA’s recommendations, which would see – at first – 10 highways linking the Australian capitals improved to a minimum standard size and quality (the number of highways increased in later years). Work began almost immediately, with the states retaining responsibility for the roads, but the federal government compensating them for any amounts spent on approved projects. It wasn’t until 1986 that the last sections of road were sealed.

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M5 SOUTH-WEST MOTORWAY Prior to the late 1980s, getting to the city from the greater south-west ground to a halt upon approach to the Crossroads. From there your options were either Liverpool Rd or Newbridge Rd, both offering plenty of traffic lights and congestion. The government built an initial stretch of highway linking Heathcote Rd at Moorebank and the Hume Highway at Casula that was near freeway standard, however it took years of proposals and planning to get the South-West Motorway off the ground. The south-west section of the M5 was constructed privately under a ‘Build-Operate-Transfer’ agreement that will expire in 2026.

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WESTLINK M7 It is estimated that congestion costs Sydney around $5 billion a year and that number is expected to climb in the future. Residents and business in Sydney’s west know all about congestion, with the area’s rapid growth causing major problems on the roads. The NSW Minister for Planning authorised the M7 project (then known as the Western Sydney Orbital) in 2002, budgeted at $1.8 billion – $1.5 billion coming from the private sector. Measuring 41 kilometres between the M2 at Seven Hills and the Hume Highway at Prestons, the M7 took two and a half years to complete, avoiding up to 48 sets of traffic lights.

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SYDNEY DESALINATION PLANT It was during Sydney’s worst drought in 100 years that plans were approved for a desalination plant, located at Kurnell, NSW. The plant was chosen as the best way to protect against further drought when other schemes, like waste water recycling, residential water tanks and a new dam were all ruled out for various reasons. Built by the NSW state government at a cost of $1.8 billion between 2007 and 2010, the plant was refinanced to the private sector on a 50year lease worth $2.3 billion. It ran for a full two years to prove its capacity, but has been in stand-by mode since 2012 with instructions to restart if dam levels fall below 70 per cent. 

2005

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Engineers Australia’s GRADUATE PROGRAM Delivered by Engineering Education Australia Best practice blended learning, customised to your business needs eeaust.com.au/programs/graduate-program


ACCELERATING UNIVERSITY GRADUATES TO FUTURE LEADERS E

ngineers Australia’s Graduate Program, delivered by Engineering Education Australia, provides a solid pathway for engineers to go from university graduate to a Chartered Engineer. The 18-month Program is unique in that it is focused entirely on the engineering sector, and demonstrates the skills and knowledge graduates require to hit the ground running as they enter the workforce. It also provides necessary life skills through course topics such as selfmanagement, performance leadership, innovation and risk, communication and team work. With internationally recognised competencies underpinning the program, participants will be accelerated to achieve their CPEng status. After extensive market feedback from industry, Engineers Australia’s Graduate Program has been designed to ensure content is industry relevant, as well as engaging and flexible. This flexibility means the Program is able to be customised and adapted to employer needs. In addition to tailoring the program, organisations who already run their own in-house graduate program can utilise key components to get their graduates trained in core areas to address business needs. Launching early March, the Program will be hosted on a new open-source Learning Management System (LMS). The LMS will allow line managers, organisational leaders and mentors to gain access at any time and see how their graduates are progressing. This feature provides you the ability to track individual participants through customised reporting to identify an early return on your graduate investment. Following the structured program, participants will be trained in the skills necessary to drive business growth ● REBUILDINGTHENATION.COM.AU

and innovation in your organisation. It assists graduate engineers to think commercially, enabling them to present simple, cost effective solutions to business needs. Participants will also be exposed to global industry through case studies and webinars, delivering information on the engineering landscape. The first intake will be for participants based in Melbourne and Sydney. A second intake will then commence early July. The Program was created collaboratively with DeakinPrime, allowing the opportunity to embrace evidence based learning, performance techniques and the latest findings in neuroscience and learning. This integrated approach allows the Program to cover relevant, up-to-date topics throughout the 18 months. Topics that feature within the Program include: understandingy your culture, stakeholder engagement and business acumen. Technical modules include asset management, risk management, safety in design, project management essentials, and further discipline­ specific technical content.

Engineering Education Australia is a wholly owned subsidiary of Engineers Australia, delivering expert consultancy and professional development through public, online and in-house programs locally and globally. Engineering Education Australia supports engineers, professionals and organisations to be well-equipped with the relevant skills to thrive in today’s evolving profession. As Engineers Australia’s training division, they offer an authoritative suite of technical, business and management courses for both individuals and organisations. Engineering Education Australia has the capability and expertise to provide the full suite of professional development solutions for their clients. As a Registered Training Organisation through The Moreland Group, Engineering Education Australia engage the best technical experts and business educators to customise and deliver accredited learning and development solutions.

For more information on Engineers Australia’s Graduate Program, contact David Trott at david.trott@eeaust.com.au

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PROFILE ● JOHN HOLLAND

PROFILE

JOHN HOLLAND – BUILDER OF ICONS Compile a list of Australia’s most iconic infrastructure projects from over the last seven decades and there is a high probability that John Holland will feature in most. By Lachlan Colquhoun

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Infrastructure at John Holland. “From humble beginnings we have grown into a diverse company with a track record of delivering iconic projects for the benefits of all Australians across infrastructure, rail and building construction.” The projects built by John Holland are used by Australians, in a diverse number of ways, every day. In Canberra, Australia is governed from a Parliament House constructed by John Holland. Melbournians drive across their city on the EastLink, built by John Holland, and watch their sport from the Great Southern Stand at the MCG, also built by the company. Those not so interested in sport

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Photo: Adobe Stock

ounded by the Victorian engineer who gave his name to the company, John Holland’s first project was the construction of a woolshed, to the value of 200 pounds, on Nareen Station for the family of former Prime Minister Malcolm Fraser. From there, both Malcolm Fraser and John Holland continued their upward trajectories, with the construction firm soon establishing itself as a pre-eminent civil engineering contractor. “At any point in our history we have always been involved in the top-tier infrastructure projects of the time, and these have been fantastic projects which have made great contributions to the Australian community,” says Jim Salmon, Executive General Manager of

can enjoy the art not very far away at the National Art Gallery, built by John Holland in the early 1960s. In Brisbane, meanwhile, travellers have much easier access to their airport through the John Holland-built Airport Link. Other significant projects have included the State Theatre Centre and the Children’s Hospital in Perth, the Alice Springs to Darwin Rail Link, the National Portrait Gallery in Canberra and the Darwin Airport Terminal. In the current pipeline are a new light rail project in Canberra, and the $8.3 billion Sydney Metro Northwest, Australia’s largest public transport infrastructure project. “We believe our name is synonymous with excellence in engineering and construction, with a focus on innovation and a dedication to delivering exceptional results,” says Salmon. “Much of this comes from our culture. Our founder John Holland was very


PROFILE ● JOHN HOLLAND

Photos: Creative Commons

hands-on, passionate about engineering and construction, and very much a leader empowering the people in the business. These values have been inculcated in the company over many years and created a strong ‘can do’ culture which has attracted and retained some of very best people in our industry.” In the last two decades, John Holland has played a critical role in building next generation infrastructure on innovative principles of sustainability. In South Australia, John Holland has added the 66 megawatt Cathedral Rocks Wind on Eyre Peninsula and the innovative Sundrop Farm project at Port Augusta to its long list of credentials. Sundrop Farm harnesses solar thermal and desalination technology to grow 15,000 tonnes of trusse tomatoes each year for metropolitan markets across Australia, produced on land that – while close to the ocean – is a desert. “This is truly amazing technology and we are proud to be a part of that, because this is the future,” says Jim Salmon “This is a remote and desolate area, and the fact that we have been able to deliver this groundbreaking project is a real testament to the skills of our whole team. “This technology is the way forward for agribusiness and sustainability, and is a key part of our mission and our set of values, as we think of what we can deliver in the future.” John Holland also has a long track record of achievement in Asia, building major projects in Thailand, Malaysia and Indonesia, but its Asian ties were further strengthened in 2015 when the company was acquired by

The National Portrait Gallery in Canberra

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Great Southern Stand at Melbourne Cricket Ground

China Communications Construction International Holdings (CCCC). “We now have a very strong mandate to grow our business, and in fact our target is to double in size in the next five years,” says Salmon. “CCCC is the fourth largest construction group in the world, so we are seeking to leverage their skill sets where appropriate in Australia on the right projects, using smart new design, technology and procurement solutions to improve the already very strong offering we have.” The CCCC ownership, says Salmon, has injected new aspirations to take John Holland “to the next level” both in Australia and globally as the company adds the advanced design capabilities of CCCC to its existing offering. John Holland also opened a South East Asia office in Singapore in May 2016 to focus on rail, tunnel and water treatment projects primarily in Singapore and Malaysia. “Our mantra now is to develop a

vertically integrated offering which provides value across the entire lifecycle of a project,” he says. “That begins with project origination, financing and development through to design and construction, operations and maintenance.” Infrastructure financing has evolved over time and while the Public Private Partnership model has had some success, new smart financing models which better balance public and private interests were required if Australia was to cut its infrastructure deficit. This evolution has coincided with evolution at John Holland, which can now leverage seven decades of experience in a new vertically integrated model, with the company becoming a major driver of new projects. A new delivery model has been adopted with three specialist business groups – Infrastructure, Rail and Building – providing a strong platform to deliver integrated project solutions. The new business model also introduces the Development & Business Investments Group, which will drive new business opportunities in property development and infrastructure, PPPs, as well as exploring Merger & Acquisition opportunities. “We are keen to position the company not just as an Engineering Procurement and Construction (EPC) contractor, but to develop projects and take a real leadership role going forward, so this is a maturing of our profile,” says Jim Salmon. “We have proven engineering technology and innovation credentials, so using that in a more vertically integrated business opens up a very exciting future.” 

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CURRENT MAJOR PROJECTS ● WESTCONNEX

CURREN T MA JOR PROJEC TS

WESTCONNEX

UNCLOGGING SYDNEY’S ARTERIES Parramatta is the new population epicentre of Sydney but it can currently take up to 90 minutes to get to Sydney Airport from the rapidly growing business district. Not for long. By Jacqueline Fox

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nce the 33 kilometre WestConnex motorway scheme is complete this travelling time should be cut almost in half, bypassing 52 sets of traffic lights and delivering savings in time and also in money to the city’s long suffering road users. The $16.4 billion WestConnex scheme has been described as the biggest transport project in Sydney since the construction of the Sydney Harbour Bridge, and in current dollar terms will cost more than double that of the nation building Snowy River hydro scheme of the 1950s. Dennis Cliche, the chief executive of the Sydney Motorway Corporation – the NSW Government organisation which is delivering the project – describes WestConnex as “transformational” and purpose built to meet Western Sydney’s expanding population for the first half of this century. “If you look at the way Sydney is growing, with its population centre at Parramatta, and understand that people and businesses are doing 100 kilometre road trips each day, it is just calling out and begging for a solution,” says Cliche. “You look at all the congestion on the roads, all those people stuck in traffic, and you can see that this project really is about unclogging the city’s arteries, and using tunnels to get cars away from the surface.” WestConnex will be delivered in three stages through to 2023, beginning in Sydney’s west and gradually building closer to the city, ultimately connecting with the proposed second harbour crossing, the Western Harbour Tunnel. Extensive traffic modelling out to 2031 shows

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that the project will still have excess capacity, and Dennis Cliche says technological changes – such as the advent of driverless cars – add to “future proofing” the project. Stage One – the widening of the existing M4 Motorway between Parramatta and Homebush – is on track to be completed by the first quarter of next year. Stage 2 includes upgrading the existing M5 interchange and building a “New M5” between Beverly Hills and St Peters in Sydney’s inner-west. Part of the Stage 2 design is to allow for future connection with the Sydney-Wollongong motorway, with caverns and stubs being built in to enable this. The final Stage 3, which is currently still in planning, will deliver a new motorway tunnel at Haberfield and connect to the Anzac Bridge, which is a gateway to the city and the city’s north. As part of Stage 3, there are plans for a new 1-kilometre tunnel from the Iron Cove bridge at Drummoyne so as to bypass the notoriously congested Victoria Road corridor. Chief executive Dennis Cliche says that while the delivery price, at $16.5 billion, is high, the project’s business case has identified $20 billion in benefits. “These comprise the combined benefits of travel time savings, increased productivity, the eliminating of congestion and the employment benefits,” he says. “WestConnex will generate up to 10,000 direct and indirect jobs in its construction phase, including hundreds of apprenticeships.” High-tech modelling is also delivering tunnel systems with unprecedented air quality. Tunnel entry and exit roads are being built at optimal gradients to ensure that vehicles – diesel powered trucks in particular – will use the least possible acceleration and deceleration. There are also innovations in terms of tunnel lighting which will minimise the visual and environmental impacts of the project. Infrastructure projects are commonly evaluated according to a Benefit Cost Ratio (BCR), calculated

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Photo: Creative Commons

CURRENT MAJOR PROJECTS ● WESTCONNEX

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CURRENT MAJOR PROJECTS ● WESTCONNEX

WestConnex Route and Stages STAGE ONE

STAGE 3

STAGE 2 Surface Tunnel

These comprise the combined benefits of travel time savings, increased productivity, the eliminating of congestion and the employment benefits. WestConnex will generate up to 10,000 direct and indirect jobs in its construction phase, including hundreds of apprenticeships. by dividing the total discounted value of the benefits by the total discounted value of the costs. “WestConnex has a BCR of 1.88, which meant that every dollar spent generates $1.88 in benefits, and that is pretty significant for a project of this scale,” says Dennis Cliche. “And it is worth pointing out that this has recently been independently endorsed by Infrastructure Australia.” WestConnex is slightly different to many other Australian tollway projects in that it is being developed without initial private sector involvement. Funded with $1.8 billion from State Government organisation Restart NSW, the Commonwealth is providing $1.5 billion in addition to a concessional loan of up to $2 billion to fast-track the New M5 from Beverly Hills to St Peters. The other source of funding is bank debt. Once completed, decisions will then be made around selling down equity to private operators, while revenue will come from motorway tolls. “Being an agent of Government we are closer to all the discussions with Transport NSW about the

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transport master plan, and also with Infrastructure NSW, so that gave us insights as we developed the project we wouldn’t have had under the Public Private Partnership model,” says Dennis Cliche. “I also think that this allowed us to make more realistic and conservative assumptions because our investment cases take into account the social benefits the projects will deliver. “So our threshholds and hurdle rates are lower than they would be if we had been truly an arm's length PPP private sector consortium bidding for this project.” While WestConnex has received some media coverage on the compulsory acquisition of properties, particularly in the heritage suburb of Haberfield, Dennis Cliche says the project has actively sought to minimise the taking of homes. “I did some research about when Bradfield built the Harbour Bridge, and he said the worst thing about it was taking people’s homes,” he says. “I totally echo that sentiment, so when we have been looking at plans one of our main criteria has been minimum property take, so we are very mindful of this.” WestConnex also includes a major heritage salvage project, where significant items from buildings which must be demolished will be retrieved by a salvage team, advised by heritage experts. The items will all be included in a soon to be published catalogue, with the items offered in the first instance to home owners, then neighbours and then other Sydney residents. Unwanted items will be provided free of charge to local heritage salvage yards. 

