major projects 2022 - roads and maritime services€¦ · aboriginal participation in construction...
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Major Projects 2022 Roads and Maritime Services
Foxground to Berry community walk July 2017
John Hardwick Executive Director Sydney Roads and Maritime Services
Delivering for our Sydney customers Addressing population growth and mode integration
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Sydney motorways Delivering the missing links for getting around and through Sydney
• WestConnex: New M4 M5/KGR Interchange • New M4 tunnel extension • New M5 • M4-M5 Link
• NorthConnex
• Western Harbour Tunnel/Beaches Link
• M12
• Sydney Gateway
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Our build program across Sydney Keeping Sydney moving
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Planning for the future Making sure our assets stand the test of time
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Easing Sydney’s congestion today Clearways, Pinch Points and major builds underway around Sydney
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Our asset management task Around $500 million a year in Sydney maintenance
For our customers
Plan
Maintain Build
Sydney division end-to-end delivery Putting the customer first everyday
Roy Wakelin-King AM Executive Director Regional and Freight Roads and Maritime Services
Our regional priorities
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Connecting communities, supporting growth and safe journeys
• Improving safety • Building safe roads –
reducing fatalities
• Supporting growth • Significant NSW regional
population growth forecast • Freight movements to double
by 2031
• Supporting the local economy • Direct employment • Using local suppliers
15% population increase in regional NSW by 2031
Pacific Highway – fatal crashes and fatality
Our regional priorities
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Connecting communities, supporting growth and safe journeys
• Improving safety • Building safe roads –
reducing fatalities
15% population increase in regional NSW by 2031
Pacific Highway – fatal crashes and fatality
Our regional priorities
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Connecting communities, supporting growth and safe journeys
• Supporting growth • Significant NSW regional
population growth forecast • Freight movements to double
by 2031
• Supporting the local economy • Direct employment • Using local suppliers
15% population increase in regional NSW by 2031
$4.8 billion investment in regional NSW
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Our biggest year on record
• 28 major projects in construction
• 27 major projects in development
• Thousands of minor and maintenance work projects
Our bridge and maintenance program
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Looking after our network
• 15,943 km of road and bridge infrastructure
• Re-marking 15,000 km of lines annually
• 17 bridges for the bush projects in-flight
• Supporting councils to upgrade bridges through our Country Bridge Solutions program
• Over $500 million annual spend
Using local suppliers
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Case study: Burrill Lake bridge
• Principal: BGC Contracting • Steel and Fabricators from Milton
NSW • Traffic Control from South
Nowra/Wollongong NSW • Concrete supplied from Milton NSW • Asphalt and spray sealing
subcontractor from Mogo NSW • Concrete subcontractor from
Ulladulla • Drainage from Nerriga NSW • Supplier of general fill earthworks
from South Nowra • Welding/fabrication services from
Ulladulla NSW • Underboring services from Termeil
NSW
Engaging with our regional suppliers
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Supporting regional industry
• Five industry forums and round tables held in key regional locations
• Regional industry want to better understand the pipeline
• Smaller suppliers want to better understand how to connect with industry project leads
Aboriginal participation in construction (APiC)
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Meeting and exceeding our targets
• 18 active contracts on major projects, with an estimated total targeted spend of almost $20 million
• Target spend of full program will be significantly bigger with Woolgoolga to Ballina’s target spend alone estimated at over $30 million
• Early adopters are making great headway
The NSW Government Policy on Aboriginal Participation in Construction applies to Construction contracts over $1m.
