RiverCity Investor Presentation 11June08

8/3/2019 RiverCity Investor Presentation 11June08

1/41

RiverCity MotorwayLinking Brisbane Life

Investor Briefing - Wednesday 11 June 2008Peter Hicks, General Manager, Infrastructure Investment, Leighton Contractors

Bowen Hills(northern portal)


2/41

Overview


3/41


4/41

Background

RiverCity Motorway is the concessionaire appointed by BCC to

finance, build, design, construct, operate and maintain the $2 billion

North-South Bypass Tunnel (NSBT) / Clem Jones tunnel

Leighton Contractors sponsored the RiverCity Motorway consortium

with ABN AMRO and Bilfinger Berger

Rivercity Motorway was listed on the ASX in August 2006 and

Leighton Contractors have committed to an $80m investment at

completion


5/41

Project Rationale

The NSBT is a 6km river crossing linking Brisbane's busiest roads,

bypassing the congested CBD of Australias fastest growing capital city

550,000 Brisbane River crossings per working day

Approximately 75% of trips across the river via a CBD bridge* are

through trips that are forced through the CBD

Through trips will benefit most from the NSBT given its role as a

CBD bypass road

High proportion of Brisbane River crossings are work related journeys

* CBD bridges are Story Bridge, Captain Cook Bridge, William Jolly Bridge and Victoria Bridge


6/41

River crossing capacity


7/41

Key Feeder Routes

Lutwyche Rd (65,000 vpd in 2005)Inner City Bypass (65,000 vpd in 2004)

Pacific Motorway (106,000 vpd in 2004)Ipswich Rd (51,000 vpd in 2005)

Shaftston Ave (65,000 vpd in 2004)

CBD


8/41

Project Concession & Delivery

Concession period of 45 years from Financial

Close

Design and construction is being undertaken by

an integrated JV between Leighton Contractors

(50%) and Baulderstone Hornibrook / Bilfinger

Berger Civil (50%) under a fixed time, fixedprice contract

Vehicle Class Tolls (incl. GST)in 2002$

Cars $3.30

Light Commercial $4.95Heavy Vehicles $8.75

Contracted completion date of October 2010 - current target completion date is

December 2009

RCM will outsource operations and maintenance to Brisbane Motorway Services,

owned 50% by Leighton Services and 50% by Bilfinger Berger Services

RCM will undertake the tolling and customer service obligations in-house


9/41

Key Statistics

10.4km of mainline tunnel excavation

3.5 million tonnes of tunnel excavation including 70% by TBM 35,000 precast lining segments for TBM tunnels

Major tunnelling equipment

2 TBMs approximately 12.5 metres

6 Roadheaders

Concrete used in the project 285,000 cubic metres

Peak workforce 1,200 people


10/41

Strong management team

Flan Cleary has been CEO of RiverCity Motorway since October 2006

Flan was the General Manager of Westlink M7 and has over 30 years

experience in infrastructure and a proven track record

Prior to his role at Westlink, Flan managed the successful

commissioning and operation of the Eastern Distributor tollroad in

Sydney

Adam Hudson has taken over from Tony Spink since April as the Project

Director for LBBJV, with Graham Olsson as the Deputy Project Director

Adam has over 30 years of construction engineering and project

management experience working on a range of technically demanding

projects


11/41

Construction Update


12/41

Construction methodologies on route

BlueRoad Header

GreenTBM


13/41

Mainline tunnels

Range of methodologies to suittopography

Mainline tunnels to be constructed using

two double shield Tunnel BoringMachines (TBMs)

12.4m diameter

77 cutters on cutterhead (315kN).

Fast excavation rate

Probe drilling min. 1 diameter ahead

Conveyor removal of spoil.

