business case version 3.0 city projects office brisbane...

BUSINESS CASE

VERSION 3.0

CITY PROJECTS OFFICE

BRISBANE INFRASTRUCTURE

Note: Commercial in Confidence material redacted

Kingsford Smith Drive Upgrade: Business Case

PJMT09 Business Case TRIM: PD15/44978 of 2

SECURITY LABEL: FOR OFFICIAL USE ONLY BRISBANE CITY COUNCIL

Document Change History

Document Control Sheet

Contact for enquiries and proposed changes. If you have any questions regarding this

document or if you have a suggestion for improvements, please contact:

Project Manager Philip Stedman

Phone 07 3403 8186

Version History

Version Author Issue Purpose Date

1.0 S Wilson Initial Draft 30/07/2013

1.1 S Wilson Updated for issue 2/12/2013

1.2 S Wilson Amended to new template 10/12/2013

1.3 P Stedman Amend draft for approvals 22/1/2014

1.4 P Stedman Amend draft to address comments 16/4/2014

2.0 J Brownbill Updated based on reference design 23/07/2015

3.0 J Brownbill Updated after procurement process 18/11/2015

APPROVAL:

Project Owner:

Name

Signature Date




TABLE OF CONTENTS

1 INTRODUCTION .......................................................................................................... 6

1.1 BACKGROUND ....................................................................................................... 6

1.2 PURPOSE ............................................................................................................. 6

1.3 APPROACH ........................................................................................................... 6

2 BACKGROUND ........................................................................................................... 8

2.1 PROJECT BACKGROUND ........................................................................................ 8

2.2 PROJECT LOCATION AND LIMITS ............................................................................ 8

2.3 PROJECT NEED ..................................................................................................... 9

2.4 PROJECT OBJECTIVES ........................................................................................ 11

2.5 PROJECT CONSTRAINTS / CHALLENGES ............................................................... 12

2.6 RELATED PROJECTS ........................................................................................... 12

2.7 PROCUREMENT STRATEGY .................................................................................. 14

2.8 DELIVERY PHASES .............................................................................................. 15

3 SCOPE ....................................................................................................................... 18

3.1 SOLUTION OPTION DEVELOPMENT ....................................................................... 18

3.2 CONCEPT DESIGN OF PREFERRED TENDERER AND REFINEMENT OF SOLUTION OPTION

4 STRATEGIC ALIGNMENT ........................................................................................ 24

4.1 STRATEGIC PROJECT OBJECTIVES ...................................................................... 24

4.2 ALIGNMENT WITH COUNCIL STRATEGIES .............................................................. 25

5 COSTS ....................................................................................................................... 26

5.1 CAPITAL COST SUMMARY .................................................................................... 26

6 ECONOMIC ANALYSIS ............................................................................................ 28

6.1 RESULTS ............................................................................................................ 28

6.2 WIDER ECONOMIC BENEFITS (WEB’S)................................................................. 30

6.3 TRANSPORT ASSESSMENT RESULTS ................................................................... 31

6.4 EMPLOYMENT CREATION ..................................................................................... 32

6.5 NON-MONETISED COSTS AND BENEFITS .............................................................. 33

6.6 CONCLUSIONS .................................................................................................... 33

7 APPROVALS ............................................................................................................. 34

7.1 COUNCIL APPROVALS ......................................................................................... 34

8 PROJECT DELIVERY ............................................................................................... 36

8.1 GOVERNANCE AND ORGANISATION CHART. ......................................................... 36

8.2 DELIVERY PROGRAM ........................................................................................... 36

8.3 PROJECT RISK REGISTER.................................................................................... 37




9 CONCLUSIONS ......................................................................................................... 38

10 APPENDICES ............................................................................................................ 39

10.1 APPENDIX A - PROJECT PLAN .............................................................................. 39

10.2 APPENDIX B – BENEFITS AND PERFORMANCE MEASUREMENT TABLE .................... 40




Document Purpose

The Business Case provides justification for the undertaking of the project, based on the costs

(of development, implementation, and operational and maintenance factors) against the

anticipated benefits to be gained, and offset by any associated risks.

It demonstrates the strategic value of the project through its alignment to corporate strategies,

Budget Program objectives, or Lord Mayoral directives. It provides an appraisal of the

investment, based on a qualitative and quantitative assessment, that enables the Project

Sponsor to determine whether the project will provide sufficient value for the investment and

therefore is viable to proceed.

This project will follow PM2: Council’s Project Management Methodology.

Project Brief Business Case, PMP & Registers

Progress Reports Project Evaluation Report

INITIATION PLANNING DELIVERY CLOSURE




1 INTRODUCTION

1.1 BACKGROUND

The previous Business Case for the Kingsford Smith Drive upgrade (the Project) was

approved by the Executive Manager, City Projects Office in June 2014. It documented the

broad project scope based on the previous planning studies and the proposed delivery model

as a Design and Construct contract. This was used as the basis to progress the project to a

Reference Design and Project Definition phase.

The Reference Design provided the basis for Council to proceed with the procurement of a

Design and Construct Contractor, which included an interactive tender process. The

procurement process is complete and the Project Finalisation Committee (the Project’s

senior procurement governing body) has recommended Civic Cabinet select the preferred

tenderer. This Business Case has been documented to reflect key changes resulting from

the Reference Design and Project Definition phase and the procurement process.

1.2 PURPOSE

The purpose of this Business Case is to reflect key changes that have occurred as a result of

the Reference Design and Project Definition phase and the procurement process. In doing so

it will:

confirm the project scope

confirm the project budget and economic outcomes

provide sufficient information to enable Council to confidently proceed with the

Project.

1.3 APPROACH

The Project has been subject to detailed assessment through a range of studies. Planning

commenced in 2008 with the Feasibility Study and continued through to 2015 with Concept

Design development during the interactive tender process. The approach in preparing this

Business Case was to maintain concise documentation, summarising key information from

previous assessments, with the necessary updates from the Reference Design and Project

Definition Phase and the procurement process.

1.3.1 Key Inputs

The key inputs and activities that have influenced the Project since the previous Business

Case include:

community and internal consultation




progressively updated Transport Assessment

Reference Design and Project Definition phase

procurement phase with interactive tender process.




2 BACKGROUND

2.1 PROJECT BACKGROUND

Kingsford Smith Drive links the Inner City Bypass (ICB) and Breakfast Creek Road at

Newstead, to Eagle Farm Road at Pinkenba. The Transport Plan for Brisbane 2008-2026

describes Kingsford Smith Drive as a Regional Radial Route which provides connections

within the metropolitan area between the inner city, major residential communities and

surrounding local authorities, connects to the intra-state road network and reduces pressure

from shorter distance trips.

The road is classified as an Arterial road in Council’s City Plan 2014 and a primary freight

route in the Transport Plan for Brisbane 2008-2026. It also caters for all dangerous goods

vehicles not permitted in the Airport Link tunnel. It forms part of the primary cycle network,

and is identified as a proposed link in the public transport network between the Brisbane

Central Business District (CBD) and the Australia Trade Coast (ATC) Development.

