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MAIN ROADS WA & LOCAL GOVERNMENT
COMMON NETWORKSCOMMON PROBLEMSCOMMON SOLUTIONS?
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE AND ASSET MANAGEMENT CONFERENCE
Menno Henneveld Consulting14th May, 2015Melbourne, VICTORIA
MAIN ROADS WA & LOCAL GOVERNMENT
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
A CENTURY OF TRAVEL
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
THE IMPORTANCE OF ROADS
TYPHOON HAIYAN PHILLIPINES 2013
NEPAL EARTHQUAKE April 2015
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
THE IMPORTANCE OF ROADS
JAPAN EARTHQUAKE MARCH 2011
Joban Expressway
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
BRISBANE FLOODS 2011
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
THE IMPORTANCE OF ROADS
WA BUSHFIRES ROLEYSTONE 2010
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
WA’s RESOURCES SECTOROver-Size Over-Mass Loads
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
AGRICULTURE AND THE WA ROAD NETWORK
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
WA ROADS AND TOURISM
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
ROADS – LOCAL GOVERNMENT’S LARGEST ASSETS
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
WA’S ROAD NETWORKS
WA’s ROAD NETWORKS
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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 ………………….. $13.0 billion
PROFILE OF WA ROAD NETWORKS
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• Road funding• Road safety and increasing road toll• Asset management• Traffic management and increasing congestion• Population growth and car ownership• Sustainability• Community expectations• Regulatory impacts• Use of technology• Integration with other forms of transport• Growth in Freight Task and HV access
ISSUES AND CHALLENGES OF ROADS
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• Governance structure for responsibility of roads• Some parts of network in poor state of repair• Growth in vehicles and distance travelled • No incentives to provide HV access• Planned maintenance competes with other demands• Ever growing maintenance backlogs• Reduced capital and maintenance funding• Lack of intermodal transport planning• Shortage of information to plan networks
FACTORS CONTRIBUTING TO ROADS ISSUES
FEDERAL FUNDING OF ROADS IN WA
PROGRAM FUNDING ($ 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
EXPENDITURE ON ROADS IN WA
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
EXPENDITURE vs REVENUE ON ROADS IN WA
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
MAIN ROADS WA 2013-2014
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
SOURCES OF LOCAL GOVERNMENT ROAD FUNDS
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
MAIN ROADS WA 2013-2014
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
LOCAL GOVERNMENT EXPENDITURE ON ROADS IN WA
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
PRESERVATION NEED AND EXPENDITURE GAP
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
INFRASTRUCTURE REPORT CARD FOR ROADS IN WA
Engineers Australia 2010
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
STATE FUNDSTO LOCAL GOVERNMENT IN WA
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
STATE FUNDS TO LOCAL GOVERNMENT MANAGEMENT STRUCTURE
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
EVOLUTION IN ROADS ASSET MANAGEMENT
Builder and Maintainer
Network Manager and
Operator
Road User Services
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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 WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
• 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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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
MAIN ROADS WA & LOCAL GOVERNMENT
2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE
Menno HenneveldConsulting
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