Tunnel support installation occurs directlybehind TBM - Operators protected by

shield while pre-cast lining installed

Mainline tunnel will be 100% sealed


14/41

Design & Construction

Roadheaders used for tunnelling at and near the surface entries

to achieve the required cross-sections for the designed lane

widths and configurations

In areas of low rock cover, canopy tubes and spilling bars used

to reinforce the ground above the tunnel


15/41

Tunnel boring machines (TBMs)

TBMs have advanced 1km as they travel

south towards Woolloongabba

Both TBMs have cleared Brisbane Exhibition

Grounds

Now excavating rock & placing tunnel lining

below Brisbanes Fortitude Valley TBMs on track to be under Brisbane river by

Sept 2008 & expected to break through at

Kangaroo Point late 2008, then finish journey

at Woolloongabba by mid 2009

More than 13,500 concrete tunnel lining

segments have been manufactured


16/41

Tunnel boring machines (TBMs)

TBMs have advanced 1km as they travel south towards

Woolloongabba

Both TBMs have cleared Brisbane Exhibition Grounds

Now excavating rock & placing tunnel lining below

Brisbanes Fortitude Valley

TBMs on track to be under Brisbane river by Sept 2008 &

expected to break through at Kangaroo Point late 2008, then

finish journey at Woolloongabba by mid 2009

More than 13,500 concrete tunnel lining segments have

been manufactured


17/41

Roadheader tunnelling

Well advanced with 65% of the

excavation with roadheader machines

now complete

Kangaroo Point - 5 roadheader

machines have been working 40 metres

underground excavating ShafstonAvenue on and off ramps and sections

of the mainline tunnels, with final line

working commencing

Woolloongabba started excavating 900 metres of tunnel digging

section of northbound and southbound tunnel towards Pacific Motorwayand the southern ventilation tunnel


18/41

Bridge Construction

Project remains on target to complete all

bridges by end of 2008, with 11 of 18

bridges being constructed at either end of

the tunnel already substantially complete

New local bridge at Woolloongabba

opened at end of May 2008, benefiting

local residents and includes 1.5km bike

patch

New bridge provides residents and

businesses with means of traversing

Ipswich Road

Activity Progress

Advance by TBMs 1km

Roadheaderexcavation

225,000m3

No. tunnel lining

segmentsmanufactured

13,5000

Bridges substantiallycomplete

11 of 18

Surface roads 43,750m2(30%)

No. people working 1,600


19/41

Project Risk & Mitigation


20/41

Key Risks

Construction / Completion Risks:

Geological risks implications for time, cost and safety

Specialised equipment technical & procurement risks

Resources / IR

Public interface

Other Risks materials, MEC, tolling equipment

Equity Risks:

Traffic

Tolling strategy


21/41

Geological Risks - mitigants

Detailed bore hole testing regime during tender phase BCC

data supplemented by LBBJV further investigations Tunnel design reflects underlying geology

Primarily Brisbane Tuff overlying rock of the Neranleigh-

Fernvale formation

Both types of rock are extremely hard

Equipment selection purpose-built TBMs Fully tanked (sealed) mainline tunnels

G l i l Ri k


22/41

Geological Risks

E i t i k iti t


23/41

Equipment risk - mitigants

Early specification and procurement of TBMs

Reputable manufacturer - Herrenkeneckt Significant technical support from Herrenkeneckt on the

ground

Early commencement of roadheader works, multiple

faces

Comprehensive insurance program

E i t S l ti


24/41

Equipment Selection

R & IR


25/41

Resources & IR

Integrated Joint Venture approach most effective

resources from each of the partners are applied

Early and professional recruitment program both in Australiaand overseas

Enterprise Bargaining Agreement ensures workplace

harmony

Site specific inductions

Create safety-first culture extensive education, risk

analysis, and independent Safety Management Team

P bli I t f


26/41

Public Interface

Our Approach:

Continue and build upon BCCs extensive consultation

No surprises

Always available

Guests within the community

Stakeholders

BCC

RCM JV Partners

Other Risks


27/41

Other Risks

Pre-cast tunnel lining segments

factory was established early Maximise fit-out during

excavation

Co-ordinated procurement of

tolling equipment & back office

Early appointment of IV (pre-

Financial Close)