Stage One of the Kingsford Smith Drive upgrade, which involved widening the road to three

lanes in each direction between Theodore Street and Harvey Street, was completed in mid-

2011.

2.2 PROJECT LOCATION AND LIMITS

The road is adjacent to a number of hotels/motels, community facilities, restaurants,

industrial businesses, residential homes, the iconic Racecourse Road (which links to Eagle

Farm Racecourse) and the Hamilton Northshore development (which includes Portside

Wharf, residential apartments, restaurants, shops, a cinema and cruise ship terminal). This

includes the Breakfast Creek Hotel, Brisbane Riverview Hotel, Hamilton Hotel, Bretts Wharf

CityCat Terminal and several short-term airport motels.

The majority of residential properties along the corridor are apartment complexes. There are

also some multi-million dollar homes and smaller homes that have been there for several

decades and two heritage listed homes between Toorak Road and Crescent Road. A

number of private mooring facilities are provided adjacent to the southern side of the road.

There is also one public jetty located on the southern side of the road, west of Riverview

Terrace, used by commercial and recreational vessels.

The upgrade was previously being completed in three stages, as shown in figure 1 below:

Stage 1 – Harvey Street to Theodore Street (completed mid-2011)

Stage 2 – Theodore Street to Riverview Terrace

Stage 3 – Riverview Terrace to Breakfast Creek Road




Figure 1 – Previous project staging

At its western end (Stage 3), the corridor is constrained between the Brisbane River and

sections of cliff face, supporting the residential areas of Hamilton and Ascot. Travelling east,

the road moves away from the river (Stage 2) and the land use starts to change from

residential to medium density residential and short-term motel accommodation to commercial

and industrial uses.

The recently upgraded section of the road (Stage 1 – Harvey Street to Theodore Street)

provides six traffic lanes, on-road bicycle lanes and continuous pedestrian paths. The project

complements works associated with the Gateway Upgrade project, which includes south

facing on and off-ramps to Kingsford Smith Drive.

2.2.1 Stage 2 and 3 Combined Delivery

In May 2013, a workshop was held to assess delivery model options including delivering the

project under two separate stand-alone projects (KSD stage 2 and KSD stage 3) or as a

single combined project. The assessment found that combining and delivering as a single

project offered benefits such as; removing overlap/interface between two contracts;

coordinated traffic management; removing redundant temporary public utility plant

relocations; and reduced overall duration reducing community impact. Consequently, Council

decided that the Kingsford Smith Drive Upgrade project would be delivered as a single

project and references to ‘Stage 2’ and ‘Stage 3’ would no longer be used in project

communications to define project limits.

2.3 PROJECT NEED

2.3.1 Traffic Congestion

Congestion is currently experienced daily on Kingsford Smith Drive, particularly at major

intersections. Traffic counts from 2007 showed average afternoon travel speeds were as low

Stage 3

Stage 2

Stage 1




as 24km/h. Kingsford Smith Drive carries approximately 67,000 vehicles per day (vpd) and

traffic modelling indicates that the level of service provided by the road in its present state will

continue to deteriorate, particularly with significant developments such as Australia

TradeCoast (ATC) and Northshore Hamilton contributing to increased traffic movements.

Weekday traffic volumes are predicted to increase to approximately 75,000 vehicles per day

by 2031. Without an upgrade to Kingsford Smith Drive, by 2031 a number of midblock

sections are predicted to reach 100% capacity during the peak hour, with all signalised

intersections on the corridor having a number of over capacity movements. Traffic is

predicted to utilise other lower order roads in order to avoid congested sections of the

Kingsford Smith Drive corridor.

Future trips on Kingsford Smith Drive will be predominantly associated with three major

precincts:

Northshore Hamilton Urban Development Area (UDA) (33%)

Airport Travel (26%) and Australia Trade Coast (10%)

Brisbane City Central (16%)

These three precincts will account for the vast majority (85%) of all trips on Kingsford Smith

Drive.

2.3.2 Public Transport Issues

The corridor is a major route for bus services with the CityBus and Peak Rocket routes using

the corridor frequently. Due to the frequent congestion experienced in the corridor, the

consequent delays to traffic affect the reliability of bus travel times and attractiveness of

using public transport.

The majority of existing bus stops are located in the kerbside traffic lanes. As there are only

two through traffic lanes, this causes additional safety issues and delays to through traffic

when buses stop at the in-lane bus stops to drop off and pick up passengers. The majority of

the existing bus stops on Kingsford Smith Drive also do not satisfy the Disability

Discrimination Act (DDA) requirements.

2.3.3 Road safety

Webcrash data over the five year period between 2007 and 2013 indicates a total of 176

crashes were recorded on Kingsford Smith Drive between Cooksley Street and Theodore

Street. The majority of recorded crashes were rear ends (74), opposing vehicles turning (28)

and lane changes (16). The cost of the crashes over the five year period was approximately

$36.7M with 57% of the crashes requiring either medical treatment and/or hospitalisation.




With traffic volumes expected to increase along the corridor the frequency of accidents is

also expected to increase if remedial measures are not implemented.

A significant safety issue exists at the intersection of Kingsford Smith Drive and Riverview

Terrace. For the same five year period, twenty crashes were recorded for right turn vehicles

colliding with the outbound vehicles on Kingsford Smith Drive. The right turn movement is a

filtered turn and requires vehicles to cross three outbound traffic lanes.

2.3.4 Pedestrian and cyclist facilities

There are currently no on-road cycle facilities on Kingsford Smith Drive between Breakfast

Creek Road and Theodore Street. On-road cyclists share the kerbside traffic lane with

vehicles. Existing kerbside lanes are approximately 3.5m wide. A 3.5m wide lane is below

the minimum standard width for a shared cycle / vehicle kerbside lane for a 60km/hr road.

This combined with high traffic volumes and relatively high percentage of heavy vehicles,

does not encourage cycling through the corridor due to safety concerns.

The footpaths on both sides of Kingsford Smith Drive west of Riverview Terrace are narrow,

with some sections on the southern side only one metre wide. The footpaths are also

characterised by their uneven surface and frequent obstructions such as power poles, trees,

signs and fencing. Investigations have shown many cyclists use the footpath on the southern

side rather than the road; however it is inadequate for this type of shared use and creates a

risk of collisions occurring with other cyclists or pedestrians. East of Racecourse Road, the

footpaths are not continuous on the southern side of Kingsford Smith Drive.

2.4 PROJECT OBJECTIVES

Project objectives have been separated into three categories; transport, environmental and

economic.

Transport focused project objectives are:

minimise road congestion

improve public transport provision

improve user safety

improve travel times

improve pedestrian and cycle provision

deliver within program

avoid low capital costs solutions at the expense of high ongoing maintenance costs

deliver within approved budget




Environmentally focused objectives are:

utilise and showcase sub-tropical design excellence

deliver a high standard urban design outcome that contributes to Council policies and

minimises tree canopy loss

ensure infrastructure aesthetics contribute positively to the cityscape

minimise environmental impacts

minimise flood impacts

protect and enhance Cameron Rocks Reserve and other cultural heritage sites.