What our work means to our regional communities
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Flooding on Macleay River (Kempsey bypass)
Jeff McCarthy Executive Director Technical Project Services Roads and Maritime Services
Infrastructure across Australia
Roads & Maritime Services 21 Sources: Macromonitor March 2017, BIS Oxford Economics 2017
Major Australian transport infrastructure
Engineering construction by state / territory
Major road projects are a big part of the infrastructure spend
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• Based on the ‘mega projects’ over $2 billion
• In addition to the mega projects there is $5 billion in FY18 on highways and arterial road projects
• Around $2billion of this is attributed to NSW road projects
$11.65 b
Source: BIS Oxford Economics 2017
$5 billion
Road infrastructure in Australia – NSW continues to lead the way
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The peak of the NSW wave has reduced and it now extends for longer
2017
Source: BIS Oxford Economics 2017
2016
NSW road projects
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$3.3 billion spent on major road projects last year
0
1,000
2,000
3,000
4,000
5,000
6,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Mill
ion
s
WestConnex - M4 and M5 stages
WestConnex - M4-M5 Link
Sydney Motorways Delivery
Western Sydney Infrastructure Plan
Western Sydney Growth Roads
Sydney Commuter Wharf Upgrades
Regional NSW Major Road Upgrades
Princes Highway
Port Botany and KSA
Newell Highway
Moorebank Intermodal
M1 Productivity Package
Hunter Roads
Great Western Highway & Bells Line ofRoadEstablished Sydney Roads
Easing Sydney's Congestion
Central Coast Roads
Bridges for the Bush
Bridge Rebuilding
Pacific Highway
Excludes NorthConnex and construction funding of M4-M5 link
Impact on resourcing
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Demand for engineering skills in the NSW roads sector
700 additional recruited client side
Source: BIS Oxford Economics 2017
17 major projects awarded – total value $3 billion
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Project Contract award Award within 1 Quarter of target date
M4 Smart Motorway, Package A 23-Jun-17 Sydney Airport East, Wentworth Avenue Extension and Joyce Drive Widening 16-Nov-16 TNR, Peter Brock Drive to Mersey Road and Bringelly Road to King Street (Stage 2) 19-May-17 TNR, Glenmore Parkway to Jamison Road (Stage 3) 06-Dec-16 Bruxner Highway, Tabulam Bridge over the Clarence River 06-Apr-17 Newell Highway, Grong Grong Realignment 31-Oct-16 Pacific Motorway (M1) Widening, Wyong Road to Doyalson Link Road 20-Feb-17
Princes Highway, Dignams Creek Realignment 16-Dec-16 Woolgoolga to Ballina, Bridge Construction, Glenugie to Tyndale 31-Mar-17 Woolgoolga to Ballina, Construction of Woodburn-Broadwater Service Road 08-Feb-17 Woolgoolga to Ballina, Ancillary Site Compounds, Sections 3-11 (Portions A-D) 26-Sep-16 Woolgoolga to Ballina, Piling Works 28-Mar-17 Woolgoolga to Ballina, Early Works - Temporary Diversion Lanes and Intersection Upgrades 12-Sep-16 Woolgoolga to Ballina, Early Works - Wave 5A (Glenugie to Maclean) 25-Jul-16 Woolgoolga to Ballina, Early Works - Bridge Construction - Portion B 31-Oct-16 Woolgoolga to Ballina, Bridge over Richmond River 16-Feb-17 Woolgoolga to Ballina, Pimlico to Teven (Stage 3) 10-Feb-17
Project Revised award date
Oxley Highway, New Bridge Over Railway at Gunnedah Q4 FY18 Pacific Motorway (M1) Widening, Kariong Interchange to Somersby Interchange Q2 FY18 Queanbeyan Bypass, Ellerton Drive Extension Q1 FY18 Woolgoolga to Ballina Packages Q1-Q3 FY18
2016/2017 Projects with revised timelines
Total $3 billion project value
Contracts awarded by contract size
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• Reduced number of <$100m contracts last year – but increasing this year
• Growing number of >$100m projects this year
Number of contracts awarded by contract size
0
2
4
6
8
10
12
14
16
18
20
<$100m$100m-$200m
>$200m
FY15/16
FY16/17
Our portfolio of partners is diverse
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For both construction and professional services firms
• Construction portfolio (in flight) • 53 contracts >$10 million • 34 contractors engaged
• Professional services contracts (in flight)
• 108 contracts > $1 million • 42 firms engaged • An additional 144 firms engaged on PSCs < $1
million
Construction portfolio total value $5.4 billion
(includes contracts awarded over $10 million)
PSC portfolio total value $460 million (includes contracts over $1 million)
Industry feedback - innovation in procurement
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Reducing the cost of tendering
• Increased the use of 2 stage processes, where appropriate
• Reduced documentation required
• Shortened evaluation timeframes
• Tailored evaluation criteria
• Bundled multiple construct only packages, where appropriate
20152016
2017
100%
88%
53%
0% 12%
47%
One stage
Two stage
Industry feedback - contractor performance reporting
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• 4 monthly reporting • Evaluation guidelines too subjective • Limited calibration • No benchmarking
Future state
Current state
• Quarterly reporting • 7 standard KPIs • Online standardised scoring guidelines to ensure objective
evaluation • Facilitates calibration, analysis and benchmarking across industry
(and the Transport Cluster) • Report and scoring grid to be shared with industry
Contractor performance report - sample
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Benchmarking, trends and analysis
• Performance overviews • Performance comparisons and trends • Benchmarking to be shared with industry
Company X
Company X – period trending performance comparison
Keeping our 10,000 workers safe
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Project SafeR
• Industry forum held Dec 2016 attended by 70 senior construction and WHS state leads
• Agreement to 4 RMS + industry initiatives • Wearable technology (The Northern Road) • Automated traffic control (Pinch Points) • Consistent delineation of people and plant, ‘Separate
yourself’ (Pacific Highway) • Common language to categorise data (WHS leads)
• CEO roundtable held March 2017
• Next SafeR forum to be held end 2017.
