1

Civil Contractors Federation Roads BreakfastPeter Todd - Chief Operating Officer26 June 2013

2

VicRoads Strategic Directions

3

VicRoads Strategic Directions

To effectively meet the needs of our customers and stakeholders and deliver our core role of providing and managing the Victorian road network we will focus on four strategic directions.

– Operate and maintain the road system to help our customers travel easily and reliably

– Develop the road system to improve connections between places that are important to our customers

– Improve road safety

– Make the road system more environmentally sustainable.

4

VicRoads Strategic Directions (cont.)

Operate and maintain the road system to help our customers travel easily and reliably

– Better allocate road space and manage it efficiently and reliably

– Encourage changes to travel behaviour that support an efficient transport system

– Maintain assets to service levels that meet customer needs – Improve emergency response and recovery

5

VicRoads Strategic Directions (cont.)

Develop the road system to improve connections between places that are important to our customers

– Plan effective transport solutions for future residential and commercial developments in metropolitan Melbourne and regional Victoria

– Upgrade roads to tackle congestion

– Upgrade the road system to support freight productivity

6

VicRoads Strategic Directions (cont.)

Improve road safety

– Improve when and how people and vehicles are granted access to the road network

– Build safety into road design, road operations and vehicles with a focus on integrating these elements

– Assist people to take responsibility for making safe choices

7

VicRoads Strategic Directions (cont.)

Make the road system more environmentally sustainable

– Manage the road system to help reduce Victoria's carbon emissions

– Protect and enhance the natural environment and cultural heritage

– Adapt the management of the road network to a changing climate

8

VicRoads Planning for Our Future

9

VicRoads Planning for Our Future

Improving our relationship with our customers

Aligning our structures, systems and processes with our vision

Delivering services more efficiently

Ensuring the business can adapt quickly to change and innovation

10

VicRoads Structure

Chief ExecutiveGary Liddle

ED Strategy & Planning /

Road Safety CoordinatorDave Shelton

ED Policy & Programs

Rob Freemantle

ED Corporate Services

Jaida Nicholson

Chief Financial Officer

Mark Dale

ED Commercial Enterprises &

Business DevelopmentPeter Mitcham

Chief Operating

OfficerPeter Todd

11

VicRoads Structure

RD Metro North WestPatricia Liew

Chief Operating OfficerPeter Todd

Director Operation Services

Gerry George

ED Regional OperationsSteve Brown

ED Metropolitan Operations

George Mavroyeni

ED Registration &

LicensingPeter Welling

Director Technical Services

Agnelo Duarte

Director Commercial

RoadsVanya Kumar

RD North Eastern Graham Freestone

RD NorthernMal Kersting

RD EasternSebastian Motta

PD Geelong Ring RoadTony Hedley

RD WesternEwen Nevett

PD Western Hwy Project

Michael McCarthy

PD South East ProjectsCharlie Broadhurst

Director Regulatory Services Richard Bell

RD South WesternWilliam Tieppo

PD Metro Projects Camberwell Andrew

Williams

PD Eastern ProjectsFrank De Santis

Director Road Operations Dean

Zabriezach

Acting RD Metro South East Michael Barker

RD Metro North WestPatricia Liew

PD Eastern ProjectsFrank De Santis

Director Road Operations Dean

Zabriezach

PD M80 UpgradeTrevor Boyd

12

Metropolitan & Regional Operations functions

Planning, developing, delivering and maintaining road, roadside & bridge infrastructure

Monitoring the condition of the network and identifying gaps and deficiencies

Planning, developing and delivering the most effective social and environmental solutions for transport related infrastructure

13

Business Efficiencies

A total of 50 projects have been proposed across VicRoads to enhance and streamline our system and processes.

These improvement projects will help us to do things better and more efficiently, reduce duplication and become more customer-focused.

This includes:– Optimising VicRoads Involvement in External Works - Developer

Funded Projects– Consolidation of ITS and Electrical Asset Management Services– Effective Collaboration to Support Principles-Based Decision

Making– Account Management of Finance, HR and Communications

functions

14

VicRoads 2013/14 Delivery Program

15

The 2013-14 State Budget includes around $1.3 billion of investment in road and public Transport aimed at boosting productivity and improve liveability for all Victorians. 