Economically focused objectives are:

create a gateway journey

contribute to achieving the River’s Edge Strategy outcomes

ensure the project contributes positively to Brisbane’s global reputation and outdoor

lifestyle

accommodate enhanced community use of the river.

2.5 PROJECT CONSTRAINTS / CHALLENGES

The key constraints and challenges include:

construction in urban area (range of affected stakeholders)

construction in a constrained environment, under high traffic volumes

sensitive environmental issues

S1 sewer relining and cone top manhole replacements

service relocations

construction work in river

steep gradient of river bedrock

heritage issues

flood impacts.

2.6 RELATED PROJECTS

2.6.1 Kingsford Smith Drive Upgrade Stage 1

Construction of Stage 1 was completed in mid-2011. The eastern end of the Kingsford Smith

Drive Upgrade ties in directly to the western end of Stage 1.




2.6.2 QUU S1 Sewer relining

QUU are currently delivering a 5 year program to rehabilitate the S1 Main Sewer from James

Street, Fortitude Valley to the Eagle Farm Pump Station. This sewer is more than 100 years

old, is overdue for rehabilitation and is expected to be susceptible to vibration which will

present construction constraints to the Kingsford Smith Drive Upgrade. A mixture of

construction methodologies will be used to take advantage of the best options to reline the

S1 Main Sewer. The Queensland Urban Utilities Board approved the S1 Sewer Upgrade

Project in February 2015.

QUU has completed relining of the S1 Main Sewer adjacent to the river between Cooksley

Street and Riverview Terrace, as early works for the Kingsford Smith Drive Upgrade. This

benefits the Project by reducing latent risks of Kingsford Smith Drive construction vibrations

damaging the S1 Main Sewer.

The remaining sections of the S1 upgrade within the Project extents will be upgraded as part

of the Kingsford Smith Drive Upgrade scope, funded by QUU. Including this work in the

Project scope allows the S1 upgrade to be carried out during a construction stage where

traffic is diverted onto the new work, thus providing significant benefits compared to carrying

out the works independently at night and in live traffic conditions.

2.6.3 Legacy Way Tunnel

The Legacy Way tunnel was completed in mid-2015. The tunnel will provide an attractive

direct uninterrupted link, free of traffic signals, from the Toowong roundabout to Kingsford

Smith Drive at Breakfast Creek, via the Inner City Bypass. This will generate additional traffic

demands on Kingsford Smith Drive for motorists and freight movements to access Eagle

Farm, the Australia Trade Coast, Port of Brisbane Motorway, Brisbane’s Airport precinct and

the Gateway Motorway to head north or south.

2.6.4 Airport Link

While traffic counts following the opening of Airport Link initially showed a noticeable

reduction in Kingsford Smith Drive traffic volumes, recent 2014 counts confirm Kingsford

Smith Drive traffic volumes have almost returned to pre-Airport Link opening levels. Traffic

modelling forecasts that the extent of relief from Airport Link is not sufficient to meet the

forecast required capacity for Kingsford Smith Drive. Furthermore, as dangerous goods

vehicles are prohibited from using the Inner City Bypass and Airport Link, Kingsford Smith

Drive will continue as the most appropriate route for dangerous goods between the Gateway

Motorway and industrial areas adjacent to Kingsford Smith Drive.




2.6.5 Bretts Wharf CityCat Terminal Relocation

In order to accommodate the Kingsford Smith Drive Upgrade, Council has relocated the

Bretts Wharf CityCat Terminal from its current location to roughly opposite the end of

Racecourse Road.

The relocation of the terminal was originally planned for 2011, however the project was

delayed as funding was redirected towards flood recovery projects. Works were completed in

mid-2015.

2.7 PROCUREMENT STRATEGY

The proposed procurement strategy is to utilise external consultants for technical,

commercial and legal advisory roles, and an external design and construct contractor to

deliver the works. Council’s internal staff will be used to develop Briefs for the various

consultant engagements, to undertake technical reviews of consultant deliverables, and to

audit performance of the construction contractor.

Engagement of contractors and consultants will adhere to the approved Significant

Contracting Plan for the project, including authorisation at Brisbane Infrastructure

Procurement Board, Stores Board, and/or Establishment and Coordination committee as

appropriate.

2.7.1 Delivery Model

A workshop was held in May 2013 to assess delivery model options including Public Private

Partnership (PPP), Managing Contractor, Engineer Procure Construct Manage (EPCM),

Alliance, Double Early Contractor Involvement (dECI), Design and Construct (D&C) and

Early Tenderer Involvement (ETI).

The workshop ranked dECI slightly ahead of D&C and Alliance scoring equal second. The

dECI methodology involves an interactive competitive tendering process followed by

establishment of a modified D&C delivery contract which includes performance-based

pain/gain provisions.

An interactive D&C procurement model was selected over the above approaches for the

reasons summarised below. Market representations confirmed there is a strong appetite for

delivery by D&C with many large scale infrastructure projects being successfully delivered

using D&C delivery.




2.8 DELIVERY PHASES

The following sections provide a brief summary relating to each project phase.

2.8.1 Preconstruction

The focus of the preconstruction phase was to articulate Council’s project requirements and

ensure the project is ‘delivery ready’ in terms of budget, stakeholders, delivery strategy and

other technical and commercial issues.

Key activities in the preconstruction phase included:

confirmation of the project delivery model




engagement of necessary technical, commercial, legal and project management

support for Council

establishment of project governance and reporting measures, and a project

organisation structure

definition of Council’s technical and aesthetic project requirements including

outcomes and performance expectations, management of third-party impacts, and

specification of project constraints

consolidation of site-specific data and historic project information

preparation of procurement and delivery contract documentation, including

independent review

confirmation of project budget and delivery programme expectations, including

potential cost-sharing with third parties (e.g. QUU)

securing preliminary project approvals from federal, state and statutory authorities

engaging with stakeholders in preparation for project delivery.

2.8.2 Procurement

The focus of the procurement phase was to engage, via a competitive tendering process, a

capable and experienced organisation to design and construct the project. Due to the

complexity and scale of the project an interactive tendering process was conducted, with

Council monitoring and guiding the tendering teams (within appropriate probity and

commercial limits) to ensure the submitted proposals address all project requirements with

appropriate methodologies. The procurement phase was completed as per the below:

expressions of interest (EOI) called for D&C Contract - March 2015 to April 2015

RFP and interactive phase - April 2015 to July 2015

tender assessments, approvals and Contract Award - July 2015 to December 2015.

