The 

West Gate Tunnel, originally known as the Western Distributor, is a four kilometre toll road
currently under construction in Melbourne, Australia, to link the West Gate Freeway at Yarraville with
the Port of Melbourne and CityLink at Docklands via twin tunnels beneath Yarraville, as well as a
bridge and elevated road section.
The $6.7 billion project[1] was proposed by infrastructure company Transurban in 2014 as a means of
alleviating congestion on the M1 corridor, providing a new river crossing as an alternative to
the West Gate Bridge and moving trucks out of residential streets in the city's inner west. The
freeway-standard link includes two tunnels with three lanes each that are approximately 4 km long
outbound and 2.8 km long inbound, a new bridge over the Maribyrnong River, and an elevated road
above Footscray Road. The project will also widen the West Gate Freeway from eight to 12 lanes
between the M80 Ring Road and the West Gate Bridge.[2]
The tunnel project replaced an earlier $680 million freight route, the West Gate Distributor, which
the Australian Labor Party had taken to the 2014 state election.
The Victorian government announced in December 2015 it would proceed with the project. Planning
approvals were granted in December 2017 and major construction of the tunnel and elevated tollway
began in January 2018. It was scheduled for completion on 30 September 2022,[3] although delays
related to disposal of contaminated soil have pushed back its opening until at least 2024.[4][5]
The project has been criticised by transport and urban planning experts, for overstating the
benefits, increasing traffic in the inner city, and not considering better alternatives.[91] They have also
criticised the lack of transparency in the planning process, and the lack of independent and
democratic review.[92] In December 2017 the Coalition and the Greens vowed to block the project.[93]
Official projections for a significant increase in truck traffic on Millers Road and Williamstown Road
once the tunnel opens led to the formation of two resident action groups, Don't Destroy Millers Road
and Save Willy Road,[61][94] which have expressed concerns about further degradation of air quality
and called for freight truck bans on those roads.[95] Maribyrnong City Council voted in July 2019 to
advocate for truck bans on Williamstown Road and urged the state government to begin design and
development of an alternative north-south freight route outside of residential areas.[96][97]
In December 2017, the University of Melbourne and the Royal Melbourne Institute of Technology's
Centre for Urban Research released a report, West Gate Tunnel: Another Case of Tunnel Vision,
criticising the Andrews Government for proceeding with the West Gate Tunnel and the North East
Link, claiming "secrecy" around traffic modelling raised doubts over the accuracy of the project's
predictions and assumptions. It claimed the project could hinder public transport usage and
accessibility and also asserted that it would do nothing to improve the east-west capacity of the M1
corridor because the "pinch point" of the CityLink tunnels would remain its main determinant.[98][91] The
report was accompanied by an open letter to Andrews and all Victorian MPs signed by 28
academics asking the government to reconsider building the tunnel project because of concerns
about an inability to meet its objectives; project overreach and overstatement of benefits; the
adequacy of planning processes and planning strategies; and the opacity of the market-led process.
In evidence to a 2017 senate committee hearing on the operations of toll roads,[99] transport planner
William McDougall gave evidence that in 2015 he was contracted by the Victorian government to
support an externally-appointed peer reviewer for the tunnel project's transport modelling and to
undertake a peer review of its cost-benefit analysis. He became convinced both the transport
modelling and cost-benefit analysis were flawed and would not stand up to scrutiny. After raising
concerns with state Treasurer Tim Pallas he was taken off the project's work. His submission to the
senate committee claimed the transport modelling had been "fudged" and the cost-benefit analysis
overstated the project's benefits. He wrote that the work for the project was "biased towards
producing bullish forecasts and optimistic and financial projections ... my direct experience as a
reviewer confirmed my long-held suspicions of substantial 'optimism bias' in the appraisal process".
[100][101]
See also
The Victorian Coalition government disputed Labor's claim that the West Gate Distributor would
remove 5000 trucks a day from the West Gate Bridge, citing traffic modelling that showed about
4130 trucks a day travelled to the port's Swanson-Dynon precinct from the west, and that only 30
percent of them—about 1240 trucks—approached by the West Gate Freeway.[10] Western suburbs
advocacy group LeadWest has claimed the bypass could backfire, pushing more trucks on to
residential streets in Yarraville and Footscray. A spokesman said LeadWest was concerned that
westbound drivers exiting the port bound for Brooklyn, Laverton North and Truganina would continue
to use inner suburban streets to avoid the gradient on a truck ramp from Hyde Street to the West
Gate Freeway. He said drivers would save on fuel and toll expenses by continuing to use suburban
streets.[3]
The RACV has criticised the lack of detail in the government's announcements on the project,
expressing concern over the potential for traffic confusion resulting from a "spaghetti junction" of
ramps between Williamstown Road and the West Gate Bridge. RACV policy manager Brian Negus
said the motoring lobby group was waiting to see the detail "because thus far, we've only seen a
couple of pages from Labor prior to the election and that doesn't give us good detail".[16][20][21]
The Herald Sun has reported that documents prepared by unnamed "environmental agencies" show
the construction area is contaminated by dangerous materials including demolition waste that would
require cleaning up and delay the project. It said plans to fast-track the work could also be
jeopardised because large areas near the bridge and Stony Creek had been classified as areas of
cultural heritage sensitivity. The area was reported to have once been used as a food and water
source by the Boonwurrung people.[17]

