This report focuses on the financial management of projects, specifically the Barangaroo Metro Station in Sydney. It covers cost analysis, risk management, and environmental management. The report also discusses the rolling stock public-private partnership and the Sydney Metro delivery strategy.
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Financial Management of Projects 1
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Table of Contents Introduction......................................................................................................................................3 Overview of Sydney Metro Station.................................................................................................4 About Barangaroo Metro Station.....................................................................................................6 Rolling stock public- private partnership......................................................................................11 Work Breakdown Structure...........................................................................................................17 Project Budget...............................................................................................................................18 Risk Management..........................................................................................................................21 Environmental Management..........................................................................................................26 Conclusion.....................................................................................................................................27 References......................................................................................................................................28 Appendix........................................................................................................................................30 2
Introduction This report demonstrates that how this piece of infrastructure can enhance the ability of Sydney’s wider rail network, while advancing capability of Sydney’s to contribute to the economic success of NSW and Australia. The metro station of Sydney and Southwest has a range of cost of $11.5 billion to $12.5 billion and this cost range represents an equivalent BCR (Benefit Cost Range) range of about 1.47 to 1.6. This report basically focuses on rolling stock which includes the carriages, wagons, locomotives or any other vehicles used on a railway. For this supplier or vendor are selected on the basis of bidding. This project report will also demonstrate various cost analysis which involve in the BARANGAROO STATION of the Sydney metro station. Finally this project report will also present and create a high level of cost estimate for the bid and also identify the main risks that required to be considered for the bid. 3
Overview of Sydney Metro Station In this 21stcentury standalone network of railway will provide 31 metro stations and 66kms of new metro rail for Australia’s biggest city. In 2019 metro station of Sydney using new generation of fully- automated metro trains which reduce the time of passengers and also enhance the efficiency of the metro station (Bliuc, et. al., 2017). The Sydney Metro has main two important components: I. Sydney Metro Northwest: $8.3 billion project is now under construction, In 2019 it will open in the first half, and Construction of the 36km line is progressing rapidly and tunneling also finished. II. Sydney Metro City & Southwest: It includes new metro stations at: Waterloo Martin Place Crow’s Nest Barangaroo Central Victoria Cross There are three major contracts were granted in 2013 and 2014 to operate and deliver Sydney Metro Northwest which includes: Operations, systems and trains Operations contract granted of $3.7 billion to Northwest Rapid on 15thSept. 2014. This contract includes 4,000 commuter parking spaces for car parking, delivering eight new railway stations, and also upgrading the existing railway between Chatswood and Epping. It was one of the largest public and private partnerships awarded in NSW. In July, 2018 Alstom were granted a 15 year contract of maintenance with Sydney Metro- Northwest which includes 22 six- car trains sets, 4