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CURRENT MAJOR PROJECTS ● BADGERYS CREEK AIRPORT

BADGERYS CREEK AIRPORT

WESTERN SYDNEY AIRPORT FINALLY ON THE RUNWAY The cost of not building a second airport in Sydney could realistically be several times the $4 billion it would cost to construct the facility over the next decade. By Jacqueline Fox

Photo: Jordan Vuong

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adgerys Creek – around 50 kilometres from central Sydney – was first identified as a potential site for Sydney's second airport in the 1950s. It wasn't until 2014 that the site received the green light from the Abbott Government. Several other sites were considered, including an upgrade for Canberra Airport combined with a fast train project, but ultimately the planners went back to Badgerys Creek, where the federal government had purchased land in the late 1980s and early 1990s. The rationale for a second Sydney airport has been becoming more compelling in the last decades. Demand for aviation services in the Sydney region is forecast to double over the next 20 years and will continue to grow, and Sydney Airport –

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or Kingsford Smith – cannot accommodate this demand alone. “Western Sydney Airport is an absolutely critical project, not just for Western Sydney but for all of Sydney and indeed for all of the nation,” says Paul Fletcher, the Federal Minister for Urban Infrastructure. “The economic cost of not meeting Sydney’s future aviation demand would be substantial. “By 2060 the impact to the Australian economy could total $34 billion in foregone domestic product and NSW along could forego $17.5 billion in gross state product.” The first stage of the current airport plan is for a single east-west runway of 3.7 kilometres in length, with a terminal servicing both domestic and international flights and handling cargo. Unlike Sydney Airport, there would be no curfew. The airport capacity on opening, potentially as soon as 2025, would be 10 million passengers a year. To put this in perspective, a record 39.7 million passengers passed through Sydney Airport in 2015, up from less than 10 million in 1985. Around half of all commercial air flights in Australia either take off or land at Sydney’s Kingsford Smith, and the airport is expected to reach full capacity by 2027.

Continued on page 34 >>

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Building communities

For over 80 years, we have helped create, connect and care for communities by building and maintaining the infrastructure that brings people together. Today, we are one of Australasia’s most experienced civil contractors from design, to construction, maintenance and operation.

www.fultonhogan.com road construction • road maintenance • airports • ports • rail • telecommunications • energy • asphalt • emulsions


FUTURE PROOFING AUSTRALIA’S INFRASTRUCTURE

For over 80 years, we have helped create, connect and care for communities by building and maintaining the infrastructure that brings people together.

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y 2031, another 7.8 million people will live in Australia. Fulton Hogan CEO Peter Kessler examines how our country’s infrastructure will cope, and suggests it’s time to rethink the approach to building and maintaining the networks which keep us connected. The futurist Alvin Toffler coined the phrase ‘future shock’ nearly 50 years ago to describe what happens when the pace of change becomes so intense that societies start to spin their wheels. Decision-making gets too hard, and the infrastructure we take for granted begins to overload and become chronically inefficient. Recently, McKinsey published its views on the pace of change. They believe that compared with the Industrial Revolution, change is happening 10 times faster and at 300 times the scale – which means 3000 times the impact. Part of what defines our Aussie character is our laid-back lifestyle – the beach, the BBQ, sport. But if McKinsey has got it right, how is our lifestyle and national infrastructure going to cope? If we want to keep pace with change and growth, we all need to

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think smarter to meet the cost of renewing and building infrastructure – ratepayers, councils, governments, and those involved in construction and maintenance – while making sure there is a steady pipeline of work. How will it be funded as our population ages and communities insist on better outcomes and lower costs? We are also faced with the challenge of future-proofing our infrastructure as climate change experts predict sea levels will rise by 30 centimetres by 2050. Already, flooding is one of this country’s most frequent natural disasters. At the moment, our industry is flooded with work, whereas a few short years ago it was a drought. This flood to famine approach places challenges on resourcing and we can’t keep switching from first to six gear, without our finite pool of people and resources becoming casualties. In my 20 years’ experience in the construction sector, I’ve always seen the best outcomes when we work together – both in planning future works and in our procurement models. Alliancing has provided the greatest

Today, we are one of Australasia’ s mostwhen experienced successes, particularly scope is uncertain, risk is difficult to define, civil contractors from design,and speedtoofconstruction, build is critical. maintenance The North Eastern Program andinoperation. Alliance Victoria, the first of three

program alliance contracts that will help deliver the Victorian Government’s commitment to remove fifty grade separations within eight years in Melbourne’s metropolitan rail network, road construction • road maintenance • airports • port is one exemplifiers of where we are combining the efforts of planners, designers, contractors and asset owners to deliver end-to-end solutions. The strong relationships will drive success, with all parties sharing the risk in an appropriate way and poor performance penalised. As an industry we need to continue to challenge each other to focus on future proofing Australian infrastructure by making a steady stream of work that uses procurement models that encourage innovation, technology and risk sharing. Alliancing is one way, but there are also plenty of hybrid versions that achieve similar outcomes. The world is changing and it’s our responsibility as an industry to keep Australian’s connected.

www.fultonhogan.com

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CURRENT MAJOR PROJECTS ● BADGERYS CREEK AIRPORT

Things like the Western Sydney Airport are important for a host of reasons, but one is by bringing more jobs into Western Sydney you increase the opportunity for people who live in Western Sydney to be able to work locally rather than having to travel 20, 30 or 40 kilometres to work. >> Continued from page 31

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Photo: Creative Commons

Western Sydney Airport is a federal government project, and the government is currently working to finalise the Environmental Impact Statement (EIS) and airport plan and expects to finalise these documents in the near future. Around 48,000 submissions were received from groups and individuals during the consultation stage in 2015. The EIS and Airport plans form a large part of the approvals required prior to the Government issuing any Notice of Intention to develop the airport, construction of which could take eight years. An estimated $1.5 billion will be spent by the Government on bulk earthworks to prepare the site, with approximately 22 million cubic metres of soil levelled and redistributed across the construction zone, covering about 60 per cent of the airport site or around 1,000 hectares. To develop the airport facilities, costed at around $2.5 billion, Sydney Airport will be given an option on the project, and the operator was actively involved with the Government in consultations on planning for the project in 2014 and 2015.

After the Government issues its Notice of Intention to develop, Sydney Airport will have the “first right of refusal” and will have up to nine months to do its due diligence and make a decision. Urban Infrastructure Minister Paul Fletcher says the project also needs to be understood in the context of expected growth in Western Sydney over the next few decades, and the airport is being developed at the same time as the $3.6 billion joint Federal-State Western Sydney Infrastructure Plan. “Another one million people are expected to live in Western Sydney over the next 20 years, so it is incumbent on the federal government as well as the state government to be delivering the infrastructure so that people have the connectivity they need,” says Minister Fletcher. “Things like the Western Sydney Airport are important for a host of reasons, but one is by bringing more jobs into Western Sydney you increase the opportunity for people who live in Western Sydney to be able to work locally rather than having to travel 20, 30 or 40 kilometres to work.” The airport itself will also have a positive economic impact on the region, creating 9,000 direct jobs by the early 2030s and some 60,000 in the long term. “One of the terms that is used around the world is ‘aerotropolis’ for an airport which then generates urban development and economic activity,” says Minister Fletcher. “We are interested in seeing if we can get some of this thinking applied to the Western Sydney Airport to capture the benefits to get more jobs into Western Sydney.” This, he says, would go some way to reducing the current “jobs imbalance” where a significant number of people in Western Sydney need to travel out of the region each day. “So Western Sydney Airport is important because of the jobs it will directly generate but also because of the businesses it will attract and the jobs they are likely to generate in turn,” the Minister says. In terms of the supporting transport infrastructure, work has already commenced on the road network to support and connect the airport site, with the federal and NSW Governments fast tracking new initiatives, such as the WestConnex motorway project. The Government also understands that the new airport will need a rail connection as it grows over time. To this end, the federal and state governments are working together on the joint scoping study into the rail needs not just of the airport, but for Western Sydney as a region. A Discussion Paper on the rail study is expected to be released soon, providing an opportunity for the community to put views to both governments on transport connection priorities. 


CURRENT MAJOR PROJECTS ● NORTH WEST RAIL LINK

NORTHWEST RAIL LINK

SYDNEY TO GET ITS METRO AT LAST Sydney is being transformed by major infrastructure projects, both above ground and below. By Lachlan Colquhoun

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The first stage of the project will deliver eight new railway stations, upgrades to five existing stations and the conversion of existing track to the rapid transit standard. It will also include the creation of 4,000 new commuter car parking spaces for Sydney’s rapidly growing North West, a region set to be home to an additional 200,000 people in the next decade. In Stage Two of the project, the metro line will extend under Sydney Harbour, into the CBD and out to Bankstown in Sydney’s west, delivering a true crosscity service. It presents as the solution to many of the city’s public transport bottlenecks and will deliver a quality of rail never before seen in Australia, on several levels. It will, for example, be the first fully-automated rapid transit rail system in Australia. When operations begin in 2019, there will be 15 metro trains per hour – a train

Photo: Creative Commons

hile the WestConnex project in the south-west claims to be the largest motorway project since the Sydney Harbour Bridge, its rail equivalent – the $20 billion Sydney Metro Program – has good claim to be the city’s largest ever infrastructure project of any kind. Plans for an underground Sydney metro project have been under discussion for many years, with the first proposal put forward in 2001, but the project lay dormant until it

was greenlighted in 2013 when the privatisation of the state’s power assets freed up capital for funding. It is being delivered by state government agency Transport for NSW and will ultimately comprise 65 kilometres of rapid transit rail through 31 stations, all included in Sydney’s Opal card ticketing system already operating on other trains, buses, light rail and ferries. Stage One of the project – originally called the North West Rail Link but now known as Sydney Metro – is the $8.3 billion rail line set to open for passengers in the first half of 2019. In Stage One, 23 kilometres of new track is being built between Rouse Hill and Epping. At the same time the existing 13-kilometre rail link between Epping and Chatswood will be converted to the new rapid transit format and segregated from the existing network to become part of Sydney Metro.

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CURRENT MAJOR PROJECTS ● NORTH WEST RAIL LINK

This exciting Australian-first metro rail project is paving the way for the customer experience in public transport, and the iconic design of the stations is a real testament to our commitment to making the customer’s journey easy.

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While the tunnelling project continues age-old traditions, it will connect above ground with the futuristic “Skytrain”, a four-kilometre section of track which takes the route above ground for four kilometres between Kellyville and Rouse Hill and comprises two new stations. A landmark 270-metre long cable-stayed railway bridge over Windsor Road at Rouse Hill also forms part of the Skytrain, in a similar design to Sydney’s Anzac Bridge. Sydney Metro’s Rodd Staples says it all adds up to a state of the art transport experience for commuters. “From the design of the platforms bringing natural light and air into the environment, through to the lifts nd escalators making getting into the state easy, customers’ needs have been the focus of everything we have done,” he says. “One of the features I am really proud of is the Australian-first platform screen doors at each Sydney Metro station. “This innovation, common around the world, keeps people and objects away from the tracks and allows trains to get in and out of stations much faster.” There is also a heritage component to the project. During excavations to build the Skytrain component, construction workers discovered artefacts from the historic White Hart Inn which stood along Windsor Road at Kellyville during the 19th century. The artefacts were recovered and analysed by archaeologists, who presented them to interested members of the public at an information meeting. 

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Photo: Creative Commons

every four minutes – and ultimately 30 trains an hour through the CBD each hour in both directions. Underlying the scale of the transformation, the project will reduce the number of car trips by an estimated 14 million each year, or 12,000 fewer trips in an average two-hour weekday morning peak. “The customer is front and centre of Sydney Metro’s 21st century design,” says Rodd Staples, program director at Sydney Metro. “This includes the development of the new metro railway stations and interchanges. From clear wayfinding to real-time service information, we are making sure that the Sydney Metro experience is an easy one. “This exciting Australian-first metro rail project is paving the way for the customer experience in public transport, and the iconic design of the stations is a real testament to our commitment to making the customer’s journey easy.” Already, the project has scored some impressive feats of engineering. A total of 15 kilometres of twin tunnels between Bella Vista and Epping have been completed, ahead of schedule, and are the longest rail tunnels ever constructed in Australia.

Tunnel builders CPB John Holland Dragados were recognised for their work and won an Infrastructure Partnerships Australia award for contractor excellence in the 2016 National Infrastructure Awards. The work was completed by 4,600 workers and four mega tunnel boring machines (TBMs), the first time in Australian engineering history that so many of these massive machines have been all used together. The TBMs also have names. The tradition on tunnel projects around the world is for workers to look to Saint Barbara for protection and from this has come the custom to name earthmoving tunnelling machinery with female names. The four TBMs used in the Stage One tunnelling were given names after public consultations under a theme of “women who have made a positive contribution to Sydney”. As a result, more than 300,000 tonnes of crushed rock has been excavated by Elizabeth, Florence, Isabelle and Maria, named as follows: • TBM1 Elizabeth, named after colonial pioneer Elizabeth Rouse • TBM2 Florence, named after Australia’s first female architect and engineer Florence Mary Taylor • TBM3 Isabelle, named after Isabelle Andersen, aged four, to represent all the tunnel builders • TBM4 Maria, named for Maria Lock (c.1805-1878), an Aboriginal landowner born near Richmond and the daughter of Yarramundi, Chief of the Richmond Tribes.