Environment Effects Statement[edit]

In May 2017 the state government released the project's Environment Effects Statement (EES),
which assessed its environmental, social and health impacts. The community was given 30 business
days to review the 10,000 page document[33] and hearings began on 14 August 2017.
The report found that with port freight volumes almost doubling between 2012 and 2031, truck
numbers on the West Gate Freeway, West Gate Bridge and several inner west roads would grow
markedly.[34] It said the project's objectives were to improve transport performance in the M1 corridor,
reduce reliance on the West Gate Bridge, improve freight access to the Port of Melbourne and
greater Melbourne, and improve community amenity on local streets in the inner west.[35] The EES
concluded that it met those objectives, diverting 8000 trucks a day from the bridge, providing direct
freeway access to the port, removing a net 9300 trucks a day from local roads in the inner west and
reducing peak period travel times across the city's primary western road corridor.[36]

Traffic impacts[edit]
Traffic projections in the EES for the tunnel and road link revised patronage levels from those
contained in the business case, with a significant increase in truck estimates. Total daily vehicle
projections were now 55,000 to 67,000, which included between 13,200 and 16,200 trucks (up from
9000 to 11,000). The project's effect on West Gate Bridge truck traffic also underwent revision: its
claim that 8000 trucks a day would be taken off the bridge was as much as double the 4000-6000
estimate in the business case. Although the EES cited a net reduction of 9300 trucks daily on
several major roads in the inner west, it also revealed they would "increase significantly" on two key
inner west residential routes—truck numbers would double on Williamstown Road, while on Millers
Road they would more than triple to almost 15,000 a day.[37]
At the city end of the project, Dudley Street traffic volumes were tipped to fall slightly, but Dryburgh,
Arden, Curzon, Queensberry and Victoria streets were all projected to receive between 1500 and
3500 additional vehicles a day. A widened and extended Wurundjeri Way would carry an extra 9000
vehicles a day in both directions.[38]

Health, amenity and environmental quality[edit]

Tunnel ventilation structures were deemed to be generally compliant with environmental standards.
Air quality was expected to improve near roads that would be the subject of permanent truck
curfews, but increased traffic volumes on some roads, including Millers Road and Geelong Road,
would have a negative effect on air quality.[39][note 1] The EES Social Impact Assessment noted the
significant heavy traffic increases for both Millers and Williamstown roads were problematic for
residents. Millers Road residents would suffer a decrease in safety and amenity and greater difficulty
in reaching services and facilities south of the West Gate Freeway, while on Williamstown Road it
would affect connectivity and travel times, as well as affecting the likelihood of cyclists and
pedestrians using and crossing the road. Of Williamstown Road, the report noted: "This is a
significant change for a road which has a high proportion of residential frontages, and high density
residential areas east and west of the road itself."[40]

