Benefits and Strategic Policies of Sydney Rail Projects

This report discusses the benefits and strategic policies of the Sydney Rail Projects. It highlights how the project will improve transportation services and connect suburban areas to the urban, benefiting the economy. The report also explores the financial and nonfinancial benefits of the project and the costs involved. It provides insights into the strategic aspects of the project, such as increasing mobility and transportation pace within the city and the development of an advanced light rail system. The report concludes by evaluating the net present value of the project and its overall profitability.

CPA STRATEGIC MANAGEMENT ACCOUNTING

Table of contents
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Executive summary
In the report below the benefits and strategic policies of Sydney rail projects has been discussed.
It has been seen that Sydney Light Rail project will be beneficial for the city’s transportation
services and will increase the pace of the city’s transportation as well as will also connect
suburban areas to the urban which will benefit the economy. There are both financial and
nonfinancial benefits of the project but the project will also incur cost for reaping such benefits.
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1. Introduction
The current report is related to the Sydney Rail light project which is focused on better
transportation within the city. The purpose of this study is evaluate and report policies and
strategies for the project and to further evaluate its profitability in terms of cost benefits. It is to
be mentioned that the current report focuses of development of effective and informative
document for the strategic management of the project as well as to increase the effectiveness of
the projects in operational and financial term. It can be said that the following rail project will be
a transportation booster within the city and will benefit its operational and economic dimensions.
2. Summarizing Sydney Light Rail project broad strategic policies
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The broad strategic policy of the firm will be to ensure that there is effective transportation
system within the country which increases the pace of the city which will ultimately help the
company in providing an economic boost for city. Increase in transportation services through this
project is the ultimate goal of the NSW Government Plan which will develop the transportation
system of this country (Otley, 2016). Increasing the connection between different parts of the
city is also important to consider while implementation of such project as these will decrease the
transportation load of other transportations mediums which will increase the transportations
effect of the city. People after end of this project will be able to connect to different places in a
faster manner. Hence till now the strategic policy of project is faster transportation, effective
medium and better connectivity to remote places. Now in the current environmental situations it
can also be seen that for the purpose connection from one part of the city to another people are
using vehicles on wider extent which increase the carbon emission rates hence the strategic
policy which has been set of Sydney Light Rail project is to provide better connectivity between
one part of the city to another so that the vehicles are used in low intensity decreasing the carbon
emission and making the the transportation operation within the city more eco friendly. The
project here has major cause which it has addressed is related to Environmental impact and
through the Sydney Rail Project the NSW will try and establish an effective system of
transportation that will ensure people using lower amount of carbon emission. Strategically it can
be said that the growing concern over faster communication within a city Like Sydney are to be
mitigated through this current project (Ambrosini et al. 2015).The Sydney City Centre Access
Strategy is focused on making sure that there are people in an around the city to get proper
transportation through such project in an easy manner. The Sydney Light Rail project is looking
to connect suburban areas within and near Sydney to the city in efficient manner. It can be
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mentioned that the rail project is focused filling the connection gaps between urban and sub
urban areas of the city to increase the pace of mobility and transportation within the city for its
economic growth.The government has also looked upon the aspect of environmental question
which were asked on removal of trees on the course of such project which means the company
wants to achieve the establishment of this transportation network.
Hence it has become very evident that the strategic policy of the project is to build effective
tradition network between different parts of the city so that the transposition within the city
becomes more effective, secondly the project will tend to make the transportation more faster,
the policy is also to make sure that the transportation is easily available in every part of the city
and lastly through this project the policy is also to make sure that use of other vehicles are
lowered which will decrease carbon emission within the city and this will ultimately benefit the
environment of the city.
2.1 Identifying and evaluating two key strategic aspects of the project
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Focusing on two key strategic aspect of the project it can be said that the elements within the
project are to identified.Elements such as operational, financial and environmental element
which are associated with the project are to be analyzed before making any types of judgments in
regards of the strategic aspects of the project (Hiebl, 2014). It has been discussed about the
project operational efficiency that after its implementation and initiation the transportation and
mobility strength of the city will increase in an evident manner, the financial returns from such
fast moving transportation will also be high whereas public transportation will generally lower
the carbon emission within the environment by decrease the use of vehicles in the are in which it
is available. Now the Key stakeholders of the firm are the government, the people of Sydney and
the project associates all of these stakeholder will determine the fate of the project and will
determine the extent of the project is successful. After looking at all these aspect the two key
strategic aspects of the project are as follows:
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1. Increasing the mobility and transportation pace within the city: This is a major and key
strategic aspect within the current project this is because the main strategic aim of the
company is to make sure that the pace of transportation within the city increases which