Complex infrastructure projects that build better communities Complex infrastructure projects thatrecreation build better communities Abergeldie designs and delivers dams, bridges, tunnels, facilities, water treatment and

process facilities, rail and mining infrastructure, electrical substations, marine works and pipeline rehabilitation: the complex infrastructure needed to build better communities. Abergeldie designs and delivers dams, bridges, tunnels, recreation facilities, water treatment and process facilities, rail and mining infrastructure, electrical substations, marine works and pipeline rehabilitation: the complex infrastructure needed to build better communities.

A record breaking Vent Shaft (Southern Coalfields, NSW): Abergeldie’s deepest blind-bored Vent Shaft completed to date. Abergeldie carried out detail design and construction of a blind-bored ventilation shaft to a depth of 516m with hydrostatic composite steel/concrete shaft linings. It was a monumental achievement for our drilling team; even greater considering the shaft’s unusually broad 6.2m diameter and the challenges of very hard rock in the lower strata. A record breaking Vent Shaft (Southern Coalfields, NSW): Abergeldie’s deepest blind-bored Vent Shaft completed to date. Abergeldie carried out detail design and construction of a blind-bored ventilation shaft to a depth of 516m with hydrostatic composite steel/concrete shaft linings. It wasthe a monumental achievement for our drilling team; even greater considering the Complex projects, large or small, challenge loyal, shaft’s unusually broad 6.2m diameter and the challenges of very hard rock in the lower strata.

professional, multi-disciplined Abergeldie team to “think outside the square”. Ingenuity, innovation and Complex projects, large or small, challenge the loyal, determined attention to the detail of project planning professional, multi-disciplined Abergeldie team to and management have built our enviable reputation for “think outside the square”. Ingenuity, innovation and quality. At Abergeldie, quality is all about what the client determined attention to the detail of project planning expects. To meet and exceed those expectations, we apply and management have built our enviable reputation for professional engineering and management standards quality. At Abergeldie, quality is all about what the client with an approachable, dynamic and flexible culture that expects. To meet and exceed those expectations, we apply adapts to the diverse requirements of individual clients professional engineering and management standards and projects. with an approachable, dynamic and flexible culture that adapts to thehas diverse requirements of individual Abergeldie unwavering dedication to safety.clients Our and projects. integrated safety, environmental and sophisticated, quality management systems. Abergeldie has unwavering dedication to safety. Our sophisticated, integrated environmental and Through growth since 1994safety, and more recent strategic quality management systems. corporate acquisitions, Abergeldie has progressively increased the scale and range of its project expertise and Through growth since 1994 and more recent strategic capacity. Award-winning quality in project delivery has earned corporate acquisitions, Abergeldie has progressively Abergeldie recognition as a leading infrastructure provider. increased the scale and range of its project expertise and capacity. Award-winning quality in project delivery has earned

www.abergeldie.com


ENGINEERIN ENGINEERI ENGINEERI Every Every Every bridge bridge bridge project project project is individual is is individual individual .Variations .Variations .Variations in complexity inin complexity complexity andand scope, and scope, scope, demand demand demand a clear a clear a clear focus focus focus on on client on client client needs needs needs andand aand flexible a flexible a flexible Every bridge project is individual .Variations in that complexity and scope, demand a clear focus on client needs and a flexible manner manner manner to project toto project project design design design andand delivery. and delivery. delivery. With With With that kind that kind kind of approach, ofof approach, approach, Abergeldie Abergeldie Abergeldie has has been has been been building building building bridges bridges bridges to connect to to connect connect manner to project design and delivery. With that kind of approach, Abergeldie been building bridges to connect communities communities communities for for over for over over twotwo decades. two decades. decades. Recent Recent Recent constructions constructions constructions have have have metmet the met the need the need need to has support toto support support expanding expanding expanding communities. communities. communities. communities for over two decades. Recent constructions have met the need to support expanding communities. ForFor more For more more than than than 176176 years 176 years years there there there hashas been has been been a bridge a bridge a bridge on on the on the site the site of site the ofof the present the present present Lennox Lennox Lennox Bridge Bridge Bridge over over over thethe Parramatta the Parramatta Parramatta River. River. River. TheThe The Fororiginal more than 176was years has been Following a bridge on the site ofGaol the present Lennox Bridgeofover the Parramatta River. The original original bridge bridge bridge was awas timber a timber athere timber footbridge. footbridge. footbridge. Following Following this, this, this, the the Gaol the Gaol Bridge Bridge Bridge waswas constructed was constructed constructed stone ofof stone stone piers piers piers andand timber and timber timber bearers bearers bearers original bridge was acompleted timber footbridge. Following this, the Gaol Bridge was constructed of and stone piers and timber bearers and and railings and railings railings andand was and was was completed completed in 1802-4. inin 1802-4. 1802-4. By By 1834 By 1834 1834 the the Gaol the Gaol Gaol Bridge Bridge Bridge waswas in was poor inin poor poor condition condition condition and Superintendent and Superintendent Superintendent of Bridges, ofof Bridges, Bridges, and railings and was completed in 1802-4. By 1834 the Gaol Bridge was in poor condition and Superintendent of Bridges, David David David Lennox, Lennox, Lennox, waswas commissioned was commissioned commissioned to provide toto provide provide a design a design a design for for a for new a new a crossing. new crossing. crossing. TheThe Lennox The Lennox Lennox Bridge, Bridge, Bridge, a single a single a single span span span sandstone sandstone sandstone David Lennox, was commissioned to in provide a design for a new The Lennox aby single span arch, arch, arch, was was approved was approved approved andand commenced and commenced commenced 1836 inin 1836 1836 and and completed and completed completed in 1839. incrossing. in 1839. 1839. It was It It was widened was widened widened in Bridge, 1934-35 inin 1934-35 1934-35 adding byby adding adding on sandstone on toon the toto the west the west west a aa arch, was approved and commenced in 1836 and completed in 1839. It was widened in 1934-35 by adding on tocarry the west atwo reinforced reinforced reinforced concrete concrete concrete ribbed ribbed ribbed arch arch arch bridge. bridge. bridge. These These These twotwo distinct two distinct distinct sections sections sections of the ofof the bridge the bridge bridge abut abut abut each each each other other other andand together and together together carry carry twotwo reinforced concrete ribbed arch bridge. These two distinct sections of the bridge abut each other and together carry two lanes lanes lanes of traffic, ofof traffic, traffic, twotwo parking two parking parking lanes lanes lanes andand two and two pedestrian two pedestrian pedestrian paths, paths, paths, spanning spanning spanning approximately approximately approximately 23m 23m 23m over over over thethe river. the river. river. lanes of traffic, two parking lanes and two pedestrian paths, spanning approximately 23m over the river. In 2010 InIn 2010 2010 Parramatta Parramatta Parramatta CityCity Council City Council Council In decided 2010 Parramatta Council decided decided to extend toto extend extend theCity the riverbank the riverbank riverbank footfoot foot decided topathways extend the foot and and cycle and cycle cycle pathways pathways as riverbank portals asas portals portals through through through and cycle pathways as portals through the the abutments the abutments abutments of the ofof the State the State State Heritage Heritage Heritage the abutments of the State Heritage Listed Listed Listed Lennox Lennox Lennox Bridge Bridge Bridge to join toto join the join the east the east east Listed Lennox Bridge to and join the east foreshore foreshore foreshore to the toto the west the west west and provide and provide provide a aa foreshore to the westAbergeldie and provide awas continuous continuous continuous pathway. pathway. pathway. Abergeldie Abergeldie was was continuous pathway. Abergeldie was engaged engaged engaged as Principal asas Principal Principal Contractor Contractor Contractor engaged as the Principal Contractor to construct toto construct construct the two the two portals. two portals. portals. TheThe The to construct the two portals. The project project project waswas undertaken was undertaken undertaken by the byby the former the former former project wasCity undertaken bypartnership the former Parramatta Parramatta Parramatta City Council City Council Council in in in partnership partnership Parramatta City Council inand partnership with with with thethe NSW the NSW NSW Government Government Government and the and the the with the NSW Government and the Federal Federal Federal Government Government Government as part asas part of part the of of the the Federal Government as program. part of the River River River Cities Cities Cities Renewal Renewal Renewal program. program. River Cities Renewal program.

TheThe award The award award winning winning winning Lennox Lennox Lennox Bridge, Bridge, Bridge, Parramatta, Parramatta, Parramatta, NSW NSW NSW The award winning Lennox Bridge, Parramatta, NSW Abergeldie Abergeldie Abergeldie waswas responsible was responsible responsible for for the for the Portals the Portals Portals thatthat were that were were constructed constructed constructed through through through thethe the Abergeldie was responsible for the Portals that were constructed through bridge bridge bridge on on each on each each bank bank bank of the ofof the river the river river removing removing removing the the last the last barrier last barrier barrier to river toto river river access access access inthe inin bridge on each CBD bank of for the river removing the lastThe barrier to river access in the the Parramatta the Parramatta Parramatta CBD CBD for pedestrians for pedestrians pedestrians andand cyclists. and cyclists. cyclists. The 177-year-old The 177-year-old 177-year-old structure structure structure the Parramatta CBD for pedestrians and cyclists. The 177-year-old structure also also underwent also underwent underwent major major major restoration restoration restoration works works works including including including thethe replacement the replacement replacement of aofof aa also underwent major restoration works including the replacement of afor for concrete concrete concrete balustrade balustrade balustrade with with with solid solid solid sandstone sandstone sandstone reflecting reflecting reflecting thethe original the original original design design design the for the the concrete balustrade with solid sandstone reflecting the original design for the bridge, bridge, bridge, and and the and the repointing the repointing repointing andand cleaning and cleaning cleaning of the ofof the bridge’s the bridge’s bridge’s sandstone sandstone sandstone façade. façade. façade. bridge, and the repointing and cleaning of the bridge’s sandstone façade. As As a As result a result a result of the ofof the outstanding the outstanding outstanding work, work, work, Abergeldie Abergeldie Abergeldie won won two won two awards two awards awards from from from thethe Civil the Civil Civil Northern Northern Northern Portal Portal Portal AsContractors aContractors result of the outstanding work, Abergeldie won two awards from the Civil Contractors Federation Federation Federation NSW NSW NSW for for the for the Lennox the Lennox Lennox Bridge Bridge Bridge Portals Portals Portals Projects Projects Projects Category Category Category Northern Portal Contractors Federation NSW for the Lennox Bridge Portals Projects Category $5m-$10m $5m-$10m $5m-$10m andand the and the overall the overall overall Work Work Work Health Health Health Safety Safety Safety Project Project Project of Distinction. ofof Distinction. Distinction. $5m-$10m and the overall Work Health Safety Project of Distinction.

Southern Southern Southern Portal Portal Portal Southern Portal

Gaol Gaol Gaol Bridge Bridge Bridge Pier Pier Uncovered Pier Uncovered Uncovered andand Excavated and Excavated Excavated Gaol Bridge Pier Uncovered and Excavated


Abergeldie’s complex rail project capabilities Abergeldie’s complex rock rail project include earthworks, cuttingcapabilities and include earthworks, rock cutting and railway embankments, bridges, and complete embankments, bridges, and stair complete railway station upgrades including and lift station upgrades including stair and lift installations. Typical of our work was the installations. Typical of our work for wasRailcorp the Erskineville Rail Bridge project Erskineville Bridge project forbrick-arched Railcorp (NSW). TheRail demolition of an old (NSW). The demolition of an old brick-arched bridge and construction of new road and bridge and construction new roadlive andline pedestrian access over of a six track pedestrian access over a six track live line in inner city Sydney required expert design, inconstruction, inner city Sydney required expert design, safety and traffic management. construction, safety and traffic management. Abergeldie has delivered multiple projects to Abergeldie hastransport deliveredinfrastructure multiple projects toACT improve bus in the improve bus transport infrastructure in the ACT and QLD, including construction of new bus and QLD, including construction of new bus interchange control buildings and passenger interchange passenger facilities. Oncontrol the railbuildings networkand in NSW, Abergeldie facilities. On the rail network in NSW, is contracted to design and constructAbergeldie upgrades istocontracted to design and construct upgrades parking and pedestrian access facilities for tocommuters parking andatpedestrian accessand facilities for multiple Sydney regional commuters at multiple and regional railway stations underSydney the Transport for NSW railway stations under the Transport for NSW Rail Access Program. Rail Access Program.

Mitchelton Railway Station (Brisbane, QLD): Mitchelton Station (Brisbane, QLD): significantRailway upgrading of existing commuter significant upgrading of existing station facilities to achieve DDAcommuter compliance. The station facilities achieve DDA compliance. The railway line andtostation remained fully operational railway line and fully operational throughout thestation works, remained which included demolition throughout the works, which included demolition and construction of the footbridge, stairs and and construction of the footbridge, stairs and installation of lifts. installation of lifts.

Erskineville Rail Bridge (Sydney, Erskineville Rail Bridge (Sydney, NSW): a complex project to NSW): a complex project demolish a 100 year oldto bridge demolish a 100 year aold bridge and replace it with new link and replace itfrom withcomponents a new link assembled assembled components fabricatedfrom off-site. The new bridge fabricated off-site.while The new bridge was constructed carrying was while carrying outconstructed a staged demolition of the old out a stagedwith demolition the oldon structure, minimalofimpact structure, with minimal impact on normal pedestrian, road and rail normal pedestrian, and rail movements duringroad the process. movements during the process.

Bus Facilities Upgrade (Gungahlin , ACT): upgrading of four bus stops along Bus Facilities Upgrade (Gungahlin , ACT): upgrading of four busbuildings. stops along Hibberson Street and the construction of two driver amenities The Hibberson Street and construction the construction of two driveralong amenities buildings. The and works also included of bus layovers Anthony Rolfe Avenue works included construction of bus layovers along of Anthony Rolfe Avenue Kate also Crace Street, including landscaping and upgrade street lighting at eachand site. Kate Crace Street, including landscaping and upgrade of street lighting at each site.