Submissions[edit]
Hobsons Bay City Council said the toll road would lead to a significant rise in truck traffic on Millers
Road, which would mean "persistent noise, increased delays and degraded air quality, each
negatively affecting overall quality of life".[41][42] The council recommended upgrading Grieve Parade
as the preferred truck route (via Princes Highway) to access the West Gate Freeway, with an
extension northward to Market Road, Tottenham, an upgraded freeway interchange including
additional ramps to and from the M80 Western Ring Road, and new west-facing ramps to Dohertys
Road and Princes Freeway. The council submission also said a corridor study was required on
Millers Road between Geelong Road and Blackshaws Road to seek ways of mitigating impacts of
additional truck traffic.[41][43]
Maribyrnong City Council said the project was an important opportunity to improve the health and
liveability of inner west suburbs, but criticised components of it. It sought the exploration of a new
road connection to the freeway via the Paramount Road corridor in Tottenham to mitigate the effects
of the tunnel project on Brooklyn residents and provide an alternative means of access to the tunnel
and the port.[44]
An analysis by the City of Melbourne of the traffic modelling presented in the EES found the tunnel
project would result in peak hour-like traffic conditions for 12–14 hours a day on four roads in North
Melbourne, negatively affect tram performance across northern Melbourne and possibly undermine
future tram improvements.[45] The council's submission was harshly critical of the EES, describing it
as fundamentally flawed because it failed to investigate and document relevant alternatives for the
project. It concluded: "In truth, this is not an EES; rather it's a sales brochure. It is designed to sell
the project, and to create the illusion of independent, rigorous analysis."[46]
The council said the fact that Infrastructure Victoria had not been asked to carry out any independent
assessment of the project was "yet another example of what appears to be a strategy to avoid
independent scrutiny of the merits of the project".[47] The council said that although traffic
modelling was fundamental to the EES, the degree of its reliability could not be reliably ascertained
because the model was a "black box", providing outside parties with no opportunity to carry out
rigorous independent peer review of its findings. The council said a peer review had been
undertaken by a "partisan witness" but the results of that review had been suppressed by the
Western Distributor Authority.[48][note 2]
The Maribyrnong Truck Action Group said the EES failed to acknowledge the serious health impacts
of diesel particulates. It claimed the EES contained inaccurate and misleading air quality and
modelling and out-of-date background modelling and criticised the absence of an air filtration system
for the project's tunnel.[49] MTAG found "alarming" negative community impacts resulting from
increased heavy vehicle traffic on Williamstown Road, Millers Road, Blackshaws Road and the West
Gate Freeway. It called for truck bans on Williamstown Road, which would experience an increase of
1500 trucks a day between Geelong Road and Somerville Road, with a resultant rise in air pollution.
It also called for truck bans on Millers Road north of the freeway, where truck traffic would increase
by 7000 trucks a day, as well as Hudsons Road, Spotswood west of the railway line.[50]

Inquiry and Advisory Committee report[edit]

Williamstown Road, Seddon, which is expected to receive a "significant increase" in truck numbers once the
tunnel is built.

A review of the EES by the Inquiry and Advisory Committee (IAC) was released on 23 October 2017.
The IAC's role was to review the draft Planning Scheme Amendment and submissions, to conduct a
hearing process and to report to the Minister for Planning on the adequacy and appropriateness of
proposed planning controls. It reported: "On balance, considering the adverse and beneficial
environmental effects overall, the IAC considers the environmental effects of the Project can be
managed to an acceptable level and the Project approvals should be granted."[51]
It acknowledged repeated criticism in submissions that the project failed to address public transport
matters objectives contained in the Transport Integration Act 2010, but noted the Western Distributor
Authority's response that it should be seen as complementary of projects such as the Metro
Tunnel rail project and level crossing removal. The IAC said the project was likely to impose
significant constraints on the urban renewal area at E-Gate in West Melbourne, primarily through the
elevated Wurundjeri Way extension and said a "demonstrably superior outcome" should be possible.
It said the project should aim to contribute to improvements in air quality and recommended that
pollution control equipment be installed on the tunnel ventilation system.[51]
The IAC said there would be an overall reduction in trucks on residential streets, producing
beneficial environmental effects, although fulltime truck bans in Yarraville and Footscray would result
in negative environmental effects because of a "significant increase" in truck volumes on Millers
Road and Williamstown Road. It said Millers Road would suffer increasing impacts over time but that
the physical and environmental capacity limits on that road had not been explored in the EES. The
report said the increased truck traffic would cause "high" or "major" residual social impacts for
residential communities on both roads. It recommended a corridor study be carried out on Millers
Road to determine traffic management works, considering the safety, accessibility and amenity of
the abutting local residential communities; it also recommended an air quality mitigation response be
developed for both Millers Road and Williamstown Road.[52]
The IAC urged more work to be done to develop a solution to manage growth in truck traffic between
the Brooklyn/Tottenham industrial area and the port. It added: "Planning should be commenced to
determine an alternate freight route to reduce reliance on Millers Road beyond 2031."[53]