will help n the economic development of the city. It can be said that strategic direction in
which NSW government is looking is to make sure that there is an effective
transportation network created within the city which will enable a proper transportation
connectivity between the urban and suburban areas of the city which will make sure that
population within the city is able to transport from one place to another in a cost effective
and faster manner (Theriou, 2015). The mode of transportation is considered to be fast
and effective which will increase usage returning high financial returns on the usage of
such system. It is important to consider that through the use of effective transportation
system within the city the Government wants to ensure that usage of other vehicles also
decrease which will have an good effect on the environmental aspect of the city as the
carbon mission will drop (Fullerton, Kennedy and Widener, 2014). Hence it can be said
that the strategic aspect of faster transportation and mobility through effective and
connected transportation network is an aspect to which the project is very much focused
on.
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2. Development of a advance light rail system: As mentioned above the government is
trying to make the city more connected in terms of transportation for this purpose the
second strategic aspect on which the project looks on is the proper utilization of advanced
tools and technology to build an affect and effect transportations network system which
will ensure that there is ideal transportation network which is set for operation and for the
transportation of wide range of population in faster and effective manner. Technological
advancement will bring both economic and well as technological well being in the
current scenario of the city much work n the benefit of the project the technological
advancement will make sure that the project was able to increase the transportation
ability of the railways within the city (Carlsson-Wall, Kraus and Lind, 2015). Usage of
new light rail vehicles, power generation centers and creation of alternative routers will
widen the network of the transportation and will facilitate transportation facilities which
will be rendered by the current project. Hence the second strategic objective which can be
seen in the current context is that of the technological advancement and in the extension
of railway network within the city to benefit the stakeholders of the current project in an
effective manner.
2.2 Net present Value Evaluation
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In the current evaluation there will be evaluation of 6 areas in which 3 will be the cost areas and
three will be benefits area which the current project will reap. Net present Value evaluation is an
evident way through which the profitability of the current project will be determined. Through
this evaluation the benefits which the project will reap can be known the cost areas which the
project will incur can be determine which will help in better evaluation of the projects financial
profitability. As there 1.2 billion dollars invested in the current project it is important that the
profitability of the current project is evaluated:
1. Technological cost: Now for the benefit and development of the Sydney Light Rail
project there is demand of having technological advancement this is because the
Government wants to make the project effect in terms of fast transportation hence use of
new and advanced technology will be needed to develop fast and effective transportation
system. Hence for the sake of acquiring new technologies there will be need of high cost
which will ensure that there is evident technology required for the current technological
development (Morden, 2016).
2. Labour cost: It is very evident that in the current scenario the need of labor and experts
for the current operation is very high. Labour and experts will be required in the best
manner to ensure high quality of rail network development which suits the fast and
effective rail project which the government desires. Hence for this purpose the project
will demand high level of experts and labor which will come at high cost hence this is
also a cost area in which the company will have to focus on, in order make sure that the
project is successful and the financial barrier does not intervene labor supply for the
project (Stead and Stead, 2014).
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3. Maintenance cost: Maintenance of the network is also a area of cost which the company
will have incurr cost in this means that the project will need high level of maintenance to
make sure high quality of fast transportation is render as per the desire of the government.
The areas of benefits are as follows:
4. Benefit from usage revenue: It can be said that as the following project will look forward
to connect suburban areas to the urban areas it is very evident that such transportation
will generate demand in these areas which will make sure that people in that area use this
mode of transportation as it is fast and cost effective. In thi,s revenue will be generated
which is positive benefit sign for the company (Chiarini and Vagnoni, 2015).
5. Benefit from advertising and marketing: It is to be mentioned that railway station and
trains are one of most effective mediums through which companies advertise their
products in form of hoardings. Hence with the development of this project new rail
stations in suburban areas of the city will be made which now will become an effective
center of advertisement. In turn these advertisements will generate revenue and benefits
from the project.
6. Non financial benefit: Other than financial benefit it is important to understand that there
is non financial benefit in the current scenario. The transportation effect within the city
will increase in an evident manner which will help the population in the city to transport
from one place to another. Through this project the people living in suburban areas will
get to transport to city enhancing business and economic development which is directly
related to the development in transportations. Government will also fulfill its objective of
transportation development which will indirectly decrease carbon emission and usage of
other vehicles in the presence of such mediums will decrease (Renz, 2016).
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Conclusion
Concluding in the light of above context it can be said that Sydney Light Rail project is
beneficial for the city’s transportation as it will help the city in increasing the pace of these
transports. This project will also increase the connectivity of urban areas to suburban areas which
is economically beneficial for the city’s progress aspect the Government's agenda.
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References
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