Major Projects 2023 Roads and Maritime Services Nepean River Bridge - PowerPoint PPT Presentation

Major Projects 2023 Roads and Maritime Services Nepean River Bridge April 2018

Jeff McCarthy Executive Director Technical and Project Services Roads and Maritime Services

The big picture - transport ‘mega’ projects fuel the infrastructure ‘wave’ in Australia port Projects (over $2 billion) Mega projects = over $2 billion SA North-South Corridor $ Billion (in FY16 constant prices) Forecast 16.0 WA Forrestfield Airport Rail Link & Metronet Notes: This chart is based on projects with WA Hancock Roy Hill (Pilbara) over $2 billion in construction work done. WA Fortescue Metal Group (Pilbara) Solid areas are road projects, dotted areas WA BHP Billiton (Pilbara) 14.0 are rail projects. WA Rio Tinto (Pilbara) VIC Melbourne Airport Link VIC Inland Rail (VIC component) 12.0 VIC Melbourne Metro Rail VIC Level Crossing Removal Program VIC Regional Rail Link 10.0 VIC North East Link VIC Western Distributor VIC EastLink QLD Acacia Ridge to Port of Brisbane 8.0 QLD Cross River Rail QLD Inland Rail (QLD component) QLD Warrego Highway 6.0 QLD Gateway Motorway QLD Bruce Highway Upgrade QLD TransApex QLD Ipswich Motorway 4.0 NSW Inland Rail (NSW component) NSW Sydney Metro West NSW Sydney Metro City & Southwest 2.0 NSW Sydney Metro Northwest NSW F6 Extension NSW Western Harbour Tunnel & Beaches Link 0.0 NSW Western Sydney Infrastructure Plan NSW NorthConnex 2006 2009 2012 2015 2018 2021 2024 2027 NSW WestConnex Source: BIS Oxford Economics Year ended June NSW Pacific Highway Upgrade Roads & Maritime Services 3 Source: BIS Oxford Economics 2018. Based on projects with over $2 billion in construction. Solid shading is roads. Dotted is rail.

60% are road ‘mega’ projects NSW mega projects are in flight, Victoria ramping up $ Billion (in FY16 constant prices) Forecast 8 Notes: This chart is based on projects with SA North-South Corridor over $2 billion in construction work done. 7 VIC North East Link VIC Western Distributor 6 VIC EastLink QLD Warrego Highway 5 QLD Gateway Motorway QLD Bruce Highway Upgrade 4 QLD TransApex QLD Ipswich Motorway 3 NSW F6 Extension NSW Western Harbour Tunnel & Beaches Link 2 NSW Western Sydney Infrastructure Plan NSW NorthConnex 1 NSW WestConnex NSW Pacific Highway Upgrade 0 2006 2009 2012 2015 2018 2021 2024 2027 Source: BIS Oxford Economics Source: BIS Oxford Economics 2018. Chart is based on projects with over $2 billion in construction work done Roads & Maritime Services 4

Not just mega projects - NSW continues to lead in roads The NSW ‘Wave’ is peaking – at least 5 years of investment at current levels $ Billion (in constant prices) Road Infrastructure spend Road Infrastructure spend $ Billion (in constant prices) 10 10 10 2016 8 8 6 6 2018 4 4 Over the two years to FY17, total road 2 2 construction increased by 21%. 0 0 75% growth in construction coming from 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019 2020 2021 2022 2023 NSW road construction. Year ended June Source: ABS, NTC, BIS Oxford Economics Roads & Maritime Services Source: BIS Oxford Economics 2018 5

Our major project spend has lifted 160% over 4 years WestConnex and Rozelle $5,000 F6 Extension Stage 1 (Planning) Western Harbour Tunnel and Beaches Link (Planning and $4,500 Preconstruction) Sydney Gateway $4,000 Pacific Highway Roads to Support Western Sydney Airport at Badgerys Creek $3,500 Princes Highway Established Sydney Roads $3,000 Easing Sydney's Congestion Western Sydney Growth Roads $2,500 Central Coast Roads Regional NSW Major Road Upgrades $2,000 Hunter Roads Newell Highway $1,500 New England Highway $1,000 Bridges for the Bush Sydney Airport Area Road Upgrades $500 Great Western Highway and Bells Line of Road Other Major Programs $0 Other Projects 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Roads & Maritime Services 6 Excludes NorthConnex and construction funding M4 to M5. Excludes maintenance Capex

Excluding Sydney motorways, NSW roads regional spend dominates $2,500 $2,000 Regional $1,500 $ million $1,000 Sydney $500 $0 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Financial Year Roads & Maritime Services 7 Excludes Sydney motorways