Ministerial assessment[edit]
The Minister for Planning, Richard Wynne released an Assessment Report of the West Gate Tunnel
Project, concluding the Environmental Effects Statement process, on 27 November 2017. He
acknowledged that the project would generate both positive and negative environmental effects, but
that adverse effects could be managed and minimised. He noted: "Regardless of the overall
benefits, some local communities, particularly the residential communities near Millers and
Williamstown Roads and Hyde Street, will suffer adverse effects" and recommended a corridor study
for Millers Road to seek ways to reduce impacts to acceptable levels.[54]
Millers Road/Williamstown Road Corridor Study[edit]
The Victorian Government announced in May 2018 that a Corridor Study Group would investigate
safety and other issues in and near Millers Road and Williamstown Road in line with
recommendations from the EES process.[55][56] The group met several times from September
2018[57] but was criticised by the Save Willy Road residents' action group as a "sham," with claims it
had been "hijacked" by VicRoads to make it easier for freight trucks to use Williamstown Road, while
failing to address concerns about safety and amenity.[58][59][60] The Corridor Study Group was
terminated in January 2020 without producing any recommendations on mitigation strategies.[61]

Construction[edit]
Preparatory work on the project began in early 2018 with the diversion of a 600 metre section of the
brick North Yarra Main Sewer under Whitehall Street; that work finished in September 2019.[62] Lane
widening work on the West Gate Freeway began in February 2018[63] and work began in 2019 for the
foundations of a new bridge over the Maribyrnong River and the elevated section of road on
Footscray Road.[64] A cut and cover method was chosen for the entry and exit of each of the two
tunnels and the first of two 450-tonne tunnel boring machines was lowered into a launch site at the
northern portal in Yarraville in August 2019. Tunnelling work was to begin first on the 4km outbound
tunnel, with work on the 2.8km inbound tunnel to follow soon after, although soil contamination
issues meant that by February 2020 boring work was yet to begin. The longer tunnel was expected
to take about 18 months to bore, with 1.5 million cubic metres of rock and soil needing disposal at
landfill sites.[65][66][67]