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point machines and systems of signaling along with operations and maintenance of the depot (Och, et. al., 2018). Surface and Viaduct Civil Works On 17thDec. 2013 $390 million contract granted to Impregilo- Salini and this valuable contract delivered the 4 km elevated sky train between Bella Vista and Rouse Hill and also includes a 270m cable stayed bridge over Windsor Road and rouse Hill. Tunnels and Stations Civil Works On 24 June 2013 contract awarded to CPB John Holland Dragados about 1.15 billion dollars. This contract basically offers 15 km twin metro rail tunnels between Epping and Bella Vista which is Australia’s longest railway tunnels (De Gruyter, 2019). Evaluation of Economic For the project the estimate cost of capital is $10.2 billion. With NPV of $0.6 billion, the proponent’s stated BCR for the project is 1.1 while using a real discount rate of 7% and P50 costs of capital. The estimated present value of the costs of project is to be 7.3 billion dollars whereas the PV of benefits which excludes WEBs is estimated to be 7.9 billion dollars. The appraisal of economic does not allow for the “ramp up” of benefits in the previous year of operations (Johnson, 2017). Major sources of benefit Following are the main source of benefit identified by the proponent involves: Benefits for road user: vehicle operating cost savings, travel time savings, reduced travel time in congested conditions, improved journey time reliability. Impacts on other societal: reduced environmental externalities crash cost savings and benefits of health because of increased cycling and walking. Benefits for public transport user: reduced crowding on trams and trains, improved resilience of network, enhanced amenity of customer, savings of travel time, crowding in stations is reduced and cost correction in fare box resource. New capital assets residual value; and 5
Wider benefits for economic: labour market deepening, under imperfectly competitive market increased in outputs and agglomeration. About Barangaroo Metro Station The station of Barangaroo will now combine a world- class system of metro which will be associate with the new world business hub at south Barangaroo. The government of New South Wales has added an underground metro station to the tender specifications for the final stage of the waterside Barangaroo development on the edge of Sydney’s CBD. The government will also spend $100 million in the next year on project that offers benefit to Barangaroo metro station (Liu, et. al., 2012). The station of Barangaroo is an underground about twenty five meters below the level of ground which offers services to newest Sydney’s business hub. The NSW government has added an underground Metro station to the tender specifications for the final stage of the waterside Barangaroo development on the edge of Sydney’s metro station. The budget of NSW involves 84 million dollars to continue development and planning for the second harbor crossing of rail as a part of metro station of Sydney. NSW premier Mike Baird announced the new tender process and addressing one of the key concerns about a lack of public transport infrastructure for the 22 hectare waterfront site (McWilliam and Cutcliffe, 2018). Delivering Sydney Metro to Barangaroo will mean: The Barangaroo station will offers various services to King Street wharf, Headland Park, Walsh Bay arts precinct which attract 10000 visitors every day. A connection of new east- west which across the CBD provides a path for financial hub at Barangaroo with the financial Centre at MATRIN PLACE. Wynyard and Martin Place stations are eased congestion which minimizes crowding at these stations by about 5000 people in the morning time. Easy access to new ferry services from the proposed Barangaroo Wharf. 6
In 1 hour during peak time in morning, exists and entries at Station of Wynyard are estimated to be minimize by 3200 people and Martin Place Station would be relieved by around 2000 exits and entries of the people. Barangaroo station provides benefits and supports to the other station of Sydney metro stations. The new station will be expected to be constructing at Central Barangaroo which helps the passengers and other metro stations (Mand, et. al., 2017). Features of Barangaroo Station This station enhances access to the Walsh Bay culture and arts as well as offering easy access to the developments residential, entertainment, commercial areas, public and the new ferry hub. It includes New area of bike parking on Agar streets and little Clyde The bus stops are relocate on road of Hickson which is closer to entry of station New pedestrian crossing on Hickson road, Agar Street and Little Clyde Within Barangaroo area information about way finding and Sydney Metro Indicative travel time To Sydney Metro’s Martin Place Station in 2 minutes To Central Station in 6 minutes Station Construction The construction site is used for Barangaroo: Retrieving the shields of cutter and heads of the 2 tunnels machines of boring that tunnel from the site of Marrickville dive Supporting and launching the tunnel machine of boring under harbor of Sydney to the temporary retrieval site of blues point Carrying out the construction and excavation of the future Barangaroo Station 7