Glenbrook At-Grade Car Park (Blue Mountains, NSW): one of several Glenbrook Parkcommuter (Blue Mountains, several upgrades At-Grade to railwayCar station car parksNSW): underone theof NSW upgrades to railway stationAccess commuter car parks under the NSW Government’s Transport Program. Scope includes provision of Government’s Transport Access Program. to Scope includes provision more car parking spaces, improvements footpaths, security and of safety. more car parking spaces, improvements to footpaths, security and safety.


PROJECTS ● NW RAIL LINK

SYDNEY LIGHT RAIL

LIGHT RAIL TAKES SYDNEY BACK TO THE FUTURE Sydney is rebuilding its light rail capability, bringing a return to yesteryear when Sydney was the most famous tram city in Australia. By Lachlan Colquhoun

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More than 50 years later, the trams are back and the network is growing. Like many cities around the world, Sydney has realised that light rail has an important place in the urban transport mix, and that trams not only mean transport, but also urban development and renewal. Sydney’s new story with trams began when the Inner West Light Rail began operating in 1997, using a disused section of rail track previously reserved for freight. That service, which takes in the Star City Casino in the inner city Pyrmont district, has been extended and now comprises 12.8 kilometres of track and 23 stations, extending from Central Station in the CBD and through to the suburb of Dulwich Hill. Current patronage is around 6 million

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Photo: John Cowper

here was a time in the 20th century when it was Sydney, and not Melbourne, which was known for its trams. At its peak in the 1930s, the city had the largest tram network in Australia, the second in the Commonwealth and one of the most extensive in the world Today, Melbourne boasts around 500 trams but Sydney in the 1930s had more than three times that many and the high point was in 1945, when usage peaked at over 400 million passenger journeys. It was not for nothing that the term “shoot through like a Bondi tram” entered Australian slang, taking its inspiration from one the most famous of Sydney’s tram routes. All this came to an end in 1961 when Sydney’s nearly 300 kilometres of tram tracks were ripped up to make room for buses and cars.

passenger journeys a year. Today, as any visitor to Sydney would know, a second new light rail network is taking shape. George Street, the city’s historic main thoroughfare, is currently closed to traffic as construction continues on the new $2.1 billion CBD and South East Light Rail project, set to take its first passengers in 2019. The 12-kilometre route will have 19 stops, extending from iconic Circular Quay and up George Street, passing through Surry Hills and past the Sydney Cricket Ground, Sydney Football Stadium and Randwick Racecourse before terminating at Randwick’s busy high street shopping district. In the CBD itself, the Light Rail will be part of a new George Street Pedestrian Zone consisting of a one-kilometre pedestrian area shared with light rail, covering around 40 per cent of the 2.4 kilometres between Circular Quay and Railway Square. The City of Sydney is contributing $220 million to the CBD Light Rail, much of it earmarked for the transformation of George Street, where greater space


Photo: Johnny Phillips

CURRENT MAJOR PROJECTS ● SYDNEY LIGHT RAIL

for pedestrians will allow cafes and restaurants to introduce outdoor dining areas. In this transformation, the Light Rail will become an easy mode of travel to key attractions from the Rocks district to Circular Quay, the Opera House and Chinatown. State government agency Transport for NSW is the developer for the project, which is being constructed by the ALTRAC Light Rail consortium, which includes Spanish infrastructure giant Acciona, Transdev Sydney, Alstom Transport Australia and Capella Capital. As part of the project, the consortium will also assume responsibility for the existing Inner West Light Rail service. “Sydney is growing, with its population set to increase by another one million people over the next 10 years,” explains Marg Prendergast, the CBD Co-ordinator General. “This will place greater demands on road, rail and bus networks and current or future demand cannot be met simply by adding more buses to already congested roads.” The new light rail project fits into the context of the Sydney City Centre Access Strategy, created in 2013. The strategy details how light rail, buses, trains, ferries, cars, taxis, pedestrians and cyclists will interact in the Sydney CBD over the next 20 years. Priority is given to different transport modes in different parts of the city centre to relieve congestion, and the CBD and South East Light Rail fits into this plan along with other new initiatives such as the Barangaroo Ferry Hub and the Wynyard Walk. “Light rail will create a sustainable public transport option to customers who live, work and travel within the CBD and South East, easing the pressure on Sydney’s roads by reducing the city’s reliance on cars and buses,” says Marg Prendergast. “Light rail will also deliver significant increases to public transport capacity into and out of the Sydney CBD, integrated with a redesigned bus network that will continue to provide direct services between the South East and CBD, including existing express services and some all-stops routes.” The vision for the CBD and South East Light Rail is a project that will transform public transport in Sydney, providing high capacity, clean and reliable services.

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The 33-metre light rail vehicles will be coupled together to form 67-metre services, accommodating up to 450 passengers. This gives the new network an initial capacity to move up to 13,500 passengers per hour – or 6,750 in each direction – during peak times. It will also mean that 220 fewer buses will enter the city CBD during peak hours. “Current planning would see a combined light rail and bus network deliver city-bound morning peak capacity increases of more than 10 per cent from Kingsford and 30 per cent from Randwick," says CBD’s Marg Prendergast. “It will also deliver a doubling of

morning peak capacity from the CBD to the University of NSW and the Randwick hospital precinct.” It is estimated that congestion in Sydney’s CBD and inner suburbs costs around $5 billion each year, in addition to creating unreliability around journey times and disruptions to the city. The CBD and South East Light Rail will deliver an estimated $4 billion in economic benefits to NSW, including the creation of 10,000 direct and indirect jobs both during and after construction. With a current projected cost of $2.1 billion, this gives the project a benefit cost radio (BCR) of just under 2, or around $2 in benefits for each dollar spent. 

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Positive Asset Management Solutions Join us and harness the power of ground-breaking research that sets international standards now and into the future. By partnering with the Asset Institute your organisation can discover new ways of thinking, access world-class expertise and innovative research that can provide practical solutions to the asset management challenges

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ASSET INSTITUTE DRIVES ASSET INNOVATION I

nnovation is at the core of modern infrastructure and engineering asset management. Achieving optimum performance and minimum cost through the acquisition, operational and decommissioning or repurposing phases of an asset’s life cycle is critically important. Asset Institute invites organisations wishing to minimise whole-of-life costs, while optimising the performance of their assets to join us at the centre of a national and international network of industry and research organisations developing and disseminating stateof-the-art innovative technical and management solutions to achieve that optimum performance. The Institute is the successor organisation to the highly successful Cooperative Research Centre for Infrastructure and Engineering Asset Management (CIEAM), which was funded under the Australian Government Cooperative Research Centres (CRC) program from 2002 to 2013. CIEAM established an international reputation in initiating leading edge research and delivering outcomes that have been adopted by industry. The Institute inherits the extensive Body of Knowledge and intellectual property created by CIEAM. The Institute is a limited liability company, operating within a strategic framework developed around a range of identified research themes. In effect, the Institute acts as a broker, facilitating the process of assembling the right team of industry participants and research groups as well as other technical support to tackle identified problems, as well as to assist the process of accessing research grant programs. Current membership of the Institute includes Australian and overseas organisations and three Australian universities. The Institute maintains close relations with a number of overseas groups developing asset management technology and practice. Special Interest Groups (SIGs), each with a wide range of membership,

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focus on specific issues, and promote involvement from the wider asset management community. The Big Data Group is developing data management and technical frameworks, processes and tools to manage big data and its vertical integration within an asset intensive organisation. The ISO 55000 Group addresses the challenge of migrating from existing asset management standards to the new International Standards Organisation (ISO) 55000 standard, the implementation of which will improve asset performance and meet more stringent safety and due diligence requirements. The Health Infrastructure Group is a new group developing a project to address the need in hospitals to make a quantitative assessment of healthcare asset decisions based on patient care metrics. The Public Assets Collaborative Group includes representatives from a wide

range of organisations in the public and private sector. The group actively promotes consistency and best practice in the planning and implementation of public infrastructure. The Institute has a global reach. It continues to build on CIEAM initiatives that led to the formation of the International Society of Engineering Asset Management (ISEAM) and through ISEAM, the now established series of annual World Congresses on Engineering Asset Management; the next of which will be held in Brisbane from 2 - 4 August 2017 (www.wceam.com). The CEO of the Asset Institute, Adjunct Professor Joseph Mathew, is the foundation chair of ISEAM, and with other staff of Asset Institute members and associates, is actively involved in ISEAM, as well as committees of the ISO. Further information can be found at www.assetinstitute.com.

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CURRENT PROJECTS ● HIGH SPEED RAIL

HIGH SPEED RAIL

'VERY FAST TRAIN' REVIVED IN HIGH SPEED RAIL PLAN The idea of a Very Fast Train (VFT) on Australia’s seaboard has been around since the early 1980s, and a new consortium has proposed a refreshed plan which it believes can finally make the dream a reality. By Lachlan Colquhoun

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onsolidated Land and Rail Australia (CLARA) is a Melbourne-based private consortium which is in the process of making an “unsolicited” offer to the federal, NSW and Victorian governments to construct a VFT between Melbourne and Sydney. With either European TGV or Japanese bullettrain Maglev technology, the train could complete the journey in under three hours, as opposed to the current trip time of 11 hours.

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Nicholas Cleary is the chairman of CLARA and is at pains to point out that this proposal is very different to the one which was shelved by the Howard Government in 2001, when the rail component was costed at around $5 billion. Today, that figure would be closer to $80 billion, but that does not deter Cleary, who says the plan has an extra dimension to its business case. “What I always need to say is that the CLARA plan is not just a High Speed Rail (HSR) plan,” says Cleary. “It is an inland cities and decentralisation plan, and a plan to develop our regions and balance the Australian population growth.” CLARA’s vision is for eight greenfield “smart cities” of between 250,000 and 400,000 people spaced out along the 870 kilometres between Sydney and Melbourne. The high speed train would connect these cities and bring them into commuting distance of Sydney, Melbourne and also Canberra, relieving population


Photos: Adobe Stock

CURRENT MAJOR PROJECTS ● HIGH SPEED RAIL

pressure which is set to see Australia’s two largest cities both double in size by 2050. So instead of the VFT idea, which essentially planned to connect existing – and growing – population centres, CLARA proposes building new population centres all connected by the highspeed train, taking pressure off population growth in the process. Building the cities would use principles of “value capture” not previously used in Australian infrastructure, with the property and housing development funding the project and making it sustainable. Value capture has been used by public infrastructure developers in cities such as Hong Kong, but CLARA’s model is entirely private. CLARA aims to secure land at its current price and then using the uplift in the value of the property to fund the project, which could take up to 30 years or more to complete. “Our model is very European in its concept,” says Cleary. “It is a vision of an Australia not full of ‘vampire city’ outer suburbs which are deserted during the day.” Cleary says the proposal is to create “vibrant and modern medium density small cities” where people can enjoy the connectivity people have in Europe without the issues which are starting to emerge through the rapid growth of Sydney and Melbourne. “You look at our capital cities now and so many people want to live in medium density housing close to the city centre,” he says. “That is one reason why property prices in those areas are moving up, because that is how people want to live but there is limited opportunity to do so. “We can create smaller cities where people enjoy all the amenity of big cities – restaurants, shops, bars and venues – all close to their homes, not a huge trek away by train or car.” Cleary says the CLARA consortium has received a positive response from global investors to its plan, but says governments have a crucial role to play. “We have our eight city sites identified but we don’t have the corridors to run the rail,” he says. “At some point we believe that Australia will build a high speed rail line, and on that basis the Australian Government should be securing the corridor to build that line. “If they decide to go ahead with our CLARA plan we are happy to pay for the corridor, but Government needs to legislate for its acquisition.” Up until now, a high speed rail along the eastern seaboard has been considered unviable, because the fares would be prohibitively high. At the same time the Sydney to Melbourne air route is the fifth busiest commercial air route in the world, and is serviced by four carriers offering highly competitive fares. Despite the economic challenges, the high speed train concept has been a national dream for three decades or more, similar to the idea of the Alice

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We can create smaller cities where people enjoy all the amenity of big cities – restaurants, shops, bars and venues – all close to their homes, not a huge trek away by train or car. Springs to Darwin railway which became a reality in 2004. Nick Cleary says that the CLARA plan is a “game changer” because it creates more destinations between Sydney and Melbourne and more reasons for people to take the train. If you are living in one of the new cities near Shepparton in Victoria, for example, he says you will be in commuting distance of Melbourne, or any number of other cities along the route. Cleary believes that urban sprawl in Sydney and Melbourne is “turning the Australian dream into a nightmare”. He says that previous planning policies have promoted urban sprawl, based around car usage, and points out that Sydney’s population density is around 350 people per square kilometre over the 12,000 square kilometre basis. The response had been to create “activity silos” in the city, but people were still far too reliant on cars to connect up. This compared with cities such as London and Paris, where density was in excess of 6,000 people per square kilometre, but 80 per cent of people used extensive public transport on a daily basis. “We strongly believe that the alternative to our plan is no alternative at all,” says Cleary. “Our plan is an opportunity to press the pause button on the unrestrained growth of our two largest cities. “Instead of looking out to sea we are forgetting about the great nation we have inland, and the opportunity that provides us.” The CLARA consortium plans to deliver a “market led” proposal to the federal government in the first half of 2017. 

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It’s more than name changing ...it’s game changing. SNC-Lavalin Rail & Transit has united over 1,500 rail experts across the globe, including the former Interfleet team. Our expanded expertise is backed up by the same outstanding service you’ve come to expect.

is now


THROUGH LIFE ENGINEERING here is a buzz in the railway industry: presentations at networking events are focused on delivering services more effectively and intelligently. The recurring phrase is “start at the beginning with the end in mind”. The Through Life Engineering team at SNC-Lavalin Rail & Transit achieves this by providing sustainable engineering solutions for asset life optimisation. In the next 20 years urban population growth is predicted to rise exponentially. To address this, discerning railway operators and maintainers are seeking increased reliability and availability in order to deliver higher volume daily services. The contemporary rail traveller has high expectations of passenger experience, particularly as other transport alternatives utilise technology to provide competitive alternatives to railways. These external pressures for more cost effective and user-centred services, combined with internal industry pressures, demand more effective use of railway assets and innovative cost-saving solutions. The 2015 UN COP21 Conference set unprecedented targets for reducing waste and utilising the world’s diminishing resources more efficiently. Through Life Engineering assists rail operators to achieve these challenging new targets by identifying solutions to reduce wasteful maintenance practices and increase return on asset value with initiatives such as Reliability Centred Maintenance and Design for Maintenance. Maintenance optimisation can be further extended by introducing processes and technologies which deliver reliability growth targets earlier in the asset lifecycle. Adopting a full life cycle view of assets means examining asset management alongside maintenance activities. This identifies where and when investments should be made to deliver overall cost reduction and illustrates how combined project activities influence fleet performance.