Contaminated soil[edit]
The presence of contaminated soil from past industrial use in the project area and its impact was
raised during the EES hearings and final Inquiry and Advisory Committee report.[68][69] In mid-2019 the
joint venture responsible for building the project—CPB Contractors and John Holland—reportedly
sent Transurban a letter of intent, claiming they were confronted with a force majeure event, an
unforseeable circumstance that made it impossible to fulfil the terms of their contract, because of
difficulties in disposing of soil contaminated with PFAS. They claimed the volume of contaminated
soil was greater than expected, and that the rules of how to dispose of it had become stricter since
work had begun. They demanded Transurban cover the additional costs of dealing with it—a figure
reported to be between $500 million[70] and $1 billion.[71] In late January 2020 the companies claimed
that because the issue had not been solved within six months, they planned to terminate the
contract. As the dispute escalated, it was predicted that tunnelling machines could sit idle for six
more months, casting doubt on whether the project can be delivered by its 2022 deadline,[72] and 140
tunnel workers were laid off.[66][73] By mid-May 2020 it was reported that hundreds more workers,
including white-collar staff, were being laid off as delays continued.[74] Soil samples taken near
Mackenzie Road in Footscray, where the tunnel's road ramps are to go, reportedly showed
contamination between 112 and 2,000 times the acceptable level in drinking water. Fears were held
contaminants could leach into the water table.[75]
Premier Daniel Andrews accused Transurban and its contractors of playing "silly games" to extract
more taxpayer funds and threatened to revisit the lucrative 10-year CityLink tolling extension for
Transurban.[73] Transport Infrastructure Minister Jacinta Allan said the companies needed to resolve
the situation without government involvement and said the presence of contaminated soil was known
before the contract was signed.[66] As the dispute continued, John Holland chief executive Joe Barr
warned the construction industry was "teetering on the edge of collapse" because major contractors
were not making money. Barr said his company would no longer bid on projects where it believed
the risk profile was unacceptable, adding: "Risks that are controlled by governments should be held
by governments." John Holland reported a $59.6 million loss while its contract partner CIMIC
reported a $1 billion annual loss a month earlier.[76]
Relationships between the contract partners descended to a new low in June 2020 when
Transurban sought a Supreme Court injunction to stop what it claimed was a premature attempt by
the tunnel builders to start arbitration over contaminated soil. Court documents also revealed that in
March, Transurban had written to the state government questioning whether it could it tear up its
contract with the government for the entire project if the builders' force majeure claim was deemed
valid and their contract with Transurban was terminated. The state government responded that no
force majeure event had occurred and Transurban was not entitled to quit the project.[77]
Concerns over the possible disposal site of the contaminated soil sparked protests in Bacchus
Marsh[78] and Werribee[79] in early 2020 but industry sources claimed much technical and planning
work would be required before dump locations were finalised and it might be six months before they
could receive waste.[80] In September the Victorian Environment Protection Authority approved plans
to send most of the PFAS-contaminated soil to two landfills—Maddingley brown coal landfill site in
Bacchus Marsh and Hi-Quality in Bulla, northwest of Melbourne, a move that would exceed Victoria's
landfill capacity and force landfill expansions.[81] The state government was reported to have agreed
to cover the additional cost of disposing of the toxic soil—now estimated to be as much as $750
million.[82] The announcement sparked anger from residents and farmers near the dump sites,
complaining soil would be dumped close to a school, homes and farms[83] and Melton Council and the
Moorabool Environment Group launched Supreme Court action in February 2021 to halt the plans.[84]
In December 2020, however, the EPA announced it had revoked all the landfill approvals it had
given, admitting it had overstepped its powers by failing to wait for key information it had requested
about the landfills before approving their environment management plans. The EPA said it was a
"technical administrative error" and each of the landfills would need need to submit new applications
for approval. The state opposition described the move as a "monumental stuff-up".[85]
Transurban conceded in February 2021 that difficulties in securing soil disposal sites as well as lags
in approvals and preparatory works meant a 2023 completion date for the project was no longer
achievable. Company chief executive Scott Charlton said he could not confirm when the road would
open. He said the project was also facing "substantial overruns" in costs.[4]

Precast concrete[edit]
The West Gate Tunnel Project announced in 2018 that a new $60 million precast concrete facility
would be built in Benalla to provide more than 65,000 concrete products for the project. The facility
would include a new 700 metre rail siding and 600 metres of new rail track connecting it to the
nearby freight line so the concrete segments could be loaded directly on to freight trains and
transported to Melbourne.[86] In August 2020 it was revealed about 460 of the concrete components,
weighing up to 160 tonnes, would be too big for the railway tracks and would instead need to be
trucked to Melbourne via 52-metre long, five-metre high "superload" freight vehicles travelling at
25km/h. Residents in towns on the route, including Longwood and Locksley complained after they
were warned to expect as many as five loads a week for two years, travelling at night.[87][88] A month
later Strathbogie Shire Council effectively banned the movement of the superloads on its roads by
imposing a 70-tonne limit on the roads the West Gate Tunnel Project had planned as part of its route
to Melbourne. Strathbogie Shire Mayor Amanda McClaren said the council wanted a Memorandum
of Understanding with the project before it would allow the superloads to pass through. She said she
wanted agreements for maintenance of the roads along with more details on when and how often
the trucks would arrive.[89]