$800 million for Roads $500 million for Public Transport

Roads The Road package includes around $680 million (with approx $375 million in 2013-14) to

improve, upgrade and maintain the road network including: $294 over two year for stage 1 of the East West Link $170 million for arterial road resurfacing and restoration $32 million for repairing fatigue defects on West Gate Bridge; $52 million for early works for grade separations; $10.4 million for a managed motorway system on parts of the Monash Freeway; $24 million for other road upgrades across metropolitan Melbourne; $36 million for regional Victoria; $5 million for bicycle infrastructure program $18 million for Darebin Creek bicycle facilities $32.7 million for Sneydes Rd interchange in the Werribee Employment Precinct

Road Safety The budget also included funding for continuation of targeted road safety initiatives, including:

$11.7 million in 2013-14 (and ongoing) for Graduated Licensing System $100 million in 2013-14 for the Safer Road Infrastructure program

2013-14 State Budget

16

Public Transport The 2013-14 State Budget also included over $500 million of investments in public transport

infrastructure, including: 

Rail $179 million for eight new X’Trapolis trains, associated infrastructure and planning for

future train acquisition; $100 million to improve passenger services on the Frankston line; $78 million to build and maintain facilities for Protective Services Officers at stations $66 million (includes $2m previously allocated) to upgrade the Ringwood Station precinct $32 million to build and operate a new station at Grovedale and additional parking at

Syndal Station $25 million for additional train services on the Dandenong rail line supporting growing

demand

Bus $25 million to enhance bus services by increasing the number of services to key growth

areas, including St Albans, Caroline Springs, Wyndham, Bacchus Marsh and Warrnambool

2013-14 State Budget

Major Infrastructure

Projects in 2013/14

Cardinia Rd Duplication

Dingley Bypass

Stud Road Improvement

Project

Narre Warren -Cranbourne Rd

Duplication

Koo Wee Rup Bypass

PHE – Traralgon

to Sale

Western Highway

Duplication

Ballarat Western

Link Road

Geelong Ring Road

M80 Upgrade

Mitcham-Rooks Rd Rail Grade

Separation

Springvale Rd Rail Grade

Separation

18

Capital (metro) Projects – continuing

Over $430 million of projects underway or about to commence in Metropolitan Melbourne, project expected to commence in 2013-14, include:

Dingley Bypass, Warrigal Rd to Westall RoadTotal Project Cost $155.5mEOI – June 2013

Narre Warren Cranbourne Road duplicationTotal Project Cost $49mTenders currently advertised, closing later this month

Koo Wee Rup BypassTotal Project Cost $66mTenders closed this month

Cooper Street Widening – Hume Fwy to Edgars RoadTotal Project Cost $155.5mTenders advertised mid 2013

High Street Road duplication (Stud Road-Burwood Highway) Total Project Cost $16.3 million $15.4 million (adding to $0.9M prior investment) Tenders Advertised – late 2013 to early 2014

Cardinia Road duplication (Princes Highway to Shearwater Drive) Total Project Cost $18.53 million $8.7 million in 2013-14 budget in addition to $3.95 million prior

allocations and $5.9M of developer contributions Tenders Advertised - late 2013 to early 2014

Metropolitan Road Proposals

East Werribee Employment Precinct– $32.7 million– Delivery of Sneydes Road Interchange– Delivery of preliminary infrastructure, includes

• Upgrade of Sneydes Road• Upgrade of Princes Highway and Hoppers Lane

intersection– Estimated completion late 2015

Managed Motorway Program – $20.3 million total cost, shared funding:

• $10.4 million State• $9.9 million Commonwealth

– Installation of traffic management devices on Monash Freeway - High Street, Glen Iris to Warrigal Road Chadstone

– Estimated completion mid 2016

Metropolitan Road Proposals

East West Link – Stage 1 (Eastern section)– 6 km length Linking Eastern Freeway (Hoddle St to

CityLink)– $6-8 billion estimated cost (Stage 1)

– $294 million over two years (provided by state), for• detailed planning• procurement and• early construction works

– Seeking private financing and $1.5 billion from the Commonwealth to deliver Stage 1

– Commence main construction of Stage 1 - late 2014– Complete construction of Stage 1 - late 2019

East West Link

22

Removal of Level Crossings

$52 million for planning and early works at the following level crossings:

– Main Rd (St Albans)– North Rd (Ormond)– Blackburn Rd

(Blackburn)– Mountain Hwy and

Scoresby Rd (Bayswater)– Burke Rd (Glen Iris)– Murumbeena Rd

(Murumbeena)

23

Removal of Level Crossings (Cont.)

Main Road, St Albans• Planning continuing with option

refinement• Pre-construction works to

commence shortly

Burke Road, Glen Iris• Planning work commenced• Full Business Case to be

completed early 2014

North Road, Ormond• Planning continuing with option

refinement• Pre-construction works to

commence shortly

Murrumbeena Road, Murrumbeena

• Preparation of project Business Case by mid 2014

Blackburn Road, Blackburn Scoresby Road and Mountain

Highway, Bayswater

Early works will enable site investigations, design work and planning approvals to be completed in preparation for major construction.