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Figure 1: Construction Activities in Barangaroo Railway Station 8
Figure 2: Hickson road traffic and pedestrian Changes Upcoming work in Barangaroo station site The below table offers information about construction activities and hours planned for March 2019, whether and site conditions permitting. Location24/7 activities Inside acoustic shed- Hickson roadDeliveries of concrete, equipment and machinery Usingthegantrycranetoload excavatedmaterialintostorage containers and or haulage trucks Crossovercavern-underHicksonandSupport rock bolting and concerting activities 9
DalgetyroadsRoad header excavation Nawi Cove and Barangaroo foreshoreBargeoperationswhichincludes loading barges Removing excavated material from the Hickson road access shaft to the site foreshore area LocationActivitiesduringstandardconstruction hours Barangaroo StationPiling, jet grouting and rock grouting Excavating the new Barangaroo station Installing acoustic covers above station excavation area High street, millers pointRelocations Utility Other activitiesInstalling ground supports Concreting work, including deliveries Drilling ground supports Figure 3: Barangaroo Station work area 10
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Rolling stock public- private partnership Barangaroo station is the new innovation and upgraded station for suburban trains. Basically thesetrainsdesignedtooffercustomerswithenhancedsafety,securityandfeaturesof accessibility. The government of NSW was acquired new fleet from rolling stock public- private partnership about $3.6 billion. A rolling stock PPP (Public- Private Partnership) was entered into Reliance Rail in December 2006. Reliance rail is supported by industry specialists’ team which includes service and engineering organizations such as Downer EDI Rail and Hitachi (Johri, et. al., 2018). Reliance Rail Offered: A maintenance facility at AUBURN For 30 years Fleet maintenance 626 carriages For crew training it provides simulators 11
Figure 4: Comparison of value for money in between private sector and public sector project delivery 12
The project The rolling stock PPP project includes: Financing by private sector which includes design, construction, commissioning and manufacturing the new maintenance facility for these trains in Auburn and simulators of new train for the training of guards and drivers of RailCorp Financing of private sector which includes design, manufacturing and commission of 626 new Waratah double- deck trains which offers 78 new trains and 2 spare carriages for city rail services in Sydney Private sector maintenance, clearing, refurbishment and repair of the new or existing trains, simulators of train, facility of maintenance, to RailCorp- specified standards throughout their periods of operational Handing over the maintenance of trains, facilities to RailCorp at the end of the period of operational The sector of private participants in the project includes: National Australia Bank, Mizuko & Sumitomo Mitsui Finance and Westpac, as debt financiers for the project Downer EDI, AMP, the Royal Bank of Scotland and International Public Partnerships, as equity investors in the project FGIC UK and Syncora Guarantee Inc. are 2 mono line guarantee insures of finance which guaranteed the debt financing for project Types of cost Metro station of Sydney involves following cost which are listed below: Maintenance of track, signals, communication and fuel stations Maintenance and operation of equipment, such as freight cars, locomotives and work equipment General costs such as employee benefits, insurance, taxes, depreciation and cost of capital 13
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Sydney metro delivery strategy The strategy of delivery reflects the following: Through period of regular delivery, the Sydney metro station has ability to develop in frequently This delivery strategy also shows the current level of project definition and does not prepare the single definitive delivery strategy. The strategy of delivery has sought to align package scope to appetite of market and with industry appetite they made some provisions for collaborative contracting arrangements. Figure 5: Sydney metro delivery strategy 14
