Tamworth Intermodal Rail Hub
The below comments are made as a matter of public interest to assist the Council in its decision making.
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Reference is made to the report in the NDL of 4 June where the Tamworth Regional Council (TRC) advises Transport for NSW is responsible for delivering the rail component of the Tamworth Intermodel Rail Hub (TIRH) both in terms of design and funding. The original funding announced for the rail component on 24 November 2017 was $7.148 million. On the basis of the original report by Lycopodium dated on or about 23 August 2018 estimated rail costs were $7,418,000 and the Terminal a cost of $4,000,000.
The associated Terminal presumably comprises a working area to service the rail siding and is likely to be approximately 1000m long by 50m wide to allow access to load and unload wagons and load/unload trucks and store containers. The TRRRA understand this would require security fencing, fire services, lighting, electricity for "reefers", access roadways etc. The $4m for this area of 50,000m2 equates to $80 per m2 for a heavy duty pavement. Coincidentally the NDL 04 June 2020 announced receipt of $2.0m funding for access roadworks from the Federal Member. The Terminal is NOT part of the Transport for New South Wales (TfNSW) funding scope for the Rail Siding.
TRC has previously acknowledged that a Business Case for the works is still being prepared.
The point the TRRRA wish to make is that Funding Applications for Government funding require the presentation of a sound business case and a total costing for the scope applied for, in this case, a workable rail siding. Iterative funding applications are usually not well received unless the staging is well defined and spelled out.
TRC through a series of iterative announcements acknowledges additional costs of (NDL Wednesday 03 June 2020 an additional $13m, Thursday 04 June 2020 now an additional $20m) making the current TRC figure for the Rail Siding $27.5m. TRC has acknowledged that a funding application is to be submitted for the balance of the costs. It is unknown how the costs of Investigation, Design and Supervision are being accounted for, however, it is usual that these form part of the overall funding model. TRC now advise that Detail Design will not be completed until September 2020. It has been advised the work will be performed by John Holland, the TfNSW CRN Manager.
The TRRRA note comments attributed to Mr Paul Bennett in the NDL Thursday 04 June 2020 and comment as follows. Allusions to "engineers worth their salt" is unhelpful to the debate and perhaps more indicative of failures within the realm of TRC.
The development of projects is iterative. It is usual practice to develop a scope of work required.
This may be based on a walkthrough of the site. In the very early stages of a project once this is done a Concept Level Estimate is developed. This will inherently be based on little detail design, however, based on the scope of work and application of typical rates and suitable contingency a baseline figure is developed. At this point, a funding application for Investigation and Design is made.
As design develops it is usual to upgrade the Estimate at the 30 per cent and 70 per cent stages. Depending on the basis of delivery (in this case John Holland) the project may be put out for pricing at 70 per cent design, although it is more usual to wait for final design. Notwithstanding, a funding application must be comprehensive and inclusive. Based on deliberations of the TRRRA and stated assumptions TRRRA have suggested to TRC and provided TRC with those calculations as a Concept Level Estimate. These suggest a further funding application for the Rail Siding over and above the initial $7.418m in the range $35m to $50m may be required. These figures allow for inclusion of Design and Supervision Costs, dealing with power and gas services, application of Overheads and Profit of the construction contractor and a contingency allowance applied to construction costs between the contractor and the client.
Based upon reported comments $6m of the original $7.418m has been expended on materials pre-purchased, 30 months has elapsed, design commenced June 2019, construction on site commenced 05 May 2020, design will not be complete until September 2020, and a funding application is to be submitted in August 2020.
In terms of the overall development designated Tamworth Global Gateway Park (TGGP) the following components have been mentioned:
- A Rail Siding
- A Terminal associated with the siding
- Country Road Roundabout (RMS funded)
- Access to Terminal from Goddards Lane
- Stormwater works
- Upgrade of Oxley Highway/Goddards Lane intersection (RMS to fund)
There has been wider mention of International Airfreight which will clearly require upgrades to the runway, taxiways and aprons at Tamworth Airport.
TRRRA support properly planned and executed Growth plans for Tamworth, where community input and transparency prevail.
Of greater concern is how the TIRH may relate to the Glen Artney Estate, now renamed Tamworth Global Gateway Park (TGGP). More than 50 per cent of the potential rail freight has gone to Werris Creek. There is a redundant freight terminal in West Tamworth previously run by Hills Transport, which was unable to survive on Tamworth freight movements.
What is the business plan for the whole of TGGP and how does that relate to the Intermodal Hub TIRH? The NDL report states that $27 million has been invested in acquiring the additional 246 HA and developing the precinct, and we are aware that TRC has been planning for the acquisition of that land for more than 20 years. The report also states that the industrial estate will essentially duplicate Taminda, reported to be the largest industrial and fabrication sector in regional NSW.
The current Taminda site is now close to being fully developed after turning over the old soccer fields, the minor league fields and the eastern end of the cemetery for industrial use. Future expansion will be at the Glen Artney/TGGP site, including the significant food processing facilities located there.
It is mere common sense that a thorough business case would consider what should be developed at Glen Artney/TGGP and what the development cost will be, what the opportunities could be, what the risks are and what strategies can be implemented to mitigate risks. What Narrabri Council has prepared is a good example of what a properly developed prospectus for their Inland Rail Port would look like, and their estimate is that final development costs will be around $300 million, funded by the Australian Government.
Comments such those made on Prime Television by TRC that QUBE might develop the TGGP raises considerable concerns. Not only is QUBE a large national company, the result of a merger that needed approval from the ACCC when Australian Amalgamated Terminals merged with Patrick Stevedores then controlled by Chris Corrigan, such a proposed sale does not accord with the recently approved Blueprint 100 plan approved only on the 26 May 2020.
These comments exemplify the lack of preparation and lack of awareness of what the opportunities, risks, and mitigation strategies, and the final costs of this project could be.
We call upon all of the Tamworth Regional Council Councillors to require the Council to formulate a comprehensive Business Plan and Strategy for the TGGP and a sub plan for the TIRP subsequent to that, as a matter of urgency. Such steps should ideally ensure the success of the initiative and reduce TRC exposure to unexpected financial impost arising from the sub optimal performance of a project that should be a key foundation of the city and region's future.
Robyn Lang, Secretary
Cut the puppet strings
If ever there was any doubt that our National MP Kevin Anderson is a puppet and a mouthpiece for the Liberals, the default member for Sydney confirmed this with his gutless decision to not afford our frontline nurses a pay rise which they are entitled to and have earned.
This self-serving hypocrite had the gall, in front of cameras, to praise our nurses and doctors while holding up the middle finger behind his back. No gesture from this lapdog of Gladys Berejiklian to stop the pay increase for his fellow Liberals or offer to take a pay cut himself throughout the Pandemic.
When questions are asked, he runs and hides under his rock babbling the National Party mating call "No Comment". Yes Kevin, we will "have a crack", at getting a new Member and someone who knows how to say no to the Liberals instead of nodding themselves into a nosebleed.
Budget blowouts on Sydney projects and you selling off assets that belonged to the people of NSW, has resulted in NSW not having an income stream anymore. We can't pay the people, but apparently we can still upgrade the pay for politicians.
You've got what you wanted Kevin, 3 terms and a guaranteed taxpayer funded pension for life at very little cost to yourself, but at great cost to the constituents of Tamworth and surrounding areas.
So time we cut you loose and get a member with no strings attached, who'll stand up for us and not just themselves.
Bob Snell, Tamworth