PROJ6011: Analysis of Melbourne Metro Tunnel Project Report

This report offers a comprehensive analysis of the Melbourne Metro Tunnel project, focusing on key challenges, stakeholder analysis, and financial arrangements. The project, a Public-Private Partnership (PPP), aims to improve transportation in Melbourne. The report identifies challenges like planning, navigation through existing infrastructure, project management issues, and waste management. It explores leadership strategies in overcoming these challenges, emphasizing communication and stakeholder engagement. The stakeholder analysis outlines the interests and involvement of various stakeholders. Furthermore, it discusses the funding model and financial arrangements, highlighting opportunities for improving project finance. The analysis provides insights into project management best practices and offers valuable lessons for future infrastructure projects.

Running head: PROJ6011
Integrated Infrastructure Project Management
Name of Student
Name of University
Author Note

1
PROJ6011
Table of Contents
Introduction..........................................................................................................................2
1. Identification and Assessment of Key Challenges..........................................................2
2. Stakeholder Analysis.......................................................................................................5
3. Funding Model and Financial Arrangements................................................................10
Reflection...........................................................................................................................11
Conclusion.........................................................................................................................12
References..........................................................................................................................13

2
PROJ6011
Introduction
The Metro Tunnel is an infrastructural project that aims in bringing more trains to suburb
that will reduce the travel times and tunneling (Bowen, 2018). The project is built through a PPP
between government and public sector and the project should be completed by 2025. The project
involves development of a twin-nine kilometer tunnel of new Pakenham and Cranborne line
(Jefferson, 2017). The proposed project in needed as it can help in increasing the efficiency and
ease of access to the jobs, health and education.
The report aims in identification and assessment of the key challenges that are
experienced in the project. It aims in identification of the processes in which leadership in a
project is managed to overcome the key challenges that are observed in the project. The report
further identifies and analyses the key stakeholders linked with the project and outlines their
level of involvement and interest in the project. The funding model of the project is discussed to
highlight the opportunities associated with management of project finance.
1. Identification and Assessment of Key Challenges
The Melbourne Metro Rail Project is one of the biggest project of Melbourne railways
and is currently undergoing its construction (Gharehbaghi et al., 2019). The operations of this
Metro rail is scheduled to start in 2025. The project is a crucial project as successful completion
of this project will help in accessing several prominent locations in the city.
Challenges Faced:-
Although the project is currently ongoing, it has faced several challenges in moving from
project to the operational status. These challenges are summarized as follows-

3
PROJ6011
1. Development of a feasible plan was a major challenge that the project faced while
moving from project to operational phase (Masanauskas, 2017). The metro rail project can
caused disruption to the residents, business and public events and therefore, the plan was to be
made in such a manner that the impact is reduced
2. Navigation through the existing underground infrastructure was another issue that the
project faced while moving to the operational status. Smooth navigation was a major challenge
particularly because the City Link tunnels and essential services including water gas and
electricity, proved to be a roadblock.
3. The project faced certain project management issues in the initial stage. The project is
approved to be implemented using a PPP model and involves a huge group of stakeholders,
including owner of lands, suppliers and sub-contractors (Burgemeister et al., 2019). The
stakeholders had different views regarding the project delivery method which was another
significant challenge faced in the project.
4. The project team needed to plan the management of the removal and disposal of the
huge amount of excavated material. Management of the waste was to be planned prior to start of
the excavation to ensure less environmental effect or disruption to the residents nearby.
Leadership in Overcoming the Challenges:-
The project faced several challenges regarding, planning the project, management of the
excavation and waste removal along with stakeholder management. However, effective
leadership has contributed in management of these key challenges that are being faced.

4
PROJ6011
 The project leader ensured that the goals and the objective of the Metro rail project are
properly defined so that the scope of the project is clear to the stakeholders (Lingard,
Zhang & Oswald, 2019). The project leader put an increasing emphasis on structured
communication among the project team to understand the needs and the views of the
stakeholders involved with the project (Bennett, 2017). This has considerably helped in
addressing the challenges associated with stakeholder management.
 Another challenge that was faced was regarding development of a feasible project plan.
The project plan was to be made considering the disruptions that could be to the local
public. The project leader appointed an experienced team of architectures and civil
engineers to design the layout plan for this construction project is such a manner that the
impact is reduced (Cotton & Guo, 2017). The leader further ensured that the scope of the
project is clear to the entire team and ideas regarding the efficient use of resources in
management of challenges are taken from entire team.
 To manage the challenge of navigation, the project leader ensured to incorporate skilled
team members in the project team to reduce the chances of error in planning and
execution of this complex metro tunnel project.
Project leadership is an important consideration for this project as the project is complex
and lengthy. Hence it is of foremost necessity to keep the team motivated. Project leadership is
important to motivate the team so that they create a co-operative environment for successful
project execution and completion. The project leadership has not only helped in management of
the challenges, but also helped in establishing a vision and direction to align and influence others
towards the common purpose of completion of this complex project by 2025.
Opportunities for Improvement:

5
PROJ6011
The project is in its initial operational phases and incorporates various improvement
opportunities in certain major areas.
 The project involves significantly complex excavation works and therefore safety
of the workers is a key concern. The project team needs to work on the safety
requirements and needs of all the constriction workers associated with the project
(Locke, 2019).
 In the initial phases of project execution, certain issues were faced regarding the
choice of project delivery methods, which indicates that there is a need of
improvement in the process of internal communication.
2. Stakeholder Analysis
The Metro Tunnel project of Melbourne is being implemented in a PPP model and
therefore, involves a diverse group of stakeholders. The stakeholders linked with the said project,
their level of interest in the project and their representative group is indicated in the stakeholder
register below-