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Figure 1: Through Life Engineering Approach to Life Cycle Management

Life Cycle Cost Management Failures Per Million Kms

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Maintenance Optimisation

Enhanced Reliability Growth

Years of Service Life Full lifecycle assessment is a powerful process as it identifies key areas which can be addressed to reduce failures in service and provide greater fleet availability. This is achieved by reviewing and optimising the maintenance plan, through advanced utilisation of data already available or by generating and analysing more targeted data. The life of an asset, thus the return on value, can be extended through application of key Through Life Engineering initiatives. SNC-Lavalin’s Through Life Engineering team, based in Australia, can provide cost benefit analyses throughout the project lifecycle; from procurement cost assessments to overhaul strategies. Our performance management experience includes payment mechanism development, performance strategy development and performance forecasting in addition to performance reviews and audits. As international leaders of real time data collection and developers of diagnostic algorithms, SNC-Lavalin can deliver ongoing performance improvement solutions. Our maintenance optimisation experience includes reviews of Technical Maintenance Plans and identification of efficiency improvements; either through improved exam balancing, reliability centred maintenance solutions or

productivity of maintenance practices. Additional services can be provided by our teams in North America and Europe where extensive experience is available in fleet operation and depot workflow modelling, respectively. SNC-Lavalin partners with key technology providers to ascertain global best-practice solutions. Unrivalled understanding of affordable technologies that deliver fleet monitoring and data collection solutions for rail places SNC-Lavalin in a unique position to provide the most effective Through Life Engineering solution for any project. By delivering an increase in fleet availability, alongside the availability of affordable technology solutions, SNC-Lavalin supports its clients to provide a more reliable and user-centric railway system. An enjoyable experience will lead to more regular patronage encouraging passengers to continue to choose rail. Amy Lezala Section Lead Through Life Engineering SNC-Lavalin Rail & Transit Pty Ltd Tel: +61 (0) 3 9600 3655 Cell: +61 (0) 400 636 654 Email: amy.lezala@ snclavalin.com www.snclavalin.com

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CURRENT MAJOR PROJECTS ● PORT OF MELBOURNE CAPACITY PROJECT

PORT OF MELBOURNE

AUTOMATION THE DRIVER FOR MELBOURNE PORT CAPACITY The Port of Melbourne is a key logistics gateway for the nation, and the recent 50-year lease agreement will only see it grow in importance as works are underway to return it to its status as an international container handling facility.

Photo: David Wallace

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W

hen he announced the $9.7 billion deal for a consortium of international investors to take a monopoly 50-year lease on the Port of Melbourne in September, Victorian Treasurer Tim Pallas said the deal confirmed Melbourne as the “freight and logistics capital” of Australia. While operators of ports in other parts of Australia may not necessarily agree with Mr Pallas, there is no doubt that the Port of Melbourne is a key logistics gateway for a city which is set to double in population to close to 10 million people by 2050. Already, more than $84 billion of imports and exports go through the Port of Melbourne each year, making it the country’s largest container port.

Photo: Creative Commons

A key to the port’s future is the $1.6 billion upgrade, called the Port of Melbourne Capacity Project, which will reconfigure and redevelop Webb Dock. The entire port handles just over 2.5 million containers – at a size of 20-foot equivalents (TEU) each year – equivalent to 36 per cent of Australia’s container trade. Part of the port’s appeal to the investment consortium, comprising China Investment Corp, the Australian Government’s Future Fund, Brisbanebased QIC and Global Infrastructure Partners of the US and some Canadian investors, is the investment and growth in the facility, which currently handles around 3,000 ships annually. The new owners expect the port to ultimately be state of the art and fully automated, with the number of containers moving through the port each year increasing also due to better roads and road links which will service users in NSW, Tasmania and South Australia who may be currently using other ports. A key to the port’s future is the $1.6 billion upgrade, called the Port of

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Melbourne Capacity Project, which will reconfigure and redevelop Webb Dock. This will return it to its original role as an international container handling facility, but with a new capacity of at least 1 million containers per year, helping to significantly improve the Port of Melbourne’s total capacity. Philippine company International Container Terminal Services, cited by the Asian Development Bank as one of the top-five maritime services operators in the world, won a 40-year concession in 2014 to operate the terminal land Empty Container Park at Webb Dock. The company’s Australian subsidiary Victoria International Container Terminal Services is leading the way in Melbourne, and will operate the upgraded Webb Dock expected to be completed by the end of 2016. The upgrade will not only create around 700 full-time jobs, but it will create a broader competitive environment in the container stevedoring market, opening the way for further improvements in container handling and transport logistics. Webb Dock, at Fishermans Bend, was constructed progressively from the early 1960s by dredging and land fill at the mouth of the Yarra River, and Webb Dock West is currently Australia’s main terminal for motor vehicle import and export. As part of the Capacity project, a new automotive facility will be created on the western side of Webb Dock. This will expand the automotive capacity to handle in excess of 600,000 vehicles each year, and provide on site pre-delivery inspection (PDI) facilities, where vehicles can be fitted with custom options and prepared for dealerships. Other works around the Webb Dock precinct include additional screening and landscaping, dock deepening, minor modifications and improvements to nearby parklands. To enable modern vessels to berth and manoeuvre at sufficient water depth, part of Webb Dock has had to be deepened. These works have predominantly been focused in the area between Webb Dock East and West, and in

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CURRENT MAJOR PROJECTS ● PORT OF MELBOURNE CAPACITY PROJECT

Melbourne shipyards

In order to deliver the project to strict environmental standards, an Environmental Management Plan is in place, which sets out controls and safeguards to protect local port communities.

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an extra one million containers traffic from the port using the M1 will only account for around 5 per cent of the total traffic. In order to deliver the project to strict environmental standards, an Environmental Management Plan is in place, which sets out controls and safeguards to protect local port communities along with the natural land and marine environments. The plan factors in issues such as flora and fauna, air quality, noise and vibration, marine ecology, visual amenity and waste management. 

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Photo: Adobe Stock

parts of the dock entrance where ships are turned around. The project is also committed to the retention of open spaces and improved buffering around the working point, and to that end upgrade works at the Perce White Reserve have included new boardwalks and a more family-friendly environment. There have also been some improvements to the port’s other “buffer” roads, such as the creation of a new linear park on port land which creates a continuous path from the Yarra River and all the way through to a new observation platform at Webb Point. As for the entire Port of Melbourne, transport links were considered crucial to increasing the efficiency of the dock operation. At Webb Dock, the project includes direct road connections onto the M1 West Gate Freeway through closing Williamstown Road to port traffic. According to detailed traffic studies, even with


AUSTRALIAN TRADE AMBITION TO BE TURBOCHARGED BY INLAND RAIL A

lmost 100 years ago the Trans Australian railway was opened. This was an infrastructure feat, not only because it overcame the tyranny of distance between the east and west of our country, but because it also physically connected our vast country in bonds of timber and steel. Now, nearly a century on, a new railway project – Inland Rail – is underway that will similarly connect our country through rail, but this time through the bonds of trade – connecting our domestic producers, miners and manufacturers to new domestic and international markets in a cheaper, faster and vastly more efficient way than ever before. In this context, the Inland Rail project marks a new and strategically important chapter in how we will move goods around the country in the near future. Inland Rail is a critical project that will in many respects help complete the national interstate rail network. Inland Rail will provide a new freight rail connection between Melbourne

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and Brisbane via regional Victoria, New South Wales and Queensland. Spanning approximately 1,700 kilometres (700km of existing interstate track, major upgrades to a further 300km of track and construction of 700km of new track), it will provide direct, high capacity rail freight connections to our largest three cities on the eastern seaboard – Melbourne, Sydney and Brisbane – as well as to the country’s west. For perspective, rail freight’s existing interstate market characteristics are an 80 per cent market share for freight travelling east-west, where large, double-stacked train capability is available. However, travelling northsouth between Melbourne, Sydney and Brisbane, that efficiency is not available and rail’s market share of freight is only 25 per cent. By providing a dramatic enhancement to the rail service offering across this critical north-south rail corridor – which is also Australia’s busiest domestic trade route – Inland Rail will enable fast, high productivity

train operations and more freight on to rail. That means ‘mega trains’ in operation right across the country, trains that are big, long and heavy at 1.8km in length and carrying doublestacked containers. The new line will be a faster, more efficient route that bypasses the rail network through Sydney (where freight and passenger trains share the network), resulting in an almost 10-hour transit time saving between Melbourne and Brisbane. The new and upgraded infrastructure is being developed based on direct feedback from freight customers, Australian rail operators and local communities. It will enable road competitive rail services with a less than 24-hour linehaul transit time between Melbourne and Brisbane, 98 per cent reliability, competitive costs and freight availability in line with market needs. It’s good for farmers too. Inland Rail will connect the nation’s biggest producing agricultural regions

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to a fast and efficient national rail freight network, moving more Australian farming exports by rail than ever before. The improved access to and from regional markets is expected to attract around 2 million tonnes of agricultural freight from road to rail, carrying a total of 8.9 million tonnes of agricultural freight by 2050. With every interstate train on Inland Rail equivalent to 110 B-double trucks, the additional 8 million tonnes of freight being carried via Inland Rail by 2050 is the same as taking 200,000 truck movements off the road each year – a move that will contribute significantly to improving safety and reducing road related injury and death. This new rail line is also more than just an additional domestic trade route for our nation’s businesses. An efficient rail network and competitive rail services will reduce the nation’s reliance on road transport, and as a consequence, reduce road congestion, lower carbon emissions, reduce noise, reduce deaths and injuries from road accidents, improve amenity in urban and regional centres and enable mines and agricultural businesses in regional areas to remain productive. As well as human health benefits,

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Inland Rail will also improve community environmental sustainability through more than 750,000 fewer tonnes of carbon and reduced truck volumes in more than 20 regional towns. Inland Rail will create thousands of jobs during the peak of construction, and, once fully operational it will provide hundreds of ongoing jobs. The programme will have a strong positive impact on the gross state product (GSP) of Victoria, New South Wales and Queensland. During construction, Queensland and New South Wales will receive the largest shares of the stimulus due to most

of the Inland Rail corridor being developed within these states, however Victoria will also benefit as it contains a significant share of the construction workforce. Nationally, the economic benefits of Inland Rail will deliver almost $22.5 billion of direct and indirect benefits to Australia. The east coast freight corridor between Melbourne and Brisbane already generates 75 per cent of Australia’s gross domestic product and is responsible for global commodity exports of more than $260 billion each year. Importantly, the project now has real momentum. The Australian Government has tasked the Australian Rail Track Corporation with preparing its delivery and recently confirmed $594 million additional funding in the 2016 Budget which will allow ARTC to continue pre-construction activities and land acquisition. The investment is additional to $300 million in funding currently committed. The total cost for the 1,700km long Inland Rail project is estimated at $10.7 billion, with commissioning expected around 2025. Inland Rail presents a significant opportunity not only for rail, but for the nation and every single Australian.

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CURRENT MAJOR PROJECTS ● GATEWAY WA

GATEWAY WA

NEW GATEWAY TO THE WEST Initial impressions of cities are important, and for visitors arriving at Perth Airport today the experience has been transformed. By Jacqueline Fox

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assengers landing in Perth walk off their planes and through a significantly upgraded or new terminal, and their first journey into the city and beyond is on the new Gateway WA Perth Airport and Freight Access road network. The $1 billion roads project was funded by the state and federal governments and is the largest ever project delivered by state government body Main Roads WA. Gateway WA has not only delivered state of the art road infrastructure, but the project was completed in March 2016 – almost a year ahead of schedule, and under budget. At the same time as improving the experience for visitors and private motorists, Gateway WA makes a major improvement to the logistics and freight movement of goods in Perth. “Gateway WA has transformed the entry to Western Australia and will provide a first impression for residents and visitors for years to come,” says

a spokesperson for the Gateway WA consortium, contracted by Main Roads to deliver the project. The consortium comprises alliance partners Leighton Contractors, AECOM, BG&E, Georgiou and GHD, and they were announced as the preferred proponent in October 2012. “Overall, passengers can now travel to the airport more efficiently and businesses can supply their products to market quicker and reliably, providing long-term dollar savings that significantly contribute to the economy,” the spokesperson says. “These works have improved the efficiency of freight vehicles travelling through the area on a daily basis, with safer and less congested intersections now in existence, and this ultimately reduces travel times and associated costs to businesses.” Gateway WA comprises upgrades of three existing highways – the Tonkin, Leach and Roe Highways – and the construction of four new interchanges. To support the upgrade of the regional road network a number of modifications to the local network were undertaken, which included work on 10 intersections, three of which were newly signalled, along with other improvements to the local road network around the suburb of Kewdale. Due to the early completion of the project, significant cost savings were transferred back to Main Roads to invest, and an additional $45 million was awarded to Gateway WA to complete a further works package on an intersection on the Roe Highway which was a notorious spot for congestion. The vision for Gateway WA was as a solution to several of Perth’s growth issues. The city’s road network was approaching

Photos: gatewaywa.com.au

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CURRENT MAJOR PROJECTS ● GATEWAY WA

capacity, and the area around the airport and surrounding industrial areas was experiencing high levels of congestion on a daily basis which compromised road users’ accessibility. The project had to cater for an anticipated doubling of freight and container transport within the Kewdale Industrial Precinct by 2030. At the same time, passenger air travel to and from Perth Airport is forecast to double in the next decade, while the international and domestic air terminals are combined into one facility. So to address these issues, Gateway WA had two primary objectives: • To improve access to the airport and deliver sufficient capacity to handle the expected growth in transport demand • To improve the operational efficiency of freight vehicles including those that serviced the nationally significant freight terminals at Kewdale and Forrestfield. With the project complete, travel times through the project area have decreased by an average of around 30 per cent for road users. Even during some stages of construction, traffic flow was improved in the area as a result of the project’s successful staging of the works, which enabled passengers and freight to keep moving on their journeys. The project included a number of significant engineering feats, such as finding solutions to the challenge of high ground water around the Tonkin and Leach interchange, part of which was below ground. “To overcome this complex issue, a technical solution had to be designed and constructed that minimised the environmental impact and did not interfere with the aviation restrictions in place,” says the Gateway WA spokesperson. The result was the construction of three concrete bath structures for a waterproof running surface where the road was constructed below groundwater level. These bath structures, as well as bridges and other structures, had to be as slender as possible due to the location of the interchange at the end of the airport’s runway. Extensive hydrogeology studies were undertaken to understand groundwater levels and to ensure they were not adversely affected by the works. Dewatering was minimised through the construction of a pump station which drained the bath structures, retaining water in a cofferdam structure which is then pumped out. Gateway WA also delivered a number of firsts for Western Australia. It introduced the first two single point urban

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To overcome this complex issue, a technical solution had to be designed and constructed that minimised the environmental impact and did not interfere with the aviation restrictions in place. interchanges, and the first use of a Continuously Reinforced Concrete Pavement (CRCP) within a road project. At the Roe Highway and Berkshire Road interchange, the first use of “tennis ball” configuration was implemented as part of a Safe Systems Initiative. “This innovative design is the first time this type of interchange has been constructed in Australia,” the spokesperson says. Gateway WA is not just about cars and trucks either. New Principal Shared Paths were installed as part of the project, providing improved facilities for cyclists and pedestrians. A total of 21 kilometres of Principal Shared Paths were installed with local connections adjacent to the new road alignment along three highways and the Airport Drive. “The new paths provide improved access for walking and cycling along the new road alignment,” says the Gateway WA spokesperson. Another community focus was the re-alignment of the popular Gerry Archer Reserve, an important community facility used by local clubs. The Reserve needed to be re-aligned to accommodate the construction of the Leach Highway and Abernethy Road interchange, and the project worked collaboratively with the community to deliver a positive outcome. 

