Melbourne Metro Tunnel Project Analysis Maria Juliana Puente Santos 145280 INTRODUCTION Metro Tunnel Project is the biggest Victorian Government public transport project that will facilitate Metro’s daily use to the growing population of Melbourne, with a planning cost of around $11 billion Australian dollars. This Project will add to Melbourne City’s five new underground metro stations at the following locations: North Melbourne called Arden Station, Parkville called Parkville Station, State library called CBD North Station, Town Hall called CBD South Station, and Anzac called Domain Station Domain Station (City of Melbourne 2022). According to Acmena (2022), the new metro tunnel will create a new rail line from Sunbury in the west of Cranbourne, to Pakenham in the southeast of Melbourne, covering twenty-nine kilometres, incorporating a new fleet of high capacity metro trains and a new high capacity signaling system that will maximize the trains and trams efficiency between Anzac Station (will be located under St Kilda Road) and the domain interchange. It is expected that the extra capacity that will be added to the metro rail system in Melbourne will enable 504.000 more passengers to use it during peak periods every week. Also, will be included other safety features like screen doors in the stations (Victoria Big Builds 2022). In figure 1, it is possible to see a map that shows all the Melbourne’s metro lines, including the new Metro Tunnel, which is shown with a dotted blue line, and the new underground stations. Figure 1. Melbourne Metro lines map. 1. INITIATION STAGE The initiation stage for the Metro Tunnel Project started in 2015 when the project was announced with the objective of delivering a new pathway through Melbourne City, connecting the busiest rail lines with a new tunnel under the city’s CBD, and creating space to run more trains. Also, in this stage was settled a budget of $11 billion Australian Dollars. (Acmena 2022). 1.1. Success factors In its initiation stage, a success factor is the successful conclusion of contracts and deals with the stakeholders that will be involved in the project’s future along its different stages like the Public-Private Partnership to project development, de department of Public Transport Victoria, Melbourne City Council, Victoria State Government, Metro Trains Melbourne, and the collaborative alliances between them and other contractors (Acmena 2022). As the Victoria State Government (2022) declared, the PPP (The Tunnel and Stations Public Private Partnership) executed a contract with Cross Yarra Partnership (CYP) in December of 2017, which includes deals with other contractor companies like Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital. 1.2. Fail factors A possible failure factor that could generate more problems in the future like a budget increment, is that the Victoria State Government had to enter into amending and settlement deeds with the Cross Yarra Partnership (CYP) in December 2020 to resolve commercial issues related to the project during the initiation stage. In this agreement, the Victoria State Government and CYP settled that they would share the project cost increment, corresponding to a cost of 1.37 billion Australian Dollars to each. They also included in the agreement the resolution of the outstanding legal claims that were changed from the original payment agreement, and the release and settlement of claims between the parties (Victoria State Government 2022). 1.3. Ethical consideration It is possible to understand as an ethical consideration the commercial issues related to the project because they mean that something is not going well, or they should manage it in a better way. Also, we can settle as an ethical consideration the way how the Victoria Government is selecting and hiring The Tunnel and Stations Public Private Partnership and how was the process of hiring the project’s contractors. 2. PLANNING STAGE The agent responsible for the development of the Metro Tunnel project during the planning stage is Rail Projects Victoria (RPV), which develops all the procurements and the detailed design of the project. Also, this stage is being developed with the cooperation between different stakeholders, contractors, and alliances between them (Acmena 2022). The new Metro Tunnel, due to its magnitude, faces significant system integration challenges like the high levels of engineering complexity, the inclusion of new technologies, and construction impacts. To manage the different system integration challenges, Rail Projects Victoria will need to guarantee the correct integration of the infrastructure systems that will be done by different contractors and will need to mitigate other potential risks like delays, cost increments, and disruptions. That effective integration can only be possible with a robust requirement management system with the ability to allocate the project requirements to the different stakeholders and to document every evidence needed to achieve every requirement (Acmena 2022). And along this stage, every stakeholder is subject to many rigorous regulatory requirements to ensure safety conditions over the project life cycle by the Rail Safety National Law (Acmena 2022). 