6
PROJ6011
Stakeholders Stakeholder
category/
Representative
Group
Interest in
the
Project
Level of
Involvement in
the Project
Expectations Communication
Medium
Project Manager Internal stakeholders High High To deliver the project within
the final deadline and within
the budget set budget
Face to Face,
Telephonic
Business Owners External High Low To ensure maximum business
profit by completing the
project within 2025
Email and
Telephonic
communication
Federal
Government
Regulatory Medium High To ensure smooth project
execution
Email
Local Councils Regulatory High High To provide uninterrupted
services to the residents and
daily commuters
Email
Local Residents External Medium Medium To ensure less environmental Face to Face and

7
PROJ6011
damage from the project official letters
Daily commuters External High Low Completion of the project as
soon as possible
Face to Face
Contractors and
sub-contractors
External Low Low To provide the necessary
services to the project
Email
Utility service
Providers
External Medium Low To provide the necessary
utility services to the project
Email
State
Government
Government High High To provide monetary
assistance for successful
project execution
Email
Melbourne
Metro Rail
Authority
Regulatory High High To ensure uninterrupted
project delivery
Email
Land Owners External Low High To ensure optimal usage of the
land
Face to Face and
official letters
Media External Medium High To keep the public up to date
about the project progress and
Email and
Telephonic

8
PROJ6011
to report any major issues in
the project.
conversation.
Table 1: Showing the stakeholder Analysis
The above register includes the details of the key stakeholders of the project. They are included in the list of stakeholders as
these group of individuals or regulatory body are directly or indirectly affected by the performance and the outcome of the project and
therefore, the involvement of these stakeholders in the project is maximum.

9
PROJ6011
Attributes of Public Private Partnership:-
The Melbourne Metro Rail project has certainly highlighted certain key attributes of a
PPP model, which are indicated as follows-
 The ultimate regulatory responsibility of the project is with the public sector and
the maximum funding of the project is coming from the public sector (Seyers,
2018).
 Maximum skills are procured from the private sector to ensure successful and
timely project execution
 A design build operation is proposed for successful execution of this project.
Level of Involvement and Potential Tension among the stakeholders
The level of involvement of the stakeholders are outlined in risk register in the table 1.
The involvement of too many stakeholders in a particular project can result in tension between
the various groups (Jardine & Riley, 2017). As of now tension between the local residents, land
owners and state government is observed regarding management of the disruption of the normal
operations of the local residents and the lands that are needed to be vacated to ensure the smooth
execution of the project.
However, the local government and MMRA was successful in trading off the potential
tension by paying an optimal price of the lands they needed for the project and by ensuring use
of modern technologies, equipment and machineries to ensure less pollution, less noise and less
disruption of the normal operation of the local residents (Downton et al., 2017).
Competing Interest between private and public stakeholders

10
PROJ6011
The project involved considerably less competing interest between the public and the
private stakeholders in comparison to the projects of similar complexity. The stakeholders’ needs
were addressed by identifying the expectations of each of the stakeholders in the project and by
communicating off the key issues that are observed among the team. The competing interests
were prioritized in terms of their viability to address the challenges.
Opportunities of Improvement in Managing Stakeholders’ Interest:-
The issues with the management of the stakeholders’ interest can be addressed by
increasing the frequency of the project team meeting and communication (Gharehbaghi et al.,
2019). The communication medium proposed for each stakeholders should be reviewed to ensure
maximum engagement of the stakeholders with the project. This will help in enhancing the
stakeholder interests.
3. Funding Model and Financial Arrangements
Financial Arrangement:-
A PPP procurement method funding model was followed in the project. The financial
arrangement included development of a tender followed by negotiation of the same (Delmon,
2017). The preferred respondent of the tender was finalized and announced on 17 July 2017. The
project is considered to be a value for money project. A PPP payment mechanism will be
followed throughout the completion of the project.
Financial Stability

11
PROJ6011
The project is being implemented as per the plan and well governed tendering process has
ensured that the project receives the needed financial stability. The scope of the project was clear
along with the scope of work, which helped in accurate financial analysis and estimation.
Tradeoffs between building infrastructure and providing service:-
The project involved complex excavation that is likely to lay a significant impact on the
local residents. The project require excavation in public places that can impact the potential
traffic movement. However, this issue was settled by minimizing the impact of excavation and
construction work by using modern technology and equipment for lesser noise and pollution.
Opportunities of increasing Project Finance:-
The project finance can be improved by ensuring the less need of re work on the project.
Since the complexity of the project is high, any issues in any phase of the project can result in
project delay (Hodge & Greve, 2017). The management of project finance for this project can be
improved by incorporation of regular tracking process of the cost and expenditures in the project.
This will help in keeping the project on track.
Reflection
The analysis of the metro rail project in Melbourne has helped me to understand the
various aspects of project management and management of project complexity. I have gained a
knowledge about PPP, management of stakeholders’ needs and management of project
challenges, which will help me to further develop in my professional career. I have understood
that communication is the key to manage, negotiate and address any major issues in a project. I