main roads wa & local government common networks common problems common solutions? 2015 national...

MAIN ROADS WA & LOCAL GOVERNMENT

COMMON NETWORKSCOMMON PROBLEMSCOMMON SOLUTIONS?

2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE AND ASSET MANAGEMENT CONFERENCE

Menno Henneveld Consulting14th May, 2015Melbourne, VICTORIA

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2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE

Menno HenneveldConsulting

• The Importance of Roads• Managing WA’s Road Networks• Major Issues and Challenges of Roads• Road Funding in WA• State Funds to Local Government• Road Asset Management• Achieving Value-for-Money• Integration and Collaboration…the common solution

OUTLINE OF PRESENTATION





• A century of travel• Taking roads for granted• The importance of roads in Western Australia• Roads: Local Government’s largest assets

THE IMPORTANCE OF ROADS





A CENTURY OF TRAVEL






TYPHOON HAIYAN PHILLIPINES 2013

NEPAL EARTHQUAKE April 2015


http://marco-ising.nl/?p=2967





JAPAN EARTHQUAKE MARCH 2011

Joban Expressway





BRISBANE FLOODS 2011






WA BUSHFIRES ROLEYSTONE 2010





WA’s RESOURCES SECTOROver-Size Over-Mass Loads





AGRICULTURE AND THE WA ROAD NETWORK





WA ROADS AND TOURISM





ROADS – LOCAL GOVERNMENT’S LARGEST ASSETS





WA’S ROAD NETWORKS


WA’s ROAD NETWORKS








PROFILE OF STATE ROAD NETWORK

State Road Network• 2.5m population• 17,800km• 830 Traffic Lights• 2068 Bridges

Metro Perth• 1.6 m population• 2552 lane km• 793 traffic lights• 712 structures





LENGTH OF ROADS

National Road Network …………….. 4,902km

State Highways ……………………… 6,041km

Main Roads …………………………... 7,082km

Local Roads …………………………131,272km

Other (forestry, National Parks) …. 38,000km

VALUE OF NETWORK

Main Roads WA ……………………… $42.2 billion

Local Government ………………….. $13.0 billion

PROFILE OF WA ROAD NETWORKS





• Road funding• Road safety and increasing road toll• Asset management• Traffic management and increasing congestion• Population growth and car ownership• Sustainability• Community expectations• Regulatory impacts• Use of technology• Integration with other forms of transport• Growth in Freight Task and HV access

ISSUES AND CHALLENGES OF ROADS





• Governance structure for responsibility of roads• Some parts of network in poor state of repair• Growth in vehicles and distance travelled • No incentives to provide HV access• Planned maintenance competes with other demands• Ever growing maintenance backlogs• Reduced capital and maintenance funding• Lack of intermodal transport planning• Shortage of information to plan networks

FACTORS CONTRIBUTING TO ROADS ISSUES


FEDERAL FUNDING OF ROADS IN WA

PROGRAM FUNDING ($ million)

PERIOD

National Projects:• On-going• New Projects• Off network projects• Maintenance Total

36.51181.0147.0698.0

$2452.0

2008/9 – 2013/14

Roads to Recovery 238.0 2008/9 – 2013/14

Black Spot 7.8 2010-2011

Financial Assistance Grants 226.0 2009 - 2010








EXPENDITURE ON ROADS IN WA





EXPENDITURE vs REVENUE ON ROADS IN WA





MAIN ROADS WA 2013-2014





SOURCES OF LOCAL GOVERNMENT ROAD FUNDS





MAIN ROADS WA 2013-2014





LOCAL GOVERNMENT EXPENDITURE ON ROADS IN WA





PRESERVATION NEED AND EXPENDITURE GAP





INFRASTRUCTURE REPORT CARD FOR ROADS IN WA

Engineers Australia 2010





STATE FUNDSTO LOCAL GOVERNMENT IN WA





STATE FUNDS TO LOCAL GOVERNMENT MANAGEMENT STRUCTURE





• Changing approach to Maintenance Contracting• Availability of funding to deliver future maintenance

at an acceptable level of service• Diminishing residual service life of assets• Inadequate skilled human resource pool (Attraction

and retention)• Increased road use shortening asset life• Ability to attract viable contractors • Retain and/or rebuild regional presence and

capability

ASSET MANAGEMENT CHALLENGES





EVOLUTION IN ROADS ASSET MANAGEMENT

Builder and Maintainer

Network Manager and

Operator

Road User Services





EVOLUTION OF MAINTENANCE DELIVERY

Delivery Method• Total Control• Select contractors• Quality Assurance

Day Labour Workforce

Term Maintenance Contracts

Term Network Contracts

Integrated Service Arrangements

Delivery Method• Little control• Outsourcing• “Hands off”

Delivery Method• Total Control• Culture of excellence

and improvement• Partnership

1906 1995 1999 2010





• Joint management Main Roads and private sector• Providing service delivery using an integrated

(collaborative) approach• Direct cost, open book reimbursement, with a

risk/reward regime (portion of profit at risk)• Scope of services tailored for each network• Each ISA operates with a joint management team and

operational staff comprising Main Roads and the Integrated Services Provider (ISP)

• Procure a range of service providers in a fully integrated manner, akin to ‘in-sourcing’

THE ISA CONCEPT





REGIONAL SUSTAINABILITY AND THE ISA’s

• Collaborative relationships• Insourcing private sector partners• More than just a maintenance contract• Services include:

o Road network operationso Operational asset managemento Maintenance delivery and capital works to $3mo Technical engineering, project and contract

management services





MAIN ROADS OBJECTIVES FOR ISA’s

• Control asset management decisions• Achieve best practice in operational asset

management and network operations• Build capability and capacity• Innovation and improvement leading

to outstanding performance• Value for money• Main Roads as an informed purchaser• Potential for LG involvement





ISA NETWORK COVERAGE

Integrated Service Arrangement

Integrated Service Provider

Kimberley ISA DownerMouchel

Pilbara ISA Leighton

Mid West & Gascoyne ISA DownerMouchel

Goldfields-Esperance ISA Abigroup

Wheatbelt ISA Leighton / Opus

South West & Great Southern

ISAFulton Hogan

Metropolitan DownerMouchel





• Whole-of-life costs• Safety (Road Safety and WHS)• Service delivery methods• Local community impacts• Road user expectations• Economic impact• Legacy value• Environmental impact• Trust and confidence in Main Roads

KEY CRITERIA DEFINING VfM ON ROADS





• What are the value expectations?• Integration and collaboration • Improving governance arrangements• Collaboration on procurement• Taking a risk management approach to asset

management• Applying a Safe Systems approach to design• Re-thinking approaches to sustainability

ACHIEVING VALUE-FOR-MONEY





INTEGRATION AND COLLABORATION ACROSS GOVERNMENTS

• Optimising current arrangements• Developing the State• State Funds to Local Government Agreement• Expanded role for Regional Road Groups• Building on ISA Opportunities• Sharing resources• Regional Sustainability





INVESTING IN THE FUTURE TOGETHER

• Local Government manages 88% of the network• Allocated 27% of Vehicle Licence Fees• Agreement represents 25% increase in funding

in real terms over five years • 20% of Local Government road expenditure

provided by the State• Planning as well as

operations opportunities





When it comes to the future there are three types of people:

1. Those who let it happen2. Those who make it happen3. Those who wonder what happened

John M Richardson Jr


main roads wa & local government common networks common problems common solutions? 2015 national...

Documents

importance of roads

wa road network slide

importance of roads

western australia roads

tourism slide

victoria slide

wa state funds

century of travel slide