2.8.3 Delivery

The delivery phase involves the detailed design and construction of all aspects of the project,

plus a defect liability period following Practical Completion. It covers:

detailed design of all aspects of the project, including reviews throughout design

development and a formal ‘permission to use’ (PTU) process

securing final approvals from federal, state and statutory authorities

constructing the project

administering the construction contract




Independent Verification and review of the works

monitoring post-construction performance and rectification of any defects.

The current programme is to commence the delivery phase in December 2015 and achieve

Practical Completion by mid 2019.




3 SCOPE

3.1 SOLUTION OPTION DEVELOPMENT

This section summarises the upgrade options considered for the Project.

3.1.1 Option Development

A Planning study for Stage 2 and Stage 3 upgrade of Kingsford Smith Drive was completed

in late 2010, which identified twenty-four (24) separate upgrade options. They were

shortlisted through a two-round multi-criteria analysis process. Options considered included:

4 lanes with widened existing corridor or viaduct structure

6 lanes, three options utilising a widened existing corridor and three options with

viaduct structure

8 lanes, three options utilising a widened existing corridor and three options with

viaduct structure

three options maximising mass transit and incorporating viaduct structure

four options considering the impact of turn bans to the Cooksley St intersection

one ‘non-asset’ option, focused on operational improvements through ITS and signal

coordination

one ‘do minimum’ option which included minimal road widening and ITS interventions

one ‘do nothing option’.

The multi-criteria analysis assessed and ranked the options against the project objectives.

This analysis resulted in shortlisting to three recommended concepts:

1. Widening of the corridor (Option 1h) – provide four general purpose traffic lanes plus two transit lanes by widening into the river, plus grade separated pedestrian crossings, indented bus bays and separate off-road pedestrian and cycle path

2. Do minimum (Option 15h) – maintain existing four general purpose traffic lanes, with rationalisation of intersections, grade separated pedestrian crossings and indented bus bays

3. Grade separation (Option 5d) – provide eight general purposes traffic lanes (four at surface, four in tunnel), with grade separated pedestrian crossings, indented bus bays and separate off-road pedestrian and cycle path

A second round of option assessment was conducted between November 2010 and January

2011, where five options were presented through public consultation. The options were:

Option 1: Retaining wall in the river, estimated cost – $850 million

Expanding the capacity of Kingsford Smith Drive between Theodore Street and Breakfast Creek Road by constructing a retaining wall in the Brisbane River. This option had on and off road facilities for cyclists between Riverview Terrace and Breakfast Creek Road.




Option 2: Partial upgrade, estimated cost – $255 million

Expanding the capacity of Kingsford Smith Drive between Theodore Street and Riverview Terrace only. This option upgraded the corridor in sections, concentrating on key congestion areas. It added landscaping to footpaths and centre medians between Theodore Street and Riverview Terrace.

Option 3: Elevated structure over the river, estimated cost – $1.35 billion

Expanding the capacity of Kingsford Smith Drive between Theodore Street and Breakfast Creek Road by constructing a new elevated structure out over the Brisbane River. This option included three inbound lanes on the new elevated structure with three outbound lanes on the existing road. This option added on and off road facilities for cyclists between Riverview Terrace and Breakfast Creek Road, landscaping to footpaths and centre medians.

Option 4: Double-storey tunnel, estimated cost – $3.2 billion

Expanding the road capacity of Kingsford Smith Drive to eight lanes with four lanes on the surface for inbound and outbound traffic and an additional four lanes created in a double-storey tunnel under the road for an express inbound and outbound route. The tunnel may have been tolled.

Option 5: Side-by-side tunnel, estimated cost – $2.43 billion

Expanding the road capacity of Kingsford Smith Drive to eight lanes with four lanes on the surface for inbound and outbound traffic and an additional four lanes created in a side-by-side tunnel under the road for an express inbound and outbound route. The tunnel may have been tolled.

Council received a total of 384 pieces of feedback. It was concluded from the community

consultation that there was a general interest in the project and a need to address

congestion in the corridor. Option 1 received the most support and had the least opposition.

3.1.2 Recommended Solution Option

Council publicly released its preferred option on 16th January 2013 – Option 1 ‘retaining wall

in the river, upgrade to six lanes’. This is consistent with Option 1h of the Planning Study,

and the associated concept design information for Option 1h was used as a basis to

progress the project. Broadly, the solution included:

widening of Kingsford Smith Drive primarily to the south, from four to six lanes

removing the traffic signals and converting the Cooksley Street intersection to left

in/left out only

extending the right turn lane from Kingsford Smith Drive into Amy Street

landscaped median

a separated pedestrian and cycle-way extending over the river

grade separated pedestrian crossings at selected intersections

park upgrades




3.2 CONCEPT DESIGN OF PREFERRED TENDERER AND REFINEMENT OF SOLUTION OPTION

The preferred tender design is substantially the same as the Concept Design documented in

the 2014 Business Case, broadly labelled “retaining wall in the river, upgrade to six lanes”.

The design has since been developed through community consultation, the Project Definition

and Reference Design phase and followed by further refinement in the procurement phase. A

number of key changes to the previous concept design layout have occurred and include:

the horizontal and vertical alignment of the Kingsford Smith Drive widening into the

Brisbane River

retaining the traffic signals at the Kingsford Smith Drive and Cooksley Street

intersection with all traffic movements

upgrading Yulestar Street and changing the configuration of the Cooksley Street and

Yulestar Street intersection to allow all traffic movements

banning the right turn from Kingsford Smith Drive into Amy Street

retaining the at-grade signalised pedestrian crossings at Cooksley Street and

Crescent Road

a higher level of urban design and landscape outcomes

future provisions for the new Hercules Street signalised intersection (to be completed

by Economic Development Queensland (EDQ))

future provisions for the new Brett Street signalised intersection (to be completed by

EDQ).

Refer to Appendix A for the tender concept design.

3.2.1 Design Alignment into the Brisbane River

The extent of the widening of Kingsford Smith Drive adjacent to the Brisbane River has been

the subject of extensive detailed hydraulic assessment and geometric design iterations. The

hydraulic modelling completed during the Reference Design phase found that significant

widening into the Brisbane River created unacceptable afflux upstream of Kingsford Smith

Drive. During development of the Reference Design, preliminary results from the State

Government’s Brisbane River Catchment Floodplain Management Study were provided by

TMR to Council with significantly higher design flood volumes for the Brisbane River based

on the 2011 Brisbane floods. This changed the without project (or base case) flood levels

and flooding impacts. The unacceptable impacts resulted in the need to model additional

road widening scenarios with reduced cross sections to mitigate the flood impacts. Median,

verge and shared path widths were reduced through a number of iterations. Further




mitigations were investigated by refining the road geometry and shifting the new road

alignment north.

The interactive tender phase also resulted in the design alignment being optimised. The

preferred option utilises a cantilever over the Brisbane River, which in turn provides a

landscaped centre median. Hydraulic modelling was undertaken on this alignment which

predicted negligible flood impacts, with modelled afflux in the Brisbane River immediately

upstream of the Project works predicted to be between 8-11mm.

