Civil Contractors Federation Roads Breakfast Peter Todd - Chief Operating Officer 26 June 2013

1. Civil Contractors Federation Roads Breakfast Peter Todd - Chief Operating Officer 26 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. Chief ExecutiveGary Liddle VicRoads Structure • ED Strategy & Planning / Road Safety CoordinatorDave Shelton • ED Policy & ProgramsRob Freemantle • ED Corporate ServicesJaida Nicholson • Chief Financial OfficerMark Dale • ED Commercial Enterprises & Business DevelopmentPeter Mitcham • Chief Operating OfficerPeter Todd

11. Chief Operating OfficerPeter Todd VicRoads Structure • Director Road Operations Dean Zabriezach • Director Regulatory Services Richard Bell • PD South East Projects • Charlie Broadhurst • PD Western Hwy ProjectMichael McCarthy • Director Road Operations Dean Zabriezach • PD Geelong Ring Road • Tony Hedley • RD North Eastern Graham Freestone • RD Northern • Mal Kersting • RD Eastern • Sebastian Motta • ED Registration & LicensingPeter Welling • RD WesternEwen Nevett • ED Metropolitan OperationsGeorge Mavroyeni • ED Regional OperationsSteve Brown • Director Operation ServicesGerry George • RD Metro North WestPatricia Liew • PD Metro Projects Camberwell Andrew Williams • PD Eastern Projects • Frank De Santis • Director Technical ServicesAgnelo Duarte • Acting RD Metro South East Michael Barker • RD Metro North WestPatricia Liew • PD Eastern Projects • Frank De Santis • Director Commercial RoadsVanya Kumar • RD South WesternWilliam Tieppo • PD M80 Upgrade • Trevor 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. 2013-14 State Budget • 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

16. 2013-14 State Budget 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

17. Western Highway Duplication M80 Upgrade Ballarat Western Link Road Mitcham-Rooks Rd Rail Grade Separation Springvale Rd Rail Grade Separation Stud Road Improvement Project Dingley Bypass PHE – Traralgon to Sale Geelong Ring Road Narre Warren - Cranbourne Rd Duplication Cardinia Rd Duplication Major Infrastructure Projects in 2013/14 Koo Wee Rup Bypass

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 Road • Total Project Cost $155.5m • EOI – June 2013 • Narre Warren Cranbourne Road duplication • Total Project Cost $49m • Tenders currently advertised, closing later this month • Koo Wee Rup Bypass • Total Project Cost $66m • Tenders closed this month • Cooper Street Widening – Hume Fwy to Edgars Road • Total Project Cost $155.5m • Tenders advertised mid 2013

19. Metropolitan Road Proposals • 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

20. 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

21. East West Link • 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

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.) 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. 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

24. Regional Road Proposals • 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

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 Ballarat • Total Project Cost $35.5m • Tenders being prepared and to be released later this year subject to resolving planning issues • Geelong Ring Road 4C, Anglesea Rd to Surf Coast (BaanipBvd) • Total Project Cost $90.4m • Tenders advertised late 2013 • Hyland Highway overtaking lanes • Total Project Cost 4.6m • Tenders advertised late 2013 • Strzelecki Highway overtaking lanes • Total Project Cost $4.1m • Tenders closed May 2013

26. Nation Building Program – federal funding 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

27. 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

28. Nation Building Projects • 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

29. Tender Information Information on Tenders and Contracts can be found on the VicRoads Website: http://www.vicroads.vic.gov.au/Home/Moreinfoandservices/TendersAndSuppliers/TendersAndContracts.htm

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

31. Maintaining the Network • The total budget for Asset Management in 2013-14 is $466 million Funding amounts are approximate for the major asset classes

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?