2.1. Success factors For the planning stage was possible to identify two success factors: • The Metro Tunnel Project’s Environment Statement (EES) assessment that concludes its environmental effect was released in December 2016 by the Minister for Planning, providing the project statutory decision to approve this project. (Victoria State Government 2022). • According to the Victorian Auditor-General’s Office (2019), effective coordination of the detailed planning and project design was essential to achieving environmental assessments and planning approvals. 2.2. Fail factors As was said by The Victorian Auditor-General’s Office (2022), the environment Effects Statement (EES) process concluded successfully, and the project approval assessment was provided by statutory decisionmakers, where this decision includes the approval for the planning scheme amendments under the Planning and Environment. However, if it weren’t approved, it would be considered nowadays a major failure factor in the planning stage, causing a big stagnation, affecting the schedule delaying every following stage since that point, and producing considerable increments that could yield management to take decisive choices. 2.3. Ethical consideration The project’s effects on the environment are an important consideration because and as it was said below, it is considered a failure factor because if they are underestimated, they could cause worse damage to the environment that can also affect the community and may cost lives, money, and resources in the future. 3. EXECUTION STAGE Rail Projects Victoria (RPV) is the agent responsible for progressing the Metro Tunnel project through its construction or execution stage (Acmena 2022). This stage refers to the early works and construction works that are taking place since April 2019, between the metropolitan and regional train network from 123 April (Daniel Andrews 2019). According to Victoria’s Premier declared at that time, most of those works along Cranbourne and lines like Pakenham, Frankston and Sandringham were going to happen during holiday periods when fewer people use the rail network system. And in lines like Glen Waverley, Mernda, Gippsland, Geelong/Warrnambool, buses were going to replace trains (Daniel Andrews 2019). 3.1. Success factors A success factor in this stage according to Victorian Auditor-General’s Office (2019) is the fact that in the early works, there were effectively 'de-risked' some key elements of the overall project like the fact that the contractors developed and achieved the land acquisition, the site clearance and demolition, and utility relocations without any major contingency. 3.2. Fail factors For the execution stage was possible to identify one major fail factor that could affect de project development in the coming years: • The unexpected cost increases for the early works phase: Because it added considerable tension to the initial budget and the project-wide contingency funds. Also, the heavy use of the contingency funds in its early stage represents a project warning because there are many other phases to complete in the execution stage, with a lot of complexity and risky construction works ahead that could increase costs again (Victorian Auditor-General’s Office 2019). According to the New daily (2022), the project has forecasted to overspend $364 million Australian Dollars in overspend on its tunnels and stations, and the Victorian Auditor-General’s Office (2022) the increment of the costs since the project’s early works has left the contingency budget and the lack of any more contingency funds can represent a significant budget risk However, that amount of money has been offset by savings and descoped works in other areas of the project. 3.3. Ethical consideration The lack of contingency found due to the unexpected cost of the early works is an ethical issue related to the project because they should forecast most of the unexpected costs by having a bigger contingency fund since the planning stage and don’t have the risk of getting out of the budget and stop the project. 4. CONTROLLING STAGE As in the last two stages, also Rail Projects Victoria (RPV) will be the agent responsible for monitoring and controlling the stage to get all the acceptance and standards approvals required before handing the infrastructure over to the rail operator (Acmena 2022). This stage is to audit the project during and immediately after the execution to assess the delivery of the Melbourne Metro Tunnel Project (MTP), including the new tunnels and stations main works against the scope, budget, schedule, and quality requirements (Victorian Auditor-General’s Office 2022). 4.1. Success factors There are two remarkable success factors for the controlling stage: • According to Metro Tunnel (2017), to ensure a correct project development within every contractor and stakeholder, there is a system of regular monitoring to measure compliance with complaints processes to ensure the right project development (Metro Tunnel 2017). • The capacity to keep continually improving over time, so every process and practice is always up to change or adapt with time, to minimise future risks and complaints from project-related works and activities (Metro Tunnel 2017). 