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CURRRENT PROJECTS ● WEST CONNEX

Urban Landscape Solutions Innovation is all about change, and understanding that solutions can only come from the ability to recognise that nothing is impossible. At Stoddart Infrastructure, we understand that delivering great spaces is about more than outdoor structures and furniture – it’s about designing products that complement their settings and provide for users in an effective and attractive way. Stoddart Infrastructure has the knowledge and experience to transform any urban space whether it be a park, road-side, urban space or street scape with innovative solutions in outdoor infrastructure.

1300 557 654 www.stoddartinfrastructure.com.au info@stoddartinfrastructure.com.au

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1300 557 654 www.stoddartinfrastructure.com.au info@stoddartinfrastructure.com.au

TRANSFORMING AN URBAN SPACE I

nnovation is all about change, and understanding that solutions can only come from the ability to recognise that nothing is impossible. At Stoddart Infrastructure, we understand that delivering great spaces is about more than outdoor structures and furniture – it’s about designing products that complement their settings and provide for users in an effective and attractive way. Stoddart Infrastructure were commissioned by Adelaide Airport to design, fabricate, and install several walkways as part of the 2019 centenary celebrations of the first flight from England to Australia in 1919. A two-stage project, the first of which has been completed and consists of two cantilevered walkways, facilitates patron transfer between the long term car park and terminal building via the Vimy Vickers Memorial – the focus of the celebrations. The custom walkways are based on the Stoddart

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Infrastructure Decco walkway; characterized by its large-span, curved cantilever roof design, and modular bolt-together assembly methodology. For this application the frame was altered to give a more individual aesthetic to the structure and full-length guttering included, as well as the integration of custom ‘Pic-Perf’ mesh panels with travel-themed motifs between the posts, providing fantastic visual interest to the canopies. Additionally, patron-focused LED courtesy lighting was added for patron comfort. Constructed out of mild steel, and then hot-dip galvanised and powder coated, these walkways have been fully designed and engineered to suit their location. Stoddart also completed the civil and electrical design as part of the scope of works, and project managed every stage of the job including civil works, shelter installation, and project handover. These walkways will deftly assist in the commemoration

of one of Australia’s iconic aviation achievements, and Stoddart are proud to be a part of not only these celebrations, but our continued reputation and involvement in providing high quality, highly functional and highly aesthetic transport infrastructure at all of Australia’s major airports. With over 415 employees and more than 50 years of stainless steel and metal fabrication industry experience, Stoddart Infrastructure is always the right choice for the fabrication and supply of urban infrastructure in Australia. Stoddart Infrastructure has the knowledge and experience to transform any urban space – whether it be a park, road-side, urban space or street scape with innovative solutions in outdoor infrastructure. For more information contact Stoddart Infrastructure on 1300 557 654 or email info@ stoddartinfrastructure.com.au

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EDUCATION

INFRASTRUCTURE CAN ATTRACT THE BRIGHTEST MINDS

Australia needs more skilled graduates, but involvement in sciences and maths are falling. Infrastructure – along with defence – can showcase the potential of a skilled career in Australia. By Harry Thring

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single example of Australia’s rapidly changing occupational landscape was laid out in Infrastructure Australia’s 15-year plan, delivered in 2016. One of the plan’s key recommendations to the Australian Government was for the country to embrace Building Information Modelling (BIM), which would allow architects, contractors and operators of a project to all input discipline-specific data into a single digital, multi-dimensional plan. Infrastructure Australia believes BIM would significantly improve the efficiency of future projects across their entire life cycles. Technological solutions to a multitude of problems are

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being implemented and conceived but technology alone will not be enough. Australia will require a workforce with the skills projected to be so valuable in the near future. Minister for Education and Training Simon Birmingham recently stated “three quarters of the fastest growing occupations in Australia require skills in science, technology, engineering and mathematics”. As Senator Birmingham also said, “it is vital that the next generation are able to drive the computer and not have the computer drive them”. As it stands today, there are occupational skill shortages and gaps in the education sector – student

involvement in national science, technology, engineering and mathematics (STEM) subjects is falling. The past 25 years has seen a significant drop in the number of senior school students enrolling in the sciences (biology, chemistry and physics) as well as intermediate and advanced mathematics. There are currently recruitment difficulties or national shortages in a number of industries crucial to the rollout of infrastructure projects, and with fewer and fewer students finishing school with the skills needed to fill gaps, those shortages won’t disappear without intervention at an education level. However, steps are being taken to reverse the decline of graduates competent in the sciences, technology and mathematics. The Australian Government has recently delivered a 10-year plan known as STEM School Education Strategy (2016-2026), which ultimately aims to inspire students to study more challenging STEM subjects.

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EDUCATION A key component of the plan will be the requirement for students to study both an English or humanities subject and a maths or science subject in order to graduate. The plan also focuses on improving the quality of Australia’s STEM subject teachers. The government is understandably keen to attract the youngest students to STEM subjects, so that upon graduation, Australia will benefit from a much larger population not only competent in the sciences, technology and mathematics – but masters. For the youngest Australians, Senator Birmingham said STEM subjects had to be “fun”. “Young children should be inspired to explore their natural curiosity in maths and science by making activities fun and as rewarding as possible,” he said. “In building and supporting STEM education in a child’s early years, we have the potential to grow a generation of new learners enhanced by new technologies that will assist us to be a truly innovative nation. “At the outset of these remarks I spoke about 2036 ... 20 years hence … by then it will be these three, four and five year olds of today who will be taking their first steps into the workforce. “As with literacy, data shows that children who start school behind their peers in terms of numeracy skills struggle to catch-up, which is why our proposed year one early assessment of all children seeks to cover basic numeracy as well as phonics and reading.” At the other end of the schooling spectrum, Australia hopes to establish 12 new Pathways in Technology (P-TECH) sites in the hope of better connecting industries with schools. It’s expected that the successful running of the P-TECH model will allow industries to collaborate with the education system and enable them to help fill the gaps that they themselves have identified. Pilot sites in Geelong and Ballarat commenced in early 2016 and $4.6 million will be spent expanding the number around the nation to 14, allowing the Government to effectively test the set-up in different jurisdictions and school systems. The expansion of P-TECH forms a part of a wider push to improve industry involvement in the education and training sectors.

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Young children should be inspired to explore their natural curiosity in maths and science by making activities fun and as rewarding as possible. [With STEM] we have the potential to grow a generation of new learners. The Australian Industry and Skills Committee was established in 2015, which has given industry a formal hand in the development of professionals. Senator Birmingham said the newlyformed committee would also help simplify the message and advice from industry to Government. “This Committee replaces a complex framework of 13 different committees and advisory bodies, simplifying governance of the vocational education sector and, importantly, putting industry at the centre of the system,” he said. “This will ensure that employers are central to the advice provided to governments on strategies to lift the quality and relevance of training needed across the Australian economy. “The industry-led body will also play the critical role of overseeing qualifications and training product development – ensuring the system is focused squarely on industry needs and that Australian workers are highly skilled and job-ready.” Whilst it’s fact that gaps in the occupational sector are creating recruiting difficulties for several industries involved in completing infrastructure projects, it’s also clear steps have

been put in place to close them. Plans and strategies aimed at ensuring Australia will have the workforce it needs to deliver the infrastructure solutions to a growing population are long-term and focus on education from pre and primary schooling through to senior and tertiary education. The solution to improving the skills of Australia’s graduates lies in a holistic approach; students must be inspired to challenge themselves and to embrace the sciences, technology and mathematics but so too must the country’s teachers. Giving industry a formal opportunity and place in Government discussion will also help shape tomorrow’s professionals. Signs appear promising that the successful execution of current plans will ensure future infrastructure projects are delivered effectively and efficiently – and are driven by the students of today. 

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TECHNOLOGY

HOW TECHNOLOGY CAN HELP

The rollout of advanced technological solutions is critical for the successful development of Australia’s infrastructure future. By Harry Thring

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ustralia’s population is projected to almost double within the next 50 years, climbing from 24 million in 2016 to almost 50 million by 2061. The results of August’s Census are expected to show a steady increase, with current data suggesting the population is growing every 90 seconds. Immigration and birth rates both remain faster than the nation’s death rate, which currently sits at one death every three minutes, 22 seconds. Even at 50 million, Australia’s poundfor-pound population for a nation of its size is barely comparable to its global counterparts. In future decades more people will call Australia home but the

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country will surely remain the sixth largest on Earth. Sure, that means there will be plenty of room for us all – but what good is space without the necessary infrastructure to make use of it and ensure we live contently? A key player in the development of the country’s infrastructure network is and will continue to be Infrastructure Australia. The independent body is charged with providing advice to the Australian Government in order to progress nationally significant infrastructure and in February released its first 15-year plan since its formation in 2008. Technology and indeed the development of technology will play a crucial role in the rollout and completion of new infrastructure projects over the next few decades. But according to Infrastructure Australia’s chief executive Phillip Davies, it must also be utilised to make best use of current infrastructure. He says a key recommendation in the body’s 15-year plan was to target low

cost/high value investments – in other words, target infrastructure solutions that deliver more bang for the tax payer’s buck. Particularly when it comes to Australia’s road systems in capital cities, Infrastructure Australia’s recommendations to the government focus on development rather than replacement. “We need to ensure that existing infrastructure is used more efficiently, with a focus on maintenance and the use of new technology to secure service improvements,” Davies says. “Embedding technology in existing infrastructure can provide operators with a rich data on network performance and use, which in turn drives improvements in efficiency and reliability. “For example, on urban roads Intelligent Transport Systems are already collecting, storing and analysing data on traffic counts, travel times, congestion, incidents and faults through sensors at intersections to enable better management of traffic flows.” The development of existing infrastructure may well be a sensible way to spend money and improve the living standards and accessibility within the nation’s largest cities. However, with a growing population it’s not the solution to every gap in the sector. As our cities swell so too will the number of new infrastructure projects – it’s inevitable. In these cases, Davies says that one of Australia’s most important areas of development must lie in the planning of projects. He says technology could and should feature strongly in the planning of new projects to ensure they’re, firstly, completed as efficiently as possible and, secondly, that they run as efficiently as possible throughout their lifetime. One technology specified in Infrastructure Australia’s 15-year plan is Building Information Modelling or BIM. Traditional building plans rely on two-dimension drawings; not necessarily of only the architectural variety, but of ground water systems, power and gas lines etc. At its current peak, current BIM allows plans to cross into 3D and further, pushing on to include time as a fourth dimension and cost as a fifth. Simply put, BIM allows developers, builders, sub contractors and the

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TECHNOLOGY

structure’s owner or manager to digitally manage all information associated with the project from its conception to its demolition. As the responsibility of the project is handed from team to team (from architects to contractors to owners), BIM allows them to add discipline or projectstage specific data to a single digital plan. Davies would like to see the Australian Government make the use of BIM mandatory for the design of large-scale infrastructure projects. “Greater use of technology in planning and designing infrastructure can deliver substantial benefits during construction and operation,” Davies says. “BIM uses collaborative processes and sophisticated software to generate, manage and share detailed multidimensional models of buildings, infrastructure and places. This allows the interrogation of asset design to inform construction and operation. “This approach presents a substantial opportunity to increase the efficiency of infrastructure throughout asset lifecycles. Although it has had limited uptake

The development of existing infrastructure may well be a sensible way to spend money and improve the living standards and accessibility within the nation’s largest cities. in Australia, the United States, Singapore and Hong Kong governments have each mandated the use of BIM in government tenders. “The first step to a mandatory rollout is for the Australian Government to commission the Australasian Procurement and Construction Council to develop appropriate guidance around the adoption and use of BIM and common standards and protocols.” With Infrastructure Australia’s current Infrastructure Priority List featuring many issues of urban congestion, the body’s advice to focus on the development of existing facilities will rely on the use of technology for successful implementation. The technology already exists to better analyse traffic flow, accident hot-spots

and travel times and the continued improvement of such technology appears certain to play a lead role in keeping the roads of Australia’s cities usable. In a similar vein, a focus on efficiency is also a primary recommendation for the roll-out of future infrastructure projects. The embracement of Building Information Modelling (BIM) could not only speed up the completion of projects but over the course of the project’s life it could also help reduce its cost to taxpayers considerably. Australia’s future looms one with a much larger population than where it currently stands and it’s fact that technology and the progression of technologies will be required to ensure that population resides happily. 