Auditor-General's analysis[edit]
A report by the Victorian Auditor-General's Office on the operation of market-led proposals tabled in
November 2019[13] criticised the West Gate Tunnel project, concluding the government had approved
the new tunnel without sufficient proof that Transurban's market-led proposal demonstrated value for
money and "unique qualities". The report said Treasury Department officials failed to warn the
government that extending CityLink tolling could "create an unintended monopoly advantage for
Transurban". It said Treasury officials also failed to properly consider a range of alternative project
options, or other ways–apart from extending Transurban's tolling on CityLink–to pay for the new
road. "The business case was not sufficiently comprehensive and so undermined one of its key
purposes–to provide confidence to decision-makers that they are selecting the right investment
option," the audit said.
Auditor-General Andrew Greaves argued funds to build the road could have been raised through
other means. The state government could have increased taxes, borrowed the money, taken control
of CityLink tolling, or opened it up to competitive tender, he said. The report said including the
Monash Freeway upgrade "lacked a convincing rationale" and coupled with a series of other
abnormal additions might have inflated the project's benefits on paper. That meant the government
"could not be assured that benefits had not been overstated", Mr Greaves said.[90]
Pallas rejected the Auditor-General's findings, describing the report as "subjective opinion". "It is
illogical, incoherent and in many places impossible to implement," he said.[90]

GUEST OBSERVATION

Victoria’s government finds itself in a big hole with its West Gate Tunnel project.

As diggers lie idle in a dispute over what to do with contaminated soil, it’s facing long
delays and billions in extra costs. But the government appears locked into a contentious
project that was put to it as a market-led proposal, an arrangement that bedevils
transport projects across Australia.

Australian governments look increasingly to mega-projects to solve urban and regional

transport problems. These projects are city-shaping. They can transform how entire
urban regions function.
The public has a clear stake in these projects, but unsolicited market-led proposals are
subverting planning processes that are meant to protect the public interest.

Market-led proposals are unsolicited bids to government by private firms to provide

public services or infrastructure. Policies governing market-led proposals
were introduced in 2014 and 2015 by state governments across Australia to promote
innovation in service delivery and value for money for taxpayers.
The increasing use of market-led proposals for transport mega-projects raises important
questions. How are policies governing these managed, to what end, and for whose
benefit?
In Melbourne, the tensions between toll road operator Transurban and the Victorian
government over the West Gate Tunnel highlight a fundamental shortcoming of market-
led proposals. Bluntly, these are not suited to the planning of transport mega-projects
because governments can become “locked in” with questionable benefits. Lock-in has
been defined as “the escalating commitment of decision-makers to an ineffective course
of action”.
The case of the West Gate Tunnel
Transurban’s builders of the West Gate Tunnel, John Holland and CPB Contractors, laid
off 137 workers last month in a dispute about liability for contaminated soil. This is bad
press for the state government, which touted job creation and training as key project
benefits.
The dispute could add to delays and costs on top of two earlier changes related to the
project. The first was a ten-year extension to Transurban’s CityLink tolling
concession that will cost road users billions of dollars. The second was an increase in
construction costs from A$5.5 billion to A$6.7 billion to extend tunnels to save a public
park.
Explanations for the dispute include the Environmental Protection Authority tightening
soil disposal requirements, difficulties determining site conditions during the
environmental assessment process, and insufficient foresight and planning for these
risks.
Another explanation for what happened is “lock-in”. Evidence of lock-in on the West
Gate Tunnel points to deeper systemic problems with market-led proposals for transport
mega-projects in general.

How does lock-in happen?

Lock-in can occur when powerful corporations partner with governments in
circumstances that enable them to exploit vulnerabilities in our public institutions. Some
of these vulnerabilities include increasing reliance by governments on private finance,
and the short period between elections compared to the time it takes to deliver bold
public works programs.

Lock-in happens when the real decision to build a project is made well in advance of
processes that are publicly declared to inform that decision. Once governments are
locked in to a project, it can make alternatives appear increasingly unviable, if not
unthinkable.
There is strong evidence to suggest this happened with the West Gate
Tunnel. Significant concerns were raised early on that the project might not provide its
claimed public benefits.
What makes market-led proposals different?
Market-led proposals differ from government-led projects because planning is effectively
outsourced to the private sector.