4.2. Fail factors In the monitoring stage, we find two main failure factors that Metro Tunnel should face: • According to the Victorian Auditor-General’s Office (2019), there is an electromagnetic interference (EMI) coming from trains could affect every medical and scientific equipment that could be located near to the train stations. While Rail Projects Victoria and CYP said they already have plans to mitigate these EMI risks, they will need to implement those plans before train testing in June 2023. • Rail Projects Victoria needs to make a diligently manage of the coming Metro Rail Project’s emerging risks to stay keep within the approved budget of $12.58 billion Australian Dollars and to achieve the planned opening date in September 2024 (Victorian AuditorGeneral’s Office 2022). 4.3. Ethical consideration As an ethical consideration, Rail Projects Victoria should find the best to sort Metro Tunnel Project contingencies without affecting other businesses, the community, and the surrounding environment. 5. CLOSING STAGE 6. This stage supports the transition from the construction stage the project closure ready start the operation of the tunnels and stations to receive public transport users. This stage also includes the engagement with local businesses that will be located nearby, residents, roads, and public transport users to aware them about the operation of the new tunnels and stations (Metro Tunnel 2017). 6.1. Success factors Has been identified two success factors: • According to Victoria Big Builds (2022), Metro Tunnel is on track to be completed by 2025. • A periodically participation public engagement activities directed to the different stakeholders involved, specially those ones who will be involved after the closing stage, promoting public interaction (Metro Tunnel 2017). 6.2. Fail factors In the last stage, only was identified the risk that the Victorian Liberals would win the elections, who said they will renegotiate project’s contract, that as a consequence, will produce years of delays in the coming milestones, incrementing costs by billions of dollars, stopping the currently running trains from running more often, and dealing with new contracts (Loneragan 2018). But other risks can be inferred in this stage, like a weak public engagement with the project and a tight budget to deal with operation stakeholders. 6.3. Ethical consideration The transparency in the engagement process should be as clear as possible to show the community the truth about the benefits the Tunnel will provide as well as the possible issues it could cause, letting them have their own opinion without being influenced by any other with certain interests. REFERENCES • • • • • • • • • Acmena 2022, Melbourne Metro Tunnel, Acmena, retrieved 3 December 2022, <https://www.acmena.com.au/case-studies/melbourne-metrotunnel/>. City of Melbourne 2022, Metro Tunnel, City of Melbourne, retrieved 5 December 2022, <https://www.melbourne.vic.gov.au/parking-andtransport/transport-planning-projects/metro-tunnel/Pages/metrotunnel.aspx>. Daniel Andrews 2019. Melbourne’s New Tunnel Hits Another Milestone, Premier of Victoria. Retrieved 4 December 2022, <https://www.premier.vic.gov.au/melbournes-new-tunnel-hits-anothermilestone/>. Loneragan, D. 2018, Melbourne’s Metro Tunnel to be finished a year early, Railxpress, retrieved 4 December 2022, <https://www.railexpress.com.au/melbournes-metro-tunnel-to-befinished-a-yearearly/#:~:text=The%20newly%20released%20tunnels%20and%20stati ons%20publicprivate%20partnership,to%20be%20finished%20by%20the%20close% 20of%202025>. Metro Tunnel 2017, Community and Stakeholder Engagement Management Framework, Metro Tunnel, Retrieved 3 December 2022, <https://metrotunnel.vic.gov.au/__data/assets/pdf_file/0013/104530/MT -FRAMEWORK-201700306-Community-and-StakeholderEngagement-Management-Framework.PDF>. The New Daily 2022, Melbourne Metro Tunnel’s budget blowout, the New Daily, retrieved 3 December 2022, < https://thenewdaily.com.au/news/state/vic/melbourne/2022/06/22/melb ourne-metro-tunnels-budget-blowout/>. Victoria State Government 2022, Planning: Melbourne Metro Rail Project, Victoria State Government, retrieved 3 December 2022, <https://www.planning.vic.gov.au/environment-assessment/browseprojects/projects/melbourne-metro-rail>. Victoria’s Big Builds 2022, About the Metro Tunnel Project, Victoria’s Big Builds, retrieved 4 December 2022, <https://bigbuild.vic.gov.au/projects/metro-tunnel/about>. Victorian Auditor-General’s Office 2019, Melbourne Metro Tunnel Project—Phase 1: Early Works, Victorian Auditor-General’s Office, retrieved 4 December 2022, • <https://www.audit.vic.gov.au/report/melbourne-metro-tunnel-projectphase-1-early-works?section=>. Victorian Auditor-General’s Office 2022, Melbourne Metro Tunnel project Phase 2: Main works, Victorian Auditor-General’s Office, retrieved 4 December 2022, <https://www.audit.vic.gov.au/report/melbournemetro-tunnel-project-phase-2-main-works?section=34129--appendix-asubmissions-and-comments&show-sections=1>.