3.2.2 Cooksley Street intersection

Council consulted the community on the Kingsford Smith Drive upgrade concept design in

February and March 2014 which included the removal of the traffic signals at Cooksley

Street. A significant adverse reaction was received from the community regarding the

proposed change to Cooksley Street, with a major concern being the reduced accessibility

for motorists from the area north of Kingsford Smith Drive being able to use the Cookley

Street traffic signals to turn right and access the Inner City Bypass. The nearest right turn

onto Kingsford Smith Drive is at Racecourse Road and the alternative via the Albion five-

ways is operating at capacity during the AM peak hour. The alternative route for the right turn

into Cooksley Street was proposed at Amy Street. To accommodate the additional traffic

volumes for the right turn into Amy Street, the short right turn slip lane was extended to a

dedicated right turn lane. This required widening into the Breakfast Creek River which

resulted in unacceptable flood impacts.

Consequently, Council undertook additional investigations to determine if the traffic signals at

the Cookley Street intersection could be retained, without compromising transport focused

project objectives. As a result of the investigations, additional measures were proposed to

encourage southbound vehicles on Cooksley Street to use Yulestar Street and Amy Street to

get to Breakfast Creek Road, including removal of the right turn ban from Cooksley Street

into Yulestar Street and the left turn ban from Yulestar Street into Cooksley Street, changing

the priority of the intersection and improving the operation of the Amy Street and Breakfast

Creek Road intersection. These measures are predicted to relieve the pressure of the

Cooksley Street and Kingsford Smith Drive intersection, allowing the traffic signals to be

retained until a suitable alternative route is available for vehicles to access the Inner City

Bypass.

3.2.3 Urban Design Outcomes

Due to the hydraulic constraints imposed during the Reference Design development, the

upgraded cross section of Kingsford Smith Drive was minimised through the river section as




discussed in section 3.2.1 above. This resulted in the available area for urban design and

landscaping outcomes to be limited. Innovative proposals that best utilise the limited space

were to be developed by the Design and Construct tenderers to address the Project’s urban

design objectives.

The interactive tender phase proved to be beneficial with respect to urban design outcomes,

particularly with the cross section of Kingsford Smith Drive increasing from the Reference

Design through the river section, while still adhering to the hydraulic criteria. Other key

elements of the proposal were updated through consultation with key Council stakeholders.

Overall, the proposed design delivers a subtropical boulevard of sufficient scale and delivery

certainty. The key urban design features of the proposed design include:

a typical 3m wide centre median on natural ground which accommodates a

continuous avenue of trees

a cantilevered pedestrian/cycle-way through the river section

Four ‘River Rest’ nodes that include an architectural lattice shelter and canopy

feature lighting

varied river’s edge interaction opportunities at Brett’s Wharf and Cameron Rocks

Reserve including stepped concrete, a natural boulder edge, a natural cove ‘beach’, a

public pontoon and mooring points

Cameron Rocks Reserve - relocated war memorial with stone paved surrounds and

steps, heritage balustrade to waterfront, feature lighting and ceremonial gathering

space

Bretts Wharf - Multi-use events plaza, seating walls and planters, sheltered grassed

areas for informal recreational use, viewing deck and reinstatement of Gateway to

Victory Memorial Stone along waterfront.

3.2.4 Other Scope Inclusions

The scope of the project includes the features listed above, plus:

acquisition of land to accommodate road widening

acquisition of private jetties impacted by road widening

relocation of the public jetty west of Riverview Terrace

identification and relocation of public utility plant

environmental monitoring before and during construction for noise, vibration, air

quality, water quality, contaminated land, acid sulphate soils, and flora and fauna,

including the implementation of appropriate management measures




monitoring, management and mitigation of impacts to indigenous and non-indigenous

heritage structures and locations

traffic management during construction, including accommodation for public

transport, pedestrians and cyclists

stakeholder and community engagement and communication activities

securing all environmental and planning approvals required for construction of the

project

development of the current concept design ultimately to detailed ‘issued for

construction’ status, including all necessary site investigations such as topographic

and cadastral surveys, geotechnical and environmental sampling, testing and

monitoring, dilapidation surveys for structures and utilities, and road pavement

condition investigations

procurement of all technical advisory services

procurement and management of a ‘design and construct’ delivery contract

coordination with adjacent project works including relocation of the Bretts Wharf Ferry

terminal

work associated with Queensland Urban Utilities’ (QUU) S1 Main Sewer upgrade

between Riverview Terrace and Theodore Street has been incorporated into the

scope of the project

3.2.5 Assumptions

This Business Case was developed on a number of assumptions:

the appropriate level of funding will be made available for the project

ongoing political support for the project will continue

acquisition of land is achieved in the required timeframe.




4 STRATEGIC ALIGNMENT

4.1 STRATEGIC PROJECT OBJECTIVES

The 2010 Planning Study analysed various regional strategic planning documents. Through

this analysis and a workshop, specific project objectives, sub-objectives and relative rankings

and weightings were developed and applied for the evaluation and ranking of strategic

options. A summary of the objectives are presented below. The Benefits and performance

measurement table is included in Appendix B.

Objective 1 – The Kingsford Smith Drive corridor performs to its designated function

within the road hierarchy

Sub-objectives as follows:

1.1 Traffic congestion relief for general traffic and freight

1.2 Improved road safety

1.3 Improved active transport

1.4 Improved operational performance for public transport

1.5 Improved / appropriate access to current and future developments

Objective 2 – The Kingsford Smith Drive corridor upgrade provides an ‘affordable’

transport solution


2.1 The project can be delivered on time

2.2 The project delivers an affordable solution minimising risk

Objective 3 – Construction and operation of the Kingsford Smith Drive corridor

upgrade maximises community and environmental benefits and minimises adverse

impacts


3.1 Operation of Kingsford Smith Drive is maintained during construction

3.2 Long-term impacts on the community are minimised

3.3 Flood impacts are minimised

3.4 Adverse environmental impacts are minimised




4.2 ALIGNMENT WITH COUNCIL STRATEGIES

The following table summarises the project’s alignment with Council’s strategic objectives

and budget programs.

Goals and objectives Council strategy / Budget Program

Improve safety Strategic Objective 4: A Safe & Efficient Road Network

Increase capacity to accommodate existing and future traffic demands

Strategic Objective 2: Managed Travel Demand

Provide improved facilities for public transport, including provision of bus priority measures

Strategic Objective 1: Quality Public Transport

Provide improved facilities for cyclists and pedestrians

Strategic Objective 4: A Safe & Efficient Road Network

Minimise property impacts Strategic Objective 3: Coordinated Transport & Land Use

Minimise environmental impacts Strategic Objective 6: More Clean & Green Personal Transport

Facilitate access to and from major developments

Strategic Objective 3: Coordinated Transport & Land Use




5 COSTS

5.1 CAPITAL COST SUMMARY

At the time of award, $626.5M has been allocated for the project including previous years, up to

and including the 2018-19 financial year. It is intended that Council will allocate an additional

$23.5M in future years, resulting in a total budget of $650M direct costs. The cost estimate

summary is provided below.