‘Point Cloud’ scan of Hisense Arena

3D model generated from ‘Point Cloud’

The surveying technology

3D game changer

Fast, accurate and detailed - how new scanning technologies are streamlining surveying services. While everyone in surveying may be talking about the increasing popularity of UAVs, if you take a closer look at industry projects, the real technology game changers are laser scanners and building information modelling (BIM). Terrestrial laser scanning (TLS), as its name suggests, is an imaging method that uses laser rangefinders to produce comprehensive 3D point clouds of structures. While BIM is a process where data is collected and used in a comprehensive digital representation. These technologies allow for the fast and accurate collection of data which can then be used to create high resolution 3D models. BIM and TLS technology take into account every tiny bit of structural information and are able to produce an exact digital description, allowing architects, surveyors, engineers and builders to get a complete visual model of a structure from different perspectives.

3D model generated from ‘Point Cloud’

Taylors CEO, Richard Cirillo, said being able to visualise all aspects of a project offers unprecedented insight in the design, construction and maintenance phases, as well as allowing coordination between different disciplines. “It’s a significant advantage to be able to offer clients an interactive visual model of what their final product will look like. Beyond the initial project, these data models can also be used for future management and updated each time a renovation occurs,” Mr Cirillo said. Taylors has extensive project experience using BIM and terrestrial and mobile laser scanning, as well as combining them for use in 3D modelling. ”Advances in these technologies are streamlining projects, especially large scale jobs. “The point of difference is that laser scanning and BIM is faster, more precise and gives us the ability to safely access difficult spaces in order to produce an accurate model.” The application of these technologies is increasing due to the simple reason that territorial laser scanning has the ability to collect a high amount of data in a short amount of time. “We are able to reduce the need to revisit a site, saving time and money.” Taylors has used laser scanning in a significant number of projects, from a surveying project enabling design of the NBN’s fibre optic cable routes to the redevelopment of Eastland shopping centre.

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Taylors Infrastructure Operations Manager, Anthony Emmerson, said one of their first big projects to use laser scanning was Hisense Arena, where this technology was key to the project’s success. “We were contracted to conduct acoustic modelling on Melbourne’s Hisense Arena, in preparation for a new interior fit out, and had to complete the whole project within three days,” Mr Emmerson said. Hisense is a large scale entertainment venue that can change its configuration to suit different events. The stairs can change, different stage settings can be built and the seats can be removed to create a velodrome. So instead of scanning just one static structure, Taylors were scanning three. “We combined laser scan technology and our BIM capabilities to create an accurate and comprehensive colour 3D model of Hisense using over 800 million individual measurements.

‘Point Cloud’ scan of Symonds Street 3D model generated from ‘Point Cloud’

“We did 60 scans a day and were able to scan the equivalent of three different stadium sized venues. “There’s no way we would have been able to do a job like this using conventional technology in only three days. Laser scanning was a more viable solution and allowed us to produce a very detailed model for the client.” In the initial brief, Taylors were asked to return survey data for the redesign but by using multiple scanners, they were able to return a 3D model of the arena, with extensive detail as the data was integrated visually.

Scanning the future The use of mobile laser scanning is increasing across a range of industries as it has the ability to collect between 50,000 to 200,000 points of data per second, depending on the system, and produce 360 degree high resolution imagery. Mr Emmerson said this technology is beneficial when surveying highways, railways and streetscapes and increases safety for workers. “There’s an important safety advantage when using laser scanning on projects that involve roads or railways because it means the surveyor doesn’t have to be physically standing in the middle of the road or rail track - they’re out of harm’s way.” Mr Cirillo believes the work Taylors are currently doing with BIM, TLS and 3D modelling is only the beginning for industry, with continual technological advances making for exciting times ahead. “We’re using this technology more and more and are currently at the forefront of being able to capture and generate BIM to put into a virtual reality environment.” “We are very excited to soon be launching our new virtual reality hologram room, an immersive space that brings urban design plans to life and allows clients to walk around in a simulated version of reality. We have created our own virtual reality software which will significantly reduce the cost, time and risk in urban development projects.”

Urban Development | Infrastructure ● REBUILDINGTHENATION.COM.AU

www.taylorsds.com.au

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Changing the way Australia Connects

Connectivity underpinned by Innovation. Madison Technologies & 3M ™

with Madison, you’re well connected™ Together, we’re changing the way Australia connects. Madison Technologies has strengthened its reputation for building innovative solutions to solve complex connectivity problems. Together with 3M, we’re changing the way Australia connects. Call us on 1800 12 22 23 or email connect@madisontech.com.au Cabling / Networking / Wireless / Audio Visual


Together, we’re changing the way Australia connects. Madison Technologies has strengthened its reputation for building innovative solutions to solve complex connectivity problems. Together with 3M, we’re changing the way Australia connects. Call us on 1800 12 22 23 or email connect@madisontech.com.au Cabling / Networking / Wireless / Audio Visual

INFRASTRUCTURE & INNOVATION: BUILDING A MORE CONNECTED FUTURE I

nfrastructure projects primarily bring to mind the construction of bridges, roads and tunnels, but the reality is that modern day infrastructure projects are more centred around technology and the way we communicate. The biggest infrastructure project of this type in Australia is the National Broadband Network. NBN Co was established in 2009 to design, build and operate Australia’s new highspeed broadband network, the outcome of which will have an immense impact on more than just simply surfing the internet and streaming television – it will affect the very way Australians live their daily lives. The National Broadband Network will revolutionise education, healthcare, community services and stimulate national and international commerce and trade. Through the delivery of one of the largest infrastructure projects in Australia’s history, NBN Co will connect eight million homes and businesses by 2020. Facing such a massive challenge, NBN Co needed to innovate process and technology wherever possible to ensure that the roll out happened as fast as possible without compromising quality or efficiency. In close consultation with NBN’s Engineering division, Madison Technologies’ Research and Design team reengineered the existing Telstra pillar. In doing so, it not only increased the capacity of the pillar but it decreased the installation time from several days down to a few hours and importantly, it ensured that the upgrade process itself would be non-disruptive to the network thereby having no interruption to the end user. While many service providers may consider this an amazing accomplishment, it is this kind of innovation and reliability that separates Madison Technologies from the others and is the very reason NBN Co approached Madison Technologies.

Madison Technologies wins NBN Co “Fearless” Supplier Award The NBN Co “Fearless” Award was presented to Madison Technologies for the innovation, product design, agile process and fearless contribution to developing the Retrofit Pillar, which adds cabling capacity at the pillar without disturbing or disrupting the existing pillar cable during the rollout.

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The History of Madison Technologies in Telecommunications Infrastructure Madison Technologies is a manufacturer and distributor of technology infrastructure and hardware across cabling, networking, wireless, telecommunications and audio visual disciplines. Back in 1992 Madison Technologies introduced the concept of the Network Boundary Device to Telstra, which helped pave the way for other Telcos to provide services to Australians. The humble plastic enclosure is now on the wall of over half of the homes across Australia. By 1999 Madison Technologies, working with Alcatel and Telstra, developed the High Density Cross-connect System for roadside cabinets, a contract that it retained for the life of the product. Now, in 2016, Madison Technologies operates a manufacturing plant and employs over 90 staff to facilitate the staged roll-out of the National Broadband Network across Australia. Over the years, Madison Technologies has always been focussed on the way Australia connects, from the Network Boundary Devices to the NBN Pillar. Connectivity still remains the driver and Madison Technologies is dedicated to continuing the drive well into the future. For more information, contact the Telco Division of Madison Technologies on 1800 12 22 23.

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POPULATION & THE FUTURE

THE POSSIBLE FUTURE FOR INFRASTRUCTURE INVESTMENT The centenary celebrations for the Department of Infrastructure and Regional Development provide a timely opportunity to examine long-term trends in infrastructure investment in Australia, and where it heads from here. By Adrian Hart, Senior Manager Infrastructure and Mining, BIS Shrapnel

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POPULATION & THE FUTURE

I

nfrastructure is vital for the operation of a successful society or economy. This is especially so for a nation such as Australia, with its combination of wide distances yet high population urbanisation. Investment in physical infrastructure, along with education, health and technology, is fundamental for boosting productivity, growth and our high standard of living. For economists, infrastructure investment is particularly important. It provides a measurable demand-driven boost to the economy in the short term (when the infrastructure is being built), but also adds to Australia’s productive capacity and potential growth rate in the long term. The short term boost is particularly powerful when there is significant associated construction activity which draws on local materials and labour giving rise to “multiplier” effects on domestic incomes and employment, and where there is latent capacity in the construction industry (so that the demand boost does not create unduly large price shocks). But the longer term benefits are arguably more important. Well-chosen, productive infrastructure benefits the economy for decades. Australia, today, benefits from the many infrastructure choices that were made throughout its history. The challenge for today is to build on this legacy, making sensible infrastructure decisions today that will provide the greatest benefits to future generations. In this context, the amount of infrastructure investment is not necessarily the most important determinant of future prosperity. Higher infrastructure investment is not always better, particularly if infrastructure projects are not well-chosen. But in most cases, where infrastructure investment is shown to be productive, examining trends in the volume of infrastructure investment can be instructive in understanding Australia’s longer term historical growth in living standards, and where our living standards are likely to head from here. First, a caveat regarding definitions. There is no universal category of expenditure titled “infrastructure investment” in Australia’s system of national accounts, mainly due to different perspectives concerning the definition of what “infrastructure” actually is (is it buildings, structures, facilities, equipment and so forth) and who it is funded by (public or private sectors). For simplicity, this discussion is focused on the construction of “non-building” civil infrastructure, which the Australian Bureau of Statistics (ABS) defines as engineering construction. This includes the construction of transport infrastructure (roads, railways, bridges and ports), utilities (electricity, water, sewerage, telecommunications and pipelines), non-building recreation facilities and finally mining and heavy industry construction (MHIC). In using this definition, it is acknowledged that a broader measure of infrastructure would also include health and education buildings, as well as plant and equipment that is necessary to operate our infrastructure networks (such as rolling stock for railways and so forth).

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Well-chosen, productive infrastructure benefits the economy. Australia benefits from the infrastructure choices that were made throughout its history. With the exception of MHIC, much of this sort of infrastructure was traditionally provided by the public sector and included in the definition of “public investment” in the System of National Accounts. Figure 1 shows the path of public investment in real terms since 1960 to 2016, and its share of the total economy (as measured by Gross Domestic Product or GDP). Estimates for publicly funded engineering construction (a sub-segment of overall public investment) are available from 1975 from BIS Shrapnel, and the ABS itself provides data for this from 1985. Several features are noticeable from Figure 1:

Figure 1: Public Investment in Australia 1960-2016

Source: ABS Data, BIS Shrapnel Data

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POPULATION & THE FUTURE

• Public investment (including engineering construction) doubled in real terms during the 1960s, when both population and economic growth in Australia was strong. • Publicly funded engineering construction did not grow significantly in the two decades from 1975, but public investment continued to rise through education and health building and public sector purchases of plant and equipment. Even so, it took roughly 30 years (between 1970 and 2000) for public investment to double again. • A very strong phase of public investment took place during the 2000s, which has been winding down over the last few years. • Public investment as a share of the economy has been in trend decline throughout the period, but with significant cycles along the way. Part of the reason for this trend decline has been the increasing role of the private sector in funding and delivering infrastructure. Figure 2 shows that privately funded engineering construction (excluding MHIC which reflects direct mining investment) grew rapidly from the mid-1990s and throughout much of the 2000s. Privatisation of former public sector assets played a role

here (such as electricity networks, telecommunications, ports and airports), but new funding and procurement models such as Public Private Partnerships (PPPs) also boosted direct private investment in infrastructure. Even so, public and privately funded engineering construction combined (excluding MHIC) exhibited remarkable stability between the mid-1970s to the mid-1990s. Given that Australia’s population grew 30 per cent over these two decades (from 13.9 million persons to 18 million persons), this not only entailed a falling per capita spend on infrastructure during the period, but sharply increasing utilisation of the existing infrastructure base. During the late 1990s and 2000s, the mindset changed. Capacity constraints emerged across transport and utilities sectors, highlighting a need for new investment. Meanwhile, sustained economic growth (thanks to earlier microeconomic reforms) coupled with rising taxation revenues gave governments the financial wherewithal to kickstart new major public infrastructure investment programs, such as AusLink in 2004. Combined with policy responses to support the economy after the global financial crisis (notably the Building the Education Revolution (BER) scheme), public investment surged through the 2000s.