Market-led proposals also differ from public-private partnerships, like Melbourne’s

CityLink tollway. In such cases, government plans these projects, but private firms
deliver and operate them. (At least CityLink was part of a long-standing, if largely
discredited, strategic plan.)
Revelations that Transurban acted in secretive and strategic ways to secure support for
its West Gate Tunnel raise serious ethical questions. What does it mean to be a “good
partner” to government? How should powerful private corporations obtain a “social
licence” to operate?
These questions draw attention to problems inherent in Victoria’s opaque market-led
proposal process. The government’s caution about the AirRail consortium’s unsolicited
bid for Melbourne’s airport rail link points toward some of these dangers.
What’s wrong with this approach?
Government policies for assessing market-led proposals give powerful private firms like
Transurban influence over strategic planning. This contrasts with the relatively limited
influence granted to affected communities and stakeholder groups advocating for
sustainable transport solutions.
Acceptance of Transurban’s bid allowed a multi-billion-dollar toll road to override plans
that had been taken to an election. These plans were simpler and far less expensive.
The plans had been developed with the local community to better manage freight traffic
by upgrading access to existing freeways.
The West Gate Tunnel process involved expedited planning that bypassed broad-based
community consultation. John Holland and CPB Contractors were selected in April 2017
“to get to work” on the project. That was five months before public hearings concluded
in September. Over 500 submissions were received.
Add to this the suppression of independent and critical oversight and a heavily
redacted business case, and a very concerning picture of Victoria’s market-led process
emerges. 
Wanted: an integrated transport plan
Because governments are ultimately responsible for their partnerships, the Victorian
government should demonstrate stronger accountability and leadership. Victorians are
still waiting for an integrated transport plan, as is required to be prepared under
the 2010 Transport Integration Act. Instead of outsourcing transport problems to private
firms, the government should develop a statewide, genuinely consultative, evidence-
based plan.
An integrated transport plan would allow Victorians to see how future mega-projects,
regardless of who proposes them, might serve everyone’s interests.

James Whitten, Ph.D Candidate, Faculty of Architecture, Building and

Planning, University of Melbourne; Crystal Legacy, Senior Lecturer in Urban
Planning, University of Melbourne, and Ian Woodcock, Senior Lecturer, Director of Urban
Design, Swinburne University of Technology
This article is republished from The Conversation under a Creative Commons license.
Read the original article.

Construction 'on brink of collapse', says John

Holland CEO
Jenny WigginsInfrastructure reporter
Mar 18, 2020 – 12.00am
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Share
John Holland chief executive Joe Barr says the construction industry is on the
brink of collapse and is not sustainable after the builder of Melbourne's West
Gate Tunnel and the Sydney Metro reported a $59.6 million annual loss.

“I won’t sugar coat it," Mr Barr told The Australian Financial Review. "Tier
one contractors in Australia are not making any money, and governments
across Australia keep having successive project cost blowouts."

“We are in the midst of Australia’s biggest infrastructure boom, but as an

industry, we are teetering on the brink of collapse."

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John Holland, which is owned by China Communications Construction

Company and operates in New Zealand and south-east Asia as well as
Australia, delivered the after-tax net loss for the 12 months to December after
reporting profit of $84.2 million a year earlier.

The loss was due to write-downs on margins of specific projects. Cash flow was
boosted by gains on property sales but John Holland, which is working on
about $14 billion worth of projects, is carrying a deficit in net current assets of
$211 million.
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John Holland's losses were not an isolated case in the construction sector, and
governments need to recognise the pressures on the industry, Mr Barr said.

“While they have projects worth hundreds of billions in planning along the
east coast, it is unclear if there will be an industry left to build them."

John Holland will no longer bid on projects where it believes the risk profile is
unacceptable, Mr Barr said. “Risks that are controlled by governments should
be held by governments."

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0Government urges Australians to fly home as coronavirus closes
borders

The loss comes as John Holland and construction partner CIMIC, which
reported a $1 billion annual loss in February, battle with tollroad group
Transurban over who should pay for cost blow-outs caused by delays on
Melbourne's $6.7 billion West Gate Tunnel project.

CIMIC and John Holland terminated a contract to build the new tunnel for
Transurban in late January, claiming they were not responsible for the
unexpected cost and difficulty of disposing of contaminated soil. The dispute
remains unresolved.