Nominal Cost Estimate

D&C Contract Price $453M

Council Costs1 $212M

Less Revenue (QUU Works) -$15M

Total Capital Cost $650M

1 Council costs include planning and design, land acquisition, project management, procurement, associated project works and risk.

5.1.1 Breakdown of Council Costs

Council Costs Estimate

Planning and Design Redacted

Land Acquisition Redacted

Project Management Redacted

Transaction Advisor and D&C Contract Management Redacted

Legal Advisor, Insurances, QLeave, Approval fees and

Unsuccessful Tenderer reimbursements

Redacted

Public Utility Plant - design, early works and APA

Contract Allowance

Redacted

Escalation Redacted

Project Risk Allowance Redacted

Total Council Cost 212M




5.1.2 Forecast Cashflow and Forward Budget

The current forecast cashflow for each financial year is shown below.

Prev years FY15/16 FY16/17 FY17/18 FY18/19 Total

Forecast

Cashflow

$18.46M $79.35M $309.96M $154.23M $88M $650M

Budget $18.46M $36.57M $135.1M $254.9M $181.5M $626.5M




6 ECONOMIC ANALYSIS

From an economic perspective, the Kingsford Smith Drive upgrade aims to achieve:

improved transport efficiency (i.e. travel time savings, reduced vehicle operating costs,

reduced congestion and improving road safety) for the community, business and transport

suppliers

improved journey time reliability of the network so that it will enhance the competitiveness

of regional and state economies

wider economic impacts including better accessibility and corridor investment

noise, air quality, health (road safety) and other amenity improvements

value for money from any public expenditure to be allocated to the Project.

6.1 RESULTS

In 2012, a formal investment appraisal was prepared by Council as Information for the Council of

Capital City Lord Mayors and to support an Infrastructure Australia (IA) contribution application.

The Benefit Cost Ratio was determined to be 0.71, assuming a discount rate of 7% over 30 years.

An updated appraisal was prepared in 2015 based on updated transport assessments and project

cost estimate. The Benefit Cost Ratio has improved from 0.71 to 1.13 (up 60%) and to 1.36 (up

91%) when adding indicative Wider Economic Benefits (WEB’s).

Present Value Base1 Base + WEB’s2

Benefits 653.5 784.2

Costs 575.9 575.9

Benefit/Cost Ratio 1.13 1.36

1. Assessment 2015, assuming 7% discount rate over 30 years 2. Base plus 20% increase to benefits to account for WEB’s (Refer to Section 6.2.3)




6.1.1 Cost Benefit Analysis

A summary of the Cost Benefit calculations are shown in the table below.

Present Value of Costs and Benefits Value

COSTS $575.9M

Vehicle Operating Benefits $638.2M

Crash Benefits $15.3M

TOTAL DIRECT BENEFITS $653.5M

WEB’s1 $130.7M

TOTAL BENEFITS + WEB’s $784.2M

Net Present Value (NPV) $208.3M

BCR 1.36 1 WEB’s applied at 20% of total benefits (Refer to Section 6.3.3)

6.1.2 Sensitivity Testing

Sensitivity tests were undertaken for a variety of potential outcomes to determine the robustness of

the results. They include:

discount rates of 4% and 10% (either side of 7%)

project capital costs deducting the estimated cost component of the pedestrian/cycle way

along the river section as it’s additional benefits to the Project have not been monetised

capital costs sensitivity (e.g. risk allowance not realised)

capital costs sensitivity plus WEB’s

Additional operational benefits generated during off-peak and weekend hours are estimated

to provide a 20% increase (current direct benefits derived from weekday four hour peaks

only).

Summary results are shown in the table below.

Present Value of Costs and Benefits BCR % Increase

Discount rate 4% 1.64 45%

Discount rate 10% 0.83 -26%

Capital costs subtract pedestrian/cycle riverside facility

1.33 18%

Capital costs -20% 1.42 25%

Capital costs -20% & WEB’s 1.70 50%

Off-peak benefits +20% & WEB’s 1.59 41%

Capital costs -20%, off-peak benefits +20% & WEB’s 1.99 76%




6.2 WIDER ECONOMIC BENEFITS (WEB’S)

6.2.1 Overview

It has been widely recognised that traditional methods of appraisals do not capture the full

economic benefits of transport projects. Over the last few years, the concept of Wider Economic

Benefits (WEBs) is becoming increasingly common in the project evaluation for major transport

and land re-development projects.

6.2.2 Types of WEB’s

There are four principal types of WEBs that are attributable (and quantifiable) for transport projects.

They are summarised below.

Agglomeration economies: Benefits which flow to firms and workers located in close proximity to

each other (or agglomerating). Agglomeration economies arise from economies of scale and

scope. The three principal sources of agglomeration economies include input sharing (including

labour market pooling), knowledge/technological spillovers and output sharing. By lowering travel

costs, efficient transport networks can have a significant impact on agglomeration/density (i.e.

effective density).

Increased labour supply: In deciding whether to work, a worker weighs, among other factors,

travel costs associated with the job against the wage received from the job. Lowering of transport

cost may encourage workers to work longer or encourage the under-engaged and disengaged

workforce into active employment. This may result in an increase in overall labour supply in the

economy. This increased labour supply in turn will result in increased value added or gross

domestic or state product (GDP/GSP).

Move to more or less productive jobs: Improved transport accessibility may provide employers

with access to a broader range of employees (to recruit the most suitable skills), and employees

with access to a wider range of jobs better suited to their skills. Better skills matching/alignment, in

turn, results in workers being more productive. Ultimately, this will lead to an increase in GSP and

GDP.

Output change in imperfectly competitive markets: A reduction in transport costs allows for an

increase in production or output of goods or services that use transport. The existence of price-cost

mark up under imperfect competition implies that some consumers are willing to pay more, i.e.

there are additional consumer surpluses. This impact is not captured in conventional CBA as it

assumes that markets are perfectly competitive.

6.2.3 Applicability to Kingsford Smith Drive

The improved accessibility afforded by the Kingsford Smith Drive upgrade, and the location of the

Project in the vicinity to the wider road network, major employment, residential and industrial hubs

will provide a number of WEBs.




By improving transport accessibility between Australia Trade Coast, the Brisbane CBD, Brisbane

Airport and its link to the western suburbs through the Inner City Bypass and Legacy Way and

facilitating increased employment in areas served by Kingsford Smith Drive, the Project may

improve the effective density surrounding the corridor. This in turn may contribute to agglomeration

economies and enhance the productivity and Queensland’s GSP.

Improved transport accessibility particularly from the Brisbane CBD, Brisbane Airport, Hamilton

Northshore Priority Development Area (PDA) and the Australia TradeCoast combined with

increased levels of development facilitated by the Project may lead to better matching of skills and

therefore provide positive productivity benefits from workers moving to more productive jobs.