Sydney Metro City & Southwest Contract approach of packaging PackageStatusOverview of scope TSOM:Trains,Systems, Operationsand Maintenance Tender evaluation underwayRolling Stock Central Control Radio systems Operationsand maintenance Radio systems Systemsintegration, testingand commissioning Platform screen doors Line- wideAwarded Q4 2018Tunnel ventilation Power supply in high voltage Line of overhead and supply of traction Stabling Tunnelandtrack services (lighting, fire systems, drainage, low voltagepower supplies) Barangaroo StationEOI release planned for Q4 2019 Stationfitout,including electrical and mechanical TSE:TunnelandStation Excavation works Awarded Q2 2017Tunnelboringand lining Stationstructureat Barangaroo only Cavernminingand 15
lining Sitepreparationand demolition(via demolitionand novation contractors) Stationshafts excavation (at different station extent varies) CSM: Central Station Main works Awarded Q1 2018Excavationofmetro box Structure of station and fit-out,including mechanicaland electrical Centralwalkeastern concourse and entry Temporary decommissioningof platformsand reinstatement SSC: Southwest station and corridor works Procurement commencedNon-stationcivil works and bridge Servicesandcable routing Electricalworks (voltage of low) Trackanddifferent infrastructure of rail Servicesbuildingand facilities Stationworks 16
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(includingupgrades, demolition) Liftsandescalators framework Awarded Q3 2018Design,supplyand installation of lifts and escalators for new and upgraded stations Until2014 maintenanceservices fortheliftsand escalators SSJ: Sydenham Station and Junction works Awarded Q3 2017Services building and facilities Signaling Trackandotherrail infrastructure (includingstage works) Station works Servicesrelocations andadjustments(rail and non- rail) Works design and construction deed for Sydney Metro city & Southwest tunneland station excavation: Contractor Name:John Holland, CPB Contractors and Ghella Estimated amount payable to the contractor which includes GST:$2,726,444,080.00 (Goods or services supplied) Method of tendering:Multi- Stage 17
Work Breakdown Structure Work breakdown Structure (WBS) is an outcome oriented document which basically explains the total project scope to the management. In work breakdown structure, the works are divided into the parts and it is easily to complete without wasting a time or money. Below is a WBS which shows the works which are divided into various segments Figure 6: Work Breakdown Structure of Metro station 18
Project Budgetfor Barangaroo Metro Station TABLE : Illustrative Set of Project Cost Accounts 201Clearing and Preparing Site 202 202.1 202.2 202.3 202.31 202.32 202.33 Substructure Excavation and Shoring Piling Concrete Masonry Mixing and Placing Formwork Reinforcing 203Outside Utilities (water, gas, sewer, etc.) 204 204.1 204.2 204.3 204.4 204.5 204.6 204.61 204.62 204.63 204.64 204.65 204.66 204.67 204.68 204.69 204.7 204.71 204.72 204.73 204.74 204.72 Superstructure Masonry Construction Structural Steel Wood Framing, Partitions, etc. Exterior Finishes (brickwork, terra cotta, cut stone, etc.) Roofing, Drains, Gutters, Flashing, etc. Interior Finish and Trim Finish Flooring, Stairs, Doors, Trim Glass, Windows, Glazing Marble, Tile, Terrazzo Lathing and Plastering Soundproofing and Insulation Finish Hardware Painting and Decorating Waterproofing Sprinklers and Fire Protection Service Work Electrical Work Heating and Ventilating Plumbing and Sewage Air Conditioning Fire Alarm, Telephone, Security, Miscellaneous 205Paving, Curbs, Walks 206Installed Equipment (elevators, revolving doors, mail chutes, etc.) 207Fencing 19
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Project Budget for a Design Office Project Budget for Barangaroo Station Design Personnel Engineering$42,500,000 Architectural Division$70,000,000 Environmental Division$28,532,000 Total [A]$141,032,000 Other Direct Expenses Supplies150,000,000 Computer Services120,000,000 Travel250,000,000 Communication650,000,000 Total [B]1,170,000,000 Overhead$175,000,000 Contingency and Profit95,000,000 Total [C]$270,000,000 Total [A+B+C]$1,581,032,000 20
Project Budget for a Constructor Note: Estimated data Project Budget for a Constructor Material Cost Subcontract Work Temporary Work Machinery Cost Total Cost Tie-rod88,000,00 0 178,000,000157,000,0000423,000, 000 Steel Piling295,000,0 00 129,000,00000424,000, 000 Coping49,000,00 0 307,000,00000356,000, 000 Backfill230,242,0 00 919,000,000001,149,24 2,000 Fender99,000,00 0 350,000,00013,170,0000462,170, 000 Dredging5,000,000873,000,00000878,000, 000 Anchor-Wall150,000,0 00 250,000,000017,500,000400,000, 000 Other2,000,000110,000,00000112,000, 000 Sub-total819,242,0 00 3,116,000,00 0 170,170,00017,500,0004,122,91 2,000 21