Early works at Blackburn also includes safety and access improvements to existing pedestrian facilities.

Early works are expected to start in mid 2014.

Kilmore-Wallan Bypass– Planning and development– $10 million (total investment $13.4 million)– Estimated completion mid 2014

Omeo Highway sealing works (Stage 2)– $6.6 million – Estimated completion mid 2015

Transport Solutions– $28 million package over two years for– Road improvements addressing bottlenecks– State providing $20M– Commonwealth and others contributing remainder

Regional Road Proposals

25

Capital (rural) Projects – continuing

Around $240 million of projects underway or about to commence in Regional Victoria, including the following commencing in 2013-14:

Ballarat West Link Road in BallaratTotal Project Cost $35.5mTenders being prepared and to be released later this year subject to resolving planning

issues

Geelong Ring Road 4C, Anglesea Rd to Surf Coast (Baanip Bvd)Total Project Cost $90.4mTenders advertised late 2013

Hyland Highway overtaking lanesTotal Project Cost 4.6mTenders advertised late 2013

Strzelecki Highway overtaking lanesTotal Project Cost $4.1mTenders closed May 2013

M80 Upgrade

Nation Building 1 - currently underway - $1.2B ($900M Fed, $300M State) for the following sections:

• Calder Fwy – Sydney Rd• Western Hwy – Sunshine Ave• Edgards Rd – Plenty Rd

Nation Building 2 - $525 million (federal) to complete the widening project, sections to be completed include:

• Princes Fwy-Western Hwy• Sunshine Ave-Calder Fwy• Sydney Rd-Edgars Rd• Plenty Rd-Greensborough Hwy

State to contribute remaining 50% $525 million

Nation Building Program – federal funding

Managed Motorways – Monash Fwy

• High St-Warrigal Rd: $9.9 million (fed contribution)• Warrigal Rd-Clyde Rd: $68.6 million

Princes Highway West– Winchelsea-Colac duplication– $257.5 million (federal contribution)– Project commencing 2014-15– Length is 37 km

Nation Building Program – federal funding

Project currently underway jointly funded by the State and Commonwealth, include:

– M80 Ring Road Upgrade (TEI = $1.2 billion)

– Princes Highway East Duplication – Traralgon to Sale (TEI $175M)• Flynn to Rosedale Section – Tender Advertised mid 2013

– Princes Highway West Duplication – Waurn Ponds to Winchelsea (TEI $171M)

• Bridge Over Barwon River & Hesse Street Intersection Upgrade - Advertised mid 2013

Nation Building Projects

Tender Information

http://www.vicroads.vic.gov.au/Home/Moreinfoandservices/TendersAndSuppliers/TendersAndContracts.htm

Information on Tenders and Contracts can be found on the VicRoads Website:

30

Asset Management

Arterial road network restoration– $90 million over three years

Pavement surfacing works– $80 million over two year

West Gate Bridge maintenance works– $32 million over four years

Maintaining the Network

The total budget for Asset Management in 2013-14 is $466 million

Funding amounts are approximate for the major asset classes

Pavements$225 million

Structures$52 million

Roadside$49 million

Electrical / ITS$63 million

Network Management$34 million

Special Activities $43 million

(incl. $40M for Country Roads and Bridges Program to Local Government)

32

Innovative Procurement

33

Contracting Strategies

• VicRoads continues to investigate new procurement models to ensure that the State optimizes Value for Money outcomes.

• New models being used or developed include:

• Alliances (North East Maintenance Alliance)

• Objective, risk-based, asset management prioritisation models – Framework Agreements

34

An example of Parameters considered during evaluation in Alliance Contracts

35

Supplier Performance Assessment Scheme

• Will apply to major road infrastructure contracts and work undertaken by major design consultants.

• Industry briefing to take place 2nd July. Invitations have been sent to those contractors pre-qualified at ‘R5’ Level.

• Information gathered will be used to assess whether a supplier is suitable to be short-listed for future projects.

• Potential criteria to be assessed - Tender, Past Contract

Performance, Resources, Innovation, Safety, Cost, Schedule, Stakeholders, Quality, Sustainability

• Implementation – Mid July

36

Non Price Attributes

• A range of non price criteria are currently used for expression of interest/short listing processes

• Some work has been done on proposals to value environmental sustainability attributes in tenders

• Consideration of other attributes – possibility for the future?

37

Questions?