Project Financial Management: Sydney Metro - Barangaroo Station

This report provides a detailed overview of the financial management of the Sydney Metro project, with a specific focus on the Barangaroo Station. It explores the project's background, including the Sydney Metro Northwest and Sydney Metro City & Southwest components, and delves into the economic evaluation, highlighting benefits such as reduced travel time and environmental impact. The report discusses the Barangaroo Station's features and construction activities, including upcoming work planned for March 2019. It also examines the rolling stock public-private partnership, including the involvement of Reliance Rail and the associated costs. Furthermore, the report covers the Sydney Metro's delivery strategy and contract approach, including trains, operations, systems, and maintenance. Finally, the document touches on risk management and environmental management considerations for the project. Desklib is a platform where students can find similar solved assignments and study resources.

Financial Management of
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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
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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.
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Overview of Sydney Metro Station
In this 21st century 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 15th Sept. 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,
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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 17th Dec. 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
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 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.
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 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
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Figure 1: Construction Activities in Barangaroo Railway Station
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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.
Location 24/7 activities
Inside acoustic shed- Hickson road  Deliveries of concrete, equipment and
machinery
 Using the gantry crane to load
excavated material into storage
containers and or haulage trucks
Crossover cavern- under Hickson and Support rock bolting and concerting activities
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Dalgety roads Road header excavation
Nawi Cove and Barangaroo foreshore  Barge operations which includes
loading barges
 Removing excavated material from the
Hickson road access shaft to the site
foreshore area
Location Activities during standard construction
hours
Barangaroo Station  Piling, jet grouting and rock grouting
 Excavating the new Barangaroo station
 Installing acoustic covers above station
excavation area
High street, millers point Relocations Utility
Other activities  Installing ground supports
 Concreting work, including deliveries
 Drilling ground supports
Figure 3: Barangaroo Station work area
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Rolling stock public- private partnership
Barangaroo station is the new innovation and upgraded station for suburban trains. Basically
these trains designed to offer customers with enhanced safety, security and features of
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
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Figure 4: Comparison of value for money in between private sector and public sector
project delivery
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