Co-location of IV, RCM, BCC

and LBBJV senior management

Time-critical materials

Mechanical & Electrical

Tolling System

Minor Approvals &

Independent Verifier

certification


28/41

Traffic Risk

Traffic risk mitigants


29/41

Traffic risk - mitigants

Limited river crossings in Brisbane

Current and increasing need for a CBD by-pass

Competent investment-grade forecasts by Maunsells underpinRCMs base traffic case

High car dependency among Brisbane residents

High congestion on competing routes

Significant time travel savings by the NSBT in 2010

High economic and population growth in the NSBT catchmentareas

Maunsell


30/41

Maunsell

Maunsell is an experienced forecasting team, as demonstrated

in the table below:

Toll Road ForecastMeasure Client and yearof assignment Actual revenuetraffic results in2001

Difference fromforecasts

M2 MotorwayAverage dailytraffic at main tollplaza in 2001

RTA, NSW1990/91 Approx 56,000 8%

City LinkMonthly revenuefor October 2001(all days)

Transurban 1994 19.9 m 8%

407 CanadaAnnual revenue2001

Macquarie 2000 C$244.1 m 0.2%

Storebaelt Bridge,Sweden

Average daily

traffic volume2001

Macquarie 1999 21,210 0.0%

M7, SydneyAverage dailytraffic volume,2002

Leighton/Macquarie Bank /Transurban,

Up to 100,000ADT in early 2006

Still in ramp up butexceedingforecasts

Traffic congestion in Brisbane 2010


31/41


High car dependency among Brisbane residents:

1.52 vehicles per household compared to 1.41

in Sydney

c.75% of journeys to work are by car (2001),of which 89% with only one occupant

Poor public transport alternatives



32/41


Brisbane employment distribution 2006


33/41

Brisbane employment distribution 2006

Growth in Brisbane continues to


34/41

Growth in Brisbane continues tooutpace Australia

High population growth

Australias fastest growing capital city

Forecast to increase by 39% from

1.77 m in 2004 to 2.46 m in 2026

Strong growth among younger age

groups relative to other cities

Brisbane recorded 2.0% population growth

relative to 1.5% for the rest of Australia in

the year to September 2007

High economic & employment growth QLD experienced 4.8% growth in gross

state product over the 10 years to Jun 07,

compared with 3.5% for the rest of

Australia

QLD experienced employment growth of

3.75% relative to a national average of

2.5% (for 06-07)

TransApex and RCM


35/41

TransApex and RCM

Transapex and other road

infrastructure in Brisbane continue to

meet original forecasts (or earlier): Airport Link concession was

awarded in May, with a

contracted completion date of

mid 2012 (v end 2012)

BCC has announced Northern

Link will be accelerated to an

expected 2014 opening (v

2016)

Key traffic conclusions


36/41

Key traffic conclusions

Confidence in traffic numbers is supported by:

Experience of the Maunsell team

Network enhancements

Current and increasing need for NSBT in Brisbane

Sustained population and employment growth


37/41

Tolling

Tolling system


38/41

Tolling system

Fully electronic, free-flowing tolling system Tolls in both directions

Fully interoperable with Brisbanes Gateway Bridge and

Logan Motorway, and every other Australian electronic

toll road

Over 160,000 QML Gateway electronic tags already in use,

with QML moving to free-flow tolling by July 2009

Proven electronic tag and video-based technology

Utilised on Gateway Bridge, Logan Motorway,Melbournes CityLink and Westlink M7

RCM plans an aggressive tag marketing campaign as

road opening approaches

Progress Update


39/41

Progress Update

Development of tolling system back office is taking shape Group has completed the business requirements definition

and specified several major interfaces

Financial system

Vehicle database

Address database

The Group is developing a flexible and scalable tolling

system back office capable of meeting the requirements of

NSBT and future toll roads RCM is on track to complete tolling system back office in the

first quarter of 2009


40/41

Conclusions

RiverCity Motorway


41/41

y yLinking Brisbane Life

Detailed risk assesment & risk management regime in place

Construction is on-track for early completion

RCM management expect tolling back office to be ready prior to

expected opening date

RCM remains confident of its traffic forecasts given continued

high employment and population growth rates

Documents

RiverCity Investor Presentation 11June08