Wearable technology initiative
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Early warning system for workers
• Installation of an immediate warning sensor system (EgoPro®) that detects the presence/position of workers or vehicles entering hazardous areas
• Hard hat and plant-mounted sensors warn operators and pedestrians of possible clashes
• Trial to start on The Northern Road Stage 3 in Sept 2017
Delineation of people and plant
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Separate yourself initiative
• Nine site situations identified
• Guided by agreed mandatory controls ‘on the ground’
• Consistent look and feel on all sites (unbranded)
• Trials have commenced on Woolgoolga to Ballina project
Thank you to all our industry partners
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Over 30 partners and supporters actively participating
Delineation (Pacific Highway) Pacific Complete
Seymour Whyte
Wearable technology (The Northern Road)
Lendlease Acciona
Fulton Hogan Pacific Complete
SEE Civil Transurban
Ventia Boral Amey
Working near traffic
(Pinch Points) Bouygues
Burton Lendlease Tyco
Ward DM Roads Daracon
Delineation project initiative supporters Lendlease, OHL McConnell Dowell JV, OHL York JV, Acciona Ferrovial JV, CPB, CMC, Golding Contractors, SEE Civil, Seymour Whyte, Fulton
Hogan, Pacific Complete (Laing O’Rourke PB JV), FKG, Georgiou, BMD, Shamrock, Davbridge, CBC
Data categorisation CPB Contractors
DM Roads John Holland
Lendlease Tyco McConnell Dowell
York Civil
SafeR data and trends analysis
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• 6963 events received categorised and analysed over 20 months from 55 projects - 25 contracting organisations
• Quality of data is improving
• 20% uplift in hazard/near miss reporting across our projects
• Continued willingness to provide data at executive level – some issues noted at operational level
• This data directly influences our SafeR working initiatives
0
20
40
60
80
100
120
140
160
Hazard/ nearmiss frequencyratio**
Hazard/near miss frequency ratio**
✓
✓
✓
✓
✓
** per 1 million hours worked
• Working near mobile plant has the highest ‘industry specific’ events
• Manual tasks continue to injure our people
• Working near traffic events have reduced
SafeR data and trends analysis
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Reporting has increased, severity has decreased
Events by group/severity hazard/near miss and injury
Data to March 2016*
Events by group/severity hazard/near miss and injury
Data to March 2017*
*Approximately 10 million hours worked
Our forward work plan
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Major Projects 2022
Our forward work forecast
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$15.9 billion across five years (excluding motorways)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
$15.9 b
$15.7b
$16 b
2017
2016
2015
Budget forecasts - 2015, 2016, 2017
Excludes motorways
Procuring our major projects
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Procurement peaks in 2018
Project status 5 year perspective Tenders in FY2018
Number of Projects
Estimated Project Value, $M
5 Year Forecast Spend, $M
Number of Projects
Estimated Project Value, $M
In flight Under construction or contract awarded 31 $6,200 $2,300 - -
Funded but construction not yet contracted Includes Commuter Wharf Upgrades 33 $5,500 $5,000 19 $3,000
Planning funded but delivery funding not yet cconfirmed 23 $7,000 $2,900 - -
Woolgoolga to Ballina 17 $4,356 $3,000 2 $250
Easing Sydney's Congestion 6 $1,500 $900 5 $260
Other projects (not named in FWP) - - $1,800 - -
Total 110 $24,556 $15,900 26 $3,510
Excludes motorway projects. Table shows projects > $10 million only
In summary
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We still have a significant program ahead
• We are aligning our business model to ensure customer needs are central to our decision making process
• We are investing in our people to build skills and capacity
• We continue to be transparent and accessible to our partners
• We have responded to your feedback
• We are working with you to improve safety for our workers
• …and together we are successfully delivering the biggest infrastructure investment in the state’s history!