New Generation Rollingstock

New Generation Rollingstock

Client | Queensland Department of Transport and Main Roads/ Queensland Rail Limited
Location | Queensland
Role | Business Case Manager, Economic Advisor, Transaction Manager and Advisor, Commercial Manager

The New Generation Rollingstock (NGR) involved the procurement and maintenance of up to 100 new six-car electric passenger trains and associated maintenance facilities for the city network to add to the existing fleet and replace aging rollingstock.

The project was originally developed and taken to the market as a Design Build Maintain (DBM). The procurement under a DBM was progressed to within three months of contract close. Following a change of state government, the delivery model was amended to a Design Build Finance Maintain (DBFM), the transaction process was restructured and the contract under the DBFM reached financial close in January 2014.

Corview’s engagement was to provide a Business Case to secure an investment decision and appropriately source the funding for the project, provide commercial advisory services and to transaction management services effectively leading the project to a successful procurement outcome.

The New Generation Rollingstock (NGR) involved the procurement and maintenance of up to 100 new six-car electric passenger trains and associated maintenance facilities for the city network to add to the existing fleet and replace aging rollingstock.

The project was originally developed and taken to the market as a Design Build Maintain (DBM). The procurement under a DBM was progressed to within three months of contract close. Following a change of state government, the delivery model was amended to a Design Build Finance Maintain (DBFM), the transaction process was restructured and the contract under the DBFM reached financial close in January 2014.

Corview’s engagement was to provide a business case to secure an investment decision and appropriately source the funding for the project, provide commercial risk advisory services and transaction management services, effectively leading the project to a successful procurement outcome.

Scope of Work

Business Case Management

  • Lead development of the business case including coordination and management of inputs from a multi-disciplinary project team and consultants
  • Lead analysis of project scope including fleet requirements to the year 2020
  • Funding and economic assessment consultancy services
  • Managed approvals processes including the Queensland Government’s Cabinet processes
  • Lead the development of the project risk framework that assessed process and project risks including detailed evaluation of risks and mitigation strategies

Transaction Management

  • Transaction planning and management, implementation and coordination of the transaction strategy
  • Probity support and electronic data room management
  • Facilitated and managed the EOI and RFP processes including the clarification, negotiation, documentation processes and the management of the proponent interface
  • Facilitated the completion and conclusion of the contract documents

Commercial Management

  • Lead the development of all commercial principles for NGR under the DBM, based on first principles and market precedent
  • Lead the commercial team’s interaction with market participants through all aspects of the transaction
  • Managed the commercial workstream for the DBM transaction (including through EOI and RFP phases) and was the commercial team representative on the evaluation panel
  • Conducted commercial due diligence on market participants (including in relation to off-shore manufacture and supply chains)
  • Analysed and consulted with Queensland Treasury on key commercial issues, such as third party financing options (including ECA), foreign exchange and delivery phase payment options presented by market participants

Key Achievements

  • Development of a high quality business case which successfully justified the single largest investment in public transport in the Queensland history
  • Successful management of government approval processes in parallel, across an array of government agencies.
  • Development of a foundation fleet plan for Queensland Rail including identification of total fleet requirements, new fleet requirements and retirement of old fleet
  • Identification of an innovative and flexible funding package to allow Queensland Rail to successfully match future fleet requirements with available funding sources
  • Identification of cost savings to government of using a competitive large scale contracting model for the project
  • Development of a process and project risk assessment methodology that has been adopted for use on subsequent projects through Queensland Rail
  • Significant efficiencies gained through restructuring the transaction process in a more strategic and effective manner
  • Successful restructuring of the transaction process from a DBM to accommodate a DBFM in a way that enhanced the State’s reputation in the industry