Total of direct Cost4,122,912,000 Indirect Cost Common Temporary Work19,000,000 Office Operating Costs295,000,000 Common Machinery89,000,000 Transportation550,000,000 Total of Indirect Cost953,000,000 Total Project Cost5,075,912,000 22
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Job Status Report FactorBudgeted Cost Estimated Total Cost Cost Committe d Cost Exposure Cost to Date Over or (Under) Material88,499,00 0 102,342,00049,596,000NIL52,746,0 00 29,360,000 Labor99,406,00 0 88,499,00042,506,00045,993,00 0 NIL0 Subcontracts198,458,0 00 196,323,00083,352,00097,832,00 0 15,139,0 00 - 21,350,000 Equipment37,543,00 0 37,543,00023,623,000NIL13,920,0 00 0 Other72,693,00 0 81,432,00049,356,000NIL32,076,0 00 87,390,000 Total496,599,0 00 506,139,000248,433,00 0 143,825,0 00 113,881, 000 138,100,00 0 23
Risk Management Risk management standards such as ISO 31000 as well as well as traditional risk management guides the management to control the risk at site. Standard risk management process offers tools and techniques to the management of metro station to identify risk and control them in effective manner (Liu, et. al., 2012). Following are the risk which is listed below: Design Risks Construction Risks Project Management Risks Environmental Risks Engineering Services Risks Risk management process It is a systematic application of procedures which helps the management to understand the risks and also supports them in taking better decision for the project. Risk management process involves following steps: Risk identification Risk analyzed Risk Controlled In risk identification, the risks are recognized and identify which affect the project’s objectives in differentmanner.Whereasinanalyzedstep therisk isanalyzedby themanagementin appropriate manner and note down the type of risk, cause of it, impact or consequences of it, choice of responses, then rank and priorities the risk. Finally it can be controlled by using appropriate measure to control them. The management monitors it and controls these risks on the spot which does not create any damages on the site (Freestone, et. al., 2019). 24
Risk Quadrant The risk quadrant helps the management in risk identification. It is also identify and categorize the risk which is discussed as below: Financial risks Operational risks Strategic risks Hazard risks Figure 7: Types of risk Suggestions to handle the risk Fenced off from public Lighting should be good at site Using scaffolding or ladders at site To prevent from falls, there should be clear and protected marked and fixed covers With an automatic safe load indicator, the crane must be fitted At site the electric generator should be present to avoid unwanted delay 25 Exchange rate of flucation Rise in price of materials Loss of goodwill Alternative Construction Tecnhiques Safety Risk Gas Cylinder leakage Fire Electrical Shut Down Theft Operational RiskHazard Risk Financial Risk Strategic Risk
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As the workers work in highly risky area hence proper medical facilities should be there to avoid any happening Gas cylinder should be in protected area and properly inspect by the person who is in charge of it. Deciding what is reasonably practicable to protect people from harm requires taking Table which show comparison of Fuzzy EVM and Fuzzy FMEA for top risk categories FUZZY EVMFUZZY FMEA S.NODescription of Project Risk category (activity) Final Risk Severity (Qualitative) Fuzzy Rank Final Risk Priority Number (Qualitative) Fuzzy FMEA Rank 1Risks in segment erection Very High Risk 1Very High Risk4 2Risks in land handover Very High Risk 2Very High Risk2 3Feasibility and DPR risks Very High Risk 3Very High Risk1 4Risks in tender and award of contract Very High Risk 4Very High Risk3 5Risks in pile test Very High Risk 5Very High Risk5 6Risks in construction programme Very High Risk 6High Risk8 26
planning 7Risks in topographical survey Very High Risk 7High Risk12 8Risks in launching girder High Risk8High Risk9 9Risks in obligatory span High Risk9Very High Risk7 10Risks in pile test -Risks in road widening and barricading work High Risk10High Risk10 11Risks in expansion joint High Risk11High Risk14 12Risks in segment casting High Risk12Very High Risk5 13Sub structure work to super structure work risks High Risk13Very High Risk5 14Risks in road widening and barricading High Risk14Medium Risk18 15Risks in pile test- Casting High Risk15High Risk16 27
