Sydney Metro Greater West: Examining the Business Case & Proposals - Essay Sample

Introduction

Sydney Metro Greater West is a mega project seeking to improve the public transport system in the region. The report examines various aspects of the project and provides recommendations for improvement compared with the precedent projects. Accurately, the analysis assesses the business case's suitability to deliver a solid plan in terms of the benefits. The project evaluates the proposed packaging and contracting strategy for the project and approaches to package segregation. Besides, the analysis examines the private sector's capability to deliver the project and the public sector's competence to manage the project's implementation. The report also explores the primary stakeholders and the consultation and engagement process used to get feedback from the community. Finally, the analysis compares the Sydney Metro Greater West railway project with the precedent projects and give recommendations around the contentious issues identified. The study recommends that the project be completed through the public and private partnerships to maximize resources and capabilities from both stakeholders. The allocation of the risk to private sectors should match their skills to handle it. Having an alternative delivery model for the project will be critical to enhance a successful completion when the initial model fails.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Sydney Metro Greater West Case Study

Background of the Project

Sydney Metro Greater West is a public transit enhancement project that involves the construction of a new railway line aimed at serving Greater Western Sydney International Airport and Greater Western Sydney (NWS). The project aims at providing a safe, fast, and accessible public transport system that will promote interconnection between public transport systems in Sydney and other areas. The new transport system consists of automatic trains and new terminal systems located at Western Sydney Aerotropolis and Western Sydney Airport.

Rationale and Scope of the NWS Mega Project

The project has a clear rationale. In light of this, the logic of the new NWS project is to achieve the use of advanced technology and transport strategies to enhance mass transport systems by 2056, as stipulated in the Transport Strategy Framework. The government aims at doubling the railway capacity between Sydney CBD and Parramatta. The project will serve the growing population in the area, to expand the current suburban railway system to facilitate the faster connection between the areas mentioned above, and to have more than one railway station in the Sydney CBD.

Problem Solved by NWS Mega Project

The project's objective is to improve the public transport system in greater Sydney through technology and strategic approaches. Mainly, the expectation is that the project will enhance the economic growth and development in the upcoming Western Sydney metropolis by decongesting the current public transport system by increasing its capacity by two. Besides, the project will improve the economy of the region by creating approximately 100000 jobs.

Compatibility of the NSW Mega Project with Government Strategic Plans and Priorities

The long-term strategic plans and priorities for the Sydney government are to enhance the economic, environmental, land use, and social for its people (NSW Government, 2020). The achievement of the strategic objectives requires the government to complete various mega projects, such as NWS mega project. The New Sydney West State lists infrastructure as one of the primary future priorities for growing and developing the entire region (NSW Government, 2020). According to the future transport strategy framework 2056, investment in land use and infrastructure is fundamental to the development of areas and cities (NSW Government, 2020). The primary concern of the NWS government is prioritising investment in transport, education, water, energy, health, and tourism, among others (Greater Sydney Commission, 2016). Because of this, the project under consideration is an infrastructural investment purposed at expanding the existing public transport capacity to enable commuters to save time for their facilities and earning a living. Besides, the project will provide the number of jobs for youths while bringing services near homes (Greater Sydney Commission, 2016). The automatic trains are environmentally friendly. Therefore, promoting a conducive environment for living. Among other things, the project will boost housing and planning, cultural initiatives, training and development for youths, and arts (Greater Sydney Commission, 2016). In this regard, the mega project is fully compatible with the government's long-term objectives and priorities.

Reasons for the Progression of the Project

The project can progress after presenting a robust final business case. The first step is the problem identification, which demonstrates the need for the project. the mega project in this case aims at easing congestion in trains and providing a more reliable public transport model. The final business case of the project highlights the market soundness of the project. In this case, the feasibility study demonstrates that NSW mega project will cost approximately $11.5B to $12.5B (Sydney Metro City & Southwest, 2016). The study of the investment benefits and costs demonstrates that the project will yield about $1.53 for every dollar invested. The benefit-cost ratio is between 1.47:1 and 1.6: 1 (Sydney Metro City & Southwest, 2016). The midpoint is 1.53 (Sydney Metro City & Southwest, 2016). During the business case phase, the authority needs to identify and engage the relevant stakeholders in the project. The risk examination phase is essential before the progression of a project. In this case, the authority should identify related risks and propose mitigation approaches for the spotted risks.