Travel time savings and a reduction in vehicle operating costs will enable firms the potential to

increase production. In general, all business travel conducted through the upgraded corridor will be

able to produce goods for less. Output change from imperfectly competitive markets are typically

valued at 10% of business and freight travel time and reliability savings.

WEB’s for the Kingsford Smith Drive upgrade were monetised in an economic assessment

undertaken as part of the 2012 formal investment appraisal. For the corresponding option “Option

1A - Retaining wall in the river, with six general purpose lanes”, the WEB’s were calculated to

equal approximately 20% of the direct benefits, using a discount rate of 7%. As the parameters of

this assessment have not substantially changed from “Option 1A”, reporting for this section

includes a 20% increase to benefits in order to demonstrate the potential effect WEB’s have on

economic results.

6.3 TRANSPORT ASSESSMENT RESULTS

An updated Transport Assessment was undertaken in 2015 to provide detailed input into the

Reference Design layout, particularly the recommended configuration of intersection upgrades on

Kingsford Smith Drive. The assessment also highlighted the future difficulties that are likely to be

experienced by the road network’s inability to cope with the predicted future travel demands. If no

upgrades are undertaken to Kingsford Smith Drive, key intersections become oversaturated and

cause traffic dispersion to the lower order local roads.

The State Government in conjunction with Council is currently developing the new ‘BNE’ traffic

model. It includes key features such as a more sophisticated toll choice model, intersection delay

functions, additional model time periods and is expected to be ready towards the end of the 2015-

16 financial year. It is intended that the Kingsford Smith Drive traffic assessment will be updated

based on ‘BNE’ traffic model in mid 2016.

Travel time savings and predicted peak hour volumes from the 2015 Transport Assessment are

summarised in the below tables:




Travel time savings (between Breakfast Creek Road and Theodore Street)

Scenario Without Project With Project Travel time savings

Year of Opening1 AM Inbound

431 seconds (7m 11s) 371 seconds (6m 11s) 60 seconds (1m)

~14% reduction

Year of Opening1 PM outbound

410 seconds (6m 50s) 337 seconds (5m 37s) 73 seconds (1m 13s)

~18% reduction

2031 AM Inbound 588 seconds (9m 48s) 416 seconds (6m 56s) 172 seconds (2m 52s)

~30% reduction

2031 PM outbound 511 seconds (8m 31s) 368 seconds (6m 8s) 143 seconds (2m 23s)

~28% reduction 1 2016 model was used for the purposes of ‘year of opening’

Kingsford Smith Drive predicted weekday volumes

Weekday volumes1 Forecast Year of Opening2 Forecast 2031

Inbound 34,000 34,000

Outbound 35,000 41,000

Total Weekday 69,000 75,000 1 Kingsford Smith Drive, between Crescent Road and Cooksley Street 2 2016 model was used for the purposes of ‘year of opening’

Kingsford Smith Drive predicted peak hour volumes

Peak hour volumes1

AM (vph)

Inbound / Outbound

PM (vph)

Inbound / Outbound

2016 Without Project 2,700 / 2,400 2,400 / 3,100

2016 With Project 3,100 / 2,500 2,500 / 3,300

2031 Without Project 3,100 / 2,800 2,300 / 3,100

2031 With Project 3,600 / 2,900 2,600 / 4,000 1At Crescent Road

6.4 EMPLOYMENT CREATION

Based on the current Queensland Treasury employment multiplier (direct and indirect employment)

of approximately 6.7 FTE’s per $1M of construction expenditure, the predicted number of jobs

created by construction of the Project is shown below.




Estimated construction expenditure FTE’s

$453M 3,035

6.5 NON-MONETISED COSTS AND BENEFITS

The cost benefit analysis only considers the benefits that can be monetised. However there are

additional benefits from the Project that are not traditionally assessed in transport cost benefit

analyses nor can be readily monetised. These include:

improved safety for pedestrians and cyclists

improved facilities for public transport

improved facilities for cyclists and pedestrians

improved amenity.

6.6 CONCLUSIONS

Kingsford Smith Drive is an integral part of the road network and adjoining land uses, with the

upgrade predicted to produce significant economic benefits:

the Project is estimated to generate $1.95b undiscounted direct economic benefits over the

economic evaluation period in terms of vehicle operating costs, road safety savings and

environmental benefits

WEB’s have previously been shown to be substantial for the Project (approximately 20% of

direct benefits) and when added to direct economic benefits, increases overall

undiscounted economic benefits to $2.34b over the economic evaluation period

the Project returns a robust BCR range of 1.36 based on a discount rate of 7% including

WEB’s, 1.64 based on a discount rate of 4% and 1.99 based on a cost sensitivity scenario

including WEB’s and off-peak benefits

the Project is predicted to create 3,035 FTE’s based on the Queensland Treasury

employment multiplier (direct and indirect employment)

other non-monetised costs and benefits including safety for pedestrians and cyclists,

improved facilities for public transport and improved amenity would serve to improve the

benefits of the Project and hence the BCR.

Overall, under the assumptions that have been adopted, the results present a robust economic

justification to proceed with the Project.




7 APPROVALS

This section relates to the planning and environmental approvals Council is responsible for

obtaining. It includes:

a summary of the environmental approvals Council is responsible for obtaining

current status and assumptions

impacts on delivery.

7.1 COUNCIL APPROVALS

The approvals Council is responsible for obtaining are shown in the below table.

Approval Legislation Administering Authority

Approvals based on Reference

Design

Development Permit – Operational works for prescribed tidal works and interference with quarry material on state coastal land involving:

Removal of marine plants Waterway barrier works

(permanent) Works on a local heritage

place

Sustainable Planning Act 2009

Brisbane City Plan 2014

Environmental Offset Act 2014

Schedule 4A of the Coastal Protection and Management Regulation 2003

Brisbane City Council – DA Branch

Department of Infrastructure Local Government and Planning – State Assessment Referral Agency

Port of Brisbane

Development Permit – Operational works on a local heritage place (retaining walls and mature rubber tree)



QLD Heritage Regulation 2003


Development Permit – Operational works on a state heritage place (194 Kingsford Smith Drive)



QLD Heritage Act 1992

QLD Heritage Regulation 2003

Department of Environment and Heritage Exemption

Allocation of quarry material Coastal Management and

Protection Act 1995 Department of

Environment and Heritage Exemption

Approvals based on Detailed

Design

Development Permit – Operational works for prescribed tidal works (Pontoon located at 448 Kingsford Smith Drive)




Department of State Development (EDQ)




Development Permit – Material Change of Use (landing) and Operational Works (tidal works and removal of significant vegetation – marine plants) (CityCat Ferry Terminal change to gangway)


Department of State Development (EDQ)

Development Permit for prescribe tidal works (reinstatement of commercial and public pontoon adjacent to Kingsford Smith Drive)



Schedule 4A of the Coastal Protection and Management Regulation 2003


Department of Infrastructure Local Government and Planning – State Assessment Referral Agency

Council Consent for use of Parks Public Land and Council Assets Local Law 2014

Brisbane City Council – Asset Services Branch

7.1.1 Assumptions and Impact to Construction Delivery

It is expected that all approvals will be obtained by Council without impacts to the delivery program,

with the exception of the “Development Permit – Operational works for prescribed tidal works”.