Construction contracts awarded in FY18 31 major projects, $3.1 billion contract value, 87% within 1 quarter of forward work plan dates Project Contract award Award within 1 quarter of target date Project Contract award Awarded within 1 quarter of target date Woolgoolga to Ballina - Bridge Construction - Maclean to Devils Pulpit - Floodplain Bridges 04-Jul-17 Woolgoolga to Ballina - Bridge Construction - Glenugie Upgrade to Tyndale - Bridge Structures 04-Jul-17 Woolgoolga to Ballina - Bridge Construction - Glenugie Upgrade to Tyndale - Structures & Shark Creek Bridge 04-Jul-17 Woolgoolga to Ballina - Main Civil Works - Section 4 - Tyndale to Maclean 14-Jul-17 Woolgoolga to Ballina - Bridge Construction - Richmond River to Coolgardie Road - Bridge Structures 20-Jul-17 Woolgoolga to Ballina - Integrated Works - Sections 10 and 11 - Richmond River to Ballina Bypass 26-Jul-17 Woolgoolga to Ballina - Main Civil Works - Section 3 - Glenugie Upgrade to Tyndale 11-Aug-17 Gocup Road 24-Aug-17 Woolgoolga to Ballina - Main Civil Works - Sections 7, 8 and 9 - Devils Pulpit Upgrade to Richmond River 31-Aug-17 Ellerton Drive Extension 01-Sep-17 Woolgoolga to Ballina - Main Civil Works - Section 6 - Iluka Road to Devils Pulpit Upgrade 01-Nov-17 M1 Pacific Motorway Upgrade - Kariong to Somersby 07-Dec-17 M1 Pacific Motorway - Intersection Upgrade at Weakleys Drive and John Renshaw Drive 15-Jan-18 Reconfiguration of Croom Regional Sporting Complex 20-Feb-18 Sydney Harbour Bridge Step Free Access - Pedestrian Lifts Managing Contract 20-Feb-18 HW9 New England Highway Upgrade at Bolivia Hill 13-Mar-18 A15 New England Highway Bypass of Scone 14-Mar-18 M5 - Belmore Road Interchange Upgrade 26-Mar-18 Princes Highway Upgrade between Berry and Bomaderry 11-May-18 MR177 - Campbelltown Road Upgrade from East Town Centre Road to new Macdonald Road Bardia 15-May-18 Woolgoolga to Ballina - Flexible Pavements - Sections 10 and 11 - Richmond River to Ballina Bypass 22-May-18 MR658 - O'Riordan Street Widening, Mascot 24-May-18 MR182 Windsor Bridge Replacement Project 28-May-18 Design and Construction of the Batemans Bay Bridge Project 22-Jun-18 Albion Park Rail Bypass - Design and Construction 26-Jun-18 Woolgoolga to Ballina - Rigid Pavements - Sections 3 and 4 - Glenugie Upgrade to Maclean 29-Jun-18 Gee Gee Bridge Replacement 29-Jun-18 08-Dec-17 Princes Highway between President Avenue and the Kingsway 15-Dec-17 BPIP Macquarie Park Bus Priority and Capacity Improvement - Stage 1 04-Apr-18 M4 Smart Motorway Construction of Stage 2 04-Apr-18 M4 Smart Motorway Construction of Stage 3

Major contracts awarded – last 3 years Average of 23 contracts per annum and $100 million per contract 35 $3.5 $3.4b $3.1b 30 $3.0 25 $2.5 Awarded Value ($b) Contracts Awarded 20 $2.0 15 $1.5 $1.5b $1.1b 10 $1.0 5 $0.5 0 $0.0 FY 15/16 FY 16/17 FY 17/18 FY 18/19 Estimated Total Awarded Awarded Within 1 Qtr Contract Value Roads & Maritime Services Excludes NorthConnex and construction funding M4 to M5 9

Contracts awarded by contract size 25 FY 15/16 FY 16/17 FY 17/18 20 FY 18/19 Estimated Number of Contracts 15 10 5 FY 31 projects 2018 0 < $100m FY 22 projects 2019 $100m - $200m > $200m Roads & Maritime Services 10

Our portfolio of partners is diverse For both construction and professional services firms Professional Services ‘in flight’ value $800 Professional services in flight value $800 million Construction ‘in flight’ value $8.4 billion Professional services ‘in flight’ value $800 million Construction ‘in flight’ value $8.4 billion million (contracts awarded over $1 million) (contracts awarded over $10 million) (contracts awarded over $1 million) (contracts awarded over $10 million) (contracts awarded over $1 million) 147 contracts 61 contracts 56 organisations 33 organisations Roads & Maritime Services 11

Major projects performance against cost and time NSW Treasury Budget papers – 44 projects ‘open to traffic’ over 4 years Project expenditure vs announced cost Project completion vs announced timing $4.0 25 $3.5 20 20 20 $3.0 Number of Projects $2.5 15 $ billion $2.0 9 9 9 10 $1.5 8 8 7 $1.0 5 $0.5 0 $0.0 2014/15 2015/16 2016/17 2017/18 2014/15 2015/16 2016/17 2017/18 Project Completion Financial Year Project Completion Financial Year Announced to Complete (NSW Treasury Budget Paper) Announced Cost (NSW Treasury Budget Paper) Project Expenditure Completed in Announced Year Roads & Maritime Services 12