Figure 2: Engineering Construction in Australia 1975-2030

Source: ABS Data, BIS Shrapnel Data and Forecasts

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Concern over debt and budget deficits (at the State and Commonwealth levels) has seen public investment retreat in recent years. The private sector also contributed to the 2000s infrastructure investment boom. A very large part of this was the direct construction of mines and heavy industry facilities (such as LNG plants) to service large growth in global resources demand, as shown in Figure 2. There was also a substantial need for the private sector to invest in resourcesrelated infrastructure – particularly railways and harbours, but also electricity, water, access roads and pipelines. While not MHIC itself, this is still the key factor driving growth in privately funded engineering construction up to 2012/13, and the large drop in recent years as these projects were completed. So what can be made of the 2000s cycle in infrastructure investment, and what does it possibly mean for the future? Our research at BIS Shrapnel suggests two broad factors which accounted for the sheer size of the 2000s cycle in infrastructure investment. A primary driver was the super-cycle in resources investment and the need to (quickly) build related infrastructure to support much higher levels of mining production. Even today, with resources investment still falling sharply, output from the mining industry continues to grow strongly and is the key reason why Australian economic growth is currently closer to 3 per cent rather than 1 per cent. In other words, Australia’s economic growth today would be much less were it not for previous resources infrastructure investment. Yet even so, public sector funded engineering construction also grew substantially during the 2000s, and this was not primarily to support the resources sector (although some was). Rather, state and Commonwealth governments made decisions which collectively increased non-mining infrastructure investment in the face of strong population growth, growing capacity constraints (following nearly two decades of declining per capita infrastructure spending), and declining infrastructure quality. Consequently, per capita engineering construction (excluding mining and heavy industry construction) rose dramatically through the 2000s, peaking in 2012/13,

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before retreating over the last few years. Is per capita engineering construction heading back to the lows of the 1980s and 1990s? At BIS Shrapnel, we do not think so. There are good reasons to believe that infrastructure investment will be sustained at a higher level into the future, as illustrated in the long term BIS Shrapnel forecasts presented in Figure 2: • Relatively robust population growth and the expectation that the bulk of population growth will continue to occur in our capital cities (as outlined by Infrastructure Australia in their Australian Infrastructure Plan). This typically entails more capital-intensive infrastructure solutions (e.g. tunnels, higher density renewals) compared to greenfield development. • The establishment of independent infrastructure authorities at the national and state levels, focusing on identifying infrastructure gaps and the most productive ways to meet infrastructure objectives. • Large, generational investment in transport networks is required given increasing international trade and freight task and urban congestion. • The need to invest in new technologies and processes for an ecologically sustainable economy (for example, new investments in electricity generation and water infrastructure). • The need not just to invest in additional capacity, but also to recapitalise (or otherwise improve) the stock of existing infrastructure

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which was laid down in previous decades and is now nearing the end of its projected life (this applies to resources infrastructure also). • Regional development policies, which may inevitably entail significantly increasing infrastructure investment in regional areas to take pressure off our capital cities. • Working against these factors is the likely increasing use of demandmanagement technologies coupled with optimising maintenance of existing assets. These factors all suggest that current per capita levels of engineering construction activity (excluding mining and heavy industry construction) are possibly more consistent with longer term sustainability in living standards, as opposed to the relatively low spend (1985-95) and high spend (2005-13) eras. Given that Australia’s population is expected to grow significantly further in coming decades – approaching 30 million persons by 2030 – infrastructure investment, in our view, will need to rise further to meet the challenge. This is highly likely to be achieved over the remainder of this decade as public investment picks up, based on BIS Shrapnel’s existing analysis of existing infrastructure projects and spending programs. However, the greater challenge will be sustaining higher levels of infrastructure investment over the decades to come. 

69

With 50+ years expertise, BIS Shrapnel provides the best analysis of industry sectors and drivers, along with accurate, robust and fully explained forecasts to support strategic planning, budgeting and decision making. Analysis & Forecasting across asset life cycles: › Investment › Construction › Maintenance › Capacity/Cost Analysis › Asset Sales – M&A Due

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Clients include government, equipment and material suppliers, contractors, construction firms, engineers and industry associations. Contact our infrastructure team to discuss how we can support your decision-making and strategic planning.

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FINANCING INFRASTRUCTURE –

PAST, PRESENT AND FUTURE Australia has created some iconic infrastructure in the last 100 years or so and over the years it has developed world-class engineering and construction capability. The question is, has Australia landed on the best way to finance infrastructure?

A

ustralia has built some iconic infrastructure in the last 100 years or so. The Sydney Harbour Bridge is the world’s largest steel arch bridge, the Snowy Mountains hydro-electric project is recognised as one of the modern civil engineering wonders of the world and Melbourne boasts the world’s largest urban tramway network. These are remarkable achievements for a country of Australia’s size and relatively small population.

INTERNATIONAL CONTRIBUTION Australia cannot take all the credit for this worldleading infrastructure. It was an English company, Dorman, Long & Co, that submitted the winning design for the Sydney Harbour Bridge. Seventy per cent of the 100,000 workers on the Snowy Hydro project were migrant workers, coming from more than 30 countries. In the 25 years it took to complete, the Snowy Mountains’ engineers had to develop new ways of doing things, including safer and cheaper construction methods. The project also used Australia’s first transistorised computer. The “Snowcom” was one of the first of its kind in the world. Today, there is growing competition between international contractors as they follow their partners around the world. “By articulating a pipeline of opportunities that warrant offshore contractors establishing offices in Australia, government has heightened the competitive tension. The result is better value for money,” says Michael Thorpe, Managing Director, Infrastructure at CommBank. FROM GOVERNMENT FUNDING ON BALANCE SHEET… Several different financing methods have been used along the way. The Snowy Mountains hydroelectric project was financed on the Commonwealth

70

Government’s balance sheet through the issue of government bonds. It was effectively paid for by the tax-paying community. The Sydney Harbour Bridge is an early example of user pays. The bridge tolls finally repaid the construction costs in 1986, 54 years after the bridge was completed. Sydney Harbour Bridge also incorporated the value-capture concept that is being discussed today as a way to narrow the infrastructure deficit. At one point, the bridge was partly funded by a ‘betterment tax’ on property owners who benefited from the harbour link. Private companies have played a part too. Melbourne’s first serious electric trams were

By articulating a pipeline of opportunities that warrant offshore contractors establishing offices in Australia, government has heightened the competitive tension. The result is better value for money.”

Michael Thorpe, Managing Director, Infrastructure, Commonwealth Bank

started in 1906 by an English company that wanted to sell electricity to customers along the tram route. The North Melbourne Electric Tramway and Lighting Company built a line from the edge of the cable system towards Essendon. This was also the motivation behind the establishment of the Ballarat, Bendigo and Geelong electric tram systems.

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...TO PPPS AND ASSET RECYCLING Private sector involvement in the financing of infrastructure dates back to the late 1980s. The Commonwealth Bank was one of the first major financiers to use its considerable balance sheet and expertise to invest in private infrastructure projects, including equity participation in Australia’s two first toll roads in 1989 – Sydney’s M4 Western Motorway and M5 South West Motorway. In the last 20 years Public Private Partnerships (PPPs) have evolved as another model for financing infrastructure. Australia, Canada and the UK are among the leaders in PPPs as governments seek to benefit from the innovation and operational efficiencies of the private sector and alleviate pressure on public finances. “There is more to efficient provision of infrastructure than who has the cheapest cost of capital,” says Thorpe. A more recent development is governments selling established essential infrastructure to the private sector and applying the proceeds to financing new infrastructure. The state governments of New South Wales and Victoria are among the first in Australia to adopt asset recycling. Clearly there are numerous ways to finance the infrastructure that is vital to maintain productivity, international competitiveness and living standards. Leilani Frew heads NSW Treasury’s new Commissioning and Contestability Unit. The unit is responsible for determining best practice for supplying public services regardless of ownership of assets and service providers. “Our aim is to deliver the best possible outcomes for citizens,” Frew says. “Then we look at the most efficient way to deliver these outcomes. It could be public servants using private-owned assets or vice versa or indeed, all assets owned and operated by either the public or private sector.” THE RISK CONTINUUM… The question is, has Australia landed on the best way to finance infrastructure? Efficient financing of infrastructure lies in allocating risk to those parties best able to manage it. CommBank’s Executive Director, Government, Emmanuel Alfieris, says one way to conceptualise this is as a continuum of risk with a pendulum moving between the public and private sectors. Looking specifically at the financing of toll roads, Australia has moved from the old model of the government bearing all of the risks, from financing the new infrastructure on its balance sheet to dealing directly with the contractors. The pendulum then swung the other way with the private sector bearing greenfield patronage risk. This didn’t always produce the best outcome. Extreme financing structures emerged, to the detriment of the sector. Investors and financiers

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In the interests of policy efficiency, it is incumbent on the private sector and public sector to keep the pendulum in a narrower band. If not, the provision of infrastructure becomes inefficient, the cost of which is ultimately borne by the general public.”

Emmanuel Alfieris, Executive Director, Government, Commonwealth Bank

didn’t fare too well and consequently withdrew from the market for a period, leaving the government to bear greenfield patronage risk on all new projects. In contrast, the new model shares greenfield patronage risks between the private and public sectors. Tracey Gibson, Executive Director, Project Finance at CommBank, says WestConnex is a good example. The NSW Government expects investment opportunities to arise when WestConnex is operational and traffic patronage is proven. When that occurs, the state government will seek to sell down its equity holdings in the project. …AND POLICY EFFICIENCY The lesson here is that the pendulum shouldn’t swing so wildly along the risk continuum, explains Alfieris. In the interests of policy efficiency, it is incumbent on the private sector and public sector to keep the pendulum in a narrower band. If not, the provision of infrastructure becomes inefficient, the cost of which is ultimately borne by the general public. As the pipeline of infrastructure projects moves more towards social infrastructure, such as social housing, hospitals, schools etc., it is hoped that PPPs will play a larger role. Over the past decade only four or five PPPs have been awarded each year, a smaller pipeline than is optimal to encourage broad participation by the private sector. At the same time, the lessons on optimal risk sharing in economic infrastructure must be applied to the provision of social infrastructure. Where there is a desire to use infrastructure provision to deliver social outcomes, the private sector must be disciplined in the risks they accept. If not, they risk the mistakes of failed toll road financings being repeated.

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COMMBANK HAS BEEN HELPING TO FINANCE AUSTRALIA’S INFRASTRUCTURE FOR MORE THAN:

We have invested in 25 projects

SA

BIO SCIENCES

SCHOOLS

RESEARCH FACILITY

MELBOURNE

ADELAIDE

MELBOURNE

OPENED IN

OPENED IN

OPENED IN

OPENED IN

AT A COST OF

AT A COST OF

AT A COST OF

AT A COST OF

$315

$3.75

$200

$255

LENDER SINCE ROAD INCEPTION

LENDER SINCE 2004

LENDER SINCE INCEPTION

LENDER SINCE INCEPTION

M5

CONNECT

SOUTH WEST MOTORWAY

EAST

SYDNEY

1992

MILLION (REMAIN A LENDER TODAY)

2008

BILLION

2011

MILLION

2012

MILLION


20YEARS. over the past 20 years including: NT

INTERNATIONAL CONVENTION EXHIBITION & ENTERTAINMENT PRECINT

SECURE FACILITY (PRISON)

SYDNEY

2012 BID

SYDNEY

LIGHT

WEST

RAIL

CONNEX (STAGE 2)

NORTHERN TERRITORY

SYDNEY

SYDNEY

OPENED IN

FINANCIAL CLOSE

FINANCIAL CLOSE

AT A COST OF

AT A COST OF

AT A COST OF

AT A COST OF

$1.5

$620 MILLION

$1.7

BILLION

$4.9

BILLION

LENDER SINCE INCEPTION

LENDER SINCE INCEPTION

MANDATED LEAD ARRANGER AND BOOKRUNNER

MANDATED LEAD ARRANGER, UNDERWRITER AND BOOKRUNNER

BILLION

2014

2015

2015


PROJECT LIFECYCLE MANAGEMENT

PROJECT LIFECYCLE MANAGEMENT ALLOWS CONTINUAL EVOLUTION Technological advances will serve all levels of an infrastructure development, from the modelling that can predict stress and traffic on a structure, to best maximising resources in real time through a project.

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PROJECT LIFECYCLE MANAGEMENT

T

he deployment of increasingly-advanced software solutions is allowing developers and project managers to work with and stress test their projects before the work has been completed. This isn’t limited to the macros project either, but can be deployed across each tier and layer within an overarching project or manufacturing system. “The software being developed essentially allows the creator to test the product through computer power. How do products perform? How might it be maintained? How might it be accessed? All though a system called the ‘digital twin’, says Chuck Grindstaff, executive chairman of Siemens PLM Software. “Having a digital twin allows a developer to answer questions about a product before the product has been realised. “You might look at the projects [we’re working on] and ask what does a jet engine have in common with a vacuum cleaner? The projects our customers are building are, in today’s world, changing very rapidly; they’re becoming more connected and more of the value of these products is being delivered through software. “You might say that you’re going to sell a lot of those jet engines, but that’s not the business model any more. The business model is the maintenance and repair.” The thing that is shared about all the products the PLM software works across is the desire for quality, innovation, speed to market, and the ability for the product to be tailored. The scale and magnitude associated with the delivery of infrastructure projects is something that makes the creation of a digital twin even more important. When a project’s life runs into years or even decades, then the need for efficiency and effectiveness is even more important through the entire life cycle. The tools today not only capture the capability at the outset of the program or development, but also can update and upgrade its insights into the project in real time as the project progresses, allowing for real-time analysis of opportunities to streamline development. This becomes critical when the lifecycle crosses multiple formats and systems, such as when a construction project moves from the actual physical construction through to ongoing review and maintenance. Project management tools allow this growth and development to occur while being part of a continual and ongoing review process. Systems analysis also allows developers to ensure that resources are being deployed as efficiently as possible. In one example from Grindstaff, Uber successfully found a way to harness the potential of family cars, which are sitting idle 80 per cent to 90 per cent of the time. By identifying the potential in that down time, it created a system that helped it create a value in the billions of dollars. The growth curve of technological innovation is also radically changing what could be considered the component items within a project. With the Internet of

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The scale and magnitude associated with the delivery of infrastructure projects is something that makes the creation of a digital twin even more important. Things expected to have a ‘value’ of $36 trillion within a decade, how every single thing that is manufactured or constructed fits into that technological age is key. As such, understanding not only the technological capability of any one thing today, but also where it can be in a decade once completed, must form part of the ongoing thinking. That technological growth is best illustrated by a story around the origin of chess. Legend has it that the person who invented the chessboard took his invention to the emperor of China, who loved the game so much he asked what the inventor wanted. He replied that he wanted one grain of rice on the first square, two on the second, four on the third, and so on. The Emperor agreed, until he realised that by the time you entered the second half of the board, you were quickly into the tonnes of rice space, and by the end of the process, it was trillions of tonnes – more rice than is made on earth. The exponential growth of technology has potential in other ways, including 3D printing, and availing of supercomputer access, and today we’re entering the second half of the chessboard. Harnessing this power will enable projects to be delivered in a manner like never before. 

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ADVERTISER INDEX Abergeldie Complex Infrastructure

37, 38

Australasian Certification Authority for Reinforcing and Structural Steels (ACRS)

08

Australian Rail Track Corporation (ARTC) Arup

51, 52 OBC, 16

Holmesglen 61 John Holland Group

02

Madison Technologies

64

QA Software Pty Ltd

49

Stoddart Infrastructure

56

Asset Institute

42

BIS Shrapnel

69

Commonwealth Bank of Australia

72

Systemix Pty Ltd

Engineering Education Australia

24

Taylors Development Strategists

Expotrade IBC Fulton Hogan

SNC-Lavalin 46 IFC 62

Trelleborg 12

32

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