The evolution of rolling stock PPP procurement
Published 28 November 2017
MELBOURNE, AUSTRALIA – Plenary has joined a host of industry experts to highlight the success of the public-private partnership model in the procurement of rolling stock.
Plenary Executive Director Damien Augustinus joined experts from Downer Rail, PwC, White & Case, and Transport for Victoria at an International Project Finance Association event in Melbourne recently.
The panel discussed the evolution of rolling stock procurement in recent years, and why the PPP procurement approach was the right choice for the Victorian Government’s $2.3 billion High Capacity Metro Trains project.
Using the HCMT project as a best-practice example, Mr Augustinus spoke of the various benefits to industry and the community as a result of the PPP, namely the increased employment and local manufacturing opportunities.
“The HCMT project focussed specifically on supporting local industries and jobs while generating a huge investment in local suppliers,” Mr Augustinus said.
“Traditional rolling stock procurement can result in a loss of jobs within the industry because of the tendency to favour off-shore manufacturing.
“The PPP model was also attractive for HCMT based on the value for money delivered.
“The HCMT project involves a 30-year maintenance term which delivered price and quality certainty for the government, and long-term, high-skill employment throughout the supply chain, all while delivering world class next-generation trains for Melbourne’s train network.”
The HCMT project is the largest investment in rolling stock in Victoria to date and includes the delivery of 65 high capacity trains being built in Victoria over the next six years, and the construction of new maintenance facilities in Pakenham East and Calder Park.
Plenary is part of the Evolution Rail consortium – also comprising Downer and CRRC – contracted by the Victorian Government to deliver the $2.3 billion project.
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