of test pile Final Risk Priority Number (Fuzzy Value) Description of project risk (activity) QuantitativeQualitativeFuzzy FMEA Ranking 1Feasibility and DPR risks 0.662Very High Risk1 2Risks in Land handover 0.623Very High Risk2 3Risks in tender and award of contract 0.603Very High Risk3 4Risks in segment erection 0.520Very High Risk4 5Sub structure work to super structure work risks 0.448Very High Risk5 6Risks in segment erection 0.416Very High Risk6 7Risks in Obligatory span 0.401Very High Risk7 Above table shows the final FRPN values and Fuzzy FMEA ranking for top 7 major risk categories 28
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Environmental Management Sydney Metro has a CEMF (Construction Environmental Management Framework) that framed sustainability and management of environmental principles to assist Sydney Metro and its contractors obey with planning and statutory necessities (Gordon, et. al., 2013). The framework addresses the management of environmental impacts in relation to: Traffic and Transport Landscape and visual amenity Soil and water quality Local businesses Ground water and geology Air quality Spoil management Waste management Carbon and energy management While considering above factors the Sydney metro station frames the policy for environment and does not damage it. The contractor also follows the policy which is framed in the standard and protects the environment from the damages (Tirachini, et. al., 2016). 29
Conclusion The above report concluded that Sydney metro station is the heart of Australian people which helps them to reach to the destination on the time and also in safely manner. This project report also specifies thatBarangaroo metro station is the next level as Australia’s new commercial center which provides transport facility to its people. In this report risk management process is used by metro station and also by contractor to frame the various policies for the construction of a new metro station. Finally it can be concluded that while doing construction of a new metro station all the factors to be considered in an appropriate manner. 30
References Bliuc, R., Kitson, M.C., Lee, C.H., Miller, T., O'Halloran, B., McLaughlin, V., Hsi, J., Candeepan, C. and Somasundaram, M., 2017. Sydney Metro Northwest-Design and construction of the underground stations. In16th Australasian Tunnelling Conference 2017: Challenging Underground Space: Bigger, Better, More(p. 144). Engineers Australia. De Gruyter, C., Currie, G., Truong, L.T. and Naznin, F., 2019. A meta-analysis and synthesis of public transport customer amenity valuation research.Transport Reviews,39(2), pp.261-283. Freestone,R.,Davison,G.andHu,R.,2019.GlobalSydney:Economy,Planningand Environment. InDesigning the Global City(pp. 47-80). Palgrave Macmillan, Singapore. Gordon, C., Mulley, C., Stevens, N. and Daniels, R., 2013. Public–private contracting and incentivesforpublictransport:CananythingbelearnedfromtheSydneyMetro experience?.Transport Policy,27, pp.73-84. Johnson,C.,2017.GrowingSydney.GrowingCompact:UrbanForm,Densityand Sustainability, p.343. Johri, P., McGann, T.J., Venn-Brown, D.C. and Zou, R., 2018. Introducing Sydney's fully automated metro rolling stock. InCORE 2018: Conference on Railway Excellence(p. 641). Railway Technical Society of Australasia (RTSA); Technical Society of Engineers Australia. Liu, J., Qi, T. and Wu, Z., 2012. Analysis of ground movement due to metro station driven with enlarging shield tunnels under building and its parameter sensitivity analysis.Tunnelling and underground space technology,28, pp.287-296. Mand, S., Medhurst, A. and Mand, H., 2017. Wynyard station upgrade customer experience and wayfindingstrategies.In16thAustralasianTunnellingConference2017:Challenging Underground Space: Bigger, Better, More(p. 1015). Engineers Australia. McWilliam, S. and Cutcliffe, D., 2018. Digital starting blocks: The Sydney Metro experience. InCORE 2018: Conference on Railway Excellence(p. 388). Railway Technical Society of Australasia (RTSA); Technical Society of Engineers Australia. 31
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Och,D.J.,Bateman,G.,Maidl,U.andComulada,M.,2018.SydneyMetro–ground characterisationandTBMselectionfortheSydneyHarbourcrossing.Geomechanicsand Tunnelling,11(1), pp.24-33. Tirachini, A., Sun, L., Erath, A. and Chakirov, A., 2016. Valuation of sitting and standing in metro trains using revealed preferences.Transport Policy,47, pp.94-104. 32