Prior to obtaining the approval, Council obtained Land Owners Consent from the State. The

anticipated lead time for the approval is between 3 and 6 months. Consequently, to mitigate the

risk of delay claims by the D&C Contractor, construction programmes were adjusted by Tenderers

prior to Contract Award so as to commence marine based works on 1 June 2016. Furthermore, the

Contractor has been given the opportunity to commence marine based works before this date if

Council obtains the approval earlier than expected.

7.1.2 Other Approvals

All other approvals for the works are the responsibility of the Contractor and have been

incorporated into the construction programme.




8 PROJECT DELIVERY

8.1 GOVERNANCE AND ORGANISATION CHART.

The integrated Project team involves internal and external resources for the Delivery phase. The

high level Governance Structure is presented in the diagram below.

8.2 DELIVERY PROGRAM

The delivery program has been adjusted to accommodate the extended procurement process

including interactive tender period. The commencement date for design and construction has

moved from October 2015 to December 2015.

COUNCIL

CIVIC

CABINET

INTEGRATED

PROJECT

TEAM

TRANSAPEX

BOARD




Task Target Date

Finalise D&C Contract December 2015

Land Acquisition March 2016

Prescribed tidal works approval May 2016

Design and Construction December 2015 to June 2019

Marine based works commencement June 2016

Defect Liability Period June 2019 to June 2022

8.3 PROJECT RISK REGISTER

The project risk register is updated regularly as a ‘live document’ to support project delivery, risk

management and contingency planning. The following table contains the current notable risks for

the project as at November 2015.

Category Risk Current Risk Rating

Mitigations

Public Utilities & Delivery

Early PUP works by Contractor (e.g. Energex 11kV HV relocation) is delayed, resulting in delay to main structural widening of KSD

Medium+ Contractual risk allocated to Contractor through contract documentation, Council retains some reputation risk.

Construction Delays and disruption to traffic during construction results in community reaction and TMP’s are revoked and/or modified, delaying progress.

Medium+ Consult with relevant political representatives during design and construction phases. Ongoing communication to the public regarding the possibility of delays or disruptions due to construction activities.

Design Construction of an unacceptable product that requires rectification or ongoing operational issues, even though Performance specification has been adhered to.

Medium+ Engage an experienced contract administration team. Involve relevant Council stakeholders and asset owners in design review process.

Scope

Definition

Scope creep/increase due to external influences e.g. LED Lighting on balustrades

Medium+ Confirm project scope through ongoing consultation including TransApex Board meetings. Assess implications and benefits to project.

Construction

noise and

night works

Construction noise and night works causes significant community backlash, political involvement and requests to change work hours / methodology.

Medium+ Ensure monitoring is undertaken correctly during construction, mitigations are employed and night works only proceed when work cannot be completed during the day.




9 CONCLUSIONS

This Business Case has documented the key changes that have occurred as a result of the

Reference Design and Project Definition phase and the procurement process. It demonstrates the

following in relation to the Project:

it is technically viable and ready to design and build

the cross section and alignment of Kingsford Smith Drive has been optimised to provide

desired transport and urban design outcomes while adhering to hydraulic criteria

delivers a subtropical boulevard of sufficient scale and delivery certainty, including major

enhancements to Cameron Rocks Reserve and Brett’s Wharf Park

delivers significant improvements to pedestrian and cycle facilities, including a cantilevered

pedestrian/cycle-way through the river section

provides substantial improvements to the transport network, including travel time savings of

up to 30% in 2031 for an inbound AM trip between Theodore Street and Breakfast Creek

Road

economic results present a robust justification to proceed with the Project, including the

generation of undiscounted economic benefits of up to $2.34b and a benefit cost ratio

between 1.36 and 1.99 from sensitivity testing

has a robustly developed project budget based on a fixed price D&C Contract

risks associated with the timing of Council-obtained approvals required for construction

have been mitigated.




10 APPENDICES

10.1 APPENDIX A - PROJECT PLAN




10.2 APPENDIX B – BENEFITS AND PERFORMANCE MEASUREMENT TABLE

Council Outcomes

Project Objective Benefits Performance measurement

1

Strategic Objective 1 – Quality Public Transport

1.4 Improved operational performance for public transport

Provision of facilities for public transport

Indented bus bays and upgraded bus shelters that are DDA compliant

2

Strategic Objective 2 – Manage Travel Demand


Improvements in travel time Travel time surveys 12 months post-construction show reduced travel times compared to pre-construction travel times

3.1 Operation of Kingsford Smith Drive is maintained during construction

Minimal impact on existing traffic movements

Number of existing lanes remains operational during construction, wherever possible. Delays and/or queuing due to construction staging are minimised

Traffic speeds maintained during construction

A reduced speed environment will be required for safety during key construction activities

Local community continues to operate as normal as disruptions to existing accesses are minimised

Minimal complaints are received, and are resolved at project level

3

Strategic Objective 3 – Coordinated transport and land use

1.5 Improved / appropriate access to current and future developments

Efficient vehicular and freight access to future developments such as Hamilton Northshore

Travel time improvements (as per 1.1 above) including improved intersection queuing performance

3.2 Long-term impacts on the community are minimised

Visual impacts are consistent with existing, with amenity improvements through landscaping and urban design

Improved visual amenity through inclusion of landscaping and urban design measures

4

Strategic Objective 4 – A safe and efficient road network

1.2 Improved road safety

Improved pedestrian and cyclist facilities

Improved and continuous footpath on both sides of Kingsford Smith Drive and provision of an off-road active transport corridor

Improved freight hierarchy (increased freight on regional roads, decreased on lower order roads)

Qualitative

Reduction in number of crashes

Reduction in frequency of reported crashes post construction




Council Outcomes

Project Objective Benefits Performance measurement

5

Strategic Objective 5 – Deliver goods on time to the right place


Improvements in travel time Travel time surveys 12 months post-construction show reduced travel times compared to pre-construction travel times

6

Strategic Objective 6 – More clean and green personal transport

1.3 Improved active transport

Provision of on-road and/or off-road cycle measures encourages increased active transport

Pedestrian / cyclist surveys pre and post construction

Safe and efficient access to current and future developments and transport nodes, with improved and/or additional pedestrian crossings and facilities

Pedestrian / cyclist surveys pre and post construction

Reduction in number of pedestrian / cyclist crashes

3.4 Adverse environmental impacts are minimised

Relatively minor impacts to flora and fauna mitigated through offset landscaping

Qualitative

Relatively minor increase in noise and decrease in air quality during operations due to additional traffic

Qualitative

business case version 3.0 city projects office brisbane...

Documents