The governance policy development for the project is critical before the implementation of the project. Policy development is essential for setting procedures for the completion of the project. Finally, the management of the project has to procure the necessary materials for the project to start. Following the above requirements, the project is ready to progress. The local authority, Sydney Metro, industry, and the international stakeholders' engagement seek to optimise the industry input from the commencement to the end of the project (Greater Sydney Commission, 2016). The government makes it clear that it engages stakeholders to promote value sharing and delivery of the anticipated end product. Also, the stakeholders' engagement is critical in defining the project and enhancing the results. The development and completion of the contract package and procurement for the project demonstrate that the project can commence.

Economic Viability of the NSW Mega Project

The cost-benefit assessment showcase that the project will be economically viable. In this sense, the analysis shows that, on average, the project will yield a return on investment of approximately $1.53 per invested AUD (Sydney Metro & southwest, 2016). The project's minimum projected cost is about $11.50B, and the maximum range is $12.50B (Sydney Metro City & Southwest, 2016). The new rail system hourly capacity will be 46000 people compared with 26000 for the current system (Sydney Metro & Southwest, 2016). The present value of the project's economic benefit will be $12988M, translating to a real benefit of $62120M (Sydney Metro City & Southwest, 2016). The current value of the transport benefit from the project will be $$9118M and $2713M to the broader economy (Sydney Metro City & Southwest, 2016). Profits from the land use/ city building will be from the NSW project will be $1157M (Sydney Metro City & Southwest, 2016). Sydney Metro City & Southwest anticipates that the project's lowest benefit-cost ratio will be $1.47:1 and the highest at $1.60:1. From the above analysis, the project will yield more benefits than the cost of investment. Therefore, it is economically viable to implement.

Benefits of the Project

The NSW Megaproject provides a wide range of benefits to the region. The project will transform Sydney Metro by lowering congestion, minimizing travel time, and enhance social and economic benefits in the future. Annually, the estimated economic benefits from the project will be at least $5B, which will support the growth of jobs and ventures in all connected areas (Sydney Metro City & Southwest, 2016). The project will facilitate improved job accessibility, enable employment, housing, and commercial growth in primary areas of the project. By 2036, the project will facilitate the growth of employment by one million workers (Sydney Metro City & Southwest, 2016). The project is essential to the NSW government's strategic objective of creating 150000 jobs by 2019 (Sydney Metro City & Southwest, 2016). Other benefits from the project will be quick travel, less congestion, and better accessibility to social facilities, among others (Sydney Metro City & Southwest, 2016). Besides, it will offer a variety of customer services in the region, such as no schedule to follow, on-time running, and video assistance.

Alternatives to NSW Mega Project

The following are the strategic objectives of the Sydney Metro Greater West to improve mass transport quality in the region. However, the NSW government can seek alternative means of achieving the long-term objectives of the current project. Alternatives to Sydney Metro Greater West are the use of automatic light rail and buses. These forms of transport will serve the same purpose as the current railway project.

Consideration for the Assessment of wider Economic Benefits of Sydney Metro Greater West Project

Sydney Metro Greater West will be a profitable project in the long-run. Beyond the direct benefits of the project, the project will have a spillover effect to the broader economy in the region. In the assessment of the wider economic benefits of the project, factors to consider are; the number of jobs created as a result of the project, improve production capacity for the region and Australia, the accelerated growth of businesses in the region, and increased apprenticeships.

Key Considerations in Developing A Proposed Packaging and Contracting Strategy for The Project

The final business case by the NSW Government (2019) lists the primary considerations for the development of the proposed packaging and contracting strategy for the NSW Mega project. These considerations are:

• Whether or not the completion of the construction procurement and detailed will be separate
• The process and timing stages for the preparation of the detailed design if to be combined with the construction procurement
• Choices for procurement model
• Separation of the main procurement with early works
• The market appetite for the project
• The magnitude of the work to complete in for every package
• Disaggregation of the Project into Package Components and the Management of the Interface Issues
• Package components Management issue
• Train
• Systems
• Operations
• Maintenance Combination of the operations and maintenance activities to foster operational efficiency.
• Tunnels Separating of the tunnels of the same scale to match with the drive plan
• Stations Joining of the preferred stations by the stakeholders
• Development Combination of both station development and construction for some specific stations.
• Separate construction and development of stations in suburban area

Private Sector and Project Delivery

The private sector is a fundamental stakeholder in the completion of the project. One of the constraints identified in the private sector is the lack of skilled staff to complete a high caliber project, such as the NSW mega project (Infras...