Contractors are also likely to come under further financial pressure during the
coronavirus outbreak.

Lindsay Le Compte, executive director of the Australian Constructors

Association, said contractors could struggle to deliver projects on time and on
budget if materials are delayed or workers fall ill.

"There could be both legal and financial impacts for contractors and their
supply chains so clients will need to consider giving some leeway to allow
industry to meet its obligations," Mr Le Compte said.
Rebecca Casson, CEO of Master Builders Victoria, said the group urged all
levels of government to approve reasonable requests for extensions of time
even if contracts did not technically allow them.

Unions called on companies to keep paying workers for at least two weeks if
they have to be sent home for quarantine during the COVID-19 outbreak.

Dave Noonan, national secretary of the Construction, Forestry, Maritime,

Mining and Energy Union, said that he was aware of one project in NSW
where all workers had been sent home due to a virus scare.

The CFMEU does not want the industry to unilaterally shut down during the
virus outbreak and believes it should manage work sites on a "job by job
basis," Mr Noonan said.

Contractors warned governments they need guaranteed access to raw

materials over the next few months.

If south-east Asia introduced further lock downs on the movement of people

and goods – Malaysia this week shut down private companies except those
providing essential services – Australia may find it hard to get raw materials
such as cement and concrete, said Chris Melham, chief executive of the
national Civil Contractors Federation.

"We can't build a road or a bridge or railway line without the raw materials
and the extractive materials," he said.

Victoria's minister for transport infrastructure, Jacinta Allan, said she had met
the biggest contractors and was reviewing companies' response plans to the
virus and the protective measures they had in place.

No Victorian government projects have yet been affected by the virus but this
could change, Ms Allan warned.

NSW Treasurer Dominic Perrottet said NSW was committed to continuing its
existing budgeted capital program of $97.3 billion.
John Holland slashes jobs in restructure

Jenny Wiggins

Jenny Wiggins
Infrastructure reporter

Updated Jun 12, 2020 – 4.05pm,

first published at 11.28am

Save
Share

John Holland, the Chinese-owned construction group

building the West Gate Tunnel and the Sydney Metro, will
cut up to 200 jobs and restructure, creating a new division
for multibillion-dollar projects as it struggles with hefty
losses.

Owners China Communications Construction Company

are understood to be unhappy with John Holland's
performance, and have brought in a new chairman, Bo
Wang, to scrutinise costs and take a more conservative
approach to risk on future projects.

John Holland, which reported a $60 million annual loss

for 2019, has hired Mark Davies from the UK to run a new
major projects division from July, focusing on projects
worth more than $1.5 billion.
Mr Davies was previously managing director of the Balfour
Beatty Vinci joint venture, which specialises in high-speed
rail, and formerly ran the infrastructure division of British
construction group Carillion, which collapsed in 2018.

Most of John Holland's multibillion-dollar projects are

losing money, including Melbourne's $6.7 billion West
Gate Tunnel and $11 billion Metro Tunnel, although the
Sydney Metro city and south-west project is understood to
be performing well and ahead of schedule.

John Holland's commercial property division has also

suffered from the COVID-19 outbreak, which has curtailed
demand for new offices as people shift to working from
home and some companies, including engineering group
Worley, save money by getting rid of offices permanently.
John Holland chief executive Joe Barr has acknowledged
that the company has previously taken on too much risk,
telling The Australian Financial Review in March that tier
one contractors in Australia were not making any money
and claiming that the construction industry was "teetering
on the brink of collapse".

The restructure includes dumping John Holland's

previous model for managing infrastructure projects,
which gave responsibility to state managers, and moving
to a national model (which is how the group already runs
its rail and property projects.)

Andrew English, who was previously in charge of

infrastructure projects in NSW and ACT, will now manage
all infrastructure projects nationally.

The changes will lead to between 150 and 200 jobs being
axed as some state-based roles, including finance and
human resources, are consolidated nationally.
The construction group, which was acquired by CCCC in
2015 from Leighton Holdings (now known as CIMIC), will
also scale back its investment in south-